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    An Arthur Page Society Case Study in Issues Management

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    Hyoung Ho Lee
    This document provides an overview of issues management challenges faced by McDonald's regarding concerns over the health impacts of its food. McDonald's has faced criticism from health organizations, activists, and media reports since the 1990s linking its high-fat, high-calorie fast food to obesity and related health problems. Key events forcing McDonald's to respond include a lawsuit over allegedly libelous statements in 1994, a lawsuit by obese teenagers in 2002, and the books and films Fast Food Nation in 2001 and Super Size Me in 2004. McDonald's public responses have largely been confrontational rather than collaborative, through marketing campaigns promoting balanced lifestyles but denying health concerns and not always following through on promised actions. The timeline shows McDonald's could have benefited

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    An Arthur Page Society Case Study in Issues Management

    Uploaded by

    Hyoung Ho Lee
    53 views27 pages
    This document provides an overview of issues management challenges faced by McDonald's regarding concerns over the health impacts of its food. McDonald's has faced criticism from health organizations, activists, and media reports since the 1990s linking its high-fat, high-calorie fast food to obesity and related health problems. Key events forcing McDonald's to respond include a lawsuit over allegedly libelous statements in 1994, a lawsuit by obese teenagers in 2002, and the books and films Fast Food Nation in 2001 and Super Size Me in 2004. McDonald's public responses have largely been confrontational rather than collaborative, through marketing campaigns promoting balanced lifestyles but denying health concerns and not always following through on promised actions. The timeline shows McDonald's could have benefited

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    McDonaldsHealth

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    This document provides an overview of issues management challenges faced by McDonald's regarding concerns over the health impacts of its food. McDonald's has faced criticism from health organizations, activists, and media reports since the 1990s linking its high-fat, high-calorie fast food to obesity and related health problems. Key events forcing McDonald's to respond include a lawsuit over allegedly libelous statements in 1994, a lawsuit by obese teenagers in 2002, and the books and films Fast Food Nation in 2001 and Super Size Me in 2004. McDonald's public responses have largely been confrontational rather than collaborative, through marketing campaigns promoting balanced lifestyles but denying health concerns and not always following through on promised actions. The timeline shows McDonald's could have benefited

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    53 views27 pages

    An Arthur Page Society Case Study in Issues Management

    Uploaded by

    Hyoung Ho Lee
    This document provides an overview of issues management challenges faced by McDonald's regarding concerns over the health impacts of its food. McDonald's has faced criticism from health organizations, activists, and media reports since the 1990s linking its high-fat, high-calorie fast food to obesity and related health problems. Key events forcing McDonald's to respond include a lawsuit over allegedly libelous statements in 1994, a lawsuit by obese teenagers in 2002, and the books and films Fast Food Nation in 2001 and Super Size Me in 2004. McDonald's public responses have largely been confrontational rather than collaborative, through marketing campaigns promoting balanced lifestyles but denying health concerns and not always following through on promised actions. The timeline shows McDonald's could have benefited

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    | 

       
    
            

    An Arthur Page Society case study in


    issues management
     
    = a esity is a pervasive pro em in America, and
    as peope increasingy ecome overweight, their
    heath suffers
    = 64% of a Americans overweight and 30% are o ese;
    the percentage of chidren age 6 to 19 that are
    overweight has dou ed in the ast two decades
    = Heath risks: heart disease, Type II dia etes,
    high choestero, high ood pressure
       | 
    = The nutritiona content of fast food--high in fat,
    sugar, and caories--is inked to weight gain and
    consequent heath pro ems. McDonad¶s ears
    the runt of criticism ecause:
    = McDonad¶s is a powerfu mutinationa
    corporation and the fast food industry eader
    = McD¶s has more than 31,000 restaurants in 119
    countries
    = McD¶s feeds more than 46 miion customers per day
    = McD¶s empoys more than 1.5 miion peope
       
    = There are organizations,
    associations, government
    agencies, consumer groups,
    activists, oggers, etc. critica
    of McDonad¶s on the issue of
    heath and nutrition
    = This case study focuses on
    major attacks occurring
    from 1994 to 2006
    |  
    = McDonad¶s sued two protestors for aegedy i eous
    statements made in a pamphet, ³What¶s Wrong with
    McDonad¶s´
    = PR disaster that made McDonad¶s ook ike a uy
    = Buit the media agenda on issues unfavora e to McDonad¶s
    = Appeate court rued that the defendants were justified in caiming
    that reguar customers of McDonad¶s did face a heightened risk of
    heart trou e
    = Pamphet ater reproduced on the Internet to massive internationa
    audience
    = Court case cost McDonad¶s over a miion doars
    = Court case provided the materia for a fu ength documentary
    reeased in 2005, | 
    |   !""!!""#
    = A group of o ese teenagers who ate at McDonad¶s 3-5 times per
    week sued McDonad¶s for causing their weight pro ems. They
    aeged that:
    = McDonad¶s advertising and promotiona representations create
    a fase impression that its food products are part of a heathy
    ifestye
    = McDonad¶s said it woud have nutritiona information avaia e
    to customers ut it wasn¶t

