Strategic Corporate Social Responsibility of Levis Strauss - Research Paper Example

?Mr ------------------ Director, Corporate Communications Levi’s Strauss Address April 14, Executive of the Local Network Address Dear Executiveof the Local Network Levi’s Strauss is known for its blue jeans that have won this apparel company the tag of Fortune’s most admired apparel company of United States in 1994, much earlier compared to its present competitors (Simonis, 2001, p.1364). A company more than 150 years old and with its presence in more than 60 countries, is also renowned for involvement in philanthropy. Based on our experiences with Levi’s Strauss & CO’s affiliation towards CSR activities, we wish to highlight recommendations to the Local Network on two of the UN Global Compact principles: principle 6, which states, “the elimination of discrimination in respect of employment and occupation,” and principle 8 ” undertake initiatives to promote greater environmental responsibility.” Levi’s Strauss & Co (n.d.) strongly believes that its business can flourish based on its principles built on company values and its employees. LS&CO’s values include empathy, originality, integrity and courage. Its vision states, “We are the embodiment of the energy and events of our times, inspiring people with a pioneering spirit” (Levi Strauss & CO, n.d.). As pointed by our Chief Legal Officer, Hilary Krane (n.d), “for LS&CO., corporate citizenship is based on a strong belief that the company can help shape society through civic engagement and community involvement, responsible labor and workplace practices, philanthropy, ethical conduct, environmental stewardship and transparency.” This is clearly indicative of the extent and amount of efforts LS&CO puts in towards achieving and maintaining CSR initiatives; moreover, our value attached to corporate citizenship encompasses all principles outlined by the UN Global Compact. Our civic engagement and community involvement is evident from various social and economic initiatives undertaken in various parts of the world and by being one of the chief sourcing of the United Nations Development Programme (UNDP). The summary of UNGC report (2009) explains active role of LS&CO. in community-related and environmental activities. With respect to principle 6 and principle 8 of the UNGC, this report highlights that the company has been an advocate for Lesbian, Gay, Bisexual and Transgender (LGBT) community rights. With respect to energy and climate issues, Levi Strauss hopes to reach carbon neutrality and is encouraging government policy makers to help companies reach carbon neutrality faster and at lower cost. Our recommendations towards elimination of discrimination in respect of employment and occupation: 1. Introduce active promotion of diversity management at organizational culture level a. By introducing referral schemes for employees that will bring people from diverse backgrounds. b. By introducing better human resources practices in terms of pay, benefits, rewards and recognition. 2. Involve actively in promotion of wellbeing of civic population by a. Involving actively in encouraging others to include members of invisible minorities like the LGBT community. b. Providing safe working conditions for pregnant women and the disabled through work practices, safe environment as well as safety equipment for the disabled. Secondly, towards undertaking initiatives to promote greater environmental responsibility, we recommend to: 1. Introduce changes to the supply chain management system by a. Optimizing transportation from suppliers. b. Minimal packaging of supplies. 2. Promote awareness and affiliation towards environmental responsibility among external stakeholders by a. Measuring external stakeholders’ effectiveness in improving green initiative. b. Rewarding and recognizing the top achievers of green initiative. Martin-Ortega and Wallace point that Levi’s code of conduct is considered as one of the first corporate code that defines ethics and labor rights in management contexts that was formed many decades ago ( 2007 p.313). Levi Strauss has been proactive in adopting the right anti-discrimination policies. Levi Strauss has added sexual orientation as a component of its diversity programs in order to improve confidence of the invisible minority groups. Stoner et al., (1995; p.230) point out that one of the earliest known cases of Levi’s support to the invisible minority is that of its discontinuity in supporting the Boy Scouts’ parent organization that announced exclusion of homosexuals in its groups. Post this announcement, Levi Strauss decided to discontinue its support to this group in spite of investing huge money previously. The major benefit derived is enhanced employee motivation and commitment besides contributing to civic responsibility. Levi Strauss believes in maintaining strong and positive relationships with its employees through practices like flexible working patterns to accommodate employees with family responsibilities, especially for pregnant women. This is the best part of antidiscrimination policy compared to its competitors, like Gap Inc. and others that, according to the ABS News report (2000), had been accused of not employing pregnant women and/or forcing pregnant women for abortion. Besides equal compensation for equal work to all employees, Levi Strauss also provides good pay and medical benefits to all employees, their families and spousal equivalents in case of homosexuals (Stoner, Freeman & Gilbert, 1995, p.230). Levis Strauss continually strives to undertake initiatives to promote greater environmental responsibility. The latest initiative, as reported in our first quarter financial results 2011 by the CEO, John Anderson, is the introduction of fourth revolutionary fit for women in the Levi’s Curve ID collection and Levi’s Water-less jeans meant to set new green standards (Business wire, 2011). This is just one initiative being driven globally. Not forgetting the boycotts against LS&CO in the past from external stakeholders (Heslin & Ochoa, 2008; p.130), we feel these initiatives have to be continually strengthened and increased. Our supply chain management provides good opportunity through which we can contribute better towards the environment. Firstly, we would try to optimize transportation from suppliers, which will help in saving fuel and minimizing pollution by choosing suppliers within or nearest to our operating location. These measures will help in achieving carbon neutrality by LS&CO as well as its suppliers. We also propose to ensure minimal packaging for supplies received across the supply chain so that they save on raw materials required for packaging. This would help us to reinforce our responsibility towards environment in collaboration with our suppliers, unlike our competitors that, we believe, import most of their supplies from various other parts of the world thereby contributing towards improving employment opportunities globally (Kotabe, 1999). As another initiative we would like to modify our rewards and recognition programs meant for our suppliers whereby we would identify “green” initiatives and publish them in our news letters as well as external magazines. We would formulate a reward management program that will assess the extent and amount of ‘green’ savings given by every supplier. The best performing supplier will be rewarded in every country where we and/or our suppliers operate. Local Network groups might find it challenging to implement such programs, which we propose to tackle by providing appropriate training and support. Finally, based on our successful endeavors in business, community-related activities as well as awareness of different geographic and sociocultural contexts, we believe that our recommendations on the two Global Compact principles have strong potency to contribute towards CSR. While implementing these recommendations, we promise to continue to support the groups in implementing these recommendations through appropriate training and guidance. Regards Name References ABC News. Women Forced to Work: Pregnant garment workers on Saipan are forced to have abortions to keep their jobs. SWEATFREE COMMUNITIES. Global Exchange. Retrieved from http://www.globalexchange.org/campaigns/sweatshops/saipan/abc040100.html (Accessed April 15, 2011). Business Wire. Levi Strauss & Co. Announces First-Quarter 2011 Financial Results. April 12, 2011. Retrieved from http://www.businesswire.com/news/home/20110412006928/en/Levi-Strauss-Announces-First-Quarter-2011-Financial-Results (Accessed April 15, 2011). Heslin, Peter A and Ochoa, Jenna D. Understanding and developing strategic corporate social responsibility. Organizational Dynamics, 37, No. 2 (2008): 125–144. Retrieved from http://pheslin.cox.smu.edu/documents/Understanding_and_Developing_Strategic_Corporate_Social_Responsibility.pdf (Accessed April 15, 2011). Kotabe, Masaaki. Case 11. Gap.Inc. (1999: pp: 11.1-11.10). Retrieved from http://www.wiley.com/college/mar/kotabe372897/pdf/case11.pdf (Accessed April 15, 2011). Krane, Hilary. (n.d.) Corporate Social Responsibility: A Fundamental Business Thought Process. Association of Corporate Counsel. Retrieved from http://www.acc.com/community/clo/perspectives/upload/HilaryKranePers-2.pdf (Accessed April 15, 2011) Levi’s Strauss & Co. Values and Vision. (n.d.) Retrieved from http://www.levistrauss.com/about/values-vision (Accessed April 14, 2011). Stoner, James A.F, Freeman, Edward R, and Gilbert Daniel R. Management. (New Delhi: Pearson Education Inc, 1995). Retrieved from, http://books.google.co.in/books?id=8ZByNZpTRx4C&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false Martin-Orgeta, Olga and Wallace, Rebecca M.M. The interaction between corporate codes of conduct and international law: a study of women and children in the textile industry. In Research Handbook on Corporate Legal Responsibility. Edited by Stephen Tully, 302-316. (Massachusetts: Edward Elgar Publishing, 2007) United Nations Global Compact. 2010. Retrieved from, http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/index.html (Accessed April 14 2011). UNGC. US network conference: “Integrating CSR into public policy initiatives” (May 13, 2009). Retrieved from http://www.unglobalcompact.org/docs/news_events/9.1_news_archives/2009_06_17/US_Network_Final_Report.pdf (Accessed April 15, 2011). Read More