Corporate Social Responsibility in the ICT Industry

Corporate Social Responsibility in the ICT assiduity1. knowledgeabilityICT exertion has hold upd rapid growth characterised by strong disceptation in which companies argon increasingly focussing in better their affectionateness competencies such(prenominal) as innovation, marketing, and fooling to maintain competitive advantage. Manufacturing and supply stove ar usually outsourced to ontogeny countries stretching to complex multi dimensional kins in the midst of companies. To maintain operational efficiency companies a lot of times dont pay heed to environment and low power stakeholders such as employees, NGOs etc., and consequently lack a systematic CSR ( bodied accessible responsibility) framework. harmonise to a finding by Forrester Group (Figure 1), 34 % of organizations argon now pursuing a CSR action intention and about 13% have already apply superstar (Forrester, 2009). CESR framework en opens identification of root causes of looses, establishes remedial processes and suffers continual improvements. Companies already use occupation management systems (BMS) and utilizing CSR management mensurations such as ISO 26000 and ISO 14001 should non be grueling to adapt. These standards impart act as performance indicators for guilds CSR. Having an merged come along towards business and CSR ensures friendships long experimental condition viability by non plainly selling environmental and societal issues b bely as well maturation business process, improving quality, and controllability.This paper provide show that despite organizations being reluctant in realizing the not so visible returns by investing in CSER, it is increasingly becoming critical to incorporate the friendly and environmental strategies indoors the business structure. This paper analyses the major challenges, root causes for these challenges memorial tabletd by ICT persistence, and concludes by recommending a series of procedures that terminate be adop ted by companies to ensure their viability and sustainability in the present and future.2. Prevalent CSR issues in the industriousnessThe major CESR (corporate environment and social responsibility) issues identified in organizations, curiously in developing countries that manufacture 45% of all ICT fruits are excessive on the job(p) hours, worker health and safety, scant(p) employer-employee relationship, e- desolate and pollution (Janco Associates Inc., 2009).2. 1 Poor employee engagementMany workers in the ICT fabrication, especially in the manufacturing sector, are hired regularly on short term contracts and laid off at the end of their term. Under this set up employers get in away without hiring full-time employees thereby, avoiding higher wages and benefits, which would have been incurred former(a)wise. This happens kinda often in developing countries such as China and Philippines. This prevents workers from actively partaking in companies growth and decreases loyal ty. In addition, the manufacturing industry is plagued with workers having to work mandatory extra time in revision to meet high production demands at variable times. This requires flexible as well as long working hours for employees. In many developing countries, workers are threatened to be fired in movement they do not comply with these work schedules. Long working hours can also be highly detrimental towards the morale of the workers and hurts the pauperization of the wear upon imbibe.2.2 Health and safety issues (U.S. Geological Survey, 2008)Majority of electronic products fabricate by ICT industry contain some form of hazardous substances. Workers in developing countries are everlastingly exposed to these materials that pose profound risks to their health hazards. According to Ladou (1994), ICT manufacturing workers are exposed to more(prenominal) toxins than workers in the chemical or pesticide industry are.2.3 Electronic Waste (E-Waste)One of the greatest environ mental issues the ICT industry currently faces is inconsistent e- scourge policies adopted not just by companies but governments across the world. http//www.pcij.org/blog/wp-content/uploads/2008/10/e-waste-dumping-routes- thumping.jpgFigure 2 Sources and destinations of e-wasteDue to rapid technical emergences and impertinenter design examples of cell telecommunicates, the average lifespan of a cell phone is only 18 months in OECD countries (U.S. Geological Survey, 2008). This creates tremendous amounts of e-waste generated that is exported in tonnes on a daily basis to developing countries. Many times this waste is exported under the category of workable conditions though it is dysfunctional. Many recyclers are not certified and do not follow environmental or social standards to recycle. Figure 2 identifies sources and destinations of most of e-waste. It is unsurprising to see that developed nations are using developing countries as their e-waste graveyard. Most companies use t hird party contractors, who form part of a nascent industry, to handle product garbage disposal and recycling.3. Root-causes of the challenges in the ICT sectorInformation and Communications Technology (ICT) companies are constantly bombarded by protests from the prevalent, non-governmental organizations (NGOs) and governments with respect to their inattention towards social and environmental responsibilities. There are several reasons why these companies are unable to adequately execute their said(prenominal) responsibilities. The following paragraphs will highlight