Introduction: McDonald’s Sustainability Standards
The company works with its suppliers at every step of their production to ensure that sustainability is accomplished by them to the extent possible thus minimizing environmental and social aspects. McDonalds supply chain is complex web of both direct and indirect suppliers and it declares that its direct suppliers understand the value of sustainability for the organization and these suppliers also extend these supply requirements further to their suppliers(indirect suppliers). McDonalds partners with its suppliers to identify, understand and address industry specific sustainability challenges.
In order to regulate its suppliers for environmental aspects, the company use Environmental Scorecard to positively motivate its suppliers to reduce the impact of their working on natural environment. Suppliers are required to submit data on annual basis relating to energy, water, air and waste relative to units of production. This scorecard are then used to identify and share best practices throughout company’s supply chain relative to collectively producing more with less waste, less pollution and less use of resources during the manufacturing/development of the products. Also in 2010, company in order to promote accuracy an minimize tracking error, transitioned from manual submission of environmental scorecard to a central software database system.
Social Sustainability Aspects:
Along with concern for natural environment, the company performs workplace accountability audit, to ensure that its suppliers are conforming with social responsibility objectives. The programme of ‘’Supplier Workplace Accountability’’ condition the suppliers to follow Code of Conduct which provides the benchmark standards regarding employment, workplace practices including health and safety. Where 95% of company’s direct suppliers have signed the Code of Conduct, it shows the willingness of both suppliers and McDonald Corporation to achieve the objective of social responsibility.
Introduction: Toyota’s Sustainability Standards
The company since its days of foundation has worked effectively towards sustainable development through continued efforts of its suppliers and other partners. The manufacturing process of innovative products strive to contribute towards environment and social sustainability.
Environmental Sustainability Management
In an effort to achieve environmental leadership and with commitment to the objective of sustainable development, Toyota works with its chain of suppliers to reduce the impact over environment during vehicle life cycle. With the objective of achieving low carbon emissions, zero waste and low water operations, the company along with its suppliers, apply evidence based approach to promote environmental friendly approach amongst its suppliers.
Following are activities on which company rely to ensure environmental sustainability:
- Providing Green Purchasing Guidelines to the suppliers
- Supplier benchmarking on quality impact on environment
- Regular monitoring of ISO 140001 certificate status of its suppliers.
- Recording of CO2 emission by supplier manufacturing process and ensuring additional emission reduction in future.
- Promoting zero waste manufacturing process in global supply chain.
The company has recently initiated Toyota Environmental Dealership in a way to encourage its dealers also to consider environmental and sustainability concerns.
In commitment of managing its business in a socially responsible manner, Toyota clarifies its suppliers regarding the expectation on human rights and their safety. As per guidelines issued by the company:
- Suppliers should ensure that they comply with applicable laws concerned with employee’s working hours
- Their workplace policies and environment should prevent accidents and injuries to the extent possible.
- They should not engage into illegal practices of Child Labor and Forced Labor.
- They should recognize employee’s rights to freely associate or disassociate.
McDonald Corporation (2013) Mc Donald's Best Practices, Available at: http://bestpractices.mcdonalds.com/sections/1-best-of-green (Accessed: 9th September 2013
Toyota Limited (2013) Toyota's CSR Concepts, Available at: http://www.toyota-global.com/sustainability/csr_initiatives/csr_concepts/policy.html (Accessed: 9th September 2013).