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Business strategy

Business Strategy

Social responsibility is the recognition that business activities have an impact on society and the consideration of that impact in business decision-making. Obviously, social responsibility cost money. It is perhaps not so obvious-except in isolated cases-that social responsibilities is also good business. Customer eventually find out, which firms are acting responsibly and which are not. And, just as easily as they cast their dollar votes for a product produced by a company that is socially responsible, they can vote against the firm that is not.

Government regulation and public awareness are external forces that have increased the social responsibility of business. But business decisions are made within the firm-and, there; social responsibility begins with the attitude of management. Two contrasting philosophies, or models, define the range of management attitudes toward social responsibility.

According to the traditional concept of business, a firm exists to produce quality goods and services, earn a reasonable profit, and provide jobs. In line with this concept, the economic model of social responsibility holds that society will benefit most when business is left alone to produce and market profitable products that society needs. To the manager who adopts this traditional attitude, social responsibility is someone else’s job. Managers who concentrate on profit believe they fulfill their social responsibility indirectly, through the taxes paid by their firms. As a result, social responsibility becomes the problem of government, various environmental groups, charitable foundations, and similar organizations.

In contrast, some managers believe they have a responsibility not only to stockholders but also to customers, employees, suppliers, and the general public. This broader view is referred to as the socioeconomic model of social responsibility. It places emphasis not only on profits but also on the impact of business decisions on society.

The companies we choose are in the Computer Industry, Dell, IBM, and HP. Our hypothesis is that these three companies are using the socioeconomic model of social responsibility. The work these companies are doing for society is causing a positive impact and is also helping the reputation of these companies growth as well as their profits, and market share. Although the economy of the country in general is at a recession point at the present time and this is also a big influence in the revenues of any company in the market, theses three companies although they had their looses they are keeping up with their social responsibility and we are going to prove this statement with our research.

Dell is a leader in its communities and partners with organizations to support and address the needs of the communities in which it operates. The company's efforts are seen in communities throughout the world and cover education, workforce development, and civic initiatives unique to the region, all of which empower people and communities for success in the digital world.

The Dell Foundation is an extension of its direct business model philosophy, supports innovative programs that are Equipping Youth for success in the digital world. The foundation is dedicated to making a difference in the communities where employees work and live by supporting a wide range of programs and organizations that benefit children newborn to eighteen years of age in the Central Texas and Middle Tennessee regions. Corporate Community Partnerships are designed to address the mutual interests and needs of the community and the company. Employee Giving Program is Dell's annual program to promote philanthropy among its employees and executives. The program, one of the top employee campaigns in Central Texas and one of the most successful Web-enabled campaigns nationwide, has generated significant support for charities around the globe. Volunteerism efforts at Dell mobilize thousands of employees each year to support community needs worldwide. Dell is taking advantage of Web-based tools to help make immediate connections between Dell employees and charitable organizations. Community Fundraisers: Dell employees and their families regularly participate in local walks, runs and other fundraisers. More than 2,500 Central Texas employees raised $300,000 for March of Dimes' Walk America, Safe Place’s Walk for Safe Families, American Cancer Society's Relay for Life, and Juvenile Diabetes Foundation's Walk to Cure Diabetes. Other volunteer efforts include Special Olympics, Big Brothers and Sisters, and Habitat for Humanity in Central Texas, and a clothing drive for the Eden Home for the Handicapped in Asia Pacific.

Round Rock Express (Texas): Is a new baseball park, which opened in April, and is the home to the Round Rock Express and the ultimate destination of more than 1,500 Central Texas middle school students who make up the Dell Academic All-Star Team. Wilson County Adult Education Center (Tennessee): These is part of the county school system, an offers technology and basic job skills training as well as career placement for adults from the area.

The Austin Project (Texas): Dell partnered with The Austin Project to outfit two inner-city community computer labs in Austin, Texas, to offer access to state-of-the-art technology and Internet training to youth and adults. Dell Employee Giving Program: In 2000, Dell launched one of the most successful online employees giving campaigns nationwide, raising $5.8 million for charitable organizations from across the globe. Direct Giving, the official name of the campaign, was the largest of its kind in Central Texas' history and won the following recognition and awards from both local and national organizations.

