McDonald’s and Wendy’s investors group demands fixes to franchisee child labor issues
McDonald's and Wendy's investors group demands fixes to franchisee child labor issues MSNBC
sdgtalks
A Group of Shareholders Demand Action from McDonald’s and Wendy’s Boards to Address Labor Exploitation
Introduction
A group of shareholders in fast-food chains McDonald’s and Wendy’s are demanding the companies’ boards of directors do more to ensure franchisees are not exploiting child labor or labor by incarcerated people.
Background
In separate letters to the boards at the two restaurant chains, the investors reference The Washington Post reporting on child labor at McDonald’s and Wendy’s franchises as the reason for leadership to take urgent action. The investors argue that news coverage and increased public scrutiny of possible labor violations threaten the companies’ bottom lines. Both letters were coordinated by the SOC Investment Group, an organization that manages union pensions.
McDonald’s Shareholders’ Demands
The McDonald’s investors, representing over $2.2 trillion in assets, highlight that McDonald’s has had more than 2,300 child labor violations at more than 13,000 restaurants since 2013, according to The Washington Post’s reporting. They argue that the board is responsible for a “lack of oversight” that exposes shareholders to reputational and legal risks associated with repeated violations of child labor law.
- Institute a zero-tolerance policy with regard to child labor at franchises
- Empower an internal committee to oversee human rights issues
- Release an independent human rights review of franchisees in December
Wendy’s Shareholders’ Demands
The Wendy’s investors, representing $429.5 million in assets, cite The Washington Post investigation which found that Wendy’s franchises have had some of the most child labor violations per restaurant in the fast food industry since 2020. They express concern that the respective boards are failing to “mitigate risks to the Company’s reputation.”
- Adopt a zero-tolerance policy with regard to child labor at franchises
- Empower an internal committee to oversee human rights issues
- Release an independent human rights review of franchisees in December
- Provide annual progress reports thereafter
Concerns about Prison Labor
Both letters cite an Alabama lawsuit, which names Wendy’s and McDonald’s restaurants among hundreds of employers allegedly relying on prison labor, to express concern that the respective boards are failing to “mitigate risks to the Company’s reputation.”
Company Responses
Neither company immediately responded to MSNBC’s request for comment. In a previous statement to The Washington Post, McDonald’s said the child-labor violations don’t reflect the experience of most teenagers working in ‘age-appropriate roles and looking for meaningful jobs in their local communities.’
Conclusion
Press coverage of labor exploitation is bad for business, and it is morally just and politically prudent for companies to disassociate themselves from such practices. The shareholders’ demands align with the Sustainable Development Goals (SDGs), particularly Goal 8: Decent Work and Economic Growth, and Goal 16: Peace, Justice, and Strong Institutions.
SDGs, Targets, and Indicators
-
SDG 8: Decent Work and Economic Growth
- Target 8.7: Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labor.
- Indicator: Number of child labor violations reported in fast-food chains.
-
SDG 16: Peace, Justice, and Strong Institutions
- Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all.
- Indicator: Number of labor violations involving incarcerated people in fast-food chains.
Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
The issues highlighted in the article are connected to SDG 8 (Decent Work and Economic Growth) and SDG 16 (Peace, Justice, and Strong Institutions).
2. What specific targets under those SDGs can be identified based on the article’s content?
The specific targets identified based on the article’s content are:
- Target 8.7: Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labor.
- Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
The article mentions indicators that can be used to measure progress towards the identified targets:
- Number of child labor violations reported in fast-food chains: This indicator can measure progress towards Target 8.7, which aims to eradicate child labor.
- Number of labor violations involving incarcerated people in fast-food chains: This indicator can measure progress towards Target 16.3, which aims to promote the rule of law and equal access to justice.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.7: Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labor. | Number of child labor violations reported in fast-food chains. |
| SDG 16: Peace, Justice, and Strong Institutions | Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all. | Number of labor violations involving incarcerated people in fast-food chains. |
Copyright: Dive into this article, curated with care by SDG Investors Inc. Our advanced AI technology searches through vast amounts of data to spotlight how we are all moving forward with the Sustainable Development Goals. While we own the rights to this content, we invite you to share it to help spread knowledge and spark action on the SDGs.
Fuente: msnbc.com
Join us, as fellow seekers of change, on a transformative journey at https://sdgtalks.ai/welcome, where you can become a member and actively contribute to shaping a brighter future.
