Microsoft’s CSR Activities

Your are required to write a 2000 word report comparing and critiquing 3 published corporate social responsibility reports from selected companies.

Corporate Social Responsibility (CSR) is referred to the initiatives taken by an organization to assess, evaluate and provide accountability for the organization’s impacts on the welfare of the environment and the society (Takkar, 2015). This paper aims to compare, contrast and review the various CSR activities of three companies –Microsoft, Apple and American Express. The paper compares and evaluates the CSR activities of the stated companies with respect to a few issues of the CSR framework such as employee treatment, philanthropy, protection of human rights, and environment sustainability. The first section of the paper discusses and compares the approach of each company to CSR. The second section compares and contrasts the extent to which each company is able to meet the needs of the stakeholders. The third section comments on how the companies have focused on the various CSR issues. The fourth and final section discusses the scope and standard of CSR activities within each company with respect to the company’s size.

Approach to Corporate Social Responsibility

Microsoft

Based on recent records, Microsoft has been ranked as one in CSR. Microsoft claims that their mission is guided by the objective of empowering every person as well as every organization in the world (Freundlieb & Teuteberg, 2013). They aim at using their technology, employees, grants and voice to enhance the lives of people by helping them get access to the opportunities and the benefits offered by technology (Microsoft.com, 2018). In this context, it can be stated that Microsoft is committed ethically, equally and transparently to operating their business (Carroll, 2016). Microsoft in fact, follows Carroll’s pyramid model of CSR that states that there are four essential paradigms to CSR –philanthropic (donations towards social welfare), ethical (following moral and ethical values while dealing with stakeholders), economic (paying good returns for maximizing the value of the stakeholders), and legal (following the land’s laws).

Apple

Apple, however, is ranked lower in their CSR activities than Microsoft. They claim to be driven by their commitment to ensure that everyone within their supply chain is given the respect and dignity they deserve (Apple.com, 2018). They claim that they have been working hard to improve the living standards and to secure human rights as well as provide for extensive educational opportunities (Chan, 2014). They also claim that they are pushing for higher environmental standards with each passing year.

Apple’s CSR Activities

American Express

American Express does not hold a very high place among the socially responsible corporations. Their approach is to become the most respected service organization of the world at a time of massive social and environmental changes (About.americanexpress.com, 2018). They are driven by their aim of creating social, economic and environmental value across every stakeholder groups they possess (About.americanexpress.com, 2018). They are inspired to form a culture involving efficient employees, satisfied stakeholders, engaged consumers and sustainable environment and communities.

Stakeholder Orientation

Microsoft

Microsoft gathers outside perspectives within their business decisions via feedback channels because they value the opinions of their stakeholders. Through various portals like online feedback, surveys on product satisfaction and other research forums Microsoft gathers valuable insights from the customers. Microsoft has launched platforms like Disability Answer Desk (DAD) and the Windows Insider to gain feedback from the customers as well as from the ones who are disabled (Sandoval, 2013). They engage traditional as well as socially responsible investors on various topics related to corporation and governance. Such associations with the investors have led to CSR initiatives like their human rights commitment under the Global Network Initiative (Microsoft.com, 2018). In the fiscal year of 2015, they have reached out to investors holding above 30% of their shares (Chan, 2014). They gain feedback from their employees through the MS Poll with more than 85% response rates (Microsoft.com, 2018). They engage with non-profit organizations on issues ranging from child security to environment sustainability. They have also collaborated with UN agencies for developing tools to take their mission forward.

Apple

Apple has considerably performed high in satisfying the requirements of the stakeholders. The company successfully meets the requirements of its customers, investors and employees. However, there is scope for them to improve their CSR performance in satisfying the needs of the firm workers within the supply chain. Differences in the organizational context, makes it difficult to impose rules and regulations on the suppliers. However, Apple possesses the power to oblige the suppliers into compliance with the company’s Supplier Code of Conduct (Apple.com, 2018). Therefore, it can be stated that Apple’s major effort at CSR should be improving the overall compliance in the supply chain.

