3. • Corporate social responsibility (CSR, also called corporate conscience, corporate
citizenship, social performance, or sustainable responsible business/ Responsible
Business)is a form of corporate self-regulation integrated into a business model.
CSR policy functions as a built-in, self-regulating mechanism whereby a business
monitors and ensures its active compliance with the spirit of the law, ethical
standards, and international norms. In some models, a firm's implementation of
CSR goes beyond compliance and engages in "actions that appear to further some
social good, beyond the interests of the firm and that which is required by
law."CSR is a process with the aim to embrace responsibility for the company's
actions and encourage a positive impact through its activities on the environment,
consumers, employees, communities, stakeholders and all other members of
the public sphere who may also be considered as stakeholders.
• The term "corporate social responsibility" came into common use in the late 1960s
and early 1970s after many multinational corporations formed the
term stakeholder, meaning those on whom an organization's activities have an
impact. It was used to describe corporate owners beyond shareholders as a result
of an influential book by R. Edward Freeman, Strategic management: a stakeholder
approach in 1984.
4. • 1. Going Global: The relentless march toward globalization will continue to stretch the scope of corporate responsibility. For instance,
the new conflict minerals requirement in the Dodd-Frank Financial Reform Act breaks new ground for the scope of corporate
responsibility, by requiring many types of businesses to track four minerals back to their sources to ensure they don’t fuel conflict in the
minefields of Central Africa. As this and similar requirements arise, the trend is clear: Corporate social responsibility leaders will be
increasingly accountable for responsible behaviour all along their supply chains.
• 2. The Triumph (or Tyranny) of Transparency: The pressure for ever increasing levels of transparency and disclosure will build in 2012.
Last year, according to CorporateRegister.com, more than 5,500 companies around the world issued sustainability reports, up from
about 800 a decade ago. Also, the “Rate the Raters” report from SustainAbility.com found that more than 100 sets of ratings measure
which companies are the most responsible. All the big four accounting firms are expanding their practices to audit all of these disclosures
and are also sponsoring the expanded fourth edition of the Global Reporting Initiative Guidelines, which outline standard CSR
disclosures. In 2012 a promising new initiative, the Global Initiative for Sustainability Ratings, will endeavour to standardize the ratings
framework, but beyond that there is little relief in sight for the survey-fatigued CSR manager.
• 3. Employee Engagement Emerges: The connection between CSR and engaged employees continues to grow. A Hewitt &
Associates study looked at 230 workplaces with more than 100,000 employees and found that the more a company actively pursues
worthy environmental and social efforts, the more engaged its employees are. The Society for Human Resources
Management compared companies that have strong sustainability programs with companies that have poor ones and found that in the
former morale was 55% better, business process were 43% more efficient, public image was 43% stronger, and employee loyalty was
38% better. Add to all that the fact that companies with highly engaged employees have three times the operating margin (Towers and
Watson) and four times the earnings per share(Gallup) of companies with low engagement, and you’ve got a compelling business case
for this trend to continue into 2012 and beyond.
• 4. Political Pitfalls: The elections will dominate the public conversation in the U.S. in 2012, and corporations will be alternately described
as greedy, polluting, untrustworthy political puppet masters and job-creating paragons of virtue—with little room in the middle. Beyond
the rhetoric, candidates won’t be able to resist highlighting company success stories featuring economic, environmental and social
benefits. CSR leaders should choose what they promote wisely and set clear boundaries to avoid becoming political footballs.
• 5. Collaboratition: As CSR becomes more of a differentiator, companies will both compete and collaborate on CSR issues. I devised the
term collaboratition in a 2011 speech to describe how companies both compete and collaborate on CSR at the same time. The numerous
CSR ratings, together with data from the Reputation Institute’s 2011 “Pulse Survey,” which indicate that CSR is responsible for more
than 40% of a company’s reputation, lay the basis for CSR competition. On the other hand, there are a plethora of associations and multi
stakeholder networks that foster collaboration on CSR topics. Groups like the Electronics Industry Citizenship Coalition demonstrate how
competitors can partner on CSR issues like conflict minerals. Why would they? Such issues are so massive that working together is clearly
more efficient. On the other end of the spectrum are initiatives like GE’s ecomagination program, which furthers competitive
advantage. “Collaboratition” means that companies can and will collaborate on CSR efforts when that is more efficient, while
continuing to compete on their signature CSR programs.
