MCDONALD'S CORPORATION | Workplace Sexual Harassment Assessment at MCDONALD'S CORPORATION

Status
Withdrawn
AGM date
Previous AGM date
Resolution details
Company ticker
MCD
Lead filer
SHARE - Shareholder Association for Research & Education
Resolution ask
Conduct due diligence, audit or risk/impact assessment
ESG theme
  • Social
ESG sub-theme
  • Decent work
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Discretionary
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders urge the Board of Directors to publish the results of an independent, third-party assessment of the effectiveness of McDonald’s Corporation’s (“McDonald’s” or “the Company”) efforts to eradicate sexual harassment and gender discrimination in its corporate owned and franchised restaurants.
At a minimum, the assessment should include a review of:
- McDonald’s commitment, policies, and measures to prevent and address sexual harassment and gender discrimination including those outlined in the Company’s Global Brand Standards, its Global Statement of Principles on Workplace Violence Prevention and its Global Statement of Principles Against Discrimination, Harassment and Retaliation;
- The measures taken to support franchised owners to adopt best practices and the McDonald’s policies mentioned above;
- The grievance mechanisms implemented, including the process for handling complaints and access to effective remediation.
The assessment, prepared at reasonable expense and omitting confidential, proprietary or legally privileged information, should be publicly disclosed on the Company’s website by December 31, 2023.
Supporting statement
SUPPORTING STATEMENT:A US nationwide survey found that forty percent of women in the fast-food industry have experienced sexual harassment on the job.1
In recent years, McDonald’s has faced significant negative media coverage related to claims of sexual harassment,2 a $500 million class action lawsuit in which plaintiffs allege that McDonald’s has a “systemic sexual harassment problem”3, and numerous complaints filed with the U.S. Equal Employment Opportunity Commission.4 Another complaint filed by an international coalition of labour unions at the OECD’s offices in the Netherlands alleges that gender-based violence and harassment are part of McDonald’s culture5. The OECD complaint details a “pattern of sexual harassment and gender-based violence” in the U.S, the United Kingdom, France, Australia and many other countries.6
In 2021 and 2022, in response to the growing controversy, McDonald’s implemented new policies and programs to promote “safe, respectful and inclusive workplaces that protect the physical and psychological safety of all crew and customers”.7 In addition, the Company has developed a suite of policies, tools and training and established an evaluation process to support markets and franchised restaurants in adopting decent work practices.8
Despite these reforms and changes, workers have alleged that sexual harassment and retaliation persist in McDonald’s restaurants.9
Any failure to effectively implement adequate policies and practices to protect workers in corporate owned or franchised restaurants exposes workers to unacceptable abuses, and exposes the Company to material legal and reputational risks that may ultimately affect shareholder long-term value.
A transparent assessment of the effectiveness of management’s measures to date is essential not only to protect employees and establish a culture of accountability within the company, but also to allow the company’s shareholders to evaluate the effectiveness of management’s efforts to eradicate sexual harassment within its global operations.
1 https://hartresearch.com/fast-food-worker-harassment-survey-findings/2 https://www.npr.org/2019/05/23/726071587/mcdonalds-protests-over-sexual-harassment-grow-as-shareholders-meet3 https://www.businessinsider.com/workers-file-sexual-harassment-lawsuit-against-mcdonalds-2020-44 https://www.reuters.com/article/us-mcdonald-s-lawsuits-harassment-idUSKCN1SR1RP;5 https://www.theguardian.com/business/2020/may/18/mcdonalds-lawsuit-systemic-sexual-harassment-employees-worldwide 6 https://www.restaurantdive.com/news/mcdonalds-faces-criticism-for-sexual-harassment-issues-in-international-ma/578181/ 7 https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/jobs-inclusion-and-empowerment/safe-respectful- workplaces.html8 https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/jobs-inclusion-and-empowerment/safe-respectful- workplaces.html9 https://www.theguardian.com/business/2022/aug/16/mcdonalds-sexual-harassment-retaliation-firings

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