Disney Citizenship: Lending

a Mouse Ear to H ear

How to Help Society 1

We believe that our efforts to be a good corporate

citizen have a direct impact on our financial stre n g th ,
as well as our reputation as one of the m ost
trusted and admired companies in the w o rld .2
—Jay Rasulo, Senior Executive Vice President and Chief
Financial Officer, The Walt Disney Company

I
n 2014, The Reputation Institute ranked the Walt Disney Corporation third b e h in d
G oogle and Microsoft for their Global CSR Reputation. Disney scored a total rank­
ing of 72, while Google had a ranking of 72.7 and Microsoft had a ranking o f 72.1.
It was the fourth year in a row that Disney was ranked as a company with o n e o f th e
highest Global CSR Reputations.3

Citizenship Commitment
Disney has established a citizenship framework that focuses on two major com pon en ts:
acting responsibly by conducting its business in an ethical manner and inspiring oth ers
b y promoting the happiness and well-being of families and children.
"Acting responsibly" is broken down into six areas: ethical conduct, respon sible
content, environmental stewardship, civic engagement, respectful workplaces, and
responsible supply chain. "Inspiring others" is broken down into four areas: live
healthier, think creatively, conserve nature, and strengthen communities.4
 Case 4 • Disney 299

Acting Responsibly
un<^er^ nS va}ues Disney is to act responsibly, Disney states that being
, / responsi e for its actions not only strengthens its bond with its consum-
, u 1 is an e ective recruiting tool to attract and retain exceptional employees,
isney as l entified six components related to acting responsibly: ethical conduct/
responsi e content, environmental stewardship, civic engagement, respectful work­
places, and responsible supply chain.3

Ethical Conduct Disney believes that ethical conduct is critical to establishing and
m aintaining a positive relationship with its customers. If it does not conduct itself in
an ethical manner, Disney will lose the authenticity of its communication and inter­
actions with children, families, and society. Disney has established five goals related
to ethical conduct: comply with governance policies and practices, disclose relevant
citizenship information in a timely manner, encourage employees to be consistent
with Disney's Standards of Business Conduct, integrate corporate citizenship in all
daily decisions made by Disney managers, and integrate corporate citizenship into
the daily conduct of Disney employees. Disney has established a corporate citizenship
group that includes the following areas: community engagement, strategic philan­
thropy, healthy living, and the natural environment Disney's Integrated Supply
Chain Management group's responsibilities include labor standards, product safety,
quality, environmental performance, and regulatory compliance.*

Cases
R e s p o n s ib le Content Disney's goals for developing responsible content include cre­
ating age-appropriate entertainment experiences for children; crafting marketing
cam paigns that consider the positive aspects of the entertainment experience while
respecting the needs of the consumers; continuing the ban on cigarette smoking in
D isney films; focusing on promoting safety for children, families, and guests; pre­
senting diversity i n cultures and backgrounds in Disney's entertainment experiences;
giving parents and guardians relevant information on the content of the Disney
entertainment experiences; using feedback from parents and guardians to improve
the entertainment experience; and recognizing children for their positive contribu­
tions to society.7

Environmental Stewardship Disney's long-term environmental stewardship goals

include zero-net greenhouse gas emissions, zero waste, and the conservation of water
resources. In 2014, Disney had reduced its net greenhouse gas emissions by 31% from
the levels established in 2012. Disney has established a goal of reducing the 2012
level by 50% by 2020.8 Disney has also installed a 1-megawatt fuel cell in its pixar
Animation Studios to supplement its electricity use and is also planning to install a
fuel cell in its Burbank Studio Lot campus.9Disney has a 2020 goal of diverting 60%
o f its generated waste from landfills and incineration. In 2014, Disney diverted 48%
o f its waste from landfills and incineration-10Disney also has a goal of maintaining
the 2013 potable water consumption levels by 2018 and to develop water conservation
plans for any new Disney sites.11
PartV • C a s e s

