Day 043 - 01 Nov 94 - Page 48

     
     1        tenets of the founder, as well as other people, it has been
     2        very clear that we should give back to the community as
     3        well as take sales from the community.  It is just good
     4        business and, more importantly, it is the right thing to
     5        do.
     6
     7   Q.   I am going to jump ahead of myself a little bit and come
     8        back in the light of that answer, if I may.  There are in
     9        the United States, are there not -- as there are in this
    10        country -- charitable activities carried out by the
    11        Corporation in the name of ronald mcdonald?
    12        A.  Yes, there are a number of ones, but probably the two
    13        most important are ronald mcdonald House and Ronald
    14        McDonald's Children's Charities.  Actually, the Ronald
    15        McDonald Houses started about 15 or 16 years ago, and these
    16        are places where parents who have children that are ill can
    17        stay close to their child, close to the hospital.  It used
    18        to be a very difficult thing for them to rent hotels or to
    19        get close to their children while they were being given
    20        therapy at a particular hospital.  These are complexes very
         close to the hospital where a parent can stay at relatively
    22        no fee, so that they can be close to their child.
    23
    24   Q.   Where did that idea originate; do you know?
    25        A.  In Philadelphia, and it actually was a joint discussion
    26        between the Philadelphia football team at that time,
    27        professional football team, the McDonald's Co-op, which is
    28        the owner/operators and stores in that particular area, and
    29        a hospital in the Philadelphia area.
    30
    31   Q.   Does that idea now exist in practice on the ground
    32        throughout the world?
    33        A.  Yes.  There are well over, I believe it is over 100
    34        ronald mcdonald Houses, and most of them are in the United
    35        States, but they are throughout the world.  The other one
    36        I mentioned was ronald mcdonald Children's Charities.
    37
    38   Q.   What do they do?
    39        A.  This was established, when the founder of McDonald's
    40        passed away, in memory of Ray Kroc; and they raised funds
         for purposes of children's causes throughout the United
    42        States.  It is principally -- ronald mcdonald Children's
    43        Charities are principally in the United States.  So they
    44        will give money for development programmes for kids and for
    45        other kinds of charitable activities that feature youth.
    46
    47   Q.   Does the Corporation denote any proportion of its revenue
    48        to these charities?
    49        A.  Yes.  The Corporation denotes money to the charity, but
    50        also probably more money is done through fund raising, and 
    51        fund raising is done by local Children's Charities groups 
    52        throughout the country or, in fact, millions of dollars are 
    53        raised through promotion activities at McDonald's where we
    54        will denote a certain amount of the proceeds to go to
    55        ronald mcdonald's Children's Charities.
    56
    57   Q.   At the McDonald's restaurants?
    58        A.  Yes, that is true.  There are many other people who tie
    59        in with ronald mcdonald Children's Charities to raise
    60        funds, as well.  The company pays all of the administrative