    = The court rued in favor of McDonad¶s ut the resuting press


    coverage put the issue once again in the forefront. This case was
    what gave Spurock the idea for ë ë|.

    = 2002 first time McDonad¶s posted a quarter oss in its history.


       !""$ !""%
    = A ook highy critica of the fast food industry
    = ! 
       est seer
    = Aersion directed to chidren 11-15 years od,
        pu ished in 2006
    =   !  reeased as a movie in
    Novem er, 2006
    = Movie tag ine: The Truth is Hard to Swaow
    ë ë 
    $ !""
    = ³ane man¶s journey into the word of weight gain,
    heath pro ems, and fast food.´
    = Morgan Spurock¶s documentary account of his
    persona experience over a 30-day period of
    eating nothing ut McDonad¶s food. He gained
    25 pounds and suffered physica aiments.
    = Spurock caed for eiminating super size option
    and providing nutritiona information.
    = Educationa versions for midde and high schoo
    students now avaia e.
     & '  (  
     |)
    = Corporations must work to sove pro ems when
    confronted y peope and organizations that may
    e against what the corporation says, offers, or
    does
    = Corporations must strive to repair reationships
    with externa pu ics and enhance its corporate
    reputation
    McDonad¶s must adopt strategic communication
    responses to those who disapprove of what they
    see as McDonad¶s roe in promoting o esity and
    heath pro ems.
    '     
    |)
    = Acquiescence
    = Stop doing what is othering critics
    = Negotiation (Two-way)
    = Work coa orativey for consensus and compromise
    = Confrontation (ane-way)
    = Discredit the opposition
    = Argue your side
    = Take ega action
    |  '  *  +
    = ane-way, asymmetrica communication
    = McD¶s has avoided diaogica, or two-way, communication with
    critics.
    = McD¶s decined invitation to appear with Schosser on NBC¶s
    Today Show and instead sent a statement of facts and tod
    them to visit the we site.
    = Denia of any concern or compromise with critics
    = McD¶s insists it did nothing in response to the fim ë ë
    | and has stated it had no need to pan proactivey for the
    reease of the fim   !  .
    = Main message is one-way: ³More aggressive in teing our
    side of the story´
    = Denia of investigative reports
    Ë  ,-) 
    = ³We don¶t se nutrition and peope don¶t come to McDonad¶s
    for nutrition. Rather than fight a defensive war of attrition y
    responding to constant nutrition attacks, et¶s not even dea
    with it.´ (1986, PR executive handing McD account)
    = ³We have media days and fact sheets that are avaia e
    through our we site, as we as patforms that wi afford us
    any opportunity to tak a out what¶s important to McDonad¶s.
    We cannot e overy concerned a out anyone ese.´ (2006,
    Wat Riker, McDonad¶s AP of Corporate Communication and
    Media Reations, regarding the reease of the movie Fast
    Food Nation)
     . ' / & )
        .    
    = McDonad¶s promised in 2002 to change its trans
    fat cooking oi to a heathier aternative.
    = Customers¶ compaints ed McDonad¶s to cance
    that action
    = Legisation has een proposed in 2006 to an
    trans fat cooking ois in restaurants
    = ather fast food chains have vountariy instituted
    the change
    (Questions for discussion next side)
    Ë    
    = How can the impact of changing the taste
    of their French fries e weighed against the
    heath harms of trans fat cooking oi
    = How is credi iity affected y promising
    actions ut not deivering on them
    = Are there occasions when a company may
    take a hit on an immediate action in order
    to uid etter reationships for the future
    |  '  *  0
    = Corporate socia responsi iity og
    = Contains section ³Engaging in the Go a a esity
    Diaogue´
    = Aows feed ack and discussion
    = The aanced, active ifestyes initiative
    = Adding more menu choice
    = Providing nutrition education
    = Supporting physica activity
    = Theme: ³It¶s what I eat and what I do«I¶m ovin¶
    it´
    | 1   
    = Menu choice: premium saads, otted water, ow fat/skim
    mik, white meat chicken
    = Go Active! Happy Meas for aduts
    = Waking program and free pedometers
    = Get Moving with Ronad McDonad and McMunchright
    = Cee rity rand am assadors
    = Nutritiona a eing on products (in most restaurants within
    one year period)
    = Coa oration with Scripps Research Institute for fighting
    chidhood o esity and Type 2 dia etes
    = U iquitous advertising campaign emphasizing physica
    activity
    )
    = By 1986 Aware of Issue
    = 1994 McLi e ± McDonad¶s food can e harmfu to heath
    = 2001   !  
    = 2002-2003 McLawsuit± Need for nutritiona information; food harmfu to
    heath
    = McD¶s posts first quarter oss in corporate history
    = Per share stock price pumments
    = McD¶s promises to repace trans fat oi
    = McD¶s introduces heathy options in 2003
    = 2004 ë ë| ± Shoud cance super size option, need for nutritiona
    information
    = McD¶s cances super size option
    = McD¶s introduces Baanced, Active Lifestyes initiative
    = 2006 FDA introduces proposa an trans fat oi in restaurants
    = 2006   !  , the movie and     , chidren¶s ook
    = McD¶s starts putting nutritiona information on packaging
    = McD¶s sti hasn¶t repaced trans fat ois
    (  2    , . 
    |)
    = Listen for threats through
    issue/environmenta scanning
    = Determine whether the issue wi affect the
    organization/corporation
    = If yes, give the issue priority in proactive,
    timey strategizing
    &     * )
    = Effective issues management cas for
    monitoring and identifying emerging issues
    eary in order to pan proactivey.
    McDonad¶s knew of the issue for years, yet
    deayed taking actions unti it was
    defensive rather than proactive.

