Social Responsibility: How Various Corporations and Industries View Social Responsibility - Case Study Example

Social Responsibility: How Various Corporations and Industries View Social Responsibility and What They are Doing to be Socially Responsible. Corporate social responsibility is the concept of developing practices and policies that are in harmony with social, economic and environmental attitudes of all stakeholders. Employees, investors, customers, business partners and communities are all stakeholders of any corporation. It has become increasingly important for corporations to develop programs of social responsibility and to take measures in preventing harm, either physically or financially to stakeholders. The list of stakeholders is different for every corporation. Johnson & Johnson, Tyson Corner Center, Verizon Wireless and various cruise lines share similar stakeholders: employees and investors. However, the communities affected by corporate activities vary greatly in geography and size. Johnson and Johnson affects consumers globally, through its health product offerings. It also affects communities environmentally, where which its production facilities are located. Tyson Corner affects the D.C. community, where it is located. Verizon affects customers and those who come in contact with customers, through proximity to its electronics products. It also affects the community at large, with issues of discarded products and the toxins they may produce. Cruise lines probably possess the greatest potential to affect a global community, as they travel vast distances across seas. They carry and utilize large amounts of fuel and similar products, which have the greatest potential of affecting the environment. Cruise Lines and RCCL Royal Caribbean Cruise Line pled guilty in the early 1990’s and again in 1998 to charges of spilling oil and fuel byproducts into seas around the globe. "We deeply regret our role in polluting the marine environment. These acts were inexcusable, they were wrong, and we accept full responsibility for these violations," said Jack Williams, RCCL president. However, the cruise line again pled guilty to multiple federal charges in 2001. Eventually top level managers were replaced, but the cruise line appears to have lacked sincerity in its 1998 apology. The cruise line has since changes its anti-pollution policies, which are also overseen by a federal judge in Miami. Additional measures to reduce environmental pollution include “replacing diesel turbines with gas, adding an environmental officer on each ship and adding an EPA administrator to its board of directors”(Fishman, 2000). Though the cruise line was forced to address issues of environmental responsibility, it also has a responsibility to shareholders. The fines totaled $27 million, which is a huge expense. Not only does this risk financial stability of the company, it risks financial losses to shareholders and possible job loss for employees. Employees were at risk of health problems due to exposure to higher levels of exhaust, with previous policies. Many employees told reporters they were ordered to use bypass ducts to dump fuel waste, rather than running it through a cleaning system. As a corporation, the cruise line did not set a good example of environmental stewardship to its employees. It did not set a good example of ethics either. Compliance with federal regulations sets a better example for employees. It also helps to ensure financial success of the organization and its shareholders. Both cruise line operations and industrial or freight shipping contribute greatly to pollution of the world’s waterways and seas. Pollution along ports and coastal areas can greatly reduce the health and numbers of sea life. Many cultures and communities depend on fishing of various forms of sea life for their livelihood and for food. Without compliance, RCCL could also jeopardize the health and well-being of many local or regional communities, along waterways. As stakeholders, such communities and regions are often overlooked by corporations. They are often not very visible and may also be under-represented. Though federal courts may mandate that cruise lines limit pollution, recent U.S. policy (House Bill 248) has created even more opportunity for cruise lines, by allowing foreign cruise lines to offer cruises within the U.S. “This action would serve as an exemption from the Jones Act (Merchant Marine Act of 1920, Section 27), which reserves the right of coastal commerce for registered U.S. vessels only” (Benis, 2000, p. 2). In March 2000, the EPA cited five major cruise lines for failing to comply with Alaska’s State Implementation Plan, which is meant to reduce air emissions. These examples indicate that, as of the early 2000s, social responsibility for the environment and indigenous cultures was still lacking by major cruise lines. Today, Royal Caribbean Cruise Line has taken measures to reduce emissions and waste dumped into the oceans. It promotes its policies publicly through its Save the Waves logos over doorways and the badges it requires employees to wear. Whether out of sincerity or from a marketing strategy, the cruise line gives the appearance of social responsibility toward the environment. This does help promote awareness among the cruise ship staff and even the passengers. It also helps boost morale. Employees who are not asked to do something they know is wrong creates a less stressful work environment. Reducing emissions creates a physically healthier work