Civic Engagement Disney's civic engagement goals are to promote the 1 ea o gi 1 g

through entertainment and to engage with Disney's stakeholders on a regu ar as s.
Disney identifies critical stakeholders as not only investors but also n on govern m en a
organizations, local communities, families, children, and Disney fans.2
R espectful W orkplaces Disney's goals related to its workplaces include m ain tain in g
safe places to work, developing a workforce that is diverse and is engaging in t e
global marketplace, supporting the career development of all Disney em ployees, an
encouraging the participation in health and wellness programs by Disney em p loy ees
and families.*3 Disney has also established a United States Veterans Initiative and a
Women's Initiative. Through its Heroes Work Here program, Disney hired 3,800 vet­
erans as of October 31, 2014. Disney also has established programs to provide g ro w th
and support to female Disney employees.14
R esponsible Supply Chain Disney's goals related to having a responsible supply ch ain
include supporting the positive treatment of the labor force producing Disney products.
This treatment includes the promotion o f a safe, inclusive, and respectful w orkplace for
workers producing Disney products; compliance with policies that support safety and
chemicals management in the production o f Disney products; and m inim ization o f th e
negative environmental impact of the production o f Disney products.15

Inspiring Others
Disney believes that it has a unique opportunity to inspire families and ch ildren to
take actions that improve their lives and the lives o f others. In addition, because c h il­
dren and families trust the Disney brand and develop an emotional b on d w ith Disney,
Disney has an obligation to use this strong bond to help improve the world ev ery on e
lives in. Disney has separated inspiring others into four components: live healthier,
think creatively, conserve nature, and strengthen communities.16

Uve Healthier In 2006, Disney was the first major media company to create nutrition
guidelines for any food products associated with the Disney brand and characters
through their media platforms, which included television channels and rad io sta­
tions. By the end of 201S, Disney's goal is to have 100% of its advertising o n f o o d
products in compliance with the nutrition guidelines established by Disney. In 2014,
S0% of the advertising was in compliance with the nutrition guidelines.17 D isney is
also m oving forward with the enhancement of the nutrition level of its licen sed f o o d
sales. Disney has established a goal that 85% of its globally licensed w holesale fo o d
sales must meet its global nutrition guidelines. In 2014, its global wholesale fo o d sales
were 71% compliant, while the North American sales had met the global goal o f 85%.
Disney states that it would not be able to reach 100% compliance because there are
certain foods that they produce, such as candy and cakes, that would n ot c o m p ly
with the nutrition guidelines. Since 2006, Disney has been able to provide m ore th an
4 billion healthy servings o f fruits and vegetables to families.18
Disney also established the "Mickey Check" program, an easy way to id en tify
healthy nutritious choices in allot Disney's parks, resorts, andcruise lines Furthermore
Disney uses storytelling and endorsements from its characters to encourage ch ild ren
and families to try nutritious foods through its TRYit program. The TRYit ca m p a ign
 Case 4 • Disney 301

chUdren e x c te slin ! ! mi.l1,i.°n households weekly In 2014, with 75% of the surveyed
health nisnev l ^ W* lnSness to make changes in their habits related to their
nlaverounds h * ? 1S 5PonsorinS Programs that helped build more than 50
and hpi a f °^e creadve ways for children to spend their recess time outside,
d helped food banks provide fresh fruit and vegetables.'9

Think Creatively Disney has partnered with the Boys & Girls Clubs of America to
es abhsh a six-week creativity learning program that is targeted at middle school
c l ren, to help reduce the level of learning loss during the summer months. This
pro gram has been executed by 260 Boys & Girls Clubs and has had 8,500 partici­
pants. In addition, Disney has financially supported the Playworks program, which
encourages innovative play among children in low-income schools. This program
has been established in 44 schools and has had more than 24,000 participants.
Star W ars: Force for Change

The Force is an energy field created by all living things. It surrounds us. It penetrates
us. It binds the galaxy together.20

—Obi-Wan Kenobi

Taking the words of the Jedi Master to heart, Disney and Lucasfilm sponsored a char­
itable program to create new and innovative solutions to some of the most difficult