· Largest Number of Leadership Givers in a Workplace Giving Campaign -- United Way/Capital Area

· Highest Employee Gift Per Capita -- United Way/Capital Area

Dell's Environmental Policy: Their vision is to create a company culture where environmental excellence is second nature. Their mission is to fully integrate environmental stewardship into their business of providing quality products, best-in-class services, and the best customer experience. They have established the following environmental policy objectives to achieve their vision and mission. It is the responsibility of all Dell employees to support and implement these policies. Comply With The Law: Conduct their business with integrity and dedicated observance of the environmental laws and regulations of the countries in which Dell does business, surpassing basic compliance whenever possible. Prevent Waste and Pollution: Operate facilities to minimize harmful impacts on the environment through environmental management systems that are integrated into our business operations. Place a top priority on waste minimization, recycling and reuse programs, and pollution prevention. Design Products With the Environment in Mind: Design their products with a focus on the entire life cycle, extending product life span, reducing energy consumption, avoiding hazardous materials and using parts that are capable of being recycled at the highest level. Set expectations of environmental excellence throughout vendor supply chain. Continually Improve and Communicate Performance: Collect and analyze information to measure and continually improve environmental performance. Utilize the Internet to periodically update the progress to neighbors and the general public. Foster a culture of environmental responsibility among their employees. Be a Responsible Neighbor: Act in an environmentally responsible manner and, through established contingency plans, correct any actions that may harm the health and safety of the environment, our neighbors or employees.

Awards & Recognition

Dell has been honored with several national, regional and statewide awards for its environmental programs and for its work in the community on environmental stewardship:

· 2000 U.S. Conference of Mayors' Recycling At Work Award

· 2000 Keep America Beautiful National Award, Waste Minimization, 2nd Place

· 2000 National Recycling Coalition Tim McClure Award for Outstanding Environmental and Community Leadership (United States)

IBM is committed to environmental leadership in all of its business activities, from its operations to the design of its products and use of its technology. IBM's corporate policy on environmental affairs, first issued in 1971, is supported by the company's global Environmental management system, which is the key element of company's efforts to achieve results consistent with environmental leadership and ensures the company is vigilant in protecting the environment across all of its operations worldwide.

v New York Governor George E. Pataki has announced that IBM East Fishkill and IBM Endicott were selected to receive Governor's Awards for Pollution Prevention

v IBM's Thomas J. Watson Research Center and eServer Development Receive 2001 Chairman's Environmental Affairs Citation

v IBM Japan Ranked First in 2001 Nikkei Environmental Management Survey

IBM counts education as the top priority in its philanthropic efforts. Through Reinventing Education and other strategic efforts, we're solving education's toughest problems with solutions that draw on advanced information technologies and the best minds IBM can apply. Their programs pave the way for systematic reform in school systems nationwide through partnerships with whole school districts and entire states. IBM corporate philanthropy spans the globe with diverse and sustained giving programs that support initiatives in education, workforce development, arts and culture, and the environment to benefit communities in need. IBM demonstrates its commitment to good corporate citizenship by providing grant recipients with technology, employee time and talent, and project funds.

IBM ranked Best Corporate Citizen: For the second time in three years; IBM has been named Best Corporate Citizen among America's most responsible and profitable major public companies, according to Business Ethics Corporate Social Responsibility Report. IBM launches new KidSmart Early Learning Web site: To expand the benefits of the KidSmart Early Learning program beyond IBM grant sites, IBM has announced the November launch of its new Web site for parents and teachers, which provides guidance on early learning and technology. IBM partnership with SeniorNet to make the Internet more accessible: IBM announced the launch of a unique pilot program with SeniorNet that will enable the organization's members to tailor how they view web pages according to the personal preferences of each user, eliminating barriers that up to now have kept the web off-limits to millions. IBM wins 2001 Award for Excellence in Corporate Philanthropy: IBM has been selected by an independent panel established by the US Chamber of Commerce and the Committee on Corporate Philanthropy as the winner of the 2001 Award for Excellence in Corporate Philanthropy. IBM honored with 2001 Empowerment Award: IBM received the 2001 Empowerment Award "For Outstanding Support of School Reform through Technology" from eSchool News. IBM to invest an additional $25 million in Reinventing Education: Responding to a new independent study that found that the Reinventing Education grant program has resulted in significant gains in student achievement, IBM today announced that it will contribute an additional $25 million into the initiative. IBM launches Egyptian Cultural Heritage Web Project: IBM and the Egyptian government have announced a partnership to showcase the country’s vast legacy of cultural artifacts on the Web using groundbreaking technology. The partnership will create a state-of-the-art Web presence for Egyptian archaeology, culture, and history, with a special focus on famous treasures of King Tutankhamen.