5. • 6. Sustainability Shoppers: Consumers are increasingly tuned in to sustainability when making their buying decisions. “Green labels”
have been around for a long time, but Wal-Mart’s sustainability index is taking it up a notch. Already driving WMT suppliers to improve
performance, in the future the index could appear on a point-of-sale label for products. Expect green marketing in 2012 to up the ante
based on the successes of campaigns like Timberland’s Earthkeepers line (“Nature Needs Heroes”). Perhaps the high water mark for
eco-minded advertising was Patagonia’s brilliant “Don’t Buy This Jacket” messaging. Its Common Threads Initiative asks customers to
pledge to only buy what they need and instead repair, reuse, and recycle their clothing. Nothing inspires confidence in your eco-values
more than telling customers not to buy your products. Independent certification schemes like the GoodGuide will continue to
proliferate, as will “cause marketing,” for the simple reason that it works. Cone Communications reports in its 2010 Cause Evolution
Study that “even as cause marketing continues to grow, consumers are eager for more. In fact, 83 percent of Americans want MORE of
the products, services and retailers they use to support causes.”
• 7. Occupy From the Inside: PriceWaterhouseCoopers has found that 88% of millennials, or “echo boomers,” choose employers based
on strong CSR values, and 86% would consider leaving if the companies’ CSR values no longer met their expectations. As a new
generation goes to work in corporate America, it is bringing strong social justice values with it. At the same time, companies are under
increasing pressure to “go green.” So despite the popular view that corporations are in a race to the bottom, 2012 will see more jobs
created for CSR professionals who want to change business from the inside out. Companies of all kinds are looking for people to help
improve their environmental, social, and ethical performance throughout their value chains. There are recruiters like Ellen
Weinreb and Martha Montag Brown who specialize in CSR jobs, and the big recruiters have caught on too.
• 8. Social Media Rules: I will admit that I originally got a Facebook account just to annoy my children. Now Facebook and Twitter are
essential communications tools for any serious CSR program. Social media is not a replacement for hefty annual CSR reports, but those
reports are increasingly static reference documents, used mainly for looking up facts and grading performance. Social media opens a
way for stakeholders to interact directly with a company’s CSR program. Through social media, companies gain a following of people
who are interested in their CSR performance and can keep tabs on stakeholder sentiment on any emerging issue. These tools are still
very new, and no company has perfected their use, but it is clear that social media is a game you cannot afford sit out.
• 9. Human Rights: Since the 2008 publication of the “Ruggie Report” on human rights and transnational corporations, companies have
been waking up to human rights issues across their value chains. For example, the major Internet search companies are embroiled in
basic human rights questions ranging from the protection of free speech during the “Arab Spring” to being compelled to identify
dissidents in repressive regimes. In a time of globalization, hyper-transparency, and increasing expectations among informed
stakeholders, the risk in even tacit complicity in human rights violations is growing. Wise companies will take a hard look at their human
rights policies and practices in 2012 and act to mitigate any liabilities.
• 10. Earth at Seven Billion and Growing: In 2011 the world’s population topped seven billion people. Even at seven billion we have
averted a Malthusian catastrophe—so far. But as more people compete for the Earth’s resources, the need to be more efficient will
continue to increase. Everything from energy efficient semiconductors to electric cars to water conserving plants will find new markets
in 2012 and beyond. The imperative to stretch resources ever further will make sustainability a central design principle for the winning
corporations of the future.
6.
7. • Microsoft Corporation is an American multinational software corporation
headquartered in Redmond, Washington that develops, manufactures, licenses, and
supports a wide range of products and services related to computing. The company was
founded by Bill Gates and Paul Allen on April 4, 1975. Microsoft is the world's largest
software maker measured by revenues. It is also one of the world's most valuable
companies.
