Sustainable collaborations lead to a more sustainable supply chain (Part 2)

[#1]

Recently, we released our 2012 Best of Sustainable Supply. It’s a collection of the “best of the best” innovative sustainable sourcing programs in the McDonald’s supply chain, covering topics such as Climate/Energy, Animal Welfare, Employee Wellness and more.

If there’s one thing we’ve learned over the years, it’s that we can’t achieve our sustainability goals alone. In no area is this more important than in our supply chain. That’s why we work with suppliers who share our values and vision for sustainable sourcing along three foundational areas of impact: Ethical, Environmental and Economic.

It’s also critical that we continue to work with outside experts. We’ve long worked with organizations like Business for Social Responsibility to help inform and measure our efforts. Kai Robertson, Director of Food, Beverage and Agriculture Advisory Services for BSR was a member of our Best of Sustainable Supply selection committee this year. She shares her insights on the learnings she took away from this process below. Take a look at her remarks and the Best of Sustainable Supply and let me know your thoughts.


1.    You had an inside look in to how McDonald’s and our suppliers approach sustainable supply. What did you think? Any surprises?

I was pleased to see the wide range of submissions McDonald’s received as this reflects the broad range of actions companies are undertaking. It was also inspiring to see that companies of all sizes shared their stories, confirming that it doesn’t matter whether a company is large or small – all are in a position to, and can find benefit from, incorporating more sustainable practices. In addition, reading about the varied paths McDonald’s suppliers are taking reinforces that there’s significant value to be gained by connecting with diverse stakeholders – whether it’s actively involving employees, engaging consumers, partnering with local communities, or collaborating even deeper along the supply chain.

2.    Where do you think we’ve got it right and where do you think we need to focus more so we can do more?

Through its own actions, and programs like Best of Sustainable Supply, McDonald’s is serving as an important voice to encourage collaboration. As today’s marketplace changes ever more rapidly, companies are increasingly interacting in different ways across the boundaries of the traditional value chain, collaborating not just upstream and downstream but also sideways.

I agree with McDonald’s point of view that ‘success breeds success.’ By highlighting the activities of its suppliers across the spectrum of sustainability issues, McDonald’s provides other companies with ideas and inspiration. McDonald’s could build on its efforts and further support the creation and adoption of innovative practices by also:

• providing an opportunity for suppliers to share their challenges and remaining obstacles, and support discussions about the steps needed to address them. 
• supporting a more dynamic conversation that allows for an ongoing exchange of ideas; for example, through communities of practice around a common issue or a forum for ongoing discussion. 
• exploring the emerging use of open innovation platforms, along the lines of the portal recently launched by Unilever -http://www.unilever.com/innovation/collaborating-with-unilever/open-innovation/index.aspx

3.    What do you think McDonald’s should learn from all of this?

I view the large number of submissions McDonald’s received from its supplier community as indicative of the pride companies have in sharing the innovative ways in which they’re promoting or adopting more sustainable practices. And When employees are satisfied with their organization’s CSR commitment, studies have shown they also report high levels of engagement with their firms, including believing their employer is interested in their well-being.

I think there are ongoing opportunities for more to be learned from McDonald’s efforts to date. Bringing together, for example, the collective insights from both Best of Green with Best of Sustainable Supply could generate valuable learnings internally across the McDonald’s system and with the supplier community. As McDonald’s looks into the future, I recommend casting a wide net to identify how else McDonald’s could serve as a catalyst for ongoing improvements. 

[#2]

Hi Bob,

Thank you for the availability of a discussion platform.

I live in Palm Beach County Fl, zip 33478.

I am an avid gardener. There are programs for the recycling of coffee grounds, Starbucks has a program of this nature. The program is to keep the used coffee grounds separate from the normal trash and to offer the used coffee grounds to the public at no charge for the creating of compost. I hope that your company would be willing to consider implementing a program of this nature.

Thank you for your consideration.

Pete

[#3]

knowing that you have a fleet of vehicles that provide dental and medical services throughout communities here and in other countries, how difficult would it be to have aprotion of the domestic fleet available on short notice to go to areas hit by tornados, floods or storms to provide additional support to those local emergency services to treat the injured. a McDonalds on wheels could provide food also, generation services to put a McDonalds on a community back online to serve food. With your name displayed prominently on these vehicles it would enhance and expose your brand , people helped would spread the word about how your company helped them. good press is worth alot and show communities that McDonalds is there for them to help not just to sell burgers.