Cases
global challenges. The first challenge the program addressed was the needs of chil­
dren in developing countries through UNICEF's Innovation Labs. Disney committed
$1 m illion to support UNICEF programs related to clean water, nutrition, health, and
education. As part of the campaign, Disney created a contest during the summer of
2014 for Star Wars fans to donate to UNICEF and be eligible to win the chance to be
in the Star Wars: Episode VII movie. The campaign raised more than 54.2 million for
UNICEF. Disney has had a relationship with UNICEF for more than 50 years. In fact,
at the 1964 World's Fair, Disney introduced the "It's a Small World" attraction, which
was a tribute to UNICEF.21

C o n s e r v e Nature In 1995, Disney established the Disney Worldwide Conservation

Fund (DWCF), which focuses on protecting wildlife and natural habitats and develop­
ing sustainable conservation commitments. DWCF focuses on issues such as protect­
ing threatened species and ecosystems and the creation of community conservation
and environmental education programs in more than 100 countries globally. In 2014,
DWCF contributed more than $25 million to fund more than 150 projects, which
supported its long-term environmental commitment to eco-sustainability. Disney
also actively promotes the natural environment through its Disney nature films,
allowing m illions of people to view various species in their natural habitats. Through
its theme parks, reports, and its financial support of environmental nonprofit organi­
zations, Disney was able to expose 13.4 million families and children to experiences
related to the natural environment in 2014.22

Strengthen Communities The VoluntEARS program allows Disney employees to vol­

unteer within their local communities. In 2014, more than 500,000 hours of volunteer
302 PartV • C a s e s

service were performed by Disney employees. Volunteer activities included volunteer­

ing at a local food bank, helping in the construction of new playgrounds, and w ork in g
with various nonprofit organizations. Since 2012, a total of 1.7 m illion volunteer h ou rs
have been generated by Disney employees. Disney’ s goal is to have an accum ulated
total o f 5 million hours by 2020. In 2014, Disney introduced Disney M ovie M om ents,
a program that sends first-run Disney films to more than 45 children's hospitals in the
United States. In addition, Disney provides Hospital Care Packages to m ore than 430
hospitals globally. The children in the hospital receive a care package that con ta in s
toys, DVDs, books, Club Penguin memberships, and a Marvel com ic b o o k sp ecia lly
designed for hospitalized children. As a result, Disney positively im pacted 9.8 m illio n
families and children through these various programs in 2014 alone.23 D isney is a lso
very actively encouraging reading by children. Disney donated 7.1 m illion b o o k s to
sch ools and other educational programs in 2014. From 2012 to 2014, Disney d on a ted a
total of 23.1 m illion books, which was 5.1 million more than its target of 18 m illion .24
The VoluntEARS program provides funding for the "EARS to You" grants. EARS to
You grants allow cast members and other Disney employees the opportunity to con v ert
their volunteer actions into a financial contribution to various schools and charities
connected with the Disney employees. Disney also has developed a Summer o f Service
campaign, which presents messages on its television networks encouraging the v iew ­
ers to becom e actively involved in supporting their communities. Disney has created
Friends for Change, a global community involvement initiative that encourages c h il­
dren and families to develop creative ideas to help their local community. D isn ey has
also established the Disney Heroes Work Here program, which focuses on hiring, train­
ing, and supporting United States Armed Forces veterans and provides support to their
families. Through activities from pledging online to protect the planet to volu n teerin g
in local communities, Disney encouraged families and children to take 3.7 m illio n
actions in 2014. Disney's goal is to increase that level to 20 million actions b y 2020.25

Strategic Philanthropy
In 2014, Disney contributed a total of $315.7 million in philanthropic giving, w h ich
included $86-6 million in cash donations, $137.8 million in product donations, and
$91.3 million in other types of contributions, including in-kind donations and P ublic
Service Announcements (PSAs).26

Q uestions for Thought :•

1. Walt Disney's vision and values
established the underlying CSR
philosophy at Disney. How is Disney
able to continue to embrace these
values long after his death?
2. Disney claims that having a strong
CSR reputation allows it to recruit and
retain top-level employees. Do you
II
agree? What characteristics do you
look for in a company you want to
work for?
_ v i
3. Disney claims an emotional bond
between the consumer and the
company, which enhances its
interaction with society. Identify an
emotional bond you have with Disney.