environment. Verizon Wireless The mobile service provider Verizon Wireless is used by millions of individuals and many multi-national corporations. Solutions like HD and teleconferencing help to improve productivity by saving time. Such options also greatly reduce air and other forms of employee travel. Social responsibility for Verizon also focuses on reducing emissions through travel. It allows to remote monitoring of energy use in buildings, reporting of traffic congestion to cars and physician monitoring of patients. All such activities reduce time and emissions, through reduced travel. Verizon’s strategy of “Total energy conservation, waste prevention and recycling efforts that reduced greenhouse-gas emissions by an estimated 332,295 metric tons annually, equivalent to keeping more than 60,000 cars off the road” (Canal, 2008). Verizon’s solutions also can be seen as a social responsibility to employees and communities. Employees have more time to complete required tasks, while reducing demand for travel. This not only promotes better physical health, but encourages more balance between work and family. Time spent in flight or in airports is time that can now be spent catching up on work or spending time at home. It encourages such balance for others as well. Physicians, building maintenance workers and drivers can avoid long work hours and associated stresses. Financially, increased productivity leads to increased revenues and profit for shareholders of Verizon. Reduction in travel costs also frees up funding for further development of green projects and other socially responsible acts. Verizon takes social responsibility of community well beyond its doors. Verizon has collected more than 1 million used cell phones to recycle through its HopeLine. Proceeds are donated to domestic violence groups and for phones given to domestic violence survivors. In addition, “The Verizon Foundation increased spending on domestic violence prevention programs to $5.5 million and held the second national domestic violence summit” (Canal, 2008). The mobile service provider has shown that community social responsibility can go hand in hand with environmental responsibility, with its cellular recycling program. Verizon continues to be at the top of the list of top 100 employers. It shows that giving and caring are good for business. This helps boost employee morale, knowing that everyone counts. It gives employees a job and company to be proud of. Pride and interest in work contributes to greater physical health. Verizon is also one of the largest taxpayers in the U.S. and one of the largest purchasers of goods and services. Though taxes and supplies are major expenses for most corporations, this does not necessarily reduce profits for shareholders. Corporate transparency and ethical behavior lead to greater financial stability over time. Less is spent on get rich quick endeavors, reducing financial risk. A more financially stable corporation reduces risks of job loss, affecting employees livelihoods and abilities to support their families. Johnson & Johnson “Caring for the world, one person at a time,” (www.jnj.com) is Johnson & Johnson’s company slogan. The company is one of 40, or 5% of fortune 500 corporations that has taken the EPA challenge to double their green energy use. The company is a “pioneer in utilizing solar energy, generating power from PV panels at its facilities and by purchasing green electricity from low impact hydro and wind power, through Renewable Energy Certificates” (Baue, 2006). Such undertaking shows a willingness to become social responsible for the environment, through the reduction in fossil fuel usage. It shows concern for communities and health of citizens in general, by reducing helping to reduce the harmful effects of fossil fuel production and usage. Johnson & Johnson is a global corporation with facilities in 57 countries, so the impact is global, rather than limited to the U.S. The EPA is also hoping that the increase in alternative energy usage will promote growth and increase corporate demand. Johnson & Johnson is acting very fiscally responsible, by reducing its reliance on fossil fuels. This should help increase revenues and satisfy its responsibility to shareholders. By helping to increase demand of alternative energy, markets in this sector should also see increased revenues, as demand increases. This effort helps to boost the economy of the U.S. in ways that could become very long term. Producers of solar panels, wind and hydro plants and other companies become financially more stable as demand increases. This helps create jobs for U.S. citizens as well, further boosting the economy. The corporation’s corporate governance policy is extensive. Internal auditors, self- assessments, audit reviews and use of independent auditors are all forms of financial controls in place at Johnson & Johnson. A “Report of Independent Registered Public Accounting Firm”(www.jnj.com) by PricewaterhouseCoopers LLP is published in the corporation’s annual report. Such controls help to assure shareholders that the company remains financially stable and profitable. Again, financial stability also shows social responsibility toward employees, by offering job security. Johnson & Johnson continues to earn many awards related to the workplace and Work environment. It is one of Working Mother magazine’s top 100 companies for Working mothers and The Most Respected Company in a Barron’s Magazine survey Providing a safe, stable and flexible work