RALPH ALVAREZ
President
McDonald’s ® North America

Nearly a decade before I joined McDonald’s, Richard Castro, a McDonald’s franchisee from El Paso, Texas, was so alarmed at the number of Hispanic students dropping out of high school that he sought to create a scholarship program to encourage young Hispanics to continue their education.
That same year, he won the support of McDonald’s Corporation as well as Ronald McDonald House Charities® to establish the RMHC® Hispanic American Commitment to Educational Resources (HACER®) scholarship program. Castro earned an initial fund of $97,000 to launch the program, which provides scholarships to high school seniors across the country. Today, the RMHC/HACER scholarship program is the largest high-school-to-college scholarship program for Hispanic students in the nation and since 1985 has awarded more than $12 million to 14,000 students.
To me, efforts such as this exemplify not just good diversity practices in business, but good business. I held executive level positions at other restaurant chains before joining McDonald’s in 1994. And one of the main reasons I was attracted to McDonald’s was its unprecedented commitment to diversity across all aspects of its business.
As our founder Ray Kroc once said, “None of us is as good as all of us,” and in my current role as president of McDonald’s North America, it is my responsibility to promote and protect diversity in our restaurants, our employees, our franchisees and our valued suppliers.
Today, diversity is omnipresent under The Golden Arches®. We have one of the largest numbers of Hispanics serving as corporate officers among all major U.S. corporations. Latinos hold many key leadership positions. Among them: Jose Armario, President of McDonald’s Latin America; J.C. Gonzalez-Mendez, Senior VP of Supply Chain for North America and McDonald’s highest-ranking Latina Gloria Santona, Executive VP and Chief Corporate Counsel. I’m proud to say that, more than 12 years after joining McDonald’s, one-third of our employees are Hispanic and 12 percent of our U.S. officers are Hispanic.
In addition to the notable successes of McDonald’s Hispanic executives, the McDonald’s Hispanic Owner’s Association (MHOA) is the largest organization of Hispanic franchisees in the country. The combined revenue generated by our Hispanic-owned restaurants is estimated at more than $1.5 billion per year.
Two years ago, McDonald’s Hispanic franchisees and employees saw an opportunity to better understand and serve the Hispanic consumer market. As a result, they developed the Hispanic Business Vision – designed to make the brand more appealing and inviting to McDonald’s Hispanic employees, franchisees, suppliers and customers.
Ensuring the McDonald’s brand remains relevant to Hispanic customers can have a ‘halo effect.’ Whether it is through bilingual restaurant signage and décor, new products or even attitude – it’s a different experience. It’s expressing to customers: “You are welcome at McDonald’s.” It’s about creating the right environment for employees and making McDonald’s the best place to work, for example: offering educational tools to Hispanic employees to improve their language skills as well as offering Hispanic employee networks on a national and local level.
The evolution of McDonald’s toward diversity as a business objective began in the mid-‘70s, when the company established an Affirmative Action Department – one of the first in the quick service restaurant industry – which is known today as McDonald’s Diversity Initiatives Department. This department introduced a major initiative around diversity education in the late 1970s. Seminars were designed to educate employees about the changing landscape of the American workforce. These seminars were followed by career development seminars for women, African-Americans and Hispanics.
While the seminars were one of the first diversity initiatives undertaken by McDonald’s, our employees had already started informal networking activities on their own. Many of the employee networks were formed in the mid-’70s. Today, they include the National Hispanic Employee Network, McDonald’s Hispanic Owner/Operators Association, Hispanic Leadership Council, Hispanic Steering Committee and the National McDonald’s Diversity Advisory Council, among others.
But what does that all mean?
It means that diversity at McDonald’s is about understanding, recognizing and valuing the differences that make each person unique. McDonald’s is committed to identifying the talents and job performances of all employees and we value the contributions that come from people with different backgrounds and perspectives.
Diversity is more than just a directive; it’s a way of life and business imperative. It is ingrained into the McDonald’s business philosophy just as much as the Golden Arches‚ which symbolize the brand itself. From the crew room to the boardroom, diversity will always be on the menu at McDonald’s.

© 2006 McDonald’s


[This article has been edited for www.latinastyle.com. For the full version, check out the July/August issue of LATINA Style.] 

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