[#4]

While I would applaud your efforts to work toward sustainability, and management practices that ensure the health and welfare of the animals and products you produce and those who produce them, through-out your market channels; I would question your efforts or ability to create positive & progressive changes that matter. Check out the "ecological footprint" research that has been done http://myfootprint.org/. How big is your footprint? When you base successes on meeting government regulatory standards in a system where the government and multi-billion dollar corporations are so intertwined, it really brings into question the validity of the improvements that are being made. Check out this site http://www.thrivemovement.com/codex.

I notice when you provide video footage & literature on the practices being employeed at the facilities that supply your products, there is never really any footage of how the animals are being treated or slaughtered. There is a huge disconnect in todays society between the consumer and the products we consume and just what the process intails. I think this, coupled with the potential for profitiability by taking advantage of this, is dangerous because it disconnects us all from what sustains life itself and ultimately leads to the potential for overexploitation of resources, environmental destruction and loss of liberty as the mechanization of the system drives the dependence. It's a cycle of destruction as competing multi-billion dollar corporations are forced to take shortcuts and further mechanize and streamline to maintain market share; at the expense of the world and all beings that exist in it.  

Perhaps a better strategy for the company would be to try to achieve a 0 ecological footprint; which might require a franchise model that empowers local communities to produce the products at each resturaunt and hold these small local farming operations accountable to produce their products in a sustainable way, free of GMO's! and pesticides (perhaps even organically??). It might work to provide recycling and composting programs at each resturaunt so that you can close the loop and give back and sustain the operation without adding to the destruction of the environment or create a footprint in the waste management stream.

Give me a company like this and I'll be the first to get in line to the counter!

[#5]

Hi Biggles,

Thanks for your comment.  Please note that the medical/dental vehicles you mention are actually Ronald McDonald Care Mobiles, which are operated not by McDonald's but by Ronald McDonald House Charities in conjunction with the local hospitals in the communities they serve. 

While we support RMHC as our charity of choice, McDonald's does not administer how the vehicles are used.

When tragedy arrives, the McDonald’s System responds. McDonald’s employees, franchisees and suppliers mobilize to provide assistance in many forms. Over the last several years, our System has provided food and other assistance to victims of such disasters as the 9/11 tragedy in New York City, Pennsylvania and Washington, DC in 2001, the tsunami in Southeast Asia in 2004, the destructive 2005 and 2008 hurricane seasons, the devastating earthquakes in Haiti in 2010 & Japan in 2011.

[#6]

First and foremost, I hate waste. When I see things that I feel are an unnecessary waste, particularly of raw materials, it frustrates me even more!!

What would McDonalds stance be on introducing reusable glasses in Restaurants for customers eating in? You are already asked at purchase if you are doing so! 

One glass could be used 150 times and save an enormous amount of litter having to disposed of. 

From The Telegraph, a national and international paper:

National Gutter Share – the most littered fast food brands in England:

1/ McDonald's – 29 per cent

This is not to mention the hugh evironmental savings that could be made. The production of one plastic glass versus 150 paper cups (which are produced, transported and used just once before ending up as landfill) is not comparable in my opinion. I understand that the paper cups are not even recyclable. Plastic cups can be easily recycled at the end of their lifecycle into other products.

I look forward to hearing your views

Kieran

Eco-Logically Ltd

[#7]

Hi Chad,

Thanks for your comments. We continue to engage with external experts and NGOs such as Conservation International and others to continuously improve our social and environmental performance in our restaurants and in our supply chain. Given our franchise model and complex supply chain, and the fact that we span 119 different countries, our business is decentralized by definition. So our approach to sustainability is different than what you might see at other companies, but our goal is to always move forward in the right direction. 

Thank you.

[#8]

Kieran, thanks for your comments. At McDonald’s, we are focused on a number of environmental issues to minimize waste and maximize efficiency. This includes issues related to our packaging and opportunities for recycling. We have made a number of changes in our packaging design and sourcing policies over the last several years to enhance our performance in this area. Please take a look at our Global Best of Green to see some of the innovations and improvements we have put into place: http://bestpractices.mcdonalds.com/sections/1-best-of-green.

Your question regarding the use of reusable cups is one we get often. Due to food safety concerns we do not allow containers that are brought in from outside the restaurant to be used for our beverages, but we continue to explore opportunities for more sustainable beverage distribution moving forward.

[#9]

You speak about outside partnerships and collaborations, how does a company go about working with McDonald's with sustainable patented products, systems and processes. thank you

Mateo