Four Case Studies on Corporate Social Responsibility:

Do Conflicts Affect a Company’s Corporate Social

Responsibility Policy?
Authors:
Cristina A. Cedillo Torres,
Mercedes Garcia-French,
Rosemarie Hordijk,
Kim Nguyen, Lana Olup

Submitted by:
Jobo, John Matthew B.

Submitted to:

Dr. Reynaldo A. Bautista Jr.

Corporate Social
Responsibility
(CSR) Aspects Coca-Cola Walmart Apple Canon

Economic 1) Started its business 1) Offers groceries 1) Designs, 1) Digital camera is

(companies are as a local soda and general manufactures and the most well-
created to provide producer in Atlanta, merchandise in a markets mobile known product to
goods and services Georgia (1886) single store communications, consumers; also
and to make a media devices, produces devices for
profit) 2) Became the largest 2) Largest private personal computers office and industry
manufacturer, employer in US and and portable digital use (medical
distributor, and world’s largest music players, and equipments)
marketer of non- retailer sells a
alcoholic beverages variety of related 2) A ‘Cradle-to-
and syrups (2005) 3) Generated net software, services, Cradle’ philosophy
sales of $ 443 billion peripherals, was used to design
3) Overall sales drop during the fiscal networking the newest
of 40% after the CSE year of 2012. solutions, and third- generation Energy
report party digital content Star-compliant
and applications Canon devices which
consume
2) Top producing significantly less
innovative electronic energy
goods and in their
technology ($108.2 manufacture,
million) transportation and
use. The result of
3) Employs 60,400 this is a smaller total
full-time people and carbon footprint.
2,900 temporary These technologies
employees and have saved
contractors consumers
350 billion Japanese
Yen in electricity
costs from 2003 to
2010.
Legal 1) Indian government 1) Civil Rights Act of 1) SEC requires the 1) The government
(Legal implemented legally 1964 (42 U.S.C. §§ Form 10-K annual enacted health
responsibilities) enforceable water 2000e et seq. of Title report available policies and laws,
standards that Coca- VII) was violated which contains legal such as Health Japan
cola needed to follow when women were proceedings and 21 and the Health
discriminated financial data Promotion Law;
regarding pay and lifestyle checks and
promotion tests are
performed during
periodic medical
examinations.
Ethical 1) Code of Business 1) Code of Conduct 1) Supplier Code of 1) Stress related
(practices that have Conduct – guidelines (COC) ‘Standard for Conduct (Supplier illnesses which are
not been codified in to employees on Suppliers’ (1992) Code) outlines the result of changes
the law) competition issues focuses on quality Apple’s expectations in the organization
and anti-corruption standards for for the suppliers it and increasing
suppliers only does business with. pressure to perform.
2) Sold products with
unacceptable levels of 2) Press reports 2) Increased suicide 2) Employees are
pesticides accused Walmart of rate because of poor not allowed to sit
using child labor at internal down during
3) Accused of causing two factories in management that working hours to
water shortages in the Bangladesh penalizes employees increase
areas of Plachimada in who interact during productivity, save
Kerala 3) Female working hours money, and enhance
employees in employee
4) Caused water Walmart and Sam’s 3) Health and safety relationships.
pollution by Club retail stores of workers were not
discharging were discriminated ensured in which
wastewater into fields against based on employees work 70
and rivers their gender hours per week.
Philanthropic 1) Created the Coca- 1) Walmart’s 1) Apple has 1) In 2011
(Business Cola financial considered the GRI sustainability report,
organizations are India Foundation, contributions in G3.1 indices relating Canon organized
expected to be good Anandana, which investments in to the economy, the seminars for
corporate citizens works with local education, health, environment, human managers in China
and to improve the communities and commitments to rights, and Vietnam and
quality of life) NGOs to address local fight hunger, society and labour intercultural
water support for local for its publication on trainings at
problems. farmers and access Governance, Product operational sites in
to healthier and Environmental Europe.
2) Launched affordable food, can Reports, Recycling
rainwater harvesting be found in and 2) Active
project, in which Coca- Walmart’s Global Facilities encouragement for
Cola partnered with Responsibility Environmental employees to have a
the Central Ground Report 2011. Report and Supplier healthy work and
Water Authority, the Responsibility. life balance.
State Ground Water 2) Three goals in the
Boards, 2012 Sustainability 2) Apple obliged its
NGOs and Report: (a)using suppliers to respect
communities to 100% the human rights
address water scarcity renewable energy; of its workers, to
and depleting (b) creating zero inform the workers
groundwater levels waste; (c) and of their rights, and to
through rainwater selling products that treat them with
harvesting techniques sustain people and dignity and respect.
across 17 states in the environment Apple
India. requires from its
suppliers that they
3) Three measurable prevent
objectives: discrimination,
a) Reduction of water involuntary and
use by improving underage labour,
water efficiency excessive
working hours and
that they pay
 b) Recycling water workers with wages
through wastewater and benefits in
treatment accordance with the
c) Replenish water applicable laws
and regulations.

