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McDonald’s Choose Risk Mitigation Over Customer Development Innovation

By Sam Fiorella | Social Enterprise | Comments are Closed | 25 May, 2012 | 1

It was reported today (see here) that McDonald’s Corp voted down a proposal to assess its impact on public health, particularly childhood obesity. The proposal was brought by consumer watchdog group: Corporate Accountability International.

The group requested that the McDonald’s board “issue a report within six months of the 2012 annual meeting assessing the company’s policy responses to growing evidence of linkages between fast food and childhood obesity, diet-related diseases and other impacts on children’s health,” according to the McDonald’s proxy statement.  
The proposal was voted down; only 6.4% voted in favor.
Problem or Opportunity?
Many of us groan when we see yet another blog post on the importance of public accountability and the increased power of the consumer due to social media. It’s certainly a worn out theme. Yet, this message seems to be falling on deaf ears when it comes to most corporations who choose to stare down the public and draw a line in the sand.
McDonald’s responded with this statement:  “while these are global issues that require actions that go well beyond what our company or any other provider of prepared foods can take on its own, we are committed to being part of the effort to address the relevant issues underlying these concerns.”
In other words, it’s not our problem.
Imagine the impact of McDonald’s accepting the offer. Imagine that the results illustrated childhood obesity was strongly linked to their marketing practices and their menu. If we’re to believe the social media marketing mavens, this would be the perfect opportunity to be “open”, “transparent”, “authentic” and every other overused buzz word they claim is required to become a market leader in our socially-connected world.   
Yet, McDonald’s plays the shell shuffle game and hides behind well-crafted PR spin. Mr. Skinner pontificated about the company’s improved sustainability tactics and operational improvements such as store remodels in his response. Look! A squirrel!
What are they afraid of? That the results will in fact implicate them as chief culprits in the child obesity pandemic? That their “Happy Meal” marketing and toy incentives are subliminally changing the way kids want to eat? Or is it the fear of implicating themselves in future law suits?
Depending on the results of the survey, each of these fears might have been realized but what an opportunity to take a leadership position with an honest “mea culpa” and demonstration that it would remodel its menu and marketing practices to help care for our children.
The public is incredibly forgiving of honest leaders who own up to their mistakes; Nine-times-out-of-ten they will rally behind such businesses with unprecedented loyalty and advocacy. Customer development is not about covering your  ass-ets but doing what’s right for your customers. Yet this take courage from leaders and a corporate culture that encouages genuine concern for customer. Something McDonald’s and its executive clearly lack in spades.
What are your thoughts? Is the risk too great? Was this the opportunity for McDonald’s to radically change the fast food game and cement itself as the untouchable leader in the industry?
Get in on the debate. Post your thoughts below.
Sam Fiorella
Feed Your Community, Not Your Ego

 

B2C, Corp Social Media Policy, Corporate Risk Management, Corporate Social Planning, Customer Acquisition, Customer Development, Leadership, Marketing, social media

Sam Fiorella

Sam Fiorella is a Partner here at Sensei Marketing, a consulting and technology firm focused on aiding global companies grow their business value through improved customer experiences. Professionally, Sam has also co-authored: Influence Marketing: How To Create, Manage and Measure Brand Advocates and is a Professor of Marketing at Seneca College and an Adjunct Professor at Rutgers Center for Management Development. Sam is also the co-founder of YellowIsForHello, a not-for-profit corporation that seeks to decrease the rate of suicide among students through peer-to-peer connections.

More posts by Sam Fiorella

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