Companies with Corporate Social Responsibility

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Companies with Corporate Social Responsibility

Social Responsibility – Group Project

By: 

Ms. Sarah Balbahaith – 200007073

Ms. Manal Ba Eshen – 200006944

Ms. Manal Mohammad – 200008986

Faculty: 

Dr. Shamim Siddiqui

Summer Semester 2015, HBMSU

Introduction

CSR or corporate social responsibility has been an essential thing to consider while making a company or a business. It is related to good things that are made by companies to provide positive impact on the environment and stakeholders including employees, customers, suppliers and others. In this Project we are going to shed light on three well-known companies that took CSR in consideration while doing any action or activity, these three companies are: SONY, Disney, DU (company inside UAE).

SONY

History

SONY Company is a well-known, diversified, Japanese company. It is a multinational conglomerate corporation headquartered in Tokyo, Japan. It was founded by Masaru Ibuka and Akio Mortita. SONY manufactures and distributes electronics (TV, gaming consoles, refrigerators), financial services sectors, game, and entertainment. It is among the worldwide Top 20 semiconductor Sales Leaders and it is the fourth-largest television manufacturer in the world. (SONY, 2011)

Kazuo Hirai is the president and CEO of SONY Corporation. He serves as a member of the board of SONY computer entertainment. He was noted by entertainment weekly as one of the most powerful executives in the entertainment industry.

Every company in the world creates its business with mission, vision and slogan. The mission of SONY is to be a company that inspires and fulfills the customer’s curiosity. They have an unlimited passion for technology, services, content, high quality and relentless pursuit of innovation that will drive the customer to excitement and entertainment in ways that only ONY can. They want to create new cultures and experiences. Their slogan was “Make. Believe” then they changed it to “Like. No .other”, after that they made a unique slogan which is “BE MOVED” that means they want to move the emotions of the customers and consumers. (SONY, 1946)  

SONY began in the wake of the World War II. It started with a capital of 530$ and a number of eight employees. They are one of the Japanese largest corporations by revenue. SONY maintains large reserves of cash and 895 billion Yoro on hand. The shares of the company were valued with 15$ billion. They faced difficult in the mid of 2000 because of certain factors like: the global financial crisis, the devastating Japanese earthquake. Then they started to rise in the field of business. In 2008 they announced that they will cut 8000 jobs and they will reduce the company’s global manufacturing by 10 % to save 1.1 billion per year. In 2012 they announced that they will reduce the number of workers by 6% as part of helping the rise of the company to the top. Finally, after returning back to the business with full power they started to return the employees, they returned 5000 jobs on the PC (mobile and tablets) side. The company is available almost in all the well-known countries like: Japan, North America, Europe and Latin America while the products are available all over the world. Nowadays SONY has 140,900 employees. While the headcount is approximately 14,600 and it’s rising. ( SONY financial holdings, 2015)

This is a figure showing the total number of employees in 2013: [pic 3]

(Figure 1, 2013)

Moving to the values of its total assets and net profit at present

In 2014, SONY reached the highest profit and net income due to the steady expansion of operations. They expect that in 2015 they will expand more and more in a stable and sustainable manner. [pic 4][pic 5]

(Figure 2, 2014-2015)

CSR (Corporate Social Responsibility)

Sony’s corporate social responsibility activities and actions reflect its philosophy of implementing business practices, innovating to realize products and services, assisting the communities in which we operate. They want to help in sharing better, more sustainable society. SONY believes that these activities both benefit society and enhance corporate value.

"It is the core corporate responsibility of Sony Group to the society to pursue its corporate value enhancement through innovation and sound business practice."
(Sony Group Code of Conduct, adopted in May 2003)[pic 6]

(Figure 3, 1946)

SONY has certain agenda which sets seven keys that focus on: corporate governance, compliance, human resources (HR), responsible sourcing, quality and services, environment and community and operating foundation. In addition to, stockholder in SONY input on CSR that relates to issues and suggestions is fed back to management and to pertinent SONY’s seven department.

The assessment showed a cluster of topics related to SONY’s electronics business including managing its operations social and environmental impact and improving transparency across the supply chain, as being of particular concern to stakeholders. In addition, the assessment identified emerging topics such as those concerning the management of content and information with the growth of SONY’s network and entertainment business. The assessment also identified topics that SONY has limited influence or have already been addressed through ongoing programs.  ( SONY, 2000)

Social responsibility is an ethical framework which suggests that an entity, be it an organization or individual, has an obligation to act for the benefit of society. As we know that social responsibility means sustaining the equilibrium between the two. This responsibility will be passive if we didn’t harm the environment and social. SONY Company is being part of CSR to behave ethically and contribute to economic development, also improving the quality of life of the workforce and their families as well as the local community and society at large.

Furthermore, SONY is from the largest companies that use CSR to create a positive impact on society while doing business.

Corporate governance

First, we will start from the perspective of the corporate governance. In corporate governance SONY has made a separation between the functions of the director and the management. Under this system the board of directors decides the responsibility and decision making of the corporate Executive officers and they are the SONY corporation governor. The board has three committees (the nominating committee, audit committee, compensation committee). As shown in the below figure: [pic 7]