American Express

The American Express engages with each of their stakeholder groups. Their team of Investor Relations provides information about the organization regarding its strategies, performance and objectives to the socially responsible investment community (About.americanexpress.com, 2018). Their employees are well fed on the progress and current news of the company’s performance and strategies. The employee feedback is also given much importance and collected via the yearly employee survey (Guerreiro, Rita & Trigueiros, 2016). The American Express maintains direct relationships with the customers and treats them with dignity and reverence. They continuously engage the customers through social media and customer service channels. Their team of Government Affairs provide context and education to important decision-makers involving legislators, business partners, government officials and trade associations (About.americanexpress.com, 2018). They collaborate with non-profit organizations preserving unique places of historical value for the next generations. They also provide grants to encourage community service (About.americanexpress.com, 2018). Their Serve2Gether and Give2Gether programs support non-profit organizations.

American Express’s CSR Activities

Standard of CSR Activities

Microsoft

Microsoft has earned 74.1 as score for RepTrak CSR assessment (Forbes Welcome, 2018). Infact, Microsoft has dedicated itself to improving education as one of the major global issues (Microsoft.com, 2018). Unlike Apple, Microsoft functions as an open platform demonstrating good citizenship as well as good governance. It is therefore, obvious to state that Microsoft has adequately met and has even overshot the standards set for the protection of human rights and other CSR activities on a global standard.

Apple

Apple is one of the firms that have degraded in their CSR reputation. Recently, Apple had demonstrated disinterest in unlocking its iconic iPhone in order to help the law enforcement department in an ongoing shooting investigation (Forbes Welcome, 2018). Moreover, Apple operates its CSR activities in a closed platform which fails to demonstrate good citizenship on their part. Furthermore, many Apple employees show ambiguity and dissatisfaction regarding their work environment. Such records evidently demonstrate that Apple has not been able to sufficiently meet with the set CSR standards.

American Express

American Express is successfully meeting the requirements of the customer base. Ponemon has rated American Express as one of the most trusted companies protecting privacy for ten years (About.americanexpress.com, 2018). They have also increased customer satisfaction by 24% since 2011 (About.americanexpress.com, 2018). They have contributed an amount of $36 million to about 400 grants and has worked with more than 6000 organizations through their program of employee gift matching (About.americanexpress.com, 2018). They have supported over 100 non-profit organizations through their grants (About.americanexpress.com, 2018). They have also exceeded their aim of reducing carbon in the year of 2016 by a significant 30% since 2011 (About.americanexpress.com, 2018). Such range of activities show that American Express has successfully been able to meet the set CSR standards than most organizations of the similar nature.

Focus on CSR Issues

Microsoft

In the fiscal year of 2017, Microsoft Philanthropies donated over $12 billion in their software services to non-profit organizations to help them get access to the technology required for the current digital economy (Microsoft.com, 2018). They have updated their Global Human Rights Statement and have worked with the office of the Human Rights in the UN helping them to develop technology for predicting, analyzing, and responding to situations related to human rights. They have launched privacy dashboard that helps users to control their data activity across Microsoft services. They consider the General Data Protection Regulation (GDPR) important for data privacy protection and is committed to its compliance across their cloud services. They have created a cost-effective wet method for the collection of magnesium dust that complies with the China Central Safety Bureau Standard. They have implemented a Worker Hotline to give a voice to their workers. They have also reduced child labor in Congo from 77% to 97% through their partnership with Pact (Chan, 2014). They have spent over $2.6 billion in their program for supplier diversity with disabled, minority, veteran and female oriented businesses (Microsoft.com, 2018). They have collected employee feedback with 86% response rate (Freundlieb & Teuteberg, 2013). They have conducted training programs for the employees. They have also started programs for the benefits of the employee families. They have contributed towards the betterment of communities through their initiatives like Microsoft Philanthropies, CityNext, YouthSpark,and the 4Afrika Initiative. Supporting the greener grid, they have made a deal of renewable energy for powering their datacenter at Wyoming by wind (Badshah & Thomas, 2013). They have demonstrated carbon-neutrality in their policies. They have launched platforms like the Water Risk Monetizer and the Smart Energy Azure Demonstration to attain environmental sustainability.

