The social responsibility Essay

Introduction

The societal duty of any concern to its society has been pondered over for a long clip. Corporate Social Responsibility ( CSR ) can be defined in different point of views – from narrow position as quoted by Milton Friedman “ the societal duty of concern is to increase its profits” ( Friedman, 1970 ) to ethical, legal and economic duties ( Carroll, 1979 ) to wider societal positions of corporate citizenship ( Hemphill, 2004 ) . Businesss which were chiefly concentrating on bring forthing net incomes, now consider sustainability besides as premier country of focal point.

CSR has been recognised in footings of duty that concerns have towards their stakeholders. Stakeholders play an of import function in redefining the duties of the corporate to the society and the milieus past the financial public presentation and assesses whether their behaviors are in a societal and ethical mode ( KPMG, 2008 ) . In the recent old ages, the electronic and package industries are chiefly concerned in set uping corporate societal duty in order to last and make an imperative scheme refering the stakeholders and the society. This study focuses chiefly on socially responsible concern of two transnational administrations – one from the high income group and the other from emerging economic systems group severally.

Sony Corporation ( Sony ) is one of the universe ‘s largest makers of communications, picture, electronics and IT merchandises for single clients every bit good as corporate markets. Sony is a Nipponese transnational company with its central offices in Tokyo. Sony ‘s chief concern units are Sony Electronics in US, Sony Pictures Entertainment, Sony Computer Entertainment, Sony BMG Music Entertainment and Sony Financial Holdings. Sony has one-year turnover of US $ 82.94 billion with about 171,300 employees for the twelvemonth stoping March 2009. The electronic division comprising of pictures, TVs and ICT merchandises account to about 65.1 % of the gross revenues ( Sony, 2009 ) .

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Western India veggie Products Ltd, besides popularly known as Wipro, was started in the twelvemonth 1945. Initially, it was started as a little concern supplier of cooking oil in India. Today it has grown into a transnational engineering corporation on a planetary platform. Wipro Limited is an Indian transnational company with its central offices in Bangalore, India. It is listed on the New York Stock Exchange and had an one-year turnover of US $ 6.54 billion with sum of 97,810 employees and 863 active clients for the twelvemonth stoping March 2009 ( Wipro, 2009 ) . Wipro ‘s chief concern units are Technology, InfoTech, Consumer attention and lighting, BPO and substructure technology.

This study addresses the below inquiries and provides an analysis of the CSR activities of Sony and Wipro. Who are the cardinal stakeholders from a CSR position? Their similarities and differences? How CSR is viewed? What are different CSR approach/initiatives? Categorization of CSR activities? What are the underlying differences between the two companies ‘ CSR activities from two point of views?

1Stakeholder Designation for Sony and Wipro from CSR position

Freeman defines a stakeholder in an administration as “any group or person who can impact or is affected by the accomplishment of the organisation ‘s objectives” ( Freeman, 1984, p. 46 ) . The stakeholder theory and the associated constructs began to derive impulse in the 1980s ( Freeman, 1984 ; Freeman and Reed, 1983 ) . Freeman ‘s ( 1984 ) work emphasiss on redefining the scheme of companies to look beyond the internal stakeholders like stockholders, employees, clients to external stakeholders to convey about alterations on managerial behavior. ( Jonker and Foster, 2002 ) .

Mitchell et Al ( 1997 ) developed the stakeholder salience theoretical account that describes three properties that gives the relationship between the stakeholders and the houses. They are: ( 1 ) Power, ( 2 ) Legitimacy, and ( 3 ) Urgency. In this study, the stakeholder salience theoretical account is being utilized to understand and place the stakeholders of CSR of both Sony and Wipro.

