Corporate Social Responsibility In The Real World: Xerox And Lego

Throughout the past couple decades, Corporate Social Responsibility has become more and more important. This model of being environmentally, socially, and economically responsible has shaped and changed how business are ran today. Nearly every company today has a system in place that focuses on bettering our communities, and the world alike. Corporations spend millions of dollars every year into their own initiatives with the objective not only bettering our world, but also to boost employee morale within the corporation.

Xerox Corporation is a US based company that specializes in printing products. Since 1906, Xerox has been a pioneer in the evolution of the printer and printing products. With 40, 000 employs, Xerox is a firm believer in Corporate Social Responsibility and its benefits to society. Since 2006, Xerox has been named as one of the Most Ethical Companies because of the many Corporate Social Responsibility initiatives it promotes. The Corporate Social Responsibility initiative that I will highlight today is the Community Involvement Program. This program was established to support their employees volunteer spirit. If an employee is volunteering within their community and needs financial support, Xerox will help them financially. This program enables employees to serve how they want, but also allows Xerox to impact their communities directly. Since the creation of this initiative in 1974, half a million Xerox employes have been apart of community projects and millions of dollars a year are invested in this initiative. One example of this initiative in action is Xerox Science Consultant Program.

Scientist’s within Xerox had a firm belief in making Science and Math interesting for kids in elementary school. Xerox employees go to elementary schools and teach children about math and science. Because of Xerox’s firm believe in enabling its employees, this program has now been in effect for over 40 years and has impacted over 40, 000 students. Xerox’s employs are enabled to do good within their community’s and are heavily encouraged to do so. This program promotes a strong organizational culture of kindness and empowerment. These two qualities are important within a large organization because they make employees feel as if their beliefs and values are of importance, which may increase work productivity and quality of work. The only way this initiative would not work is simply if Xerox’s employees do not do any volunteer work. Employees know that their employer will empower and support the way the decide to volunteer regardless of their convictions. An individual or party may be against this initiative because they do not believe the employees will take it upon themselves to find volunteer opportunities or projects. This viewpoint against this program is justified because some people simply do not want to volunteer. Although when you have 40, 000 employees and assume that 10% of them participate in this initiative, that still is 4, 000 people participating in charity. Xerox’s dedication to maintain a strong record of CSR is evident in their other initiatives as well.

The Xerox Green World Alliance and the Electronic Industry Citizenship Coalition are both initiatives they believe in and put resources towards. Xerox is dedicated to making this world a better place and social initiatives like the Community Involvement Program are an attempt at achieving that. Another company that is involved in corporate social responsibility is Lego Group. Found in 1932, in Denmark by the Kristiansen family. lego Group develops a wide array of plastic lego bricks and pieces intended for young children to explore their creativity in building creative structures and designs. As of 2018, Lego Group has around 17, 500 employees, with the brand value being roughly 7. 8 billion dollars. In 2017 Lego Group was ranked number 1 for “best CSR reputation” Lego group’s CSR initiative started with Greenpeace, an organization dedicated to the preservation of the environment running a media campaign showing the effects of Lego Group’s partner Shell drilling into the Arctic. With the video reaching 8. 5 million views, Lego Group cut their partnership with Shell. Lego group redirected their aim to a CSR initiative of creating a sustainable material that is better for the environment by 2030, by creating their “Lego’s Sustainable Materials Center” employing over 100 people dedicated to this initiative. Along with this the company also dedicated 1 billion Danish Krone (201. 6 million Canadian dollars) to the project, as well as partnering with the World Wildlife Fund. Some factors that might hinder this initiative would be the increase of the product cost both to manufacture and sell, as well as the 12 year deadline set. A stakeholder group that might be against the initiative could be the shareholders of the company, holding the concern that too many resources are being spent on this project. With 201. 6 million dollars already invested, and 12 more years to go, the invested amount could be a concern.

Along with the resources, a new material for the product could potential increase the price sold on the market, affecting sales. An argument against this is that with this initiative it would increase brand loyalty due to the modern consumers concern for the environment bringing in more customers in return. Another counter to this is that despite what is invested already, the new material could potential decrease the cost of goods, as well as create a valuable patent on the new material. Along with the initiative bringing a benefit to society and the planet, it has a potential of bringing value to the organisation itself in both value and customer reputation.

Both Xerox and the Lego developed CSR initiatives that focus on improving various aspects of the stakeholders, Xerox focusing on society and the employees, and Lego group focusing on Society and the environment. These are just two of countless companies dedicating their resources on impacting internal, and external stakeholders in a positive way. Through these initiatives, the stakeholders gain a strong benefit, as well as the organizations themselves.