[Congressional Record Volume 141, Number 171 (Wednesday, November 1, 1995)]
[Extensions of Remarks]
[Pages E2086-E2087]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     REMARKS OF EDWARD H. RENSI, PRESIDENT/C.E.O. MCDONALD'S U.S.A.

                                 ______


                             HON. ED PASTOR

                               of arizona

                    in the house of representatives

                      Wednesday, November 1, 1995

  Mr. PASTOR. Mr. Speaker, the other night I had the opportunity to 
attend the National Hispanic Corporate Council Institute's 10th year 
anniversary dinner. The featured speaker of the evening was Edward H. 
Rensi, the president and chief executive officer of McDonald's U.S.A. I 
found his remarks insightful, and I would encourage my colleagues to 
take the time to read what one of our Nation's top business leaders has 
to say about the benefits of diversity in today's economy.

    National Hispanic Corporate Council Institute--10th Anniversary

                          (By Edward H. Rensi)

       On behalf of the McDonald's family, I want to congratulate 
     the National Hispanic Corporate Council on its ten-year 
     anniversary; thank you for your outstanding record in 
     bridging the private sector with the Hispanic market; and we 
     applaud your foresight in establishing the NHCC Institute. We 
     are proud to be a charter member of the organization and look 
     forward to partnering with you to fulfill the mission of NHCC 
     for many years to come.
       I also want to thank you for honoring one of our own--Olga 
     Aros. The McDonald's family knows what a special lady Olga is 
     and how passionately she champions issues of concern and 
     interest to the Hispanic community. And it is gratifying to 
     see that an organization of your stature recognizes her 
     commitment and dedication as well. So Olga, congratulations 
     from all your McFamily.
       I want to discuss with you today one of the most important 
     strategic business tools that corporate America has at its 
     disposal to build new business. That tool is diversity.
       I want to tell you how we define diversity at McDonald's,
       How we use it as a business-building tool,
       And what each of us must do to ensure it remains a building 
     block of our society just as the founding fathers affirmed 
     equality into our Constitution and Bill of Rights. This is an 
     issue of business, society and morality.
       We find ourselves at a crossroads in our country's history. 
     At a time when people of different backgrounds and cultures 
     play an increasingly important role in all aspects of our 
     society, there are those who would turn the clock back. And I 
     find that unconscionable and divisive. It runs counter to 
     everything that our experiences at McDonald's have taught us 
     and runs counter to my personal experiences. I'm proud of my 
     Italian family and admire their hard work and self-
     determination. They built a better life in America. I know 
     you feel the same way about your families. That concept of 
     diversity--of many different people contributing to the 
     common good--is what this country is all about. And when I 
     hear people say that we should all speak one language, that 
     we should not teach cultural history in the schools or our 
     homes, I find that extremely disturbing. To deny our multi-
     cultural heritage is to deny history and forfeit our future.
       Social and market diversity are what makes this country 
     great. And if you don't believe that, just try to imagine 
     jazz, rhythm and blues without African-Americans; Tejano 
     music without Mexican-Americans; or salsa without the 
     blending of the Americas.
       I realize that I may be preaching to the choir. You 
     wouldn't be here today if you weren't already believers in 
     the value of diversity. The people I really want to talk to 
     are those who are not here today. And what I would tell them 
     is that they are missing out on a great opportunity to align 
     themselves with an ever-changing marketplace, of which the 
     Hispanic market is one of the most dynamic. Say what you will 
     about affirmative action, immigration, bilingual education 
     and other issues. At the end of the discussion, no company 
     can ignore a market that is 30 million people strong with an 
     annual purchasing power approaching $300 billion. Those are 
     numbers that represent value and opportunity and that no 
     company can ignore if they expect to remain competitive.
       Let's talk, then, about the many roles of diversity at 
     McDonald's.

[[Page E 2087]]

