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GLOBAL SOCRATES COMPANY SUMMARY REPORT AS OF 2/2012

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McDonald's Corporation
TICKER: MCD EXCHANGE: New York Restaurants DOMICILE: United States of America MARKET CAP: US $58.2b

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COMPANY AND RATINGS

Rating Summary
McDonalds omnipresence has brought it higher levels of scrutiny from NGOs and media than its peers, which has pushed it to develop policies and programs to address sustainability challenges. Like others in its industry, however, it is being challenged to introduce healthier foods and higher employee wages.

Historical Ratings No historical ratings are available for this company. Controversial Involvement
ISSUE Abortion Adult Entertainment Alcohol Contraceptives Firearms Gambling Military Nuclear Power - Services Tobacco ISSUE Nuclear Power Ownership INVOLVEMENT % REVENUE NA None None NA None None None None None % INVOLVEMENT ELECTRICITY No N/A No No No No No No No No No

Business Description
McDonald's Corporation operates and franchises fast food restaurants under its name throughout the world.

PERFORMANCE HIGHLIGHTS
Product Quality & Safety
Like other fast food restaurants, McDonald's has been challenged by consumers concerned about health issues. The company has responded by adding more nutritious items to its menus and posting nutrition information on food labels. Its adoption of a policy to address consumer concerns about antibiotic use in mass production of meat stands out among its peers.

Industry Comparison

Labor-Management Relations
McDonalds has demonstrated leadership on employee training by going beyond its peers in its efforts to develop, retain, and promote talented managers. However, like many in its sector, the company has been accused of anti-union activity worldwide and has faced lawsuits alleging various forms of wage-labor law violations.

Workforce Diversity
McDonalds has a particularly strong record for employing, training, and promoting African Americans and licensing franchises to African Americans. It has been recognized for its performance by the Equal Employment Opportunity Commission and by Black Enterprise Magazine. Despite substantial diversity training programs, its diversity performance is diminished by the number of gender discrimination allegations at both company-owned and franchise operations.

Management of Environmental Issues

McDonalds has gone beyond most of its peers to manage the environmental impacts of its operations. It has engaged with stakeholders to improve and monitor its own performance and incorporate environmental considerations into its selection of suppliers. It has worked to resolve controversies.

Resource Management & Use

Unlike peers with similar environmental footprints, McDonalds has taken initiatives to address resource use in its operations. Although it has not disclosed targets, it has introduced recycled content into its packaging materials, offered organic coffees in certain markets, and incorporated environmental features into its stores. Unlike peers of its size, the company has not faced major controversies in this area.

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GLOBAL SOCRATES COMPANY SUMMARY REPORT AS OF 2/2012

McDonald's Corporation
ENVIRONMENT Management of Environmental Issues McDonalds has gone beyond most of its peers to manage the environmental impacts of its operations. It has engaged with stakeholders to improve and monitor its own performance and incorporate environmental considerations into its selection of suppliers. It has worked to resolve controversies.
MEASURE Environmental Policy All Operations Covered by Environmental Policy Environmental Management System EMS Operations Coverage ISO 14001 Certification MCD Yes ND Yes Yes Yes INDUSTRY

INDUSTRY Resource Management & Use Unlike peers with similar environmental footprints, McDonalds has taken initiatives to address resource use in its operations. Although it has not disclosed targets, it has introduced recycled content into its packaging materials, offered organic coffees in certain markets, and incorporated environmental features into its stores. Unlike peers of its size, the company has not faced major controversies in this area.
MEASURE Programs to Reduce Water Use Operations Covered by Program Quantitative Targets MCD Yes ND ND INDUSTRY

Climate Change McDonald's performance on this metric is affected by its size. With 32,000 restaurants operating in 117 countries, the company's energyrelated risk is among the highest in the sector compared to peers such as Wetherspoon and Domino's Pizza UK, whose operations consist of a few hundred outlets in one country. In regards to energy management, the company faces significant challenges in achieving uniformity across the group due to the franchised ownership structure. Notably, McDonald's Europe has conducted carbon footprint assessment which incorporates data from 39 European markets
MEASURE Climate Change Policy Operational GHG Emissions Reduction Programs Operations Covered Quantitative Targets Programs to Increase Renewable Energy Use Operations Covered by Programs Quantitative Targets Direct GHG Emissions MCD Yes Yes 100% ND Yes ND ND INDUSTRY

COMMUNITY & SOCIETY

INDUSTRY Human Rights: Civil and Political

MEASURE Human Rights Policy MCD Yes INDUSTRY

CUSTOMERS Marketing & Advertising Along with several other major food companies, McDonalds has made a pledge that at least half of its marketing targeted at children would promote healthy foods or physical activity. However, the company continues to face criticism for the influence of its marketing and advertising on children.
MEASURE Responsible Marketing Statement MCD Yes INDUSTRY

INDUSTRY

Product Quality & Safety Like other fast food restaurants, McDonald's has been challenged by consumers concerned about health issues. The company has responded by adding more nutritious items to its menus and posting nutrition information on food labels. Its adoption of a policy to address consumer concerns about antibiotic use in mass production of meat stands out among its peers.
MEASURE Consumer Health& Safety Policy GMO Policy MCD Yes ND INDUSTRY

EMPLOYEES & SUPPLY CHAIN Labor-Management Relations

INDUSTRY Workforce Diversity

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GLOBAL SOCRATES COMPANY SUMMARY REPORT AS OF 2/2012

McDonald's Corporation
McDonalds has demonstrated leadership on employee training by going beyond its peers in its efforts to develop, retain, and promote talented managers. However, like many in its sector, the company has been accused of anti-union activity worldwide and has faced lawsuits alleging various forms of wage-labor law violations.
MEASURE Cash Profit-Sharing Plan MCD Yes INDUSTRY

McDonalds has a particularly strong record for employing, training, and promoting African Americans and licensing franchises to African Americans. It has been recognized for its performance by the Equal Employment Opportunity Commission and by Black Enterprise Magazine. Despite substantial diversity training programs, its diversity performance is diminished by the number of gender discrimination allegations at both company-owned and franchise operations.
MEASURE MCD Yes 2 2 44 % INDUSTRY Domestic Partner Benefits for GLBT Employees Female Senior Line Executives Minority Senior Line Executives Female/Minority Representation in Senior Line

Employee Safety
MEASURE Employee Health & Safety Systems or Programs MCD Yes INDUSTRY

Supply Chain
MEASURE Supplier Code of Conduct Respect for Workers' Freedom of Association Compliance With Abolition of Forced Labor Compliance With Workplace Equality Compliance With Elimination of Child Labor Supplier Code Governs Entire Supply Chain MCD Yes No Yes Yes Yes Yes INDUSTRY

GOVERNANCE & ETHICS Sustainability Reporting & Engagement

MEASURE CSR Reporting Frequency GRI Reporting Level MCD Annually Incremental (B or C Level) INDUSTRY

INDUSTRY Business Ethics

MEASURE Public Statement On Bribery and Corruption Publicly Available Whistleblower Policy MCD Yes Yes INDUSTRY

Governance Structures
MEASURE CEO is Also the Chair of Board of Directors Member Independent Directors On the Board MCD No ND 58% INDUSTRY

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McDonald's Corporation
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