The need for Corporate social responsibility

The world has improved a lot since the 19th century, primarily due to the industrial
revolution. However, this growth came at the cost of the rapidly depleting environment.
The second change that happened was that companies realized over a period of time
that it was not just the shareholders who were important. Companies are increasingly
becoming more responsible towards external stakeholders. Industries realized that their
sole purpose was not to make money.

Here comes the CSR part. The corporate social responsibility of a firm is all about
integrating external stakeholders like the environment and society into the business
decision-making process. Therefore, the goal of corporate social responsibility is to
reduce the negative impact of any company’s actions along with these directions. The
ultimate goal of CSR is to create positive action for society as well as the
environment. It should be noted that these benefits are not coming at the cost of
the profit of the organization.

Initially, there were only manufacturing-related companies that took part in CSR
activities. However, over a period of time, even software companies like Microsoft got
into it. Let us find out why.

“We are grounded in creating local economic opportunity in every

community, helping to unlock the power of technology to address our
customers’ most pressing challenges.”

– Satya Nadella

An overview of Microsoft’s approach towards CSR

Microsoft is one of the top companies in the world. Microsoft has taken a proactive
approach to corporate social responsibility. One of the ways of knowing whether the
firms are serious about CSR is through their annual reports. Annual reports are
documents that are primarily targeted towards investors. A company may talk about its
responsibilities towards society and its environment. This shows their attitude towards
these issues. Microsoft releases its corporate sustainability report based on the Global
Reporting Initiative guidelines.

Microsoft has defined some of the broader CSR goals as:

1. Empowering people
2. Strengthening the communities
3. Protecting our planet
In order to fulfill these broader goals, they have formulated a CSR team. This team is
called the Microsoft Technology and Corporate Responsibility or the TCR team. Apart
from the TSR team within Microsoft, they are also active through the Bill and Melinda
Gates Foundation. Microsoft founder Bill Gates has donated a major part of his wealth
for philanthropic purposes. This foundation looks at operationalizing some of these
philanthropic goals.

It should be noted here that some of the actions are driven by philanthropic motives
while some may be simply following an overall industrial trend. However, the attitude
and effectiveness in these aspects are a testament to a company’s CSR activities.

Microsoft CSR case study

Now we shall look at some of the live examples of how they have executed the
CSR. They have been working broadly on the aspects of empowering people.
Additionally, they have also looked at ways in which Microsoft as a technology enabler,
can help communities across the world. Thirdly, Microsoft is also committed to reduce
the carbon footprints of its product in order to protect the environment.

Microsoft launched a solar project in Nigeria to help the local community. Through this
project, they have established a center with solar panels to charge the batteries. They
have also used Microsoft Azure, their cloud technology to optimize the inverters. This
has resulted in a self-sustaining and environmentally friendly solution for the people.

Empowering people
Microsoft is using cloud technology to empower office workers. They have reported that
their use of Microsoft software helps the team in building a more powerful workplace.
Firstly, they have changed the format of the delivery of the Microsoft Office. Microsoft
Office now also comes as a cloud subscription under the name of Office 365. Using this
technology, they’re trying to make the workplace more sophisticated. They also attempt
to make the applications more secure for the end-users.

Secondly, some of their software offerings are also free of cost. It is interesting to note
that their best-selling office applications can be used for free. Office 365 comes with
Microsoft Word, Powerpoint, and Excel. This free package could be quite helpful for
people working in smaller teams who cannot afford expensive software. Microsoft also
attempts to provide higher accessibility in its software. These features are quite helpful
for people who are differentially abled.
Strengthening the communities
They have attempted to strengthen the community through the Microsoft Corporate
social responsibility team. One of the ways in which they are trying to strengthen the
community is through inclusive hiring. In closing, hiring is a process in which a company
attempts to have equal opportunity for everyone. It can also mean affirmative actions to
provide better opportunities for underprivileged classes.

Microsoft has organized skill development and educational courses. Some of the
students find these courses particularly useful. Microsoft also collaborated with the
Markle Foundation to train around 50,000 workers.

Protecting our planet

It is easier to visualize automotive as environmental pollutants. However. IT products
and services can also have an environmental impact. Microsoft has said that it
is working on three broader environmental areas.

Firstly, they’re trying to reduce the impact through lower carbon footprint and energy
usage. Microsoft was one of the first companies to achieve 100% carbon neutrality in
2012. Furthermore, a lower carbon footprint means that using more eco-friendly
materials in their products. A life cycle assessment of the materials helps in lowering
carbon footprint.

Secondly, they attempt. To preserve the water and natural ecosystems. Microsoft has
laid down certain rules to increase water efficiency. There is also scope to help the
affected counties in overcoming the shortage of potable water. Microsoft is also working
towards net-zero water certification for its establishment.

Thirdly, Microsoft attempts to reduce the impact of its operations on the environment.
Microsoft has taken steps to increase the usage of renewable energy. They have
achieved this through. Using solar energy for some of their energy needs. Additionally,
they have also looked at ways to minimize waste. In their products, they have achieved
this through smaller and lighter packaging. Microsoft has also partnered with other
enterprises too. They have created an extensive recycling program for their products.