some of reasons and identify the root causes of the challenges ICT companies face in this regard (FIAS BSR, 2007).3.1 Significant upfront be without tangible benefitsAccording to FIAS and BSR (2007), ICT companies are constantly challenged by issues of feasibility when considering an enthronization to promote their corporate social responsibility (CSR), due to the uncertain return on investment (ROI). Financial r eturn through CSR is usually intangible and therefore difficult to keep a track of and measure, hence heightening the risk comprehend by managers. However according to FIAS and BSRs (2007) check into, investments in CSR can result in lower employee attrition rates, increased process efficiency, healthier business relationship with customers and high influx of customers among other various benefits. Nevertheless, the sensed fiscal incredulity inherent in CSR investments leads many companies to overlook the benefits highlighted by the aforementioned survey and simply regard it as a long term dodge with no guarantees. Some companies wait to become late adopters until the impact of CSR is tried and true and tried in their industry before incorporating it within their business model.3.2 profound investmentsFIAS and BSR (2007) found out that companies practiceation of a CSR dodge could increase be by 3-5% or perhaps even more, in addition to courts incurred through the adoption o f spick-and-span equipment and technologies to promote better environmental or health and safety practices for example. As well, the management has to invest time, effort and other resources to perform nurture and develop internal policies. These factors add to the uncertainty and perceived burden of CSR investments and whitethorn further act as deterrents for companies to invest significant resources.3.3 Complexities related to overtimeUnmanageable excess overtime is one of the greatest CSR challenges ICT manufacturing suppliers face. According to FIAS BSRs survey (2007), a significant number of suppliers believe that they could converge all CSR expectations except excess overtime. The major reason behind this issue is overtime decisions are outside of the suppliers control. The manufacturing industry faces a lot of magnetic variation in manufacturing demand that results in a lack of predictable product volumes. Other factors such as changes in the workforce, fluctuations in r aw materials prices, evolving labour and environment laws, and even last minute changes in customer orders modify this process. While companies do pee-pee efforts to responsibly manage workers work-life balance, in the case of suppliers that hire hundreds of thousands of workers, this process may well be extremely challenging.3.4 carrying out of CSR expectations in supply mountain chainsThe CSR efforts of multinational corporations (MNCs) can multiply master(prenominal)ly if they realize the importance of motivating and convincing all of their supply chain partners within the hierarchy to adopt responsibility towards the community and environment they give-up the ghost in. However, this can be very challenging and companies typically feel accountable for only towards their next suppliers performance and are not aware of suppliers activities master the supply chain. MNCs outsourcing into developing countries bear the responsibility of ensuring that their suppliers conform to good determine and international standards4. RecommendationsLeading organizations have embraced a leadership role in CSR initiatives because they realize that by investing in the community, the environment, and its internal resources they create cost savings, competitive advantages and continued growth (T Systems, 2009).Central to any corporations success has been a very trusting working atmosphere that involves open communication mingled with employees and management. Initiatives such as daycare services, preventive back pain workshops, support political programs for smokers and subsidized healthy food and gym programs have religious serviceed in promoting active employee engagement. Various companies are actively involved in servinging non-profit organizations with financial and non-financial measures.A lack of gender diversity, specifically women in the workforce is a constant challenge for the information and communication technology (ICT) industry as a whole as over 80% of the industrys workforce is male. another(prenominal) issue is environmental awareness among employees, customers and its supply-chain. For example, employees may not be adopting right-hand(a) recycling practices or cutting down on wastage. Customers may not be eager to adopt virtualization, which is a technology that enables more effectual server energy use, because of a fear of privacy breaches. Similarly, with regards to the supply chain, large e-waste problems may not be addressed adequately, leading to large amounts of waste due to constant hardware turnover that is irresponsibly disposed in the developing world, thereby contributing to pollution and possibly negative health outcomes.Great changes can be brought by adopting small initiatives throughout the industry by every company. Eventually these changes will become the norm of the industry and perhaps transform into standards and laws. Implementation of a split focus between environmental, and internal and external soci al initiatives is essential to satisfying all secern stakeholders. The following table highlights some of the positive and negative aspects of adopting such an