    (Questions for discussion next side)


    Ë    
    = With advance knowedge of the rewing
    issue, what proactive steps coud
    McDonad¶s have taken
    = Why is it advantageous to take action
    proactivey rather than defensivey
    & &   /    
    = Denied ë ë| had anything to do with
    canceation of the super size option even though
    McDonad¶s withdrew the option just six weeks
    after ë ë| premiered
    = Denied any concern or need to pan proactivey
    for the premiere of   !  
    = Denied investigative reports regarding an interna
    memo sent to franchisees to discredit Eric
    Schosser
    = Caimed to have nutritiona information avaia e
    for 30 years
    & &   /      )
    = McDonad¶s has experienced moderate and
    continuous growth in saes and per share
    stock price 2003-2005
    = However, fast food companies such as
    Chipote, Buffao Wid Wings, Panera Breat,
    Panda Express, Quiznos, Star ucks, and
    Jason¶s Dei are the ones reaching highest
    growth in the fast food industry
    & &   / |  ) 
    = Positive: McDonad¶s has instituted severa
    marketing programs addressing the need
    for aanced, active ifestyes
    = Positive: McDonad¶s has expanded heathy
    menu choices
    = Negative: McDonad¶s has refused to
    engage in the de ate over nutrition and
    heath with its critics
    & &   /
       
        ) 3    
    = Emphasis is paced on marketing, rather
    than pu ic reations
    = McDonad¶s needs to focus on pu ic
    reations reputation uiding through
    increased transparency and diaog
    & &   /  ) 3 
        -  3    
    = Top management acknowedges a one-way
    message strategy of emphasizing their
    need to ³do a etter jo of teing their story´
    = Top managements¶ statements tend to
    project a position of power rather than a
    more concerned and open viewpoint
    & &   / ') )$   $
     ) 
    = McDonad¶s has done an exceent jo of
    remaining cam and patient
    = However, McDonad¶s has not shown a sense of
    humor in the face of targeted criticisms
    = Question for discussion: What woud e the est
    way for McDonad¶s to maintain a sense of humor
    in regard to the issue of heath and nutrition

     / | 
    
    = The main question facing McDonad¶s is whether they can
    continue their word dominance in the fast food industry y
    promoting active, heathy ifestyes when their mainstay
    products continue to e inked to o esity and reated heath
    pro ems. McDonad¶s has done a auda e jo in marketing
    the concept of consumer choice and in esta ishing a
    generous corporate socia responsi iity program. However,
    in the U.S. at east, McDonad¶s has not reduced advertising
    to chidren, reformuated its trans fat cooking oi, or owered
    fat, sat, and/or caorie counts on its core products. Rather
    than diminishing, the issue of heath and nutrition continues
    to escaate and McDonad¶s remains a key target in 2006.

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