• Environmental record
• Microsoft is ranked on the 17th place in Greenpeace's Guide to Greener Electronics
(16th Edition) that ranks 18 electronics manufacturers according to their policies on
toxic chemicals, recycling and climate change. Microsoft's timeline for phasing
out BFRs and phthalates in all products is 2012 but its commitment to phasing out PVC
is not clear. As yet (January 2011) it has no products that are completely free from PVC
and BFRs. When Microsoft went public and launched its initial public offering (IPO) in
1986, the opening stock price was $21; after the trading day, the price closed at $27.75.
As of July 2010, with the company's nine stock splits, any IPO shares would be
8. • Google Inc. is an American multinational corporation specializing in Internet-related
services and products. These include search, cloud computing, software and online
advertising technologies. Most of its profits are derived from Ad Words. Google was
founded by Larry Page and Sergey Brin while they were Ph.D. students at Stanford
University. Together they own about 16 percent of its shares. They incorporated Google as
a privately held company on September 4, 1998.
• Environmental record
• Since 2007, Google has aimed for carbon neutrality in regard to its operations.In June 2013,
the Washington Post reported that Google had donated US$50,000 to the Competitive
Enterprise Institute, a libertarian think tank. In July 2013, it was reported that Google had
hosted a fundraising event for Oklahoma Senator Jim Inhofe, who has called climate
change a "hoax"
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9. • The Walt Disney Company, commonly known as Disney, is an American
diversified multinational mass media corporation headquartered in Walt Disney
Studios, Burbank, California. It is the largest media conglomerate in the world in terms of
revenue. Disney was founded on October 16, 1923, by Walt and Roy Disney as the Disney
Brothers Cartoon Studio, and established itself as a leader in the American animation
industry before diversifying into live-action film production, television, and travel.
• Environmental record
• At Walt Disney World Resort, conservation and environmental sustainability are not only part of a
long-term commitment to responsible stewardship but also are key business components evident in
day-to-day operations.
• As an EPA “Energy Star Partner,” Walt Disney World Resort has installed energy-saving fixtures and
systems throughout the property.
• As a result of a 2011 WDW lighting retrofit program that included merchandise locations, attractions
and distribution facilities, Walt Disney World Resort conserved enough energy to operate Big Thunder
Mountain for more than three years.
10. • Bayerische Motoren Werke AG ; English: Bavarian Motor Works), commonly known as BMW or BMW AG, is
a German automobile, motorcycle and engine manufacturing company founded in 1916.
• BMW is headquartered in Munich, Bavaria, Germany. It also owns and produces Mini cars, and is the parent
company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad. In 2010, the BMW group
produced 1,481,253 automobiles and 112,271 motorcycles across all its brands. BMW is part of the "German Big 3"
luxury automakers, along with Audi and Mercedes-Benz, which are the three best-selling luxury automakers in the
world.
• Environmental record
• The company is a charter member of the U.S. Environmental Protection Agencies (EPA) National Environmental
Achievement Track, which recognises companies for their environmental stewardship and performance. It is also a
member of the South Carolina Environmental Excellence Program and is on the Dow Jones Sustainability Group
Index, which rates environmentally friendly companies.BMW has taken measures to reduce the impact the company
has on the environment. It is trying to design less-polluting cars by making existing models more efficient, as well as
developing environmentally friendly fuels for future vehicles. Possibilities include: electric power, hybrid power
(combustion engines and electric motors) hydrogen engines.
• BMW offers 49 models with EU5/6 emissions norm and nearly 20 models with CO2 output less than 140 g/km, which
puts it on the lowest tax group and therefore could provide the future owner with eco-bonus offered from some
European countries.
11. • Apple Inc., formerly Apple Computer, Inc., is an American multinational corporation headquartered
in Cupertino, California that designs, develops, and sells consumer electronics, computer software and personal
computers. Its best-known hardware products are the Mac line of computers, the iPod music player,
the iPhone smartphone, and the iPad tablet computer. company was founded on April 1, 1976, and incorporated as
Apple Computer, Inc. on January 3, 1977.The word "Computer" was removed from its name on January 9, 2007, the
same day Steve Jobs introduced the iPhone, reflecting its shifted focus towards consumer electronics
• Environmental record
• Climate change and clean energy
• On April 21, 2011, Greenpeace released a report highlighting the fact that data centers consumed up to 2% of all
global electricity and this amount was projected to increase. Phil Radford of Greenpeace said “we are concerned that
this new explosion in electricity use could lock us into old, polluting energy sources instead of the clean energy
available today.”[267] On April 17, 2012, following a Greenpeace protest of Apple, Apple Inc. released a statement
committing to ending its use of coal and shifting to 100% clean energy.