Comparison of Stakeholder Needs

Apple

Apple ensures that people working in their supplier chain are treated fairly.  They collaborate with the suppliers closely to put an end to bonded labor, child labor and excessive hours of work (Apple.com, 2018). They also ensure that there is responsible resourcing of their materials. They have ensured that there are safer and sustainable mining conditions Indonesia. Apple strives to create proper working conditions for its employees (Khan, Alam & Alam, 2015). They have started training programs for the enhancement of the employee skills. They also ensure that the employees are well informed on matters related to the progress and strategies of the business (Apple.com, 2018). They have also created new opportunities for the employees through the Supplier Employee Education and Development (SEED) platform (Clarke & Boersma, (2017). They created a credential system for schools in collaboration with Dell, the local government and the Rural Education Action Program (REAP) of the Stanford University ensure that the vocational schools in China are training the students in appropriate skills required to succeed (Chen & Lee, 2014). They are also working towards the betterment of the environment quality. They have worked at reducing the carbon footprint and started a program that aims at energy efficiency (Apple.com, 2018). They have implemented ways to use renewable and clean energy for their operational functions. They have also launched a waste reduction program allowing the suppliers to reduce, recycle and reuse waste (Apple.com, 2018). They have also worked at increasing safety conditions for their employees.

American Express

American Express places their customers at the center of their actions. They work hard to provide their customers with the best quality products. They engage with customers with platforms like Relationship Care (About.americanexpress.com, 2018). They have created a provision for their employees called the Ombudsperson Office where the employees can approach with any issue related to work (About.americanexpress.com, 2018). This platform is associated with the International Ombudsman Association that is in compliance with the company’s standards and ethics. They strive to maintain an anti-corruption and anti-money-laundering environment. They also aim at protecting the human rights and offer equal treatment to all its employees (About.americanexpress.com, 2018). They aspire to maintain employee diversity and support the development of women-leaders within the organization through the Win Shadow program. They have also implemented employee training and development programs for the enhancement of employee skills. They provide the employees with flexible working hours and suitable working conditions as well as with additional family benefits. They serve the community through charitable organizations, development of rising leaders and through preservation of places with historical value (About.americanexpress.com, 2018). They have donated in various disaster management schemes like for the Nepal earthquake for which the company had donated $200,000 (Alexander, Havercome & Mujtaba, 2015). Their 2Gether platform collaborates with non-profit organizations for the betterment of the society. They aim at reducing their carbon footprint and at investing in green and clean power as well as at minimizing waste and water chemicals.

Scope and Standard of CSR Activities

Scope of CSR Activities

Microsoft

Microsoft has rightly been ranked one in their CSR activities. With respect to their company size, their CSR activities are diverse, appropriate and ethical. They strive tremendously and effectively to achieve a better society and a better environment (Microsoft.com, 2018). They invest a considerable amount of their total revenue collection into the welfare of the society and towards its development. However, it is advisable that they provide and work better towards environment sustainability especially towards the cause of the imminent climate change.

Apple

There is no doubt that only recently has Apple started to invest and prioritize their CSR activity with utmost seriousness. Therefore, though their present Chief Executive Officer (CEO), Jeff Williams, claims to have made considerable progress in the CSR activities, there is still a good scope of improvement (Dudovskiy, 2016). However, given to their overall company strength they must improve their CSR initiatives. They must invest a larger portion of their revenue into their CSR strategies and especially into philanthropic activities. They must also work better at contributing to communities as well as at providing better employee benefits.

