Corporate Social Responsibility (CSR) has become an integral part of the business strategies of major corporations worldwide. This essay delves into the CSR activities of two industry giants: Microsoft and Nestlé. By examining their contributions and strategies, we can gain a deeper understanding of how CSR is applied in practice and its impact on society.
Microsoft gave more than $900 million in cash and software to non-profits overall a year ago, reduced its carbon outflows by 30 percent for each unit of revenue compared to 2007, and made the company’s greatest ever investment in overall worker compensation, as indicated by its 2012 citizenship report. Microsoft constantly attempts to apply the intensity of innovation to engage all individuals, strengthen communities globally, and protect our planet. It is additionally why their strategies and business practices are attached to a guarantee of timeless values, such as trust, security, inclusion, and transparency.
Microsoft has worked to help everyone achieve more through various initiatives. For instance, $3 billion was spent on minority, disabled, veteran, and woman-owned organizations in FY18. In excess of 12 million youngsters have been given software engineering learning experiences through 97 nonprofits in 54 countries. These efforts highlight Microsoft’s commitment to education and skill development, which are crucial for social and economic advancement.
Microsoft has also strengthened communities by advancing social and economic opportunity. The company has donated $1.4 billion in software and services, with a promise to bring the advantages of the cloud to 300,000 nonprofits in three years. Additionally, $30 million in innovation and monetary donations have been provided to emergency response organizations and those serving refugees. These contributions demonstrate Microsoft’s dedication to addressing urgent social issues and supporting vulnerable populations.
In terms of environmental protection, Microsoft has committed $50 million over five years to getting cloud and AI tools into the hands of those solving global environmental challenges. This initiative aims to leverage technology to address critical issues such as climate change, biodiversity loss, and resource management.
Microsoft is resolved to enable customers to make informed decisions about their products and services and to ensure all stakeholders can assess their commitment to corporate social responsibility. Transparency and accountability are key components of their CSR strategy, reflecting a broader trend in the corporate world towards greater openness and stakeholder engagement.
Nestlé’s Approach to CSR
Nestlé’s Corporate Social Responsibility (CSR) includes the business taking an expansive view of its activities, looking beyond profits for investors and concentrating on other stakeholders. Nestlé works with suppliers from a range of countries, many in poorer regions of the world. It is becoming increasingly important to take a broader view of its responsibility.
Nestlé believes that for an organization to be successful in the long run and create value for its investors, it should also create value for society. Nestlé calls this Creating Shared Value (CSV). Creating Shared Value goes beyond compliance and sustainability. It aims to create new and greater value for society and shareholders in the areas where the organization can have the greatest impact – water, nutrition, and rural development.
Nestlé operates within complex supply chains. Nestlé sources materials from a large number of farms, many of them small farmers in poorer rural areas of the world. In many rural communities, a lack of investment in infrastructure severely impacts the quality and quantity of raw materials that Nestlé and other organizations rely on. Nestlé provides training to support sustainable production, secure the supply and quality of its raw materials, and have a positive, long-term impact on the local economy and farmers’ livelihoods.
Creating Shared Value has enabled Nestlé to adopt a broader focus on its responsibilities. In doing so, it has been able to realize a whole set of benefits for stakeholders, whether they are farmers and their communities, consumers, or shareholders. This holistic approach to CSR ensures that Nestlé’s business practices contribute positively to society while also supporting its business objectives.
Theoretical Perspectives on CSR
Understanding the CSR initiatives of Microsoft and Nestlé can be enhanced by examining them through various academic theories:
- Stakeholder Theory: Proposed by Freeman (1984), this theory suggests that businesses should consider the interests of all stakeholders, not just shareholders. Microsoft’s focus on diverse and inclusive supply chains and Nestlé’s efforts to improve rural farmers’ livelihoods align with this theory, as both companies address the needs and concerns of multiple stakeholder groups.
- Triple Bottom Line (TBL): Introduced by Elkington (1994), TBL emphasizes the need for businesses to focus on social and environmental performance in addition to financial performance. Both Microsoft and Nestlé demonstrate this approach through their comprehensive CSR strategies that address economic, social, and environmental aspects.
- Corporate Citizenship: This concept views businesses as “citizens” with rights and responsibilities within society. Microsoft’s commitment to transparency, ethical practices, and community engagement reflects this perspective. Similarly, Nestlé’s CSV approach exemplifies corporate citizenship by integrating social value creation into its core business operations.
- Creating Shared Value (CSV): Porter and Kramer (2011) proposed that businesses can generate economic value by addressing social problems. Nestlé’s CSV framework directly applies this concept by focusing on areas where the company can have the greatest impact, such as water, nutrition, and rural development.
Conclusion
The CSR efforts of Microsoft and Nestlé illustrate the evolving role of businesses in society. Both companies have demonstrated that it is possible to achieve business success while also contributing positively to social and environmental goals. Microsoft’s initiatives in education, community support, and environmental protection, along with Nestlé’s focus on creating shared value, highlight the diverse ways in which corporations can engage in CSR.
By adopting comprehensive CSR strategies, businesses can build trust with stakeholders, enhance their reputations, and achieve long-term sustainability. The theoretical frameworks of Stakeholder Theory, Triple Bottom Line, Corporate Citizenship, and Creating Shared Value provide valuable insights into how companies can effectively integrate CSR into their operations. As the demand for responsible business practices continues to grow, companies like Microsoft and Nestlé are setting important examples for others to follow.
References
- Webcache.googleusercontent.com. (2018). Corporate social responsibility – Nestle. [online] Available at: Nestle CSR [Accessed 31 Oct. 2018].
- Reports.csrwire.com. (2018). Report Announcement | reports.csrwire.com. [online] Available at: Microsoft CSR [Accessed 31 Oct. 2018].