• As of 2012, Apple is listed as a partner of the Product RED campaign, together with other brands such as Nike, Girl,
American Express and Converse. The campaign's mission is to prevent the transmission of HIV from mother to child
by 2015 (its byline is "Fighting For An AIDS Free Generation").
• In November 2012, Apple donated $2.5 million to the American Red Cross to aid relief efforts after Hurricane Sandy
12. • Mercedes-Benz is a multinational division of the German manufacturer Daimler AG, and the brand is
used for luxury automobiles, buses, coaches, and trucks. Mercedes-Benz is headquartered
in Stuttgart, Baden-Württemberg Germany.The name first appeared in 1926 under Daimler-Benz but
traces its origins to Daimler-Motoren-Gesellschaft's 1901 Mercedes and to Karl Benz's 1886 Benz Paten
Motorwagen, which is widely regarded as the first automobile. Mercedes-Benz's slogan is "Das Beste
oder nichts" (English: "The best or nothing"). Mercedes-Benz is part of the "German Big 3" luxury
automakers, along with Audi and BMW, which are the three best selling luxury automakers in the world.
• Environmental record
• Mercedes-Benz has developed multi concept cars with alternative propulsion, such as hybrid-electric, fully electric, and
fuel-cell power train s. At the 2007 Frankfurt motor show, Mercedes-Benz showed seven hybrid models, including the
F700concept car, powered by a hybrid-electric drivetrain featuring the DiesOtto engine.In 2009, Mercedes-Benz
displayed three BlueZERO concepts at the North American International Auto Show. Each car features a different
powertrain - battery-electric, fuel-cell electric, and gasoline-electric hybrid. In the same year, Mercedes also showed
the Vision S500 PHEV concept with a 19 miles (31 km) all-electric range and CO2 emissions of 74 grams/km in the New
European Driving Cycle. Mercedes-Benz Accessories GmbH introduced three new bicycles in 2005, and the range has
developed to include the patent pending Folding bike in 2007.Other models include the Mercedes-Benz Carbon
Bike, Fitness Bike and the Trailblazer Bike.
13. • Volkswagen is a German automobile manufacturer headquartered in Wolfsburg, Lower Saxony, Germany.
Volkswagen is the original and top-selling marque of the Volkswagen Group, the biggest German automaker and the
third largest automaker in the world.
• Volkswagen has three cars in the top 10 list of best-selling cars of all time compiled by the website 24/7 Wall St:
the Volkswagen Golf, the Volkswagen Beetle, and the Volkswagen Passat. With these three cars, Volkswagen has the
most cars of any automobile manufacturer in the list that are still being manufactured. Volkswagen ranks first in
spending the most money of any automaker on research and development as of 2011.
• Volkswagen means "people's car" in German. Its current slogan is Das Auto ("The Car").
• Environmental record
• Volkswagen has been selling low sulphur diesel-powered engines for the European market since 2003
• Volkswagen first implemented its seven environmental goals in Technical Development in 1996. The plan contains
themes involving climate protection, resource conservation, and healthcare, through objectives such as reducing
greenhouse emissions and fuel consumption, enabling the use of alternative fuels, and avoiding the use of hazardous
materials. The original 1996 goals have since been revised in 2002 and 2007. Volkswagen was the first car
manufacturer to apply ISO 14000, during its drafting stage and was re-certified under the standards in September
2005. In 2011 Greenpeace began criticising Volkswagen's opposition to legislation requiring tighter controls on CO2
emissions and energy efficiency, and an advertising campaign was launched parodying VW's recent series of Star
Wars-based commercials
14. • Sony Corporation commonly referred to as Sony, is a
Japanese multinational conglomerate corporation headquartered in Kōnan Minato, Tokyo, Japan. Its
diversified business is primarily focused on the electronics, game, entertainment and financial
services sectors. The company is one of the leading manufacturers of electronic products for the
consumer and professional markets. Sony is ranked 87th on the 2012 list of Fortune Global 500.