HP Hewlett Packard

Through many years with HP their commitment has never changed. Their commitment is to do well by doing well. HP has being giving back to communities since there first year in business in 1939. They have been giving money back in different forms of donations such as money and time. HP has changed over the past couple of years; such as merging with Compaq; but their commitment has not changed. HP states, "The challenge is to continue to shape the impact of corporations as a constructive force; using our heritage and our tools for doing so."

At the corporation of HP they are working for shareowners value and social value. To create this role HP associates combines collaboration with partners, governments, non-governmental organizations and multilateral in order to develop useful solutions which are environmentally, socially and economically sustainable in communities world-wide. HP feels that this role will encourage employees to contribute in meaningful ways to their communities. It will help them learn the unique of people around the globe.

In 1957, Bill Hewlett and David Packard created the first set of corporate objectives in 1957 called "The HP Way." The HP Way is: Profit-Customers-Fields of interest-Growth-Our people


The corporate objectives are combined efforts of each of the organization working toward common objectives. The last objective citizenship states, "To honor our obligations to society by being an economic, intellectual, and social assets to each nation and each community in which we operate." HP tries to make an impact on the community. They want to try to do whatever they can to improve the community by getting involve with such groups as charitable, educational, civil or religious organizations.

Involvement in the Community: HP first priority in the community is the children. The majority of HP's objective is targeted to educational opportunity, which HP calls "e-Inclusion". Through strategic programs workers will me taught classes such as Digital Village and Diversity in Education. These classes will help in three ways: working to narrow the digital divide, build capacity within the education community to increase student achievement in math and science (especially among underrepresented and low-income students), and reinvent how undeserved communities address some of their most pressing issues (HP 4).

In the United States, HP awards equipment and cash donations to children through three programs. The US Grants Program, Local Contributions Programs, and the Employee Giving Programs. The corporation also gives product discounts for college students and teachers.

HP not just helps out the US they also have non-US programs that involve the Asia Pacific, Canada, Europe, and Latin America. HP wants to see the benefits of the community through an increasing number of people. They focus on building educational opportunities for students in undeserved communities around the world

Current education-related U.S. strategic grant initiatives

v Initiative in mobile technology solutions

v Institute for women & technology virtual development centers

v Schools of education and k-12 technology collaboration

v University impact

v Community college pre-engineering and computer science

v Science leadership

v Digital village

v Diversity in education & hp scholars

Other HP grant programs that support education

v Local contributions programs

v Employee giving programs

HP has three employee philanthropy programs. Funds matching program (for U.S. colleges and universities only), Employee product gift program for us educational institutions, and Health & human services.

Hewlett-Packard Company is committed to conducting its business in an ethical and socially responsible manner. This commitment is consistent with the corporate’s objectives and is essential to sustainable business success. Their environmental goals are to provide products and services that are environmentally sound throughout their lifecycles and to conduct their operations worldwide in an environmentally responsible manner. To achieve these goals, the company has established the following Environmental Policy. All HP managers and employees are expected to support implementation of this Policy in accordance with their roles and responsibilities in the organization. Product stewardship: Design products and services to be safe to use, to minimize use of hazardous materials, energy and other resources, and to enable recycling or reuse. Pollution prevention: Conduct operations in a manner that prevents pollution, conserves resources, and proactively addresses past environmental contamination. Continual improvement: Integrate environmental management into business and decision-making processes, regularly measure performance, and practice continual improvement. Legal compliance: Ensure that products and operations comply with applicable environmental regulations and requirements. Stakeholder involvement: Provide clear and candid environmental information about our products, services and operations to customers, shareholders, employees, government agencies and the public. Inform suppliers of environmental requirements and encourage them to adopt sound environmental management practices. Foster environmental responsibility among employees.

News and Awards

v Hp sponsors Digital Europe, a study of ebusiness and sustainable development (march 2002)

v Hp wins ecohitech 2001 award (November 2001)

v Hp wins 2001 green cross millennium award (October 2001)

v Hp recycling program helps keep computer parts out of landfills (May, 2001)

v Recycle your computer hardware with hp (May, 2001)

v Creating value from old computers (January, 2001)

The hard work these three companies are putting into social responsibility is making a big difference in our society. They are helping children, students, employees; we could say that in a way everyone could be benefit. At the same time that the companies are benefiting our society they are benefiting themselves as corporations. Their reputation has grown as companies as well as their products, which anyone can use. Also their money raising campaigns has raised lots money to help our society. Customer satisfaction has increased as well with the improvement of the company’s products. These companies are not only concerned with bettering their products to increase profits but also to better our societies in a way that the production of their products won’t affect the environment, on the contrary it would benefit it.






v Business, Sixth Edition. William M. Pride, Robert J. Hughes, Jack R. Kapoor

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