CSR activity of International Business Machine (IBM). Information about how company contributes to Environment and also helps communities

CSR activity of International Business Machine (IBM).
Information about how company contributes to Environment and also helps communities

1. Corporate Social Responsibility CSR activity of IBM MADE BY: HITARTH PATEL(19K009)

2. INTRODUCTION International Business Machine (IBM) engages stakeholders and their interests through a Corporate Social Responsibility (CSR) strategy. Theory of Corporate Social Responsibility by Archie B. Carroll establishes the mutual significant influence between business and stakeholder. IBM involves emphasis on sustainability and related initiatives to ensure that the Information Technology business gradually reduces its impact on natural environment. Company implements its standards to influence its supplies into enhancing their corresponding Corporate Social Responsibility to help lead other organisations in various industries. This leadership is reflected in IBM’s Corporate Social Responsibility strategy.

3. CSR INITIATIVE BY THE COMPANY IBM is global Information Technology company. It has many stakeholders in various areas of society. These stakeholders have interests in different aspects of business, thereby requiring multi-pronged Corporate Social Responsibility strategy. Company’s Corporate Social Responsibility strategy must include initiatives for investors as well as programs for the environment and also sustainability programs. IBM addresses its corporate responsibilities to the following stakeholder: 1.Environment 2. Suppliers 3. Employees 4. Communities 5.Investors

4. 1. ENVIRONMENT IBM considers the environment as its most significant stakeholder. Significance is based on the dependence of the supply chain on resources from the natural environment . Interests relating to environment are environmental conservation and minimisation of environmental impact of business operation. Company’s CSR strategy to Environmental protection encompasses all business activities from conserving water and energy to minimising waste. The company has multiple programs to support environmental protection and conservation.

5. ENVIRONMENT IBM’s CSR strategy includes energy conservation and climate protection programs: Company’s water conservation program since 2000, has saved more than 20 million cubic metres of water in microelectronics and semiconductor manufacturing process. IBM set goal to eliminate CFC’s and carbon tetrachloride from all its products and manufacturing process by the end of 1993. In1967,IBM issued directive on pollution control, disposal of liquid wastes and waste water treatment. In 1978,IBM began program to monitor groundwater quality at its manufacturing and development locations to perform groundwater remediation as needed. In 2004,IBM established environmental and social requirements for all IBM suppliers. In 2010, IBM eliminated Perfluorooctane Sulfonate and Perfluorooctanoic Acid in its manufacturing and research process. In 2016, IBM achieved and exceeded its third generation CO2 emissions reduction and 2020 renewable electricity goal four years early.

6. ELECTRICITY SOURCES AT IBM MANAGED LOCATIONS

7. 2.Communities Significance of communities in CSR is based on their impacts on customer’s perceptions. CSR can boost communities popular support for the company’s high value brand, which is one of the main strengths identified in the SWOT Analysis.IBM’s CSR strategy involves a partnership with International Finance Corporation (IFC) of the World Bank Group to provide investments and asset management services for non profit organizations in communities. Corporate Social Responsibility aim is to support community development through entrepreneurship and enterprise. IBM concentrates on education, and also has introduced P-Tech program which helped students to develop entrepreneurial spirit.

8. 3.Suppliers IBM’s CSR strategy involves standards and policies for corporate citizenship in the supply chain. Suppliers are significant stakeholders in the Information Technology business. It is based on supplier’s moderate influence on the production capacity and product quality of the company. Suppliers are interested in growing their business operation as they continue transacting with IBM. IBM provides technical support for suppliers to improve their operational efficiencies. Suppliers are expected to comply with the Electronics Industry Citizenship Coalition (EICC) Code of Conduct, which includes requirements on conflict free minerals, among other concerns. Corporate Social Responsibility on the supply chain contribute to sustainability of the company and its suppliers. IBM incorporates social and environment responsibilities with approximately 12,000 suppliers in nearly 100 countries.

9. Suppliers

10. 4.Investors Significance of investors in Corporate Social Responsibility is their effect on the capital of the business. These stakeholders are interested in growing their investments through IBM’s profitability and growth in the Information Technology industry. Company’s CSR strategy fulfill corporate citizenship while strengthening the business. Company has corporate governance policies to ensure responsible leadership and decision making processes. CSR approach of company involves working with government to facilitate digital market development programs and data protection policies, as well as sustainability programs that promote renewable energy measure for business.

11. 5.Employees Employees are interested in high salaries and wages, as well as effective career development programs. IBM’s CSR approach must address these interests considering that employees are significant in determining capabilities of the business, such as involving capabilities for competitive advantages in Information Technology industry. CSR strategy includes fair hiring practices and competitive compensation as well as diversity and inclusion programs that promote employee morale and help minimize workplace conflict. IBM integrated health services organisations maintains wellbeing programs for the health and wellness of all IBMers. IBM’s CSR efforts encourage employee involvement in community based sustainability projects.

12. AWARDS City of Austin ,Texas-Austin Green Business Leaders Program, Platinum level for IBM’s Austin facility Gold Leader in the Environmental Leadership Program U.S. Environmental Protection Agency, the centre for climate and energy solutions ,and The Climate Registry –Five –time Climate Leadership Award winner ,2017winner in the Organizational Leadership category. Philippines Department of Energy-Outstanding Award in the 2016. Colorado Depayof Public Health and Environment-Gold Leader in the Environmental Leadership Program ,for IBM’s Boulder facility. Institue of Packaging Professionals (U.S)-2016 AmeriStar Award in the Electronics category.

13. IBM’s CONTRIBUTION TOWARDS SUSTAINABILITY

14. Institute of Economic Development- Corporate Supplier Diversity Award DiversityBusiness.com-Top 50Corporations for Multicultural Business Opportunities. U.K Employers Network for Equality and Inclusion-Inclusive Procurement Award. WEConnect International-CEO Special Award, Corporate Leader of the Year for Diversity. CONCAMIN-Ethics and Values Award for 13 th Consecutive Year. EcoVadis-Gold Level CSR Rating

15. IBM’s CSR PERFORMANCE IN ADDRESSING STAKEHOLDERS INTERESTS Based on initiatives in its CSR strategy, IBM has an effectively holistic approach to achieving corporate citizenship. Company not only achieves financial gains but also helps communities and also develop various sustainable projects by developing information. Technologies. IBM also continues to improve its CSR efforts to strengthen business through stakeholde satisfaction and support.

16. CORPORATE SOCIAL RESPONSIBILITYVALUE CURVE OF IBM

17. STEPS TO IMPROVE CSR STRATEGY Actions that IBM can take to improve CSR strategy: Company can strengthen its corporate citizenship through an expansion of initiatives for communities. Develop and implement a program for cooperation with suppliers, focusing on their business growth, as a way to ensure supply sufficiency and sustainability.

18. BIBLIOGRAPHY www.indiacsr.in www.zdnet.com www.panmore.com www.ibm.com

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