• Environmental record
• In November 2011, Sony was ranked 9th (jointly with Panasonic) in Greenpeace's Guide to Greener
Electronics. This chart grades major electronics companies on their environmental work. The company
scored 3.6/10, incurring a penalty point for comments it has made in opposition to energy efficiency
standards in California. It also risks a further penalty point in future editions for being a member of
trade associations that have commented against energy efficiency standards. Together with Philips,
Sony receives the highest score for energy policy advocacy after calling on the EU to adopt an
unconditional 30% reduction target for greenhouse gas emissions by 2020. Meanwhile, it receives full
marks for the efficiency of its products. In 2007, Sony ranked 14th on the Greenpeace guide. Sony fell
from its earlier 11th place ranking due to Greenpeace's claims that Sony had double standards in their
waste policies
15. • The Colgate-Palmolive Company is an American multinational consumer products company focused
on the production, distribution and provision of household, health care and personal products, such
as soaps, detergents, and oral hygiene products (including toothpaste and toothbrushes). Under its
"Hill's" brand, it is also a manufacturer of veterinary products. The company's corporate offices are on
Park Avenue in Midtown Manhattan, New York City.
• Environmental record
• Colgate consumes approximately 0.2 percent of the combined palm oil output of Malaysia, Indonesia
and Thailand, the cultivation of which is known for environmental impacts on a global level including:
deforestation, loss of natural habitats of critically endangered species, and increased greenhouse
gas emissions.
• Colgate-Palmolive, as a successor to The Mennen Company, is one of about 300 companies held
potentially responsible for hazardous waste at the Chemsol federal Superfund site in Piscataway, New
Jersey. Their involvement in this site may have contributed to the contamination of an estimated
18,500 cubic yards (14,100 m3) of soil with volatile organic compounds (VOCs), PCBs, and lead off-site.
A proposed $23 million agreement with the government and state of New Jersey would require
Colgate-Palmolive and the other involved companies to pay for the cleanup of this hazardous waste
that is contaminating the soil as well as the groundwater.
16. • The Lego Group is a family-owned company based in Billund, Denmark, and best known for the
manufacture of Lego brand toys. The company was founded in 1932 by Ole Kirk Christiansen. The
word Lego is derived from the Danish words "leg godt", meaning "play well." The word "lego" can also
be interpreted to mean "I gather together" in Latin, and "I connect" in Italian.
• Environmental record
• Local laws and regulations regarding the protection of the environment must be complied with.
Vendors
• must strive to have management systems in place and to:
• - reduce waste, energy and emissions to air, ground and water;
• - handle chemicals in an environmentally safe way;
• - handle, store and dispose of hazardous waste in an environmentally safe manner;
• - contribute to the recycling and reuse of materials and products;
• - implement environmental friendly technologies.
17. Top 10 Corporate Social
Responsibility Initiatives
•
10. Toms ”One for one” motto is a well known phrase. They’ve recently upped the ante by donating a portion of their
sunglass sales to vision care for children in need. But it’s not just consumers that are involved in Toms’ social good, it’s
employees as well. Toms’ employees participate in an annual Shoe Drop where they travel and donate a variety of goods
to children. Their careers page specifically calls for employees that want to change lives and be a part of a movement.
• 9. LinkedIn. One Friday each month LinkedIn’s employees participate “InDay.” InDay’s purpose is to give back to the
community through employee volunteerism and resources. Each InDay has a different theme allowing diverse
departments to come together for a common cause. InDay activities range from guest speakers discussing global justice,
to initiating global learning programs, and volunteering in local communities.
• 8. PG&E does its part to serve the communities of California. On Earth Day employees help clean and restore 18 state
parks. They are exemplary members of Habitat for Humanity and volunteer by providing solar panels on new Habitat
homes. Employee volunteerism hits inside the home as well by participating in various food programs providing those
struggling to make ends meet with care packages and thousands of pounds of groceries. The employees clearly care
about their Coast.
18. Top 10 Corporate Social
Responsibility Initiatives
• 4. Deloitte employees both have the opportunity to lead and attend conferences that provide training on volunteerism
and non-profit organization. What is that saying about teaching a man to fish? Deloitte has a keen awareness that
training employees on skills based volunteer programs and running functional non-profits has the ability to have long
term effects rather than simply taking an employee volunteer trip.