       Diversity at McDonald's is a tool that we use to strengthen 
     our position as a global industry leader. Diversity plays a 
     major role in our company's growth, and by integrating 
     diversity throughout our business, we are able to more 
     effectively build market share, customer satisfaction and 
     profitability. As our society changes, we must incorporate 
     the diversity of our customers into every facet of our 
     operations.
       Diversity is not just the right thing to do, or the 
     altruistic thing to do--it's the smart and business thing to 
     do. If we can't rationalize diversity in our organizations on 
     the basis of moral justification, on the basis of the Bill of 
     Rights, or employee satisfaction, then we better rationalize 
     diversity on the basis of economic growth.
       At McDonald's, we serve a diverse group of customers who 
     demand a diverse menu of products. And we understand that if 
     we want to win the business of those customers, we have to 
     provide more than just great hamburgers and world class 
     fries: we have to reflect the image of our diverse customers 
     in everything we do--from staffing to marketing, franchising, 
     business partnerships, and community involvement. Because if 
     we don't look like our customers, talk like our customers and 
     understand our customers, our customers will become someone 
     else's customers. It's that simple.
       At McDonald's, diversity goes beyond race and gender. It 
     means valuing and accepting unique abilities, perspectives, 
     talents, backgrounds, and experiences. It means providing all 
     individuals the opportunity to reach their full potential 
     while contributing to the achievement of our corporate goals. 
     And that all comes together, it makes McDonald's richer both 
     financially and culturally.
       The story of how we have incorporated diversity into our 
     competitive arsenal is one we are especially proud of. We 
     have institutionalized concepts and curriculum like 
     ``managing diversity,'' which teaches that specific skills 
     are utilized and policies created that get the best from 
     every employee. And education like ``valuing differences,'' 
     which places an emphasis on the appreciation of differences 
     and creates an environment where everyone feels valued and 
     accepted. These are simple, basic concepts that we've had in 
     our corporation many years, and that support our business 
     goals.
       Let me tell you how these practices have worked for us in 
     building marketshare:
       We've established a network of Hispanic owner/operators 
     that has made us the undisputed quick service restaurant of 
     choice with Hispanic consumers. And if you take the combined 
     revenues of those franchisees--more than $600 million--it 
     would comprise the largest Hispanic company in the country.
       We were one of the first companies to advertise on Spanish-
     language television some 25 years ago, and remain the largest 
     single-brand advertiser today. And we will continue to do so 
     because it sells hamburgers.
       We're proud of our Hispanic managers at all levels of the 
     organization. They provide us with a broad range of life 
     experiences and opinions that builds our business not only 
     here but abroad.
       We buy hundreds of millions a year in goods and services 
     from Hispanic firms--because they're the best in the field 
     and they reflect our customers.
       And the entire McDonald's family of employees, franchisees, 
     suppliers, the company and Ronald McDonald Children's 
     Charities helps prepare the workforce of tomorrow through the 
     RMCC/HACER [Hispanic American Commitment to Educational 
     Resources] Scholarship Program. HACER is one of the largest 
     Hispanic scholarship programs in the country with more than 
     $2.4 million awarded since 1985. Just recently, RMCC 
     acknowledged the good work of HACER with an additional $1 
     million matching grant.
       These are just a few of the numbers that exemplify our 
     commitment to diversity and the success of that strategy. But 
     what's more compelling are the human stories of Hispanic men 
     and women within our system whose diverse backgrounds and 
     perspectives contribute to our growth.
       People like Eduardo Sanchez, who started as a restaurant 
     crew member 20 years ago and was recently appointed to 
     oversee operations throughout Latin America and the 
     Caribbean.
       People like franchisee Jose Canchola, who not only operates 
     four restaurants with his family and is the former mayor of 
     Nogales, but for the last 18 years has hosted an annual 
     Christmas party for 2,000 underprivileged Mexican children.
       And people like Lupe Velasquez, who serves in the non-
     traditional female role of director of construction and helps 
     to plan and build four to five hundred restaurants every 
     year.
       These are the kinds of people who make McDonald's great. 
     With stories and successes like that, it's hard to understand 
     why anyone would question the value of diversity. There are 
     many, many other examples of achievement, dedication and 
     pride that put a special shine on our arches and we're proud 
     of them all. Their stories speak well to the fact that 
     McDonald's is an employer of opportunity.
       So what is our role--what can each of us do to assure that 
     we leverage and maximize diversity for the benefit of our 
     entire country. I have three thoughts:
       First, we must speak up and speak out for diversity. We 
     must reaffirm our commitment and assume the responsibility of 
     leaders. We know that erecting barriers between people is not 
     what this country is all about. The kind of divisiveness that 
     I see cannot go unanswered. We must all do our part to share 
     our success stories and our triumps, and erase the spirit of 
     negativity that is taking hold.
       Second, we must all make a personal commitment to do more. 
     I've made a commitment on behalf of myself and McDonald's by 
     agreeing to chair the NHCC Institute during its formative 
     year because I believe in what it stands for and what it can 
     do. I ask each of you to find a role you can play--either 
     within your own company, your own community, or your own 
     industry. And I should not need to remind you that this is no 
     time for any company to retreat from its investment in the 
     Hispanic market.
       And last, we must all set an example--to our employees, 
     other companies, and the community at large. Let's all step 
     forward, set the pace and provide leadership and inspiration 
     for others.
       The  time  has  come  for  us to stand together to turn the 
     tide. Do we continue to construct new barriers, erase hard-
     fought accomplishments, or do stand up and say enough is 
     enough? McDonald's is one company that is willing to step 
     forward and say we believe in diversity, we will practice 
     diversity in all we do, and we need diversity to build market 
     dominance.
       I can assure you with every confidence that to follow that 
     course will serve the best interests of our companies, our 
     communities, and ultimately our country.
       Thank you very much. (Muchas Gracias).

                          ____________________