a) There has been much academic and business debate about Corporate Social Responsibility (CSR)

and its place in business.

➢ Should an organisation’s board commit to CRS? Why? Why not?

Yes, in our opinion the commitment of an organization to corporate social responsibility is the right thing
to do. If we look at the world today, majority of the problems of the society like environmental
degradation, climate change, pollution and poverty-level wages etc. have been created by big
organizations. Also the best talent, creative minds and most capital is with these organizations. Thus, it
becomes an ethical responsibility of these organizations to correct their wrongs as they owe so much to
the society from which they have made an infinite profit. Much of the resources that are needed to solve
the problems of the society are with these businesses so they should utilize them in the best possible way
for solving the issues created by their perpetual greed for more and more. Also, if businesses are not
socially responsible, new regulation laws will be introduced and heavy fines will be imposed on them by
governments as especially in the case of pollution. Thus, it can be established that it is in the best interest
of the organizations to commit to Corporate Social Responsibility:

 For existence and growth of business

 To avoid government regulations
 For operating in a conducive business environment
 For creating business opportunities out of existing problems
 For long term interest of the firm
 For utilization of resources in the best possible way
 For promoting social peace and harmony

Moreover, the customers today are well aware of the consequences of negative practices of business and
are much concerned about the impact that businesses have on social, economic and environmental issues,
so the commitment of businesses to corporate social responsibility improves stakeholder relationships and
ensures customers that the organization balances corporate power with responsibility.

➢ Do you believe that CSR is just a marketing tool? Why? How?

Although Corporate Social Responsibility (CSR) is merely a marketing tool for many companies through
which they engage consumers by tricking them into believing that they put their profits back into the
same people who help them to make money. Such firms do not pursue CSR to benefit society but merely
to take advantage of consumers who are sold out to the concept of CSR. But these flawed practices are
getting more and more dangerous for those firms.

The consumers today are getting more and more aware of consequences of environmental, social and
economic harms of false business practices and demand transparency. It becomes a growing risk for
firms if they say what they do not practice. In the eyes of the consumer the apparent issue of trust is
more than reasonable. While Volkswagen claimed to promote eco-friendly cars all over the social media,
the story of how the company tweaked its cars to pass the emission tests was all over the media as a
front-runner story and it did so much damage to them for preaching what they do not practice.

CSR today is getting more and more real. Companies see it as a strategic issue and there’s so much
pressure today not only from environment, social issues, and climate change aspects but also from the
people, local communities, and employees. There is a growing trend among companies to integrate CSR
into their business model and embed it into their business routines because this is an era of
transparency. Consumers are far more loyal to the companies who can show traces, origins, proofs and
the entire lifecycle of their stated claim. CSR and Social Media are in a symbiotic relationship and feed
off each other. Consumers are quick to point out false or deceptive content and the tendency of calling
out a business faking CSR has more potential to be viral on the internet.

Genuinely pro-social initiatives and environment conscious efforts of firms are received very well by the
consumers. CSR is not just about one-off campaigns or charity drives today rather the biggest firms of
the business world have aligned their agendas towards social responsibility to tackle some of world’s
greatest environmental and social challenges. A few examples of businesses that genuinely have
integrated CSR in their business practices are as follows:

 Ecomagination of General Electric aims to generate $20 billion revenue through clean
products and is termed as a renewable business strategy.
 Timberland committed to plant more than 50 million trees in 5years and is already halfway
through it.
 Coca Cola’s global water replenishment projects promote water positive strategy of the
company. It returned back approximately 126.7billion liters of water used in its
manufacturing processes back to communities through waste water treatment in 2014.

More and more companies recognize now that factoring nature and society into their business models is
a smart business strategy. CSR might be a tool just to please customers and present a positive brand
image by merely talking the talk some decade ago but today for businesses to be successful means to
walk the talk when it comes to corporate social responsibility. Thus in our opinion, CSR is more and
more integrated as strategic in their actions and policies and is bound to last rather than just being a
marketing tool.

b) Focusing on the 2 organizations that you presented, using annual reports and other relevant
materials (such as any relevant media/press articles (can include videos such as news stories).

