Assessment 2 (MIBR) PDF

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Assessment 2 ...

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Word Count: 2528

1.0 Introduction

2

2.0 Overview of Sony

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3.0 Sony’s CSR 3.1 Corporate Social Responsibility 3.2 Corporate governance 3.3 Labour rights 3.4 Community 3.5 Environment

3 3 3 4 4 5

4.0 Evaluation of Sony’s CSR 4.1 Evaluation through Schwartz and Carroll’s CSR framework 4.2 Evaluation in accordance with Stakeholder theory 4.3 Areas that need to be improved

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5.0 Recommendations

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6.0 Conclusion

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Reference

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1.0 Introduction This report presents and evaluates the corporate social responsibility (CSR) actions of 'Sony Corporation [Multinational conglomerate] (Sony). Through the review and examination of Sony's annual CSR report, their development strategy and sustainable development report Sony's performance is appraised and appropriate recommendations are made. Firstly, this report offers an introduction to Sony as a company and its corporate culture. Secondly, a summary of Sony's corporate social responsibility work is provided, this allows for the third phase of the report to be the examination and analysis of the aforementioned CSR work. Lastly, recommendations for further improvement are given. 2.0 Overview of Sony Sony is a distinguished multinational corporation. It is based in Tokyo, Japan, focusing on the retail and production of photographic equipment, communication equipment, music equipment and video games. It is a renowned company of digital products with a longstanding history dating back to 1946. Sony lay the groundwork for the initial digital products that were portable, as well as being one of the world's largest manufacturers of electronic products and has become one of the top 3 largest companies of the world's video game industry. In July 2019 Sony was ranked 116th on the Fortune Global 500 list (SONY 2019). Morita and Ibuka established 'Tokyo telecommunications industry co, in 1946,' the forerunner of Sony, built on the ruins of the war. Then in 1955, in a bid to lead the company into the global market, Morita and Ibuka designed an innovative trademark, 'Sony', derived from 'Sonus', the Latin word for sound, and from the English slang word "sonny" a loan word into Japanese which in the early 1950s connoted smart and presentable young men. Newly branded 'Sony' inherits its predecessor's plentiful spirit, established when the company was originally founded, this became the primary corporate culture of Sony's (SONY 2019). In contrast to the majority of companies in Japan during this time, Sony chose not to add either Ibuka or Morita to the name of the company. Neither did it set the industry the company would act within, this notably reflects the founders' aspirations and established the foundation for Sony's assorted and multifaceted development in the years to come. Sony continually improves and corrects its corporate culture. Sony is based in the electronic industry and is frequently exceeding the established electronic field and providing diversified management and regularly challenging the 'current arrangement'. Until recently, it has become an exhaustive frontier of photography, games communication, film and digital. Nobuyuki Idei was elected as chairman of Sony in April 1995 and started a 10 year time of a digital dream. Throughout this time, Nobuyuki Idei drove a range of internal reforms. He formed a new culture and slogan for Sony. In accordance with the market circumstance

during this decade, Nobuyuki Idei pioneered the company's standing and development theory. He proposed a corporate culture of Digital Dream and Children, along with the slogan of" Do you Dream?" (later changed to "Make Believe") within Sony. Nobuyuki Idei emphasised that Sony sold a personal experience, a combination of digital devices, personal affection and entertainment. Digital products were in no way an essential, therefore, the goal of Sony's existence was to feed people's desires, to allow digital products into their lives, enhance lives, and provide people with the expectation and idea of a lighthearted life...like a child. Under this theory, Sony has become an electronic products brand that is inviting and 'warm' in the midst of robotic emotionless digital device retailers (SONY 2019). Sony introduced the notion of 'Ubiquitous Value Network', in 2005, which at its core focuses on uniting Sony products with people's lives. In 2012 Kazuo Hirai took the company, he proposed the 'One Sony' strategy, to assume the strength of the entire company to further the advancement of the company (SONY 2019). Sony's relentless pursuit is to inspire people throughout the world with the animation of passion and innovation (SONY 2019).

3.0 Sony’s CSR 3.1 Corporate Social Responsibility Corporate social responsibility is the practice in which companies consider the various different stakeholders and act with regards to the environment, economy and, or society (Romani, Grappi, Bagozzi 2013). 3.2 Corporate governance Regarding corporate governance, Sony heeds to the notion of change and consumer first, adopting the approach of creating remarkable products aligned with industry interest. Sony continues to produce products that meet consumers desires and endeavours to secure a top global brand image in the electronics industry (Nasution, Mavondo, Matanda & Ndubisi 2011). Sony's supply chain management rigidly maintains principles of equity and fairness, integrating CSR within the supply chain management. It closely watches the supply chain management of raw material acquisition, enhancing the standards of supplier choice and evaluation. It frequently increases collaboration with the best quality suppliers to produce ethical, regulated and dependable products for customers. Additionally, Sony has a significant role within the 'responsible materials initiative'. to address existing supply chain issues in the electronics industry from an environmental and social perspective Sony joined the electronic industry code of conduct (EICC) and the global electronic sustainability initiative (GESI) (Lee & Kim 2009). Sony further actively contracts with suppliers on issues related to labour rights, human rights, environmental protection, health and safety to collectively find resolutions and achieve social responsibilities. Information security is a divisive discourse in the industry of digital products (Weber 2010). Sony heeds the belief of

