Executives at McDonald’s could soon find their pay packages determined by factors measuring social responsibility as well as financial criteria. Shareholders of the Illinois based fastfood behemoth are also set to vote next month on a proposal to grant employees and suppliers of its Chinese arm a series of human rights standards by which to work.
Go deeper with GlobalData
The company’s management has already expressed their opposition to the proposals, filing a proxy with the Securities and Exchange Commission to the effect that the schemes already in operation in McDonald’s exceed the standards being debated.
John Harrington, president of Harrington Investments Inc, submitted the proposals on behalf of his daughter. Owner of 200 McDonald’s shares, Harrington urged the restaurant chain to adopt eleven principles on human and labour rights for its Chinese employees. Among these included a blanket ban on child labour and the implementation of decent wages. Harrington also petitioned for the right of Chinese workers to form unions.
The proposals are being backed by other major US shareholders with an interest in social responsibility. These include Domini Social Investments LLC (who owns 391,300 shares), Missionary Oblates of Mary Immaculate, Washington (11,600 shares) and the General Board of Pension and Health Benefits of the United Methodist Church, Evanston (460,156 shares).
The vote is due to take place during McDonald’s annual meeting on 17 May.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
