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McDonald’s VP: Top 10 CSR Strategy Tips Print E-mail
Monday, 19 November 2007

Top Ten Lessons Learned on CSR Strategy, Partnerships, and Policy Development

ImageI just got back from a sustainable fish summit in Jacksonville, Florida, where I participated on a panel on "Translating CSR Commitments Into Fisheries Policy Change." The panel was moderated by Jim Cannon, a highly respected expert on issues related to fish sustainability. Most members of the audience were suppliers.

During the panel, I presented my "Top Ten Lessons Learned on CSR Strategy, Partnerships, and Policy Development." Here's an abbreviated version:

1. Don't stereotype NGOs. Sure, there are some NGOs that may seem unreasonable, but most are well-intentioned and share interests with the corporate sector. So we always have to leave the door open and engage with a broad range of stakeholders.

2. Pick your partners carefully. McDonald's looks for NGOs that exhibit high levels of independence, scientific expertise, and both experience and demonstrated faith in market-based solutions.

3. Measure your performance and progress. It's not about rhetoric and storytelling. Providing tangible proof of progress is essential. McDonald's fisheries scorecard is an example. You'll find the format in the Responsible Purchasing chapter of our 2006 Worldwide Corporate Responsibility Report.

4. Shifting purchases according to CSR factors sends a strong market signal. McDonald's has made changes in fish purchases. Over the last five years, about 1/3 of our supply has been shifted to more sustainable sources due to use of our sustainable fisheries guidelines. Our purchasing decisions reflect strong animal welfare and social accountability guidelines as well. Our goal is not to punish, but rather to improve and reward best practices.

5. Maintain trust and the need to verify. Policies and programs are needed, but that's just the start. Having credible third-party assurance is a necessity in today's world, where trust is hard to gain and easier to lose.

6. Take advantage of the rising tide of consumer interest in CSR issues. Our research indicates that consumers expect a high level of performance from food companies on social and environmental issues. Yet they perceive a low level of performance.

7. Control the clock and play offense. Of course, I kidded about how I'm a HUGE Chicago Bears fan and how they needed to control the ball in their Super Bowl match-up against the Colts. The same is true with CSR issues. It's definitely better to be proactive than back on your heels. The solutions developed when your mindset is strategic and proactive are usually far better than those developed as a reaction to events.

8. Collaboration is a must. Fish and other food issues are systemtic in nature, so the solutions require involvement by a broad range of stakeholders. See my blog on our work with Greenpeace to help protect the Amazon for an example of the effectiveness of this approach.

9. Supply chain issues are important to brand reputation. Stakeholders don't differentiate between a McDonald's restaurant and the multiple suppliers and steps that make up the McDonald's supply chain. To consumers, it's all one process. So though McDonald's Corporation doesn't actually grow the crops or raise the animals, the actions of all the suppliers that do have an impact on our reputation.

10. My formula for success. A motivated, informed purchaser + An engaged, proactive set of suppliers + A bona fide, third-party expert/NGO + Enough time to learn, understand the science, and test = Practice solutions for a better world.

After the panel, I shared highlights of these lessons in a hallway interview. You'll find a video of the interview and videos of interviews with other summit participants on the IntraFish website.

-- Bob





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