environment is key for many working mothers. Family responsibilities demand just as much, if not more time from them. Physical and emotional health are affected when companies put pressure on employees to work long hours and spend less time with family. Giving working women options and flexibility help encourage them to be their best and maintain healthful family relationships. Options also encourage women to achieve desired levels of education and reach career goals. Women don’t have to choose between education and family or between continuing education and work. Employees should also feel safe. They are required to report activity that goes Against company policy or that is illegal. A dedicated phone line is available for anonymous calls. Though reports of fraudulent or prohibited activity can stem from employee disagreements or disputes, this can be investigated. Some may view this as too invasive or intrusive. Those employees who adhere to policy and laws should not have any worries. For those who want a secure working environment, free from injury, harassment and other hazards, this should provide some much needed reassurance. Johnson & Johnson has outlines some of its policies for employees below: The sale of our companies’ products and services and the purchase of products and services from suppliers are to be based solely on quality, price and service and never based on giving or receiving payments, gifts, entertainment or favors. Company funds, assets and information are never to be used for illegal purposes or personal gain. Relationships that conflict with Company interests or influence business actions must be avoided. All Company funds and assets are to be disclosed and recorded accurately. No payments are to be made to unaffiliated distributors or sales agents outside the country where a product is sold. (www.jnj.com). It is evident that the organization takes its business seriously and expects the same of its employees. Social responsibility toward shareholders, suppliers, agents and distributors is evident, if the policies above are strictly enforced and infractions are dealt with promptly. The company does produce medical and health products. Many can be purchased by the consumer from the local grocery, pharmacy or retail store. Others are produced for use in surgical and other medical procedures. Though many products are user friendly, such as shampoos and similar products, paper products are still an environmental issue. Nowhere in the company’s pages is information about testing of animals for its products. Social responsibility also includes humane treatment of animals. Some use of paper type product is necessary. Johnson & Johnson has a social responsibility to the environment, in helping to limit paper waste, where possible. Much of the paper product it produces is necessary. It can address this issue by making products as biodegradable as possible. Pharmaceuticals are a major part of Johnson & Johnson’s endeavors. Though many people across the globe cannot pay for medications, the company does distribute HIV anti-viral drugs to regions in great need, with no charge. Johnson & Johnson does realize that even in the U.S. many cannot afford to pay for medications. It offers programs for such individuals. It also offers patient education, by explaining various levels of drug coverage and generic alternatives. Social responsibility to the community also comes in the form of awareness and education. This helps individuals make more informed and perhaps less costly decisions about prescription drugs and health care. Tyson’s Corner Center Located in Fairfax County, VA, a suburb of Washington D.C., Tyson’s Corner Center is one of the largest malls in the U.S., with over 300 specialty shops. It also includes an AMC theatre complex, family restaurants, food court, a 2-level Barnes & Noble and an attached parking deck. Macerich Corporation, owner of the mall addresses social responsibility to the community through involvement with Step Up Women’s Network, a program to empower women and girls toward success, City of Hope and Salvation Army. It encourages employees to become involved, through volunteer programs that help feed residents at the local Ronald McDonald house. Tyson encourages many other local volunteer efforts of its employees as well. Employee volunteerism provides a means to feel more connected to the community and the region. It also may lead to greater job satisfaction, through pride of association with Tyson. The social responsibility statement at http://www.shoptysons.com/community.asp states “we strive to meet community challenges through a combination of employee volunteerism, financial support, in-kind donations and partnerships with non-profit organizations which have missions consistent with our vision and values.” The organization does not address other areas of social responsibility, such as shareholders, partners and employees. However, stores and businesses within the mall must be financially successful for the mall to remain financially secure. For Tyson, this means ensuring that stores within its walls have all the tools, floor space, security, Promotions and others that bring customers to its shops. “The companys success stems from a deeply rooted commitment to embrace and reflect the changing preferences of consumers, retailers and communities” (http://www.macerich.com). Tyson has a responsibility to ensure that its marketing efforts do not focus on one department store over another, or one restaurant over