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Article

31 Jul 2014

Author:
Christine Bader, visiting scholar at Columbia University

McDonald's should apply to franchisees similar working conditions model used for its suppliers, says Christine Bader

"McDonald's Already Knows How to Manage Its Franchisee Labor Practices"

The National Labor Relations Board ruling...that McDonald's could be held responsible for labor conditions in its franchisees' operations has business groups and lawyers crying foul. McDonald's says it will appeal, contesting the determination that it exercises "significant control" over the practices of its franchisees. But McDonald's is already going through great lengths to ensure good working conditions in the other direction in its value chain. It should do the same for franchisees. Its sustainable supply chain program employs staff around the world to strengthen sustainability and working conditions in the operations of McDonald's suppliers...McDonald's should apply to franchisees a model similar to the one it uses for its suppliers: The company engages in long-term relationships with suppliers to make it clear that they'll work together on tough issues, not just issue fines; brings suppliers together periodically to learn from each other; and rewards innovation. A combination of internal staff and independent auditors ensures compliance and supports these efforts.Then, McDonald's might follow the lead of other industries and develop a collaborative initiative with peer companies and some of its harshest critics...The challenges of ensuring labor compliance among franchisees are not insignificant. But McDonald's neither needs to reinvent the wheel nor go it alone. There are models for how to tackle such difficult challenges — in other industries and within McDonald's itself. [refers to Shell, BP, Google, Yahoo!, Microsoft]

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