customer information protection, implementing the company's duty to guarantee the protection of consumer information and partners. Sony routinely examines the security systems for the company's information and fixes assurance gaps in a time-sensitive manner. All employees of Sony rigidly submit to the 'Sony global information security policy' and allow surveillance from within and external related companies. 3.3 Labour rights Concerning labour rights, Sony rigidly adheres with governmental laws legislations and regulations, honours employees' requests, improve the wages, welfare policy, social security scheme and sets sound salary governance and performance evaluation method. This is additional to paying salaries complete and on time, Sony periodically improves wages according to the 'Consumer Price Index' (CPI) and annual company benefits to accommodate for competitive benefits and salaries for employees. Sony likewise enhances and perfects the annual leave system to assure the quality of life. Additionally, Sony urges employees to partake in the managing of the company, ensuring the freedom of expression, participation and the surveillance of workers (SONY 2019). Sony additionally promotes equal management. Sony urges employees to offer advice and acknowledges the use of employees in the equal management of companies. Building a friendly underpinning for an organisation with a stable system, considerate assurance, that is abundant with passion is the path of Sony's efforts (SONY 2019). Sony further concentrates on employee enhancement and career growth. Having established a professional appraisal practice to assist employees to create career advancement plans. Sony has heavily invested in the training further education of its employees, such as developing a Sony library, offering foreign language education programs and hiring third-party speakers for training (SONY 2019). 3.4 Community Sony commits to building a better society relying on its digital assets (SONY 2019). Sony collaborates with regional governments to provide sales programs for local agricultural products and provide internship and employment opportunities for university students as well as to support public welfare funds, additionally, volunteer projects and culture have grown to be an essential piece of Sony's corporate culture (SONY 2019). Sony has conducted numerous volunteer week projects, connecting hundreds if not thousands of people. Projects include community service tree planting, restoring appliances, and the recycling of abandoned devices. Sony additionally, values education highly, the Sony Dream was established in 2008, as an unrestricted science project devoted to empowering adolescent individuals to encounter the marvels of science. In 2013 the Sony Dream Classroom launched university students and staff volunteers offered to bring meaningful and engaging science lessons to young kids to present kids with the enjoyment of science and spur their inquisitiveness and innovation in science (SONY 2019).

3.5 Environment Regarding the environment, Sony established a management scheme in the global development field, that defines the duties of headquarters and areas to assure the application of the environmental protection intentions of Sony. Sony is devoted to decreasing greenhouse gas discharges, to alleviate the consequence from climate change during the acquisition, shipping, production and recycling of raw materials (SONY 2019). Given that the plastic is the principal material of the manufacturing industry and is largely derived from petroleum. Sony has auspiciously advanced recycled plastic and has additionally diminished on the amount of plastic used, in a bid to better use the plastic they produce. Moreover, Sony supplies this to other companies to improve their familiarity with renewable substances. Additionally, segments of electronic devices frequently comprise of numerous chemical components, which can contaminate and pollute the surrounding environment if not correctly treated following abandonment. Accordingly, Sony has adopted the 'global unified chemical substance management standard' for components and substances of Sony devices (SONY 2019). 4.0 Evaluation of Sony’s CSR 4.1 Evaluation through Schwartz and Carroll’s CSR framework In accordance with Schwartz and Carroll's CSR framework, the fundamental social obligations of an organisation are to enhance its worth by means of innovation and strong business operations that contribute back towards society (Carroll 2016). Sony is fully conscious of that, therefore, within its expansion, it features the pursuit of perpetual change and operational distinction to improve the company worth. Sony adheres to law in the business process, this is the expression of their legal responsibilities. In the organisation's acquisition, sales as well as other connections, Sony champions the principle of justice and fairness. Sony also entirely preserves the rights of workers, indicating its respect for labour rights, this is the manifestation of Sony's ethical responsibilities (Park, Lee & Kim 2014). Simultaneously, Sony is involved in raising the 'living standards of the community' (SONY 2019). Sony eagerly conducts volunteer projects within the community and urges employees to engage in the community. Furthermore, Sony devotes large levels of energy and hours into the improvement of education. The Sony Dream classroom project and the Sony Dream have delivered a tremendous enrichment to taking the merit of science to children. These are displays of Sony's philanthropic responsibilities, moreover Sony's endeavours to becoming a corporate citizen. Informing its development plan, Sony continuously stresses CSR and the sustainable growth of the organisation and eagerly supported the main four challenges of CSR; communities the environment, corporate governance and employees.