➢ Highlight and compare CSR best practice and application. (*This should be over a 5year period)

The CSR practices and applications of Unilever and PepsiCo. are highlighted and compared as follows:

Key Area Unilever – CSR Practices &
Applications Details
Health & -It’s brand lifebuoy aimed to
Hygiene change the hygiene
behavior of 1 billion
consumers across Asia,
Africa and Latin America to
reduce diarrhea &
respiratory disease by
promoting hand washing
through on-ground
programs
Huawei – CSR Practices & Related to SDGs
Applications Details
-620+ batches of supplies 3, 6, 17
shipped to
Huawei subsidiaries in 120+
countries and regions for
Covid’19 management
-100,000+employees from
130+ countries
and regions attended lectures
on preventive health
measures
 and TV commercials.
-By 2020, Domestos had
helped over 29 million
people gain improved
access to a toilet. Unilever
rolled out Cleaner Toilets,
Brighter Futures programme
in schools in 2018
- Pureit provided over 121
billion liters of safe drinking
water by 2020 which is
available in 12 countries
including India, China,
Indonesia, Ghana, Kenya
and Brazil
Environment In 2020, greenhouse gas
(Greenhouse impact per consumer use
gases) reduced by around 10%. By
the end of 2020, reduced
CO2 from energy by 75% to
36.94 of CO2 from energy in
kg per tons of production. In
2020, 51.9% of total energy
used in manufacturing
operations was generated
from renewable resources.
100% of all grid electricity
used in our manufacturing
operations was generated
from renewable resources.
56.5% reduction in energy
(kWh) purchased per
occupant.
Environment Close to 100% of vegetable
(Water) suppliers, including tomato
suppliers, now comply with
its Code. Almost all, when
using irrigation, have water
management plans in place
and report on water used in
irrigation
-100,000+
active patents across
40,000+ families held by
Huawei in Covid’19 pandemic
-Launched a network service
of medical
clinics called MAiPODs in
NewZealand. Each MAiPOD
is staffed by a nurse and an
assistant to offer onsite
medical services
-93 of Huawei’s top 100 7,12,13,14,15 and 17
suppliers
set a carbon emission
reduction target
- 220 million kwh of the
electricity used in China
was from renewable energy
sources, resulting in CO2
emissions reduction by
188,000 tons
-33.2% decrease in carbon
emissions per million RMB of
sales revenue compared to
the base year (2012)
To reduce water usage, rolled
out clean production
technologies and adopted a
variety of
measures such as collecting
rainwater, recycling cooling
water, recycling condensate,
7,12,13,14,15 and 17
and buying reclaimed
water for cleaning and
landscaping on campuses.
These technologies help
recycle 60% of the waste
water back into the
manufacturing process, saving
15,000 m3 of water each

Environment Consumer waste footprint
(Waste) has reduced by 34%. 52% of
our plastic packaging was
reusable, recyclable or
compostable in 2020
Environment 67% of the agricultural raw
(Sustainable materials were sustainably
Sourcing) sourced by the end 2020
(59% as physical sustainable
sources, 8% in the form of
certificates for palm, soy
and sugar). In 2019%
sustainable sourcing was
62%
Gender Balance -Maintained the proportion
of female managers at 50%†
in 2020.
-By 2020, enabled 2.63
million women to
access initiatives aiming to
promote their safety,
develop their skills or
expand their opportunities
Worker Health & In 2020, safety performance
Safety improved further to
0.63 accidents per million
hours worked
Fairness in - Lamplighter employee
Workplace programme for improving
nutrition, fitness and mental
resilience of employees.-
Reached 91,000 employees
in 70 countries by 2016
year.
4,500+ tons of smart device e-
waste processed by Huawei’s
owned recycling stations
7,12,
13, 14,15,17
22 protected areas in 18 7, 7, 12,13,
countries manage natural 14,15,17
resources and
protect biodiversity more
efficiently using Huawei's
digital technology
In 2020, Huawei launched a 1,3,4,5,8,17
series of HUAWEI4HER
activities across Europe to
help boost women's voices in
the technology sector
-In 2020, Huawei Ireland
offered the TECH4HER
Scholarship for women in
technology at two universities
of ireland
Provided basic training on EHS
to more than 33,000
employees in our R&D labs,
and had them sign
the EHS commitment letter
-Completed EHS assessment
on 9 large campuses of about
10 million square meters.
-Zero major safety accidents
in manufacturing
-Employees from 162
countries and regions.
-Among Chinese employees,
49 different ethnic groups are
represented. In 2020, more
than 3,400 local hires in our
offices outside China
 Nutrition -Reduced salt levels and In
2020, 77% of its foods
portfolio was compliant
with the 5 g target
-Reduced saturated fat and
By 2017, 80% of its global
portfolio of soft vegetable
oil spreads contained less
than 33% saturated fat and
at least 67% good
unsaturated fat
- By 2020, 23% sugar
reduction across all its
sweetened tea-based
beverages

