Corporate social responsibility is a broad topic that can mean different things to different people and companies. The idea behind it is that companies should be responsible for more than just making profits, they should be doing some good in their community. That good can be in many forms including taking care of the environment, giving back to those in need, or many other areas. EcoVadis is a company that gives out ratings for sustainability. Each year it gives out awards for sustainable procurement leadership. I chose two companies that received awards in 2019, Clariant and Henkel (EcoVadis 2019).
Clariant is a world-wide specialty chemicals company that is headquartered in Switzerland. They have several CSR programs in a wide array of areas. They have several programs in place to minimize their impact on the planet. They spend on programs to advance renewable energy usage. They use minimally invasive procedures to procure their chemicals from the planet. They believe in preventing waste more than recycling. They have sustainability as part of their corporate mission statement. Their sustainability efforts are put front and center on their webpage along-side their products to advertise the way they do business. Their main CSR focus on people is to take care of their employees. A second part of their mission statement is their focused on being a preferred employer. They spend money on programs to take care of and develop their employees. They focus on employee development through succession planning, talent management, and annual performance reviews to identify strengths and further develop them. Considering that they continue to be a profitable company that shows growth, their CSR policies seem to be positively impacting the company (Clariant Ltd. 2019).
Henkel is a product development company that focuses in three areas: adhesives, beauty, and laundry and home. They are another company that has many CSR programs over a wide number of platforms. They have a focus on climate protection as well as sustainable packaging. They have set a goal of becoming a climate positive company and are committing funds to research and development to achieve the goal. They also have programs in place to reach their communities not only about Henkel’s initiatives but what the people of the communities can do to help. They have given over 50,000 employees sustainability training and those employees share with their peers as well as by visiting primary schools to help educate on sustainability. Henkel has had a positive growth in EBIT over the 5 years showing that its initiatives are having a positive impact (Henkel 2019).
The government’s role in climate change is ever changing. In the United States the policy changes between President Obama to President Trump have been sweeping. Many of the restrictions on greenhouse gases and other emissions that were put in place have been rolled back by Trump’s administration. Many companies were required to put systems in place to reduce emissions in order to stay compliant with the rules put in place during the Obama administration. There are some companies, including BP, ExxonMobil, and Shell, that are continuing to reduce methane emissions even though the standards were relaxed (Eilperin 2019). The reason is that the companies understand that the American people are concerned with climate change and they want to be looked at as doing the responsible thing. Society will eventually pay for these initiatives either through taxes, if governments offer subsidies, or through increased prices for the products and services offered.
I believe becoming climate positive speaks to stakeholders in the community where the company resides, customers, and investors. The communities will receive the benefits of the positive climate impact, and those communities may offer incentives for companies that prove to be climate positive. The customers can feel they are apart of something bigger. Consumers are already becoming more conscientious of the products they buy, if they can feel like the products they purchase are not just less negative but actually positive it will help. Investors get to have the same feeling. There money not only offers a return on investment, but it goes to a cause that is benefiting the environment.
I believe becoming climate positive speaks to stakeholders in the community where the company resides, customers, and investors. The communities will receive the benefits of the positive climate impact, and those communities may offer incentives for companies that prove to be climate positive. The customers can feel they are apart of something bigger. Consumers are already becoming more conscientious of the products they buy, if they can feel like the products they purchase are not just less negative but actually positive it will help. Investors get to have the same feeling. There money not only offers a return on investment, but it goes to a cause that is benefiting the environment.
References
Clariant Ltd. (2019). Clariant Specialty Chemicals. Retrieved from https://www.clariant.com/en/Corporate
EcoVadis. (2019). EcoVadis Announces Winners of 2019 Sustainable Procurement Leadership Awards. Business Wire (English). Retrieved from https://search-ebscohost-com.libauth.purdueglobal.edu/login.aspx?direct=true&db=bwh&AN=bizwire.c88292409&site=eds-live
Eilperin, J. (2019). When it comes to acknowledging humans' role in climate change, oil and gas industry lawyer says 'that ship has sailed'. Retrieved from https://www.washingtonpost.com/climate-environment/when-it-comes-to-acknowledging-humans-role-in-climate-change-oil-and-gas-industry-lawyer-says-that-ship-has-sailed/2019/09/26/63c0d250-c9c2-11e9-a4f3-c081a126de70_story.html
Henkel. (2019). Sustainability. Retrieved from https://www.henkel.com/sustainability
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