• BusinessWeek, Wednesday, January 10, 2007 12:45 PM

Later this year, McDonald's will begin serving only Rainforest Alliance-certified coffee in its 6,200-plus European restaurants. It wants to stay ahead of competition, such as Starbucks, and also make its mark in the sustainability movement.

In a deal worth nearly $100 million to some of the poorest farmers in the world, the fast-food giant will begin offering ethically sourced Kenco coffee. In doing so, McDonald's joins multinationals such as Wal-Mart, Royal Philips Electronics and Unilever in getting serious about sustainability.

"Companies are increasingly trying to boost their social responsibility programs because they know that not to do so is a major corporate risk," says Rita Clifton, chairman of the consultancy Interbrand U.K. "Sustainable sourcing is becoming more important, especially to European consumers, so this latest move from McDonald's is a small but significant step."

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