another. This helps to ensure financial success of all stores, or business partners within its boundaries. Financial stability of the center helps ensure financial success for shareholders. It also helps ensure financial health and stability for thousands of employees who work in the various shops and entertainment complexes within the mall. Keeping uniform standards that all stores and businesses must adhere to is socially responsible, as it reduces workplace injury and protects health and safety of mall employees and customers. Macerich, Inc. does not boast environmentally friendly buildings or architecture. It does not mention use of green technology. It has been involved in many redevelopment projects in the past and continues to do so. Macerich should address environmental responsibility issues through construction and development projects. Reducing its carbon footprint, through renewable energy and use of remanufactured or recycled building materials is one option. Use of solar panels and other environmentally friendly construction should be considered. Macerich has many shopping facilities along the East Coast, West Coast, in Arizona and many other locations. It is vital that Macerich address such issues to become more socially responsible to the environment. Other steps that Macerich and Tyson can take for health of the environment include trains, trams and automated walkways from outdoor parking to the mall. Parking can be designed away from major entrances. This reduces emissions that might innocently enter the building. It encourages education and use of mass transit and encourages those who can walk to get more exercise. This type of parking project might have been an more environmentally friendly alternative to the parking deck, which concentrates vehicle emissions. Through better planning and use of parking alternatives, and through encouraging use of mass transit, Macerich and Tyson can do a better job of reducing environmental hazards, such as vehicle emissions. The four examples show different types of businesses that address social responsibility from very different perspectives, in terms of how they choose to focus their efforts. For Royal Caribbean Cruise Line, it is unfortunate that federal courts were required to enforce environmental regulations. It shows that RCCL lacked a sense of social responsibility to the environment and coastal communities. Whether the cruise line would have addressed this issue of carbon emissions and dumping waste into the seas is doubtful. It is evident by the numerous cases of federal fines and litigation that the cruise line industry, as a whole, has disregarded environmental health. Perhaps the monetary retribution has made RCCL more environmentally aware and socially responsible in this area. While not as much of a serious threat to the environment, Tyson and Macerich Inc. could make some improvements in social responsibility to the environment. Building and redevelopment projects could include reusable materials and incorporate more energy efficient structural features. Tyson, as well as Verizon have focused on social responsibility to communities. Verizon has combined its efforts in this area with efforts to reduce environmental hazards, through cellular phone recycling and business communications and meeting technology. Verizon appears to have become extremely socially aware. It is likely that its efforts are the main reason that it remains one of the top employers in the U.S. Johnson & Johnson has focused its social responsibility on global health. It provides health care products, so naturally its focus addresses health issues on a larger scale than the others. However, it also focuses on green building efforts and has made a great commitment in its use of fossil fuel energy alternatives. The example it sets for other businesses provides a competitive challenge, which encourages others to make similar commitments. Its not hard to imagine that a company providing health care products would consider global health. Verizon, as a provider of cellular services, has addressed the issue of health and wellness, beyond its knowledge base and the commitment to service of customers. It is likely that such awareness on all levels and social responsibility in multiple areas makes it one of the best companies to work for. If many more corporations stepped outside their comfort zone to address more areas of social responsibility, it is likely the economy would be stronger and the U.S. workforce would be healthier. References Baue, B. (2006). Eight Percent of Fortune 500 to Taking EPA Challenge to Double Their Green Energy Use. Sustainability Investment News. Retrieved December 10, 2008 from http://www.socialfunds.com/2177.htm Benis, J. (2000). The Environmental Effects of the Cruise Line Industry. Retrieved December 10, 2008 from http://www.publicpolicy.umd.edu/Fetter/students/Benis.pdf Canal, A. (2008). Verizons Corporate Responsibility Report Highlights Social Benefits of Company Initiatives. Reuters. Retrieved December 10, 2008 from http://www.reuters.com/idUS259863+22-May-2008+PRN20080522.htm Fishman, C. (2000). One Big Problem-“Save the Waves.” Fast Company, 32. Retrieved December 10, 2008 from http://www.fastcompany.com/magazine/waves.html Johnson & Johnson. Online. About Johnson & Johnson. Retrieved December 10, 2008 from http://www.jnj.com/About Johnson & Johnson - Johnson & Johnson.htm Macerich. Tyson’s Corner Center. Retrieved December 10, 2008 from http://www.shoptysons.com/community.asp.htm Read More