5943 summary - group PDF

Title 5943 summary - group
Author WENXIN ZHENG
Course Advanced Financial Reporting
Institution University of New South Wales
Pages 2
File Size 57.1 KB
File Type PDF
Total Downloads 44
Total Views 157

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Intel Corporation is an American multinational corporation and technology company, headquartered in USA. As the world's second highest valued semiconductor chip maker, Intel supplies processors for computer system manufacturers and manufactures devices concerning computing and communications. Intel has released its first environmental report since 1994 and always ranks top in the Global CSR RepTrak (6th place in 2017). By employing CSR strategy, Intel hopes to support its business, enhance its credibility to the general public, strengthen employees morale, and benefit its stakeholders. Plumlee et al. (2015) stated there is likely to be a positive relationship between the firm value and the quality of CSR disclosure. This could be an incentive for Intel by providing a premium CSR report to enhance its financial position and attract more investors. As an electronics sector innovator and corporate responsibility pioneer, Intel aims to realize its social responsibility goals through innovative technologies and programs. Its CSR report mainly focuses environmental sustainability, supply chain responsibility, diversity and inclusion, and social impact. Specifically, Intel presents its close cooperation with stakeholders to address the society’s concerning issues. Furthermore, it also shows how to incorporate its corporate social responsibility into the business development (e.g. identifying new market) to benefit all stakeholders. Last, Intel continues to advance its integrated reporting strategy to enhance transparency in many areas. At the firm level, institutional theory is relevant to voluntary corporate reporting practices between Intel and its competitor-Microsoft. Both companies invested in energy conservation projects for environmental sustainability. Moreover, its commitment towards corporate responsibility creates value for stakeholders, and it also differentiates and prioritizes the main stakeholder groups of the business, which corresponds to the stakeholder theory especially managerial branch. This information At the reporting framework level, Intel is among the first companies to adopt the Global Reporting Initiative (GRI) Sustainability Reporting Standards. However, it fails to mention the indigenous rights, environmental and human grievance mechanism issue compared with Microsoft. To sum up, some improvements would be made for Intel CSR report. Firstly, some corporate responsibility goals are too aggressive, and the actual result has a significant unfavorable gap towards the goals. It would hurt the creditability of the CSR report and cast doubts on attainability of the goals in the report. Secondly, the current report lacks quantitative analysis, trend analysis and comparison with competitors. Last, the transparency of the CSR report should also be improved since some contents included in GRI index are not disclosed due to the confidential reasons.

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