1.0 Introduction1.1 What is CSR?Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. (Lord Holme, n.d.)CSR strategies are playing a major role in development of a company`s reputation. That is why so many business men, journalists and business analyst explain their point of view on the subject. Among the most popular are Michael Porter, Mallen Baker, Abraham Maslow, Bob Willard, Milton Friedman and many others. The operation CSR is has become lately subject of debate and criticism. (Committee Encouraging Corporate Philanthropy (CECP), 2011) According to defenders there is a strict plan relatively CSR, and the companies receive big benefit of the fact which longer works wider and more, than their own short-term reach in an eye blinking. Censors quarrel which CSR deletes from a leading economic role of business with some requirement that it something as decoration of reality, at the same time, as others say that it is effort to replace a role of the government of the dispatcher of the influential multinational companies. (Porter, 1979 )We can clearly get understanding of CSR through Carroll`s CSR pyramid:

(Carroll, 2009) 2.1 The Backgrounds of McDonald'sMcDonalds is a big corporation and international fast food restaurant around the world, it was founded by Richard and Maurice McDonald in 1937 in California, and 43 years later in December 1980, the global fast food restaurants had arrived in Malaysia (The Communications Department McDonald's Restaurants Ltd 1995). It gives a lot of advantage to McDonalds and opportunity to capture more shares and customers as the fast food trend in Malaysia still have the market to expand. Since 1982, McDonalds opened its first restaurant stated in Kuala Lumpur, Malaysia. It creates many job opportunities, especially in its headquarter which is having more than 8,000 local people and 120 support staffs being employed.( M.Azu, 2010)

2.2 The McDonald's in MalaysiaThe McDonald's had decided to expand its business outside the USA in 1967, by opening the first international restaurant in Canada and Puerto Rico. The franchising business of McDonald's grew very fast globally and McDonald's had become the largest restaurant organisation in the world. When McDonald's was first introduced to Malaysia in 1980, McDonald's Corporation, and USA had granted the license to a local organisation, Golden Arches Restaurant Sdn Bhd to operate the McDonald's restaurant in Malaysia. Malaysians had gotten the first taste of McDonald's when McDonald's Malaysia opened its first restaurant in Bukit Bintang, Kuala Lumpur on 29 April 1982.McDonald's Malaysia is expanding the business equally and currently, there are 185 McDonald's chains located nationwide. McDonald's Malaysia continues the expansion of the chain by about ten to fifteen restaurants yearly. Therefore, McDonald's Malaysia has created many job opportunities for the local people. There are over 7000 staffs in McDonald's and 120 support staff at the headquarters managing the day-to-day operations of McDonald's business.3.5.2 Corporate Social Responsibility (CSR)McDonald's Malaysia has invested a lot in the Corporate Social Responsibility (CSR) and it does make a good business sense as the companies do not operate in a vacuum. A business does maintain a constant, interdependent relationship with the world in which or where the organization operate.2.0Social performanceThe corporate social performance consists of measurement in how well the institution has translated its social goals into practice (CGAP Workshop Paris 2004). It also known as corporate social responsibility (CSR), is define as the continuing commitment by business to behave ethically and contribute to economic development (Lord Holme and Richard Watts n,d.) There is another definition, "CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities. (Ghana n,d.)For McDonalds, my own definition is that CSR is about how companies manage the business operation to produce an overall impact on society and creates a good impression to customers and stakeholders in order to making profits in ways of belief in welfare, and responsibility to take care of welfare benefits. In this section, we will discuss about how well the CSR and contribution of McDonalds in the society.2.1Services provider & technology improvementMcDonalds provides customers extra services such as delivery order through phone and online, and also 24 hours service for people who look for quick meal during their night shift. (McDonald's n.d.) It gives a good aspect of economic arises as many household can purchase the fast foods in the convenience way. This will slightly increase the rate of consumption in Malaysia. Moreover, it helps to develop infrastructure especially telecommunication, intercommunication and so on, as nowadays people are lazy to go out having their meals, some of them are ordering their meals through internet rather than driving a car to buy foods.2.2Environmental protectionEnvironmental protection refers to any activity to maintain or restore the quality of environmental media through preventing the emission of pollutants or reducing the presence of polluting substances in environmental media. (Glossary of Environment Statistics, Studies in Methods 2001). In this case, McDonalds is announcing a plan to buy up $100 million in recycled construction materials for use in building and remodeling its fast-food restaurants. (John Holusha 1990), it is helping the recycling industry to reclaim those materials such as newspapers, cans and bottles.In addition, McDonalds also uses the recycling materials for packaging such as beverages, burgers and so on. However, the McDonald's recycling program is not only aimed to do like that, the company said the plastic items are also can reform into the useful items such as trays and buckets. (John Holusha 1990) Therefore, sometimes McDonalds will come out with their strategy such as using the recycle plastic items to make plastic glass as a free gift for customers who buy a set of meal.