• 3. Verizon “is proud to support the generosity of their employees.” The Verizon Matching Gifts program matches
employee financial donations 1:1 to qualified organizations. The spirit of giving doesn’t stop there. They also encourage
employees to volunteer. If employees log more than 50 hours with an organization they can apply for a $750 grant
awarded to the organization from Verizon.
• 2. Dell supports over 4,615 charities around the world. Dell YouthConnect provides technology and educational facilities
in 11 countries. The Dell Social Innovation Challenge provides funding and mentorship to college students to further
projects that help solve social problems. Dell’s disaster relief program provides holistic assistance to communities
affected by natural disaster around the world. Dell’s employees are a social good force to be reckoned with.
19. Top 10 Corporate Social
Responsibility Initiatives
• 7. Zappos is a company creating a social impact with a shoebox. Zappos is known for a company culture that focuses on
the well being of their employees and they are on a mission to make the world a better place, for everyone. They also
donate huge amounts of Zappos goods to tons of charitable organizations. Their employees are paid for time off if they
are volunteering, because Zappos knows 9-5 isn’t the only work that matters.
• 6. General Electric’s employees volunteer over 1 million hours per year! Donations from the GE foundation have
supported senior centers, children with autism, literacy programs, and neglected urban spaces among many other
programs. On Global Community Days, GE coordinates company-wide to address urgent projects around the world. GE
knows that a helping hand starts in your backyard extends across the world.
• 5. Cisco’s initiatives cover every aspect of daily life. Global projects provide education, healthcare, economic
empowerment, and disaster relief to areas in need. Cisco employee’s log more than 160,000 volunteer hours around the
world in a year. Teams of Cisco employees called Civic Councils get involved in their local communities by organizing
events and donation projects. Cisco asks their employees to, “be a part of the equation. You + Networks= Impact
Multiplied.”
20. Top 10 Corporate Social
Responsibility Initiatives
• 1. IBM believes in Corporate Citizenship. Their social good projects extend across societal
issues. Employees volunteer in environmental efforts, community economic development,
education, health, literacy, language and culture. Their year long volunteer initiative,
“Celebration of Service,” logged over 3,00,000 hours of service. IBM has also established,
“On Demand Community,” enabling employees and retirees to find volunteer
opportunities, through trainings and placement.
21. Work-Life Balance
• Work-life balance can feel virtually impossible in today’s highly connected world, given that we all have
greater access to our jobs around the clock, Rueff said in a Glassdoor press release. “Companies that
make sincere efforts to recognize employees’ lives outside of the office will often see the pay off when it
comes to recruiting and retaining top talent.”
• In Pictures: Top 10 Companies For Work-Life Balance
Here are the top 25 companies for work-life balance:
• SAS
Work-life balance rating: 4.5
• National Instruments 1
Work-life balance rating: 4.3
• Slalom Consulting
Work-life balance rating: 4.1
• MITRE 2
Work-life balance rating: 4.1
• Orbitz
Work-life balance rating: 4.1 3
• Scottrade
Work-life balance rating: 4.1
• Mentor Graphics
Work-life balance rating: 4.1 4
• FactSet
Work-life balance rating: 4.1
• Agilent Technologies
Work-life balance rating: 4.1
• Nokia 5
Work-life balance rating: 4.1
25. • As a first step towards calculating CSR Variance Score and CSR Variance
Rank the point-after-ta x figure for each company is taken from its
Annual Report for 2011-12. From these figures,
• mandated 2% amount is arrived at, which is then compared with the
current CSR spends. For
• 2011-12 the top 10 companies spent less than half of what is mandated
in the proposed law
• i.e. instead of INR 14.67 billion the overall spend was only INR 6.9 billion.
As a combine the top
• 10 companies returned a poor Variance Score of minus 53. This score is a
representative of the
• market and in coming years would indicate the relative movement in CSR
spends. The
• individual CSR Variance Scores of the companies and CSR Variance Ranks
are in the table
• below. The profit-after-tax (PAT) and CSR spend amounts are in INR
Millions.