Actions for Managing perceptions of a socially responsible business : McDonald's under fire for racial discrimination

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Managing perceptions of a socially responsible business : McDonald's under fire for racial discrimination / Parul Gupta and Shruti Gupta

Author
Gupta, Parul (Law teacher)
Published
London : SAGE Publications: SAGE Business Cases Originals, 2023.
Physical Description
1 online resource : illustrations
Additional Creators
Gupta, Shruti
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Summary
For more than five decades, the McDonald's Corporation touted racial diversity and inclusion, which was embraced as a vital element of its corporate ethos. The company branded itself as a progressive business firm particularly interested in operating businesses in ignored or abandoned societies. This corporate philosophy promoted the viewpoint that McDonald's was a business in which Americans had economic opportunities without discrimination and could develop under the able guidance of worthy mentors. This image of McDonald's was tarnished in 2020 when a group of former Black franchise owners filed a federal lawsuit against them for systemic racial discrimination. They alleged that McDonald's treated the Black franchisees unfairly, obstructed their growth and profitability by placing them in economically deprived areas, and saddled them with unreasonably high insurance costs.This was not the first time that McDonald's was under fire for racial discrimination. On many occasions in previous years, allegations of discriminatory practices against the company were alleged by various stakeholders, including employees, vendors, and franchisees. As always, McDonald's fervidly denied the racial discrimination allegations and asserted that it never treated Black franchisees differently than other franchisees. The company argued that although it recommended locations, franchisees were free to choose the suggested location or reject it.How bad for business is it to be perceived as being repeatedly socially irresponsible? Did the lawsuit filed by the Black franchise create a perception of systemic culture issues at McDonald's? Could McDonald's face legal action for racial discrimination, as alleged in the lawsuit? What should organizations do to prevent discrimination allegations in the future and manage perceptions of being socially irresponsible?
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ISBN
9781529610666 : (ebook)
View MARC record | catkey: 47383153