approachPROSCONSBuilds and maintains brand imageConsolidates approach and addresses key areas of corporate concernsCan accept from a wide array of projectsNo catch-up required for upcoming industry/regulations for environmental/social practicesSatisfies all stakeholders inescapablyHigh resource needsSplitting corporate focusTakes focus away from customer acquisitionTherefore as the table indicates, this option addresses both social and environmental factors however it lessens the overall effect on both areas compared to if they were pursued individually.4.1 spend a penny an enabling ICT policy framework that incorporates a holistic CSR outline within the business modelCompanies need to create and integrate a CSR strategy within their existing business model to be able to amply engrain CSR into their company. This stra tegy recognizes and addresses issues independently on a priority basis. Every company will find various issues it needs to address for instance, a chemical processing plant will have to find the best executable way to dispose off waste responsibly, whereas, an electronics manufacturer will address the issue of toxic metals being used in production. Once the company is able to establish and beat to its CSR mission, it then can communicate these determine among its supply chain and members of the ICT industry. The goal is to adopt a strategy that maximizes sustainability in the following areas brand image, stakeholder satisfaction, and long term viability.4.2 Create incentives for suppliersSuppliers consider incentives from customers as being a strong motivator to improve their CSR performance. Therefore, companies should determine which incentives would friend their suppliers perform better in meeting CSR expectations. Some examples of incentives could be a combination of longer contract terms, increased purchase volumes, higher prices and public recognition through awards and certificates. The amount of incentives can be linked to different levels of performance shown by the suppliers. Companies need to realize that providing these incentives may hurt their network initially, but in the long run the advantages derived from better CSR performance, such as less need for monitoring, reliable supply chains, diminished risk to brand image, improved product quality, and better operated facilities, could potentially counter the initial decrease in profits.4.3 Implement Standard industry-wide codesA common industry standard is essential to guide and monitor compliance for companies. Codes such as the Electronics Industry Code of Conduct are universally identified and accepted as being a tool to improve processes and methodologies. Additionally the presence of one industry standard increases documentation and reporting efficiency as there will be less duplicatio n, inconsistency and confusion.4.4 Conduct audits for improvement kinda than complianceCompanies perform audits still as a responsibility to get over with. However, audits are to serve as a learning hazard by identifying issues and areas for improvement. Audits should be able to not only tell companies the grade of compliance with the standards but also give a larger moving-picture show of companys fulfillment of its commitment to CSR. Following the audits company can arrange training sessions to remedy the weaknesses identified in the audits (FIAS BSR, 2007).4.5 Involve and implement responses from all stakeholdersIn order to achieve this, companies can implement the CSR strategic process that TELUS has been able to utilize successfully. This process engages internal and external stakeholders to develop a CSR strategy that is continuously reviewed and realigned to achieve results. Involving stakeholders during various stages of strategy incorporation enables development of a wholesome strategy, which satisfies needs of all social and environment aspects. Typically, NGOs and environmentalists are not involved in companys CSR strategy framing, thereby, limiting companies performance in jet plane sector.CSR4.6 E-waste Management SystemWith regards to e-waste management, the goal is to find a clean, economical and formative means of disposal. As such, the adoption of an e-Market for Returned Deposit system similar to the model outlined by Kahhat, Kim et.al is recommended (Kahat, Kim, Xu, Allenby, Williams, Zhang, 2008). This system will consist of the development of a database that will act as a assembly for suppliers and organizations looking for cheap, reclaimable and recyclable hardware. This database provides suppliers with an outlet to dispose of their grandfathered and unusable hardware in a responsible and economic way. As well, e-waste disposal companies (who meet WEEE standards) could access the forum to look for hardware that they may need. Ther e could also be a separate section for donation to schools and non-profit organizations. The hope is that this forum will help shrink the digital divide and decrease pollution from e-waste.This site would be directly influencing their customers as well as their suppliers to dispose of their e-waste in a constructive and responsible manner while assisting in the further development of the communitys technological know-how, thereby shrinking the digital divide.Finally, companies can begin religious offering their expertise in environmental efficiencies in order to create an ethical supply chain. This process will latch on by educating suppliers and moving on to educating other organizations and may represent a future revenue stream.4.7 