Day 043 - 01 Nov 94 - Page 49

     
     1        costs of the charity itself, so that there are no expenses
     2        for ronald mcdonald's Children's Charities.  All the
     3        dollars that are raised are actually spent.
     4
     5   Q.   What about the financial arrangements for the
     6        ronald mcdonald Houses?
     7        A.  Well, the ronald mcdonald Houses, once again, locally
     8        -- because they are pretty much used on a local basis --
     9        are generated through fund raisers and activities of the
    10        Co-op or owner/operators' restaurants within that
    11        particular area.  They may commit dollars to have a Ronald
    12        McDonald House built, and then those dollars would be
    13        raised.
    14
    15   Q.   No doubt it might be said, Mr. Green, that such activities
    16        generate goodwill for the brand, might it not?
    17        A.  Yes.
    18
    19   Q.   A question I have of you, as an advertising man, is this:
    20        if you were attempting to find a way of generating goodwill
         for the brand in the strict commercial sense of increasing
    22        sales of the product, would you go down those roads?
    23        A.  It is probably not the most efficient and effective way
    24        to spend your dollars or your time or your effort, but it
    25        is one of the most rewarding ways, both for the employee
    26        and for the people who are involved in it.
    27
    28   Q.   But why would a corporation whose sole interest was in
    29        generating as many dollars for its own pocket as it
    30        possibly could, why would it indulge in that kind of
    31        activity?
    32        A.  Because it is the philosophy of the company that that
    33        is, in fact, an important activity; and I go back -- it
    34        sounds simple, but it really is true for the people who are
    35        working for the company -- it is right the thing do.
    36
    37   Q.   You have worked there a long time -- well, quite a long
    38        time -- 22 years?
    39        A.  It seems longer!
    40
    Q.   For you, personally, does the existence of these charities
    42        make any difference to how you view the company for which
    43        you work?
    44        A.  It makes a big difference.  I think the employees want
    45        to know that they are working for a company that not only
    46        cares to be profitable -- which is obviously what we do, we
    47        have to have a return to our stockholders -- but a company
    48        that cares about the community and cares about the values
    49        that you as a parent, you as a family, value as well.  That
    50        is, from my perspective -- again, only speaking personally 
    51         -- that is one of the great reasons about working for 
    52        McDonald's. 
    53
    54   Q.   So if it was suggested to you that these charities and the
    55        use to which they are put in the community are no more than
    56        a cynical marketing tool, what would your reaction be?
    57        A.  I would say that that was absolutely untrue.  It helps;
    58        there is no doubt about it.  People like to know that the
    59        company does these kinds of things, but it is not done for
    60        that purpose.