Our Scale for GoodGovernance

To ensure responsible leadership of our Scale for Good platform across our business, we are committed to strong governance, clear accountability, stakeholder engagement, transparency and accurate reporting.

 

 

Steve Easterbrook, President and CEO, McDonald’s

“We are proud to build on our strong commitment to the communities where we operate. With these bold actions, McDonald’s is embracing our leadership responsibility and demonstrating the incredible opportunities we can create for our customers, our people and our stakeholders when we harness our scale to drive good change around the world.”

Steve Easterbrook, President and CEO, McDonald’s

Francesca DeBiase, Chief Supply Chain and Sustainability Officer

“We’re aware that we live in a world of rapid change, with continued opportunities to embed sustainability across our business. Our values of responsible leadership are even more relevant to our customers and stakeholders today, influencing our business plans more directly than ever before.”

Francesca DeBiase, Chief Supply Chain and Sustainability Officer, McDonald’s

Governance structures

Good governance is essential to manage sustainability integration and to drive our Scale for Good platform throughout the Company.

 

 

Our Board of Directors

As part of the Company’s corporate governance, the Board of Directors of McDonald’s Corporation is responsible for the oversight of the Company’s business in an honest, fair, diligent and ethical manner. Among other responsibilities, the Board is actively engaged in overseeing and reviewing the Company’s strategic direction, objectives and enterprise risk management.

Six standing Board committees – Audit & Finance, Compensation, Governance, Executive, Public Policy & Strategy, and Sustainability & Corporate Responsibility – support the Board’s oversight.

In particular, the Sustainability & Corporate Responsibility Committee monitors and provides input on our Scale for Good platform and priorities. The Committee also monitors the Company’s strategies and efforts to address McDonald’s brand trust through its performance as a sustainable organization. The Committee regularly reports to the full Board regarding its activities, and from time to time, other Board committees and the full Board receive reports on the Company’s sustainability efforts as circumstances warrant.

 

 

Scale for Good leadership team

The Scale for Good leadership team was formed in 2016, bringing together cross-functional senior executives from across the Company who are accountable for leading McDonald’s strategy for responsible leadership. These leaders and their teams worked together to develop and guide our new Scale for Good platform and goals.

The team is chaired by Francesca DeBiase, Chief Supply Chain and Sustainability Officer. She leads the team along with Robert Gibbs, Chief Communications Officer; Silvia Lagnado, Global Chief Marketing Officer; David Fairhurst, Chief People Officer; and Jerry Krulewitch, General Counsel.

Each member of the team looks after a specific area of our Scale for Good work. Together, they ensure that we establish plans and monitor progress to achieve our goals and commitments, and that we share the progress we’re making through our brand communications globally and across the local markets. They meet multiple times a year to discuss strategy and progress.

The leadership team is supported by a strong CEO voice, placing accountability at the very top of our organization.

 

 

Cross-functional working groups

The Scale for Good leadership team is supported by cross-functional working groups for each priority area, with representatives from departments across our global business. These cross-functional teams work with third-party organizations to monitor issues and trends, and oversee and develop the strategy for each area, which then gets rolled out at a local level through our market teams, Franchisees and suppliers.

 

 

Engaging Franchisees and suppliers

The leaders of each McDonald’s market have responsibility for working with their teams to engage local Franchisees in our initiatives and programs. Our local community presence is foundational to our global brand.

Beyond commercial, food and product safety, and food quality responsibilities, the Global Supply Chain and Sustainability group has responsibility for managing our global supply chain policies, goals and commitments, setting responsible sourcing expectations for suppliers, and coordinating with market supply chain teams to engage suppliers at the local level.

Each of our Scale for Good priorities will come to life through leadership from local Franchisees and crew, investments in local community partnerships, engagement in the communities of farmers and suppliers, and through the experiences of millions of customers in their local McDonald’s restaurants.

Together, our actions add up to a significant collective impact as part of our business model.

 

Prioritizing key issues

To identify and prioritize the issues that are of most importance to our stakeholders, and where our business can have the greatest impact, we carried out a comprehensive materiality assessment in 2014. The key areas of focus we identified were related to nutritious food choices, sustainable sourcing, environmental efficiency at McDonald’s restaurants, and opportunities for our people and communities.

In the following years, since 2014, we have continued to gather insights to help us evolve our strategy and tailor our reporting. We have conducted qualitative stakeholder interviews about our approach and the evolution of key issues, quantitative and external data gathering, and internal reviews. These inputs and perspectives from key stakeholders have played an important role in the development of our new strategy; the Scale for Good platform, launched at the beginning of 2018.

 

Through this process, we have elevated global priorities in the Scale for Good platform:

 

Commitment to Families

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Beef Sustainability

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Packaging and Recycling

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Our Investment in People

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We also continue with our foundational work in core impactful areas where we will continue to drive progress:

 

Our materiality approach will continue to evolve, making sure it reflects changes in our business as well as societal and environmental needs. Find out more about our engagement with stakeholders.

 

Engaging our people

Our commitment to using our Scale for Good is embedded across our business through our values, business model and Scale for Good strategy. Underpinning these efforts are the Company’s Codes of Conduct and other policies that form our corporate governance.

For the Company’s employees worldwide, our framework for ethical business practices is our Standards of Business Conduct. First developed many years ago, the Standards have been continually revised to reflect the changing business environment. Central to the Standards are three principles: personal accountability, open communication and responsible action. The Company’s employees are asked to recognize that they can “keep the shine on our Arches by doing the right things in the right way,” by acting in accordance with our Standards and exercising good judgment.