Introduction IBM provides services, software, and systems to clients across throughout the world. During the transformation to a global corporate enterprise, IBM maintained its core values and principles. As a leader in the industries in which it serves, IBM entered its second century in business dedicated to its culture of fairness and corporate citizenship. IBM utilizes a consistent approach to technology and innovation, and has a positive impact on the communities in which it operates. IBM is passionate about social responsibility, interested in making a positive change in society, and is making a profound difference throughout the world on global issues such as AIDS, cancer, education, and hunger (Kanter, 2011). Why is IBM interested in creating “even bigger change” in society? Organizations of today are experiencing increased pressure from government, employees, and competitors to take an active role in environmental, social, and government issues on topics from climate change and many more, in their supply chain. To address these concerns organizations have developed corporate social responsibility and sustainability initiatives. These efforts are necessary to sustain a long-term ability to create shareholder value, while providing critical benefits to society (Bonini, Koller, & Mirvis, 2009). Effective organizations fully understand the global communities in which they exist and do business. Acquiring this knowledge requires a deeper level of engagement and comprehensive interaction with public, private, and voluntary institutions within community. As a progressive organization, IBM realizes there is a close link between its core values and sustainability and its strategy and purpose. Its corporate... ... middle of paper ... ... IBM understands that community and business must be one for mutual benefit and long-term success. Effective corporate citizenship is a by-product of engaging corporate values to that of its people, which will be more meaningful and longer lasting in the end. References Bonini, S., Koller, T. M., & Mirvis, P. H. (2009). Valuing social responsibility programs. Mckinsey Quarterly, (4), 65-73. Kanter, R. M. (2009). IBM in the 21st Century: The coming of the globally integrated enterprise, Harvard Business School Kanter, R. M. (2011). IBM’s Values and corporate citizenship. Harvard Business School. Retrieved from http://hbr.org/product/ibm-values-and-corporate-citizenship/an/308106-PDF-ENG Ofori, D. F., & Sokro, E. (2010). Examining the Impact of Organisational Values on Corporate Performance in Selected Ghanaian. Global Management Journal, 2(1), 52-65.
...Foundational Considerations in the Corporate Social Responsibility Debate’, Business Horizons, vol. 34, no. 4, pp. 9-18.
Supplying eco-friendly products has been on the Walmart agenda since the early 1990s. After a failed first attempt and much criticism, the company decided to try again. In a speech made in October of 2005, CEO of Walmart, H. Lee Scott Jr., declared Walmart would devise a “business sustainable strategy” to reduce the environmental impact the company had. Walmart could not pull this off alone. If they only focused on the confines of themselves, rather than all that they were involved with, it was estimated that they’d only reduce their impact by about 10%. To reach that goal of 100%, Walmart had to involve stakeholders to make networks which achieve sustainability. These networks proved to be vital in not only Walmart’s goal in minimizing its environmental impact, but recovering their reputation, avoiding criticism, saving money, raising awareness, improving customer satisfaction, and creating incentive for other businesses to work towards sustainability.
Windsor, D. (2001). The future of corporate social responsibility. International Journal of Organizational Analysis, 9 (3): 225-256.
Times have changed drastically for businesses since the Internet and social media have become part of our everyday lives. It’s now easier than ever for the individual to gather data and follow organizations to ensure they are performing legally, morally, and ethically. Stakeholders believe that organizations have a social obligation to operate their business in an ethically, socially, and environmentally responsible way. The term for this idea is Corporate Citizenship. Corporate Citizenship is “the extent to which businesses are socially responsible for meeting legal, ethical and economic responsibilities placed on them by shareholders. The aim is for businesses to create higher standards of living and quality of life in the communities in which they operate, while still preserving profitability for stakeholders” (Investopedia.com, 2013). Stakeholders are expecting organizations to conduct business in a way that meets legal, ethical, economic, and philanthropic expectations that go beyond commercial relationships. Many organizations are including corporate responsibilities in their corporate mission statements and goals. They want stakeholders to see that they practice ethical behavior and are committed to their local communities in order to maintain a positive corporate image. According to CNN Money “Wal-Mart Stores Inc., had $469.2 billion in revenue last year and has reclaimed the top ranking in the Fortune 500 ranking of the largest U.S. companies by revenue”( Hathaway, 2013). Wal-Mart has over 10,800 stores and is a company that can have a tremendous impact upon the environment and their current employees and future employees. Largely due to its size and resultant influence, Wal-Mart is receiving constant pressure t...
Whether an organization is domestic or international they have social responsibilities to the communities they operate within and to the shielding of the world. Caterpillar, Inc. is one such company that puts social responsibility at the top of their priorities. They have an abundance of engineers and technologists working on solutions to improve on sustainability. According to the 2012 Sustainability Report (2012), “at Caterpillar, we always ask ourselves, ‘What do our customers need? What does the world need?’ World Resources Institute (WRI) asks those same questions about the communities it serves, and truly delivers some amazing results” (p. 19).
To supply the wants and needs of a consumer, society entrusts wealth-producing resources to the business enterprise.” (Santayana, George. Is The Tyranny Of Shareholder Value Finally Ending? So before we go into greater detail on the different perspectives related to social responsibility, one might question the meaning of social responsibility. It is generally agreed that social responsibility is defined as the business obligation to make decisions that benefit society.... ...
Burke, L., & Logsdon, J. M. (1996). How corporate social responsibility pays off. Long range planning, 29(4), 495-502.
IBM is a global information system and computing company. It is organized in 5 worldwide regions, and the following business units:
Globalization Phase, companies were known locally, regionally and internationally, their products were already improved offering innovative services. However, as The Economist (2007) has highlighted, while more global the companies are more aware of corporate social responsibility they need to be, namely, foreign stakeholders will expect, not only innovative and effective products, but also they will open their doors and invest their money to companies that are social responsible.
An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.
In my opinion, social responsibility programs are important and should be a mandatory part of any organization. All organizations, no matter how small, have to realize how they have an impact on society and the world. Even though these programs may be costly, they may pay off in the long run because consumers won’t want to spend their money at a company that doesn’t concern itself with its impact on society.
Bowie, (1991) New directions in corporate social responsibility - moral pluralism and reciprocity, Business Horizons, 34, 4 pp.56-65
While the concept of an individual having responsibility is commonly recognized, modern views have lead to the emerging issue of corporate responsibility. Business Directory.com defines corporate social responsibility as, “A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs, and (3) by earning adequate returns on the employed resources.” But such a concept has been much disputed since at least the 1970’s.
Alessia D., Sybil H. and Sue F. (2007). Corporate Social Responsible and Sustainable Business, page: 88–89.
Social sustainability is “identifying and managing business impact, both positive and negative, on people.” The quality of a company’s relationships and engagement will directly or indirectly “affect what happens to employees, workers in the value chain, customers and local communities” (Wynhoven). This definition focuses on the importance of sustainable relationships. It focuses on the social aspect, which can be good helping to determine what social sustainability looks like. The UN definition makes it clear that it is important to manage the corporation’s impact proactively so that employees, customers, and local communities all benefit from a corporation’s presence. BMW is an excellent example of a corporation that focuses on social sustainability. BMW promotes exchange between refugees, local youth, and BMW employees through a neighborhood project called “Lifetalk” which aims “to give young people a better idea of possible career paths” (BMW). These actions come from the company’s beliefs and goals. BMW states that “taking social and environmental responsibility for everything we do is an integral part of how we perceive ourselves as a company. We are convinced that the lasting economic success of any enterprise these days is based increasingly on acting responsibly and ensuring social acceptance” (BMW). BMW believes that sustainability is an