3.0Impact of social performanceAs we know that McDonalds is a fast food restaurant, some people might not satisfy with their services or foods. This section will tell us the issues that McDonalds encountered.3.1 Copyright and PatentsCopyright is a protection for original expression of ideas that we cannot copy from them who have registered. (HJ Ventures International, Inc 2004) There are different functions between copyright and patent. For a thing to be patented it must be useful. Since we know that McDonalds is a big corporation, they had registered the copyright and patents, which mean people cannot use the similar name or product when forming a business. However, sometimes company may face the copyright and patents problem.For an example, there is hottest news in recent years, which contend about the copyrights of the company name, McDonald's v McCurry. "McDonald's vigorously defends its trademarks against violations anywhere in the world (Liam Jeory 2009) We can see that McDonalds strongly defends against their copyrights. However, McDonalds failed to sue McCurry for the copyrights, McCurry argued that their selling foods such as briyani rice, nasi lemak, while McDonald's sells fries, and burgers, etc. (Boey Wei Lyn, 2010) In this case, the court held that their style is use in different terms of presentation, get-up and targeted market, and the signboard for McCurry would not result in reasonable persons associating McCurry Restaurant with McDonald's. (Boey Wei Lyn2010) In fact, McCurry offered to the customers are totally different from what McDonald's offered, and this shows that McCurry did not use Mc to name their food items served in his outlet. In conclusion, the court stated that there was no proof in such circumstances, and eventually McDonald's leave to appeal to the court and awarded McCurry cost of RM10, 000.3.2NutritionNowadays most customers concern in healthy foods. However, fast food is considered oily and bad for health, it will link to serious diseases such as heart disease, cancer, obesity and so on. McDonald's has no sufficient scientific evidence to prove that their food can be valuable part of a balance diet. Many people said that McDonald's are selling unhealthy products, for most people who practice to eat the healthiest possible food usually either cooks at home or have meal at the workplace to avoid taking fast food. (Helen and Dave) However, the situation is changing rapidly, many food industries has processed the unhealthy mass for food that it can used to replace fresh and healthy foods.This successful development had causes a serious problem in human health as now they currently sell to about 30 million people daily. (Helen and Dave) People start to rely on McDonald's fast food and dislike cooking at home as it's convenience to all of them. Therefore, McDonalds has become the world largest threats for human health which people are concerning about.3.3 Legal and Political EnvironmentMalaysia is formally an Islamic nation as majority of its population comes from Muslim. McDonalds will have to bind with the Malaysia Law which is Syariat Law, it stated that all food served must be Halal. (M.Azu, 2010) It brings a lot of limitation to McDonald's food offered to Malaysia. In order to capture and making profit in this market, McDonalds have to cooperate in working with suppliers, authorities, local businesses and government throughout their international operations.

As we know that McDonalds makes many offers such as beef, chicken, pork, fish meal around the world, McDonalds is forced to follow the law in Malaysia by serving the Halal food to gain Islam consumers confident which creates a good impression in Malaysia. Therefore, McDonalds must concern in the type of foods in Malaysia they offered, especially the total absence of pork products.

3.5.2.2 SponsorshipMcDonald's Malaysia believes the organization would have the responsibility to give back as much as they can to the local communities. The idea of "giving back" is an integral part of everything the organisation doing. The McDonald's Malaysia works in the wider community to provide support and encouragement to the people who need it. All the McDonald's restaurants contribute to their local community and every year the organisation help to set up and support thousands of educational, sporting and charity programs designed to help a wide range of people and community. Consequently, McDonald's has a proactive move towards to sponsorships. McDonald's Malaysia believes the sponsorships help inspire and support Malaysians, especially for those the underprivileged to live a better life. The organisation has keen to delivering great experiences through sponsorships.

3.2.1 Primary Activities of value chainThe goal of these activities is to create value that exceeds the cost of providing the product or service, thus generating a profit margin. This is the description of the activities that involve in primary value chain. Inbound Logistics includes warehousing, materials handling, inventory control, etc. Operations are the activities that transform inputs into finished products (eg machining, testing, packaging, equipment maintenance, etc). Outbound Logistics includes the activities that store and distribute products to buyers (eg warehousing, delivery vehicle operations, order processing, etc). Marketing and Sales are the activities that provide the means for the buyer to purchase (eg advertising, sales force operations, selection and management of distribution channels, etc). Service includes activities which enhance or maintain the value such as installation, repair, parts supply, etc).4.0 RecommendationMcDonald's Malaysia is the second largest fast food franchisor in Malaysia but the business had sustained slowly in these few years. The main reason that McDonald's Malaysia gets stuck in between is because of the failure in achieving customer perception. As compared to Ramli Burger, the "local burger" had implements research to develop its burgers from time to time. For that reason, McDonald's Malaysia should expand the products line and focus on the youth markets as well as other age segments. By following the competitor's footsteps, McDonald's should rebrand their position in the Malaysian fast food market, by not only catering for the youth but also cater to families who are health conscious and seeking value for their money. As a result, product development should be highlighted since the adults and the elderly people have much concern on their health. Moreover, fried food is hard to digest especially for older customers and infants. McDonald's can refer to what the competitors did and develop more healthy menus. It is recommended to have salad in the menu and more juices as the beverage. In addition, McDonald's can replace the vanilla ice cream with yogurt ice cream, which is very popular in the market nowadays. McDonald's Malaysia had to be more initiative in product development for achieving the consumer perception and prevent to lose the market share, as there are many competitors entering into the fast food market from time to time.5.0 ConclusionThe competitors are taking advantages with what McDonald's Malaysia missed in its business strategy. Even though McDonald's is a well known brand but improvisation is needed especially in the competitive market now. The downfall of Lehman Brothers had shown that the super brand have the possibility to fail if the business is not well managed. Hence, as consumers translates into figures in sales, all companies, regardless of any industries, should comply with their consumer's expectations. A successful company is a company which can adapt to different type of environments to satisfy different type of consumers. As the saying goes, "in Roman, do what the Romans do", companies should adapt to different types of culture to capture the market share in that specific country.

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