Corporate social responsibility

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. 

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

Apple's Business Strategy and Climate Change

Apple Inc. has made great strides in helping reduce their impact on global climate change. According to Apple.com (2019), “each device is measured by its impact on our carbon footprint and how environmentally friendly – and safe – its materials are (para. 3). At Apple, each year we issue a public environmental responsibility report to show our progress toward environmental sustainability. Apple’s environmental plan, according to Apple.com’s (2019) environmental responsibility report, us and a significant number of our suppliers’ power comes from 100% renewable energy sources. We are sourcing our products with renewable and recycled materials and expect to move to fully using recycled materials for all of our products. We are decreasing the energy use of the products we sell and are focused on continually reducing our carbon footprint. We are attempting to transition into a zero-waste company. We are composting, reusing, and recycling. Research is being conducted on how to reduce and eliminate what is unable to be recycled or composted. Research is being conducted on better sourcing of chemicals. We strive to understand how the chemicals we use affect the environment and people. We have a Regulated Substances Specification that encompasses every chemical that is used by Apple and our suppliers. Through this we place restrictions on the use of certain substances. We are constantly looking to innovate our products to reduce harmful materials. According to Worland and Alter (2019), the current Republican presidential administration strongly disbelieves in the effect of global climate change; however, the Democrats have debated and scientist of strong evidence to support that climate change is happening and humans are contributing to it. Worland and Alter (2019) also state that “more than 70% of Americans now understand that climate change is taking place” (para. 5). Regardless of what the legislation dictates, most of society understands that climate change is necessary and company’s that exhibit good stewardship toward the environment will have a more favorable public perception. Here at Apple, we will continue to improve our environmental stewardship and reduce our effect on global climate change. Climate change legislation will undoubtedly change the products consumers have access to purchasing. With stricter laws on climate change, it is drastically changing our culture. It will make consumers and businesses alike more conscious of how we are affecting the planet, but the current laws do not place a strong emphasis on climate change, but many companies are taking the proactive approach as you stated. With the inevitable increase of the strictness of climate change legislation, companies that are taking the proactive approach and going above what current legislation dictates are going to more profitable in the future.  It is fascinating to me that Apple is not only focused on reducing their impact on climate change, but are so aware that they understand how to make their clothes regionally to accommodate that athlete's competing in that region. That truly is understanding your customer's needs from a business standpoint. It really helps maintain their brand and competitive advantage. If the GDP does fall, the preparation Apple is doing now will help the company through the economic downturn.  References Apple.com (2019). Environmental responsibility report. Retrieve from https://www.apple.com/environment/pdf/Apple_Environmental_Responsibility_Report_2019.pdf Worland, J., & Alter, C. (2019). A New Climate for Climate. TIME Magazine, 193(12), 30–34.