Based on the three properties, the stakeholders can be classified into eight subgroups. They are:

  1. Dormant
  2. Discretionary
  3. Demanding
  4. Dominant
  5. Dangerous
  6. Dependant
  7. Definitive
  8. Non- Stakeholders

1.1Sony ‘s CSR Stakeholder

Government and policy shapers are the hibernating stakeholders as in each part the authorities has power on the corporation, for illustration, in Japan, Sony complies with Home contraption recycling jurisprudence and In US, Sony complies to Electronic Waste Recycling Act in province of California Government. Employees are dominant stakeholders as the work civilization in Sony allows any employee to describe any maltreatment or breach of regulations avoiding any possible revenge Consumers and minor stockholders are the discretional stakeholders as they have small power but Sony is managed in the involvement of all the clients and stockholders. Research and faculty members are dependent stakeholders as they benefit from the CSR activities of Sony. The Board of Directors are unequivocal stakeholders as they have the full influence on any determination taken in Sony. They introduced the Sony Group Code of Conduct which is followed across Sony Group ( Sony CSR, 2009 ) . NGOs like Greenpeace are unsafe stakeholders as they have argued that Sony has non substituted its toxic chemicals with safer chemicals in given the timeline ( Greenpeace, 2006 ) .

1.2Wipro ‘s CSR Stakeholder

Wipro stakeholders from CSR position can be classified based on the Stakeholder Saliency theoretical account as the following. Government and policy shapers are the hibernating stakeholders with Wipro ‘s uninterrupted engagement with the cardinal and province authorities, for illustration, Wipro is the participant in The Confederation of Indian Industry [ 1 ] ( CII ) undertaking of sustainable growing and as signer to UN Global Compact [ 2 ] ( UNGC ) . NGO like Greenpeace are the unsafe stakeholders as they have the power and urgency to name for immediate action from Wipro ; Greenpeace India conducted a blatant run against Wipro for dumping immense volumes of risky waste in illegal recycling units in Delhi, Chennai and Bangalore, India ( Greenpeace, 2005 ) . Community groups are demanding stakeholders as they require Wipro to move in a societal and eco-friendly mode in all the undertakings they undertake. Research and faculty members are dependent stakeholders as they depend on the benefits obtained from Wipro ‘s CSR activities, for illustration, ‘Wipro Applying Thought in Schools ( WATIS ) ‘ . Board of Directors and major stockholders are unequivocal stakeholders as they have the power, urgency and legitimacy to act upon the determinations in Wipro. Employees are the discretional stakeholders as they volunteer themselves in the ‘Wipro Cares ‘ programme towards instruction, societal and community development ( Wipro CSR, 2009 ) .

1.3Similarities and differences between the stakeholders of the two companies

Stakeholder groups can be classified further into three types – Latent, Expectant and Definitive stakeholders. The latent stakeholder group consist of merely one of the properties, show small involvement in the administration and acquire small attending from the administration. Hence, they are the least outstanding stakeholders in the Stakeholder Salience Model. The 2nd group, the anticipant stakeholder group consist of any of the two properties and they can follow an active function in claiming the administration. This group is the reasonably outstanding harmonizing to the theoretical account. The 3rd one, the unequivocal stakeholder group, has all the three properties and will be the Centre of direction ‘s attending.

1.3.1Stakeholder similarities of Sony and Wipro

In both Sony and Wipro, the authorities and the policy shapers are hibernating stakeholders coming under the latent group since they have power to act upon but they show small involvement in the companies. The NGOs and Research & A ; faculty members are all anticipant stakeholders for both the companies, as both have moderate salience in both the houses. NGOs proctor and back up the CSR activities of both companies while research and faculty members are benefited by the CSR activities. In the both the companies, board of managers are in the unequivocal group as they have the supreme power to act upon anything that happens in the companies with regard to CSR policy.

1.3.2Stakeholder differences of Sony and Wipro

Sony is implementing CSR as corporate administration. They are organised in each degree of CSR execution. They consider activities with respect to employees and providers as CSR activities eg. Green Partners, apart from external stakeholders ( Sony CSR, 2009 ) . But Wipro, on the other manus, are more socially responsible to the outside communities instead than besides sing its ain employees, providers and related stakeholders. Therefore, Sony ‘s CSR activities are based on equal of import to both external and internal stakeholders whereas Wipro ‘s CSR activities majorly focus on the external stakeholders.

