Issues and controversies in management project Case Study

Issues and controversies in management project - Case Study Example McDonald's evidences the validity of the stated. Renown for its corporate social responsibility record in its home country, and owing a sizeable percentage of its market share to this, upon expansion into foreign markets, McDonald's exported its CSR principles along (Bronn, 2006). Hence, in the 32 of the countries in which it operates, it has over 200 Ronald McDonald Houses, charity organisation which support underprivileged children (Bronn, 2006). It has also embraced environmentalism and committed itself to green practices, publicly acknowledging its responsibility towards the preservation and conservation of an increasingly fragile environment and ecosystem (Paton, 2007). Operating on the basis of these and other practices designed to underscore its commitment to CSR, McDonald's has successfully entrenched itself in the communities within which it operates. Indeed, a significant part of its market success and ability to penetrate the barriers to foreign market entry are a direct o utcome of the fact that it projects an image of a company which wants to give, not just take, from its community (Paton, 2007). Corporate ethics, albeit strongly related t... rnationalisation, it is imperative that multinationals acquire an understanding of the ethical systems particular to the foreign markets in question and adhere to them. For instance, in some cultures, gender segregation is an inviolable ethical principle, with the implication being that foreign entrants should adhere to this practice. In others, child labour is not viewed as unethical and the employment of children may be interpreted as the extension of assistance to an impoverished family. However, since this last is not viewed as an ethical practice and its implementation as universally unethical, not to mention a violation of international law, multinationals who engage in this practice may irreparably damage their market standing. This means that in designing their ethics guidelines, companies must create a fine balance between international and national ethical systems. McDonald's has managed to achieve this balance. On the one hand, it adheres to universal ethics guidelines whi ch dictate the imperatives of fair wages, non-discriminatory labour practices Royle, 2005) and quality goods from suppliers (Verschoor, 2001). On the other, it respects the cultural ethics of its host environments whereby, for example, it does not employ women in its restaurants, in concession to the segregation precept, although it does in its offices (Heck, 2003). The point here is that upon entry into foreign markets, the company does try to embrace and adhere to local ethical precepts, even as it abides by international ones, so as to facilitate entry and acceptance. Branding Competitive advantage is a critical determinant of successful entry into foreign markets and of surviving the challenges of globalisation and realising its promises. Branding is a managed process to