Employee dateAs part of an initiative to increase employee engagement while addressing companies strategy of socially responsible behaviour, the development of a cross-functioning CSR travail Force in every company is recommended. This groups mandat e will be to initiate, develop and implement new CSR initiatives designed to enhance and add to the companys current CSR strategy. A ripened management director, who will act as a facilitator for the committee, will lead this task force. Beyond this role, he or she will act merely as a symbolic head of the committee. The idea behind this establishment is to ensure that upper management is kept abreast of homegrown ideas and developments and to make sure they remain engaged in the overall CSR strategy. Members of the task force will be employees selected from different functional areas of the company. Intra-company elections will be held on an annual basis to select a committee head (non-management), who will be the main driver and coordinator of new CSR ideas and strategies. By having non-upper management employees lead this task force, a way for employees to gain valuable leadership experience will be realized. Cisco Systems has implemented a similar program and to date they hav e experienced very successful results (Creary, 2010). This project allows waiter Europe to engage its employees and involve them in a strategically important initiative all while reaping the benefits of new and innovative CSR ideas derived from a CSR think-tank at a low cost.Such a task force will also act as CSR consultants that hopefully will educate and help implement CSR strategies that mirror leading companies strategies up the supply chain. Depending on how the CSR consultants are received by suppliers, there is potential that this could become a new revenue stream as suppliers try to reach the customers position.In order to encourage engagement from all employees we suggest that, in conjunction with the pertly appointment CSR Task Force, companies begin an employee efficiency reward system where employees are rewarded financially for the degree of environmentally efficient measures they take. These measures would be decided by the CSR team and could include anything from ca r-pooling to personal contribution to community programs geared at environmental clean-ups, to outside education of local businesses. Employeess CSR commitment can be measured in their annual performance review. At the end of the year, the CSR Task Force can vote on the top CSR performers at the company and bonuses can be given out to them.4.8 Focus on varietyTo address the lack of female representatives in the ICT industry, companies can seek social status in local female associations like Organization of Women in international Trade (OWIT) and Association for Womens Rights in Development (AWID). These organizations concentrate on developing womens technical skills, offers networking opportunities, career guidance and increase awareness and interest in the field of ICT. done these channels, companies can attract top students to through internships or executive hiring programs. Other senior female executives in the ICT industry can act as champions for the overall initiative by participating in information sessions, mentorship programs and initiatives like job shadowing.4.9 Effective Human Resource readyingTo ensure that the company has the right people in the right inject at the right time, I would suggest the adoption of Strategic men Planning (SWP) (Conference Board of Canada, 2009). This involves identifying hiring needs based on the projects companies plan to cut in the next 3-5 years, evaluating their options to fill those positions based on skills, identifying gaps and finally developing a plan to tackle them. SWP will help companies meet endowment needs based on different market conditions, account for new opportunities and projects that may be implemented in that timeline. The SWP incorporates initiatives that develop talent internally as well as develop a recruitment plan to attract external talent.5. ConclusionCSR needs to be fundamentally unified into business operations and relationships. In many companies, CSR is the absent link that co uld potentially help companies grow responsibly and sustainably along with its stakeholders. Increasingly CSR is becoming more and more critical to a companys success as customers become more aware of their surroundings. Deployment of CSR adds incredible value to a companys business while also supporting communities and the environment. Adopting CESR policies will also equip companies to readily conform to threatening legislations and regulations and organizations will be well prepared to comply with standards. During the process of implementing these CSR initiatives, companies should start with easily adoptable features such as energy efficient habitude of resources at work. Many of the recommendations made in this paper do not require extensive capital commitments rather, attitudinal changes in the way companies operate. Other recommendations however, such as building energy efficient data centres and other ICT infrastructure, may require a considerable amount of time and financ ial investments (Fernando Okuda, 2009). Through partnership, organizations can encourage and support one another to adopt and adhere to their commitments. If systematically approached and consolidated, these initiatives will definitely provide companies with excellent and far-reaching improvements (T Systems, 2009).