2How CSR is viewed by Sony and Wipro?

This subdivision of the study trades with aims of understanding how CSR is viewed and considered in both the companies. Both the companies believe that their concerns have direct and indirect effect to the society. Sony started printing first environmental studies in the twelvemonth 1994. In 2003, in order to increase the skyline of information, Sony included the issues related to CSR and published “CSR Report” in 2003. While Wipro did its first issue of the CSR study in 2008, it has still lot to larn about implementing CSR ( Corporate registry, 2009 ) . Each has different CSR enterprises and attack.

2.1Sony CSR Enterprises and Approachs

Sony classifies it ‘s CSR into six classs as shown in the figure 3. Each class is specifically designed to accommodate different stakeholder. The tabular array below gives elaborate description about the CSR attacks in Sony. In brief, Sony is extremely committed to corporate administration, client satisfaction & A ; demands, employees ( cardinal stakeholders ) , societal engagement ( external stakeholders ) and CSR invention ( using new engineerings ) . Table 2 shows assorted attacks of CSR activities.

2.2Wipro CSR Enterprises and Approachs

Social part comprises of undertakings like Wipro Cares ( a voluntary programme run by the employees functioning towards instruction & A ; societal development ) , Wipro Applying Thought in Schools ( web of societal administration to reform instruction ) and Mission 10X ( trust to increase employability accomplishments of alumnuss ) . Environmental engagement is chiefly of Eco Eye undertaking advancing ecological patterns.

2.3How did these CSR enterprises and attack emerge? Is it due to corporate irresponsibleness towards the society?

Both Sony and Wipro have learned from errors. For case, in 2000, Sony faced issue from the international brotherhood for go againsting human rights by altering the on the job conditions for its employees. Dispute began when workers had to stand for long working hours with less clip allotted for interruption. This is was damaging for workers ‘ wellness as some adult females would conk during the twenty-four hours ( Post, 2000 ) , Sony has eventually framed its codification of behavior with regard to UNGC in the twelvemonth 2003 and besides considers it ‘s as one of CSR steps ( Sony CSR, 2009 ) . Similarly, Wipro got notice from Karnataka Pollution Control Board ( KPCB ) for illicitly dumping risky waste ( Greenpeace, 2005b ) . Furthermore, Business viridity featured that Wipro is non executing good in bring forthing advanced merchandises to encompass the environmental factors and deficient of marks like GHS decrease ( Young, 2008 ) . Wipro has overcome all the hurdlings by back uping Individual Producer Responsibility and initiated take-back and recycling programme ( Greenpeace, 2009a ) . Additionally, in 2008, Wipro charted Eco Eye plan to advance environmental sustainability patterns ( Wipro CSR, 2009 ) .

2.4Has CSR public presentation increased or decreased?

In Greenpeace ‘s Guide to Greener Electronics September 2009, Sony jumps from 12th topographic point to 8th topographic point with an improved mark of 5.1 out of 10. Sony ‘s evaluation reflects its committedness towards precautional rule standard and back uping Individual Producer Responsibility and besides gained points for external confirmation of its GHS emanation for its sites across universe ( Greenpeace, 2009 ) . Apparently, Greenpeace ‘s Guide to Greener Electronics India September 2009 ranks Wipro second hiting 6.9 out of 10 for its strong public presentation on e-waste direction and clime alteration ( Greenpeace, 2009b ) . Furthermore, it can be inferred from the tabular array 4 that both Sony and Wipro have adapted to international criterions. However, both these companies have set illustrations for other companies to follow. For case, Sony ‘s Take Back Recycling Program is first enterprises within electronics industry ( Environmental leader, 2007 ) and Wipro ‘s green edifice at Gurgoan, India achieved Pt evaluation by US Green Building Council ( USGBC ) under ‘Leadership in Energy and Environmental Design ( LEED ) ‘ class ( Wipro CSR, 2009 ) . Tangible consequences are apparent and seeable that both companies over the old ages are bettering CSR activities.

