8.05.2004 ET

(CSRwire) OAK BROOK, IL - McDonald's Corporation today issued its 2004 Corporate Responsibility Report - highlighting global initiatives and providing an in-depth analysis of several corporate responsibility-related aspects of its global foodservice business. Aligned with the company's global vision and corporate strategy, the Plan to Win, the 2004 Corporate Responsibility Report summarizes initiatives and progress as they relate to three of the Plan to Win pillars - Products, People and Place. "This report is a comprehensive, worldwide update on McDonald's commitment to the more than 30,000 communities that we serve every day," said Charlie Bell, president and chief executive officer of McDonald's Corporation. "During the two years since our last corporate responsibility report, the business world has been jarred by scandals, making good corporate governance more relevant than ever. Our efforts started with our founder, Ray Kroc, who instilled in McDonald's a belief in giving back to the communities that we serve. Being responsible is not only our heritage; it is an integral part of our business strategy." McDonald's 2004 Corporate Responsibility Report highlights include:

McDonald's Menu & Balanced Lifestyles: Across McDonald's global system, in more than 100 countries, an array of new menu items, physical activity programs and education initiatives have been introduced or expanded for customers. In addition to traditional favorites, many markets are adding entrée, side and beverage alternatives with a variety of nutritional profiles that can fit into a balanced lifestyle - such as the Salads Plus menu (Australia), Lighter Choices (Canada), Premium Salads and Apple Dippers (United States). Education and physical activity efforts have included a Five-A-Day brochure (United Kingdom), the "Do the Ronald" Activity Program (Brazil), and more. In 2003, McDonald's established a Global Advisory Council of experts to help guide the company in the areas of nutrition, education and physical activity. "I'm part of McDonald's Global Advisory Council because I see an opportunity to help develop realistic approaches that meet people's need for fun and convenience," said Dr. Paul Gately, Carnegie professor of exercise and obesity at Leeds Metropolitan University, United Kingdom. "Working with McDonald's has made me realize that McDonald's is committed to tackling these issues."

Responsible Purchasing: McDonald's continues to integrate social and environmental considerations into its expectations for suppliers. The company is working with suppliers of beef, pork, poultry, buns and potatoes to implement measurement and tracking processes that encourage continuous improvement in the stewardship of natural resources. McDonald's global animal welfare program continues with a second consecutive year of approximately 500 audits of processing facilities for beef, chicken, pork and laying hens. In 2003 in its supplier social accountability program, McDonald's trained 1,137 suppliers and oversaw external assessments of 372 supplier facilities. A global antibiotics policy is on track with dedicated poultry suppliers to phase out growth-promoting antibiotics used in human medicine.

A Good Neighbor in 30,000 Communities Around the World: Focusing on the environmental impacts at the restaurant level, McDonald's reduced the amount of packaging used per $1,000 of sales in six of its top 10 markets by 3.2 percent during 2003. Working with toy suppliers, the company completed a phase-out of intentionally-added mercury in button cell batteries used in electronic toys for Happy Meals. Supporting the health and well-being of children and communities has also been a priority. Through World Children's Day (2002 and 2003), nearly $27 million has been raised by McDonald's Corporation and its owner-operators to support Ronald McDonald House Charities and other children's charities in local communities.

Recognized Employer of Choice & Opportunity: Committed to improving its reputation as an employer of choice in key markets around the world, McDonald's continues to be recognized by third-parties for its efforts in hiring, training and retaining employees. McDonald's USA was recognized by Fortune magazine as the Best Company for Minorities (2003 and 2004); in Brazil, Exame magazine has named McDonald's as one of the best companies to work for the past eight years. Charlie Bell, McDonald's president and chief executive officer, Claire Babrowski, chief restaurant operations officer, Mats Lederhausen, managing director of McDonald's Ventures, among countless other McDonald's executives and owner -operators, started their McDonald's career as crew employees.

Detailed Supplemental Report Added for 2004: Supplemented with quantitative and qualitative facts and information to support highlights in the report, McDonald's 2004 Corporate Responsibility Report details additional data from the company's top 10 markets around the world - accounting for approximately 72 percent of revenue. The company is also striving to raise the bar for future reporting. McDonald's uses the Global Reporting Initiative guidelines - a widely recognized framework for sustainability reporting - and plans to make further progress in reporting in line with the guidelines in future Corporate Responsibility reports.

"McDonald's 2004 Corporate Responsibility Report is a significant improvement over its 2002 report and shows the advancements the company has made in addressing some of the toughest challenges facing the food industry," said Mark Lee, director at SustainAbility, an international consultancy dedicated to evolving sustainable business models. "We congratulate McDonald's for increasing their transparency on a broad set of social and environmental issues. For example, McDonald's responsible purchasing efforts and global antibiotics policy move the company beyond traditional industry positions. At the same time, we encourage McDonald's to continue to establish quantifiable targets and to deepen discussion of the unique dilemmas it faces as a global brand."

McDonald's 2004 Corporate Responsibility Report as well other detailed social and environmental information from McDonald's geographic business units is available at www.mcdonalds.com, including: McDonald's Europe, Brazil, Japan and Canada. Additional information for the media, including photos and report highlights, is available at www.media.mcdonalds.com.

McDonald's is the world's leading global foodservice retailer with more than 30,000 local restaurants serving nearly 47 million people in more than 100 countries each day. Approximately 73 percent of McDonald's restaurants worldwide are owned and operated by independent, local businessmen and women.

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