Do you think that the difference in governance models impacted on the organisation’s CSR practice?
How/Why? (e.g., 2 tier having employees on the board)

Unilever operates with one-tie model governed by Unilever Board consisting of executive and non-
executive board members. Employees and Shareholders represented by board members remain active
in making major corporate decisions. This way, Unilever fulfills its CSR towards its employees,
shareholders, communities and suppliers. It always remains a dynamic process, board members
participating in decisions for positive contribution in society. Be it, compensation and rewards for
employees to have a better work-life balance or voting to cut green-house emissions to demonstrate
concrete measures to challenge climate change. All this has been possible due to inclusive decision
making at Unilever Board.

China has been manufacturing engine for the whole world since last three decades. Many Chinese public
limited liability companies has emerged in the process. One of them is Huawei Technologies inc. After
2012 Huawei has become a true global leader in terms of revenue leaving Ericsson behind. Huawei has
two-tier governance model with management and supervisory board. Huawei adopts customer centric
approach and satisfying their needs is at core of their service delivery. Exponential growth of Chinese
companies and economy at large has contributed to un-sustained practices. Now that companies like
Huawei are becoming global players so they are also becoming more aware of their CSRs. Huawei has
taken various steps in battling climate change, enhancing its human capital and delivery to services to
customers. Still CSR is overlooked as customers/stakeholders for Huawei are more of profit centric. It
can safely be argued that Huawei with its governance model is trying to make cut in CSRs but is not
there yet.
c) CSR Policy as a director on a company board is as follows:

Corporate Social Responsibility is rather the most important aspect here at XYZ company. It is reflective
of our responsibility as a company towards the society. We are cognizant of the impact of our
operations and believe that we have immense opportunities to change the lives of the community by
being a contributor to the social, economic and environmental progress of region Victoria. Ensuring high
ethical behavior standards will always be our foremost responsibility to safeguard our fundamental
obligations to the society which has help us come so far in our journey.

Our corporate social responsibility is reflective of our efforts to reward our people as it is solely due to
their contributions that this business is successful. The salient features of our CSR policy includes:

1. Full participation in donations for any national interest cause to provide relief and assistance to
victims of disasters and calamities.

2. In case of death during service, provision of medical facilities for the wellbeing of the family of
deceased employee.

3. Internship program to provide youth with the exposure to the practical world and provide them with
an insight of the professional world. We shall also partner with incubators or research and development
projects for advancements in the field of science, technology, medicine and engineering.

4. Under the Environmental Policy, we shall control and mitigate the risk to the environment further
that results from our business practices through the training of our employees for ensuring an
environment friendly workplace. Also, ensuring environmental sustainability, ecological balance,
protection of flora and fauna and conservation of natural resources shall be primary focus of our
business operations.

5. Gender equality will be our primary agenda in our recruitment processes with a focus on women
empowerment. Our recruitment processes will be inclusive for people who are differently abled and the
company aims to foster an inclusive work culture free from any sort of discrimination.

6. Partnerships with the state government for providing access to safe drinking water to the citizens

As a responsible corporate firm, the company is committed to sustainable development and inclusive
growth and we shall focus on wider issues of water, environment, healthy life, social advancement,
education, gender quality and empowerment of women. The company shall be obliged to spend 2% of
its revenue on CSR initiatives.
References:

https://www-file.huawei.com/-/media/corp2020/pdf/sustainability/2019-sustainability-report-en-
v2.pdf

https://www-file.huawei.com/-/media/corp2020/pdf/sustainability/sustainability-report-2020-en.pdf

https://assets.unilever.com/files/92ui5egz/production/
16cb778e4d31b81509dc5937001559f1f5c863ab.pdf/USLP-summary-of-10-years-progress.pdf

https://www.ecomatcher.com/why-making-csr-transparent-matters/