Coca-Cola

The company slowly reacted to the conflict in India. Its initial reactions focused on
proving that the allegations against them concerning pesticides were wrong. It focused
on establishing a corporate image of integrity and regaining consumers’ trust through
addressing conflicts in the 2006 CSR Review. However, the reputation damage costs a
lot which saw sales drop of 40% after their CSR report.

Walmart

Walmart is the most sued company in US with 8,000 lawsuits filed against them. It
took a few steps to implement CSR measures and policies in order to prevent
discrimination. However, the female employees have taken separate lawsuits against
Walmart and filed them in various states in the US that are still in progress.
The company pledged to be using the audits on its suppliers to improve the
working conditions in factories. An example of which is giving suppliers the opportunity to
remedy the underage-related violations instead of breaking the business relationship. The
thing is, they were criticized for paying the suppliers too little to maintain the operation
costs as low as possible.
Apple
Regarding the underage labour, Apple stated that it demands that suppliers take
instant remedies to send the children back to school, to pay for their education, and to
prevent the future hiring of children. Concerning the poisoning by n-hexane, Apple
required Wintek to discontinue the use of n-hexane and to repair its ventilation system.

Canon

Among the 4 companies, Canon has the least number of problems. Its long-

established ideology of kyosei (as part of Japanese culture) is an important aspect which

drives responsible conduct and prevents conflicts. With this, the company is said to be

serious in addressing stress-related illnesses in Denmark even though they only have a

few conflicts encountered. It looked on increasing employees’ well-being as an opportunity to

develop its policies in Denmark and in its global operations since reducing stress improves

productivity.

Perceptual Map

Multistream
Approach

Canon

Apple

Severe Not-So-Severe
Conflicts Conflicts
Walmart

Coca-Cola

Mainstream
Approach
 Based on the perceptual map with the approach (Mainstream or Multistream) and

severity of problems as determinant factors, Canon is the company that used multistream

approach in solving its conflicts. Perhaps, this is because the company’s ideology is

intertwined with the Japanese values and culture which take things (either big or small)

seriously. On the other hand, Coca-cola, with its focused on establishing a good image

to the public with sluggish approach in the conflicts, is very mainstream in approach.

Sadly, the problems that they experienced are connected to the triple bottom-line: (1)

sales drop for economic aspect; (2) caused water pollution for environment; and (3) social

in which the health of the people in the community were at risk because of the pollution

as well as the products that contained pesticides.

Meanwhile, Walmart having 8,000 lawsuits filed against them is still mainstream in

its approach since it only took a few steps in addressing the problem and they are focused

on wealth in which they pay the suppliers as low as possible for their company to earn

profit. Also, they set the minimum age for employment to 14 years old to address issues

regarding child labor. On the other hand, to address the issue regarding child labor, the

Supplier Code sets a stricter minimum age for employment. The workers must be fifteen

years of age, or the minimum age for employment that is set in that country or the age for

completing education in that country, whichever is higher.

Conclusion

In addressing ethical issues, Multistream approach is significant to consider for the

Corporate Social Responsibility policies and changes. The multiple forms of well-being

must be prioritized over the maximization of wealth which focused on materialism and

individualism. Whether problems are severe or not, if companies take conflicts seriously,
a sweet spot could be achieved in economic, environmental, and social sustainability in

the long-term.