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McDonald’s Worldwide
Corporate Responsibility Report 2004
Our goal in this report is to communicate our progress and direction
related to the most relevant and material corporate responsibility-related aspects of our business.
To meet the needs of a variety of users, we have divided this report into two sections:
• Report Overview: providing highlights of corporate responsibility initiatives
• Supplemental Report: providing depth on our programs and progress as described
in the Overview
Report Overview Supplemental Report
introduction
Letter from the CEO & Vice Chairman 2
Responsibility & McDonald’s Business Plan 3
Profile: McDonald’s System 4 39
Corporate Governance 5 43
Letter from VP, Corporate Responsibility 37
Timeline 38
products 6 45
Balanced Lifestyles 8 45
Menu Choice Physical activity Information & Education 9 46
Country-Level Initiatives 10 48
Responsible Purchasing 12 55
Socially Responsible Supply Chain Vision Principles Guidelines 12 56
Social Measures 14 59
Environmental Measures 14 63
Animal Welfare Measures 14 66
people 20 67
Opportunity & Training 23 68
Diversity & Inclusion 24 69
Restaurant Employee Profiles 26
place 28 72
Restaurant Environmental Priorities 31 73
Energy Conservation & Waste Management 31 73
Economic Impact 28 80
McDonald’s Giving 33 81
Ronald McDonald House Charities 33 81
Community Involvement 33 81
Owner/Operator Leadership 34
Reporting 2004 & Beyond 82
Contact Information & Acknowledgements 84
Data and examples focus primarily on the 10 largest markets in our system - Australia, Brazil, Canada, China, France, Germany, Japan, Spain, the United
Kingdom and the United States - which represent approximately 24,000 McDonald’s restaurants and account for approximately 72% of McDonald’s
restaurant revenues.
At McDonald’s, making customers happy is
what our business is all about. And we know
it takes a lot to make that happen. We work
hard to provide every customer with a choice
of meals and an experience that exceeds their
expectations. But that’s only part of the story.
When you come through our doors and look
beyond the front counter, there’s a company
and a system dedicated to earning your trust.
And whether it’s called “good corporate
citizenship” or “social responsibility,” we take
seriously our commitment to conducting our
business in a way that respects the world around
us and the issues that matter most to you.
1
letter from ceo & vice chairman
Profits and trust have
something in common —
THEY MUST BE EARNED.
jim skinner charlie bell
vice chairman president and ceo
Simply put, being a responsible enterprise is crucial to McDonald’s continued success. Today,
people want more than a choice of high-quality products at a good value. They also want to know the steps businesses take to
operate in an ethical way and contribute to values that match their own. Many times, companies that lose the trust of their
customers lose those customers’ business forever. Because the truth is, trust is difficult to earn and easy to lose.
We have worked hard over the years to earn trust, and we believe it is one of our greatest competitive advantages. Our
efforts started with our founder, Ray Kroc, who instilled in McDonald’s a belief in giving back to the communities we serve.
Over the years, this commitment to responsibility has taken on new dimensions as our company and the world around us
have changed.
During the two years since our last corporate responsibility report, the business world has been jarred by scandals, making
good corporate governance more relevant than ever. Critical food safety incidents and concerns about nutrition and health
have changed the landscape for the food industry. McDonald’s approach to corporate responsibility issues has evolved in
response to these changes - and to changes within our own business. Jim Cantalupo, our late Chairman and CEO, provided
inspiring leadership. He revitalized our brand, and his passionate “customer is the boss” approach remains our priority.
Being responsible is not only our heritage; it is an integral part of our business strategy. We manage our worldwide
operations with McDonald’s global Plan to Win, which identifies five P’s that drive our business - Products, People, Place,
Price and Promotion. Fulfilling the vision of McDonald’s Plan to Win - to be our customers’ favorite place and way to eat
- results from meeting our goals for each of the P’s and meeting them in a responsible way. Everything we do affects how
people feel about the McDonald’s brand. Our brand is unique. It is “forever young.” It is fun and engaging. It is Ronald
McDonald. And it is so much more. Leadership in corporate responsibility will help us not only to build trust in McDonald’s
and strengthen the reputation of our global brand, but also to be a more profitable business.
There is an additional P that supports our Plan to Win - Performance. Assessing our performance is what this report is
all about. Specific citizenship targets are - and should be - set at the local and regional levels within our System. However, our
corporate reporting efforts reinforce our global framework and help our stakeholders, internal as well as external, evaluate
our progress and assess our aspirations to provide industry leadership and keep improving.
For those of you within the McDonald’s System, we thank you for your contributions and ask for your continued
commitment to build upon our responsible citizenship efforts. For those of you who are our customers, investors and
neighbors - even those who are critics - we thank you for your interest in learning about our social, environmental and
economic progress. And, as always, please let us know what you think.
charlie bell jim skinner
president and ceo vice chairman
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