3Classification of CSR profile of Sony and Wipro

Sony ‘s engaged CSR activities at propinquity have chiefly targeted the employees, clients and the environment. Sony Group Code of Conduct, emanation cutting mark for GHS, recycling and value based client service depicts their involvement in engaged CSR activities. Sony ‘s disengaged propinquity CSR activities chiefly focussed on instruction in originating creativeness among kids and consciousness among the downtrodden. Sony ‘s distant activities are chiefly in the signifier of partnerships and patronizing. Noteworthy 1s are sponsorship for athleticss and wildlife. Wipro ‘s propinquity CSR activities largely dominate countries like environmental issues, rain H2O direction and engagement in international pacts. Distant CSR activities are chiefly focussed on instruction for kids from the backed societies, and e-waste direction. These attempts show both Sony and Wipro have high committedness towards the society.

3.1Comparative CSR profile of Sony and Wipro

3.2Business point of view of CSR attack

On one manus, when house involves in societal duty it could be extra cost to the company and hence negatively affects its economic public presentation. In 2009, Sony has reported its first loss after 14 old ages chiefly due to meltdown of planetary economic system and grasp of currency ( Sony, 2009 ) . However, CSR initiatives like Sony Take back recycle plan at this phase will decidedly do harm financially conflicting to a house ‘s duty to its stockholders.

On the other, Social public presentation can be positively related to a house ‘s economic public presentation ( Winsemius and Guntram, 1992 ) . Interestingly, Wipro has found marketing chances from its green CSR activities for its Infrastructure technology division supplying solutions such as Green IT and IT for Green which have finally helped to diversify its concern thereby bettering its economic public presentation ( Wipro CSR, 2009 ) . Likewise, Sony is utilizing recycled plastics to fabricate new Television which has reduced its stock list cost and cause-related selling can drive Sony ‘s trade name individuality to a wider range, thereby indirectly beef uping its economic public presentation ( Sony CSR, 2009 )

Decision

In this modern epoch, CSR has non merely go a critical portion of wealth creative activity, but besides a ladder to increase fight and value of the administration in the market making good to the society, thereby, basking common benefit. This study has scrutinized the CSR attacks and activities of two different companies – Sony and Wipro. CSR programmes initiated by Sony, sort it as a normative company where most of its CSR activities are multidimensional go toing to all stakeholders. Sony has followed cause-related selling with high engagement in internal and external stakeholders covering all countries of demand. Besides, Sony has shown acute involvement in deciding issues instantly related to CSR activities. Wipro CSR activities are extremely oriented towards society through instruction and its development. Hence, Wipro needs to concentrate on other issues apart from instruction like poorness and health care. Therefore, in this context, Sony is a innovator in CSR activities and Wipro has a long manner to travel.

  1. CII playing an active function in the development of India, is an non-profit-making and non-government, industry led and managed organisation
  2. Restriction of the Use of Certain Hazardous Substances ( RoHS ) Regulations bans utilizations of toxic chemicals more than agreed degree in EU market.
  3. World Wide Fund ( WWF )
  4. Sony Creative Science award – encouraging kids to make playthings that demonstrate scientific rules co -organised with Singapore Science Centre
  5. Sony Science Program aimed at advancing consciousness of scientific discipline to the populace
  6. Sony Wonder Technology Lab is a multimillion dollar enterprises towards instruction, a free interactive engineering
  7. Eco-Patent Commons Project aims to turn to the environmental issues through invention and coaction with World Business Council for Sustainable Development ( WBCSD ) , other top companies.
  8. GreenFillSM projectIt aimed at recycling of little electronics for free at take parting shops.
  9. UNICEF ‘s exposure undertaking EYE SEE IV- Photograph workshop for kids
  10. Occupational Health & A ; Safety Advisory Service