American Express

In regards to their overall size, American Express covers most of the CSR issues as Microsoft does but does not go much into their depth like Microsoft (Janssen, Sen  & Bhattacharya, 2015). In fact, it can be recommended that American Express must engage its stakeholders better. They must increase the reach of their philanthropic activities. They must also contribute to noble causes like abolishing child labor. They must also engage their customers and employees at a better and higher level.

Contents of the CSR Reports

Microsoft

Microsoft’s CSR report of 2017, retells the company’s aims and visions. It mentions the company’s policies and the practices. It also mentions the CSR principles of the company (Microsoft.com, 2018). It mentions the extent to which the company the company engages in the activity of protecting and promoting human rights. It also mentions the company’s endeavors towards providing better security of data and privacy of the users (Microsoft.com, 2018). The report includes the steps taken by the company to ensure a better environment for the suppliers. The report also mentions the organization’s treatment toward their employees. The report includes initiatives taken by the organization to connect and engage better with communities. The report also mentions their standards of activities to ensure environment sustainability. Furthermore, the report highlights the CSR activities undertaken by the company in the fiscal year of 2017 along with the CSR issues around which the company functions such as using technology for the betterment of society and environment, working towards empowerment of communities, and protection of human rights along with other issues (Microsoft.com, 2018). The CSR report however, does not cover to a satisfactory extent the philanthropic activities of the company.

Conclusion

Apple

Apple’s Supplier Responsibility report of 2016 demonstrates the company’s dedication towards meeting the needs of their supply chain. It mentions their unique Supplier Code of Conduct along with an exemplary case of their initiative to improve the working conditions in the Liuyang factory (Apple.com, 2018). It also mentions their approach towards protecting the labor rights and the human rights and states a few examples of their initiatives to end bonded labor as well as for improving mining conditions in Indonesia (Apple.com, 2018). The Report also includes their policies towards employee treatment and development. It demonstrates the efforts of the company towards enhancing and improving the educational standards (Apple.com, 2018). It also mentions the company’s efforts towards ensuring a better environment and raising the environment sustainability standard (Apple.com, 2018). The end section of the report presents the audit results. After a careful review of the report, it can be stated that the report does not sufficiently mention the company’s treatment of employees or its contribution towards better employee satisfaction. It does not provide an elaborate view on the subject, rather provides a brief account of the company’s initiatives towards their employees. It also does not provide any explanation of the CSR governance framework of the company. 

American Express

The 2016-2017 CSR report of American Express gives a brief introduction to the company and the purpose of the CSR report in the beginning. The report includes the company’s aims and approach towards the CSR framework. It mentions its objectives in the context of CSR (About.americanexpress.com, 2018). The report also includes the company’s stakeholder orientation and its business ethics. It presents their approach towards their employees and highlights the actions taken for the betterment of employee treatment. It also reports the extent of their efforts to increase customer and stakeholder satisfaction (About.americanexpress.com, 2018). It mentions the extent to which the company is able to meet the needs of the customers and the extent to which it is able of empowering the female-oriented business for a noble concern (About.americanexpress.com, 2018). This shows their ability to effectively contribute towards the community. The report also mentions the philanthropic activities of the companies and the extent to which it is successful in serving the society (About.americanexpress.com, 2018). The report also mentions the company’s endeavors towards attaining a sustainable and clean environment (About.americanexpress.com, 2018). However, though the report has touched on every important aspect a CSR report should contain it does not present an elaborate description of the activities. The CSR report does contain a few highlights of the company’s CSR activities in the year of 2016-2017, but faild to address them in a more detailed and elaborate manner.

Conclusion

The paper has reviewed the published CSR reports of each of the companies and concluded that each of them strives to contribute to the society’s welfare and environment sustainability for promoting better standards for living. However, each of them has scope to improve their CSR strategies, some more than the others. Microsoft, in fact, is the company with better and wider CSR initiatives compared to that of Apple or American Express. However, both Apple and American Express contribute to the society responsibly and reasonably, if not very effectively. Where Apple must engage invest in philanthropic activities, American Express must engage in the implementation of better strategies towards noble causes like removing child labor.

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