4.2 Evaluation in accordance with Stakeholder theory Sony is aware of the influence of their company ventures on society, therefore, to attain a wholesome business enterprise, the development strategy needs to focus on the complete consideration of the concerns of stakeholders (Harrison & Wicks 2013). Stakeholders such as employees, shareholders, suppliers, customers, local governments and communities. In the development and management of the organisation, Sony always regarded the anticipations and interests of stakeholders. Throughout operations, Sony has built reliable communication pathways with various stakeholders. Established on a comprehensive knowledge of the needs and expectations from stakeholders, Sony enthusiastically corresponds among stakeholders to collectively explore the most suitable development strategy. The Normative view sees Sony's protection of employees' fundamental rights and its cohesion toward the belief of fairness show that Sony is an ethical and moral company. Sony continually seeks the union of corporate development and CSR, this is the manifestation the integration perspective. deriving out of an instrumental viewpoint, the attainment of CSR has enhanced Sony's risk countermeasures. Using the political perspective, corporate social responsibility allows companies the right to engage within the global political-economic exercises. This can reduce the adverse impact of asymmetric rights of key players within political and economic exercises to an extent, and companies are able to see community concerns from the viewpoint of vulnerable stakeholders (Scherer & Palazzo 2011). The One Sony theory allows for more individuals to become familiar with Sony's CSR theory, and participate in the educational activity of CSR. It establishes an emotional bond between employees. Sony's dedication to environmental conservation and sustainable growth has been praised by the Chinese environmental protection officials, claiming the Hello Recycle project operated by Sony offers a notable impact to promote the shift towards environmentally friendly production and lifestyle towards the entire community. Sony is ranked in the top 50 companies in the analysis of social responsibility governance within the electronic data industry. 4.3 Areas that need to be improved Nonetheless, Sony's CSR has some deficiencies. Sony has not given sufficient consideration toward anti-corruption regarding corporate governance. Corruption leads to any range of obstacles, for instance; overstaffed company structure and confused management, this can considerably diminish the 'spirit' of the organisation. Any business that desires long-term development focuses on anti-corruption. Occupational health and safety (OH&S) is another deficiency that requires added consideration. In the production of devices, employees are exposed to numerous chemicals, few of which can be dangerous, Sony needs to closely monitor this problem and establish more suitable safeguards. Lastly, forced or mandatory work warrants further attention. Given that Sony is a multinational, the large part of the manufacturing of products is done in 'third world'/developing countries. Forced or mandatory work is a habitual issue in developing countries, Sony must discern if there is 'forced or

compulsory labour' within its manufacturing lines throughout the world and needs to identify if overtime wages and subsidies are being paid in full. 5.0 Recommendations Sony performs the majority aspects of CSR admirably. Sony has acquired numerous honours for its notable practice of corporate governance, community service, environmental protection and labour rights. The areas that require revision are anti-corruption, OH&S and forced or mandatory work. Regarding anti-corruption, Sony needs to create an anti-corruption division to oversee the organisation's employees and management, as well as improve corporate transparency. Additionally, Sony should install a surveillance mechanism that reports all behaviour within the organisation, and accept the surveillance of appropriate organisations (Peisakhin & Pinto 2010). regarding OH&S, Sony should further automated manufacturing in operations where dangerous substances are required. Sony should additionally focus more awareness toward the well-being of employees and provide routine physical examinations and appropriate medical assistance through efficient and effective means. Regarding forced or mandatory work, Sony should fulfil the overtime payment. Furthermore, Sony should produce a more flexible production schedule to decrease the likelihood of collapsing. 6.0 Conclusion The preceding reports detailed analysis of Sony's CSR efforts attest that Sony is an organisation that gives exceptional consideration to CSR and closely aligns said CSR to their development strategy. Sony perpetually continues the quest for perfection, in innovation and forming development plans founded on a detailed examination of the requirements of stakeholders. Sony has put notable effort into responsible procurement, supplier management and information security regarding corporate governance. Concerning labour rights, Sony supports employees rights and offers education and training. Sony eagerly coordinates public welfare projects to enhance the communities living standard and passionately advocates the familiarising of science to children. Additionally, Sony is devoted to attaining the longstanding aim of zero environmental loads in organisation activities and reducing the usage of resources and the emission of greenhouse gas. To further progress, Sony should focus more attention toward anti-corruption, OH&S and forced or mandatory labour.

Reference Carroll, AB 2016, ‘Carroll’ s pyramid of CSR: taking another look’, International journal of corporate social responsibility, vol. 1, no. 1, p. 3. Harrison, JS & Wicks, AC 2013, ‘Stakeholder theory, value, and firm performance’, Business ethics quarterly, vol. 23, no. 1, pp. 97-124. Lee, KH & Kim, JW 2009, ‘Current status of CSR in the realm of supply management: the case of the Korean electronics industry’, Supply Chain Management: An International Journal, vol. 14, no. 2, pp. 138-148. Nasution, HN, Mavondo, FT, Matanda, MJ & Ndubisi, NO 2011, ‘Entrepreneurship: Its relationship with market orientation and learning orientation and as antecedents to innovation and customer value’, Industrial marketing management, vol. 40, no. 3, pp. 336-345. Park, J, Lee, H & Kim, C 2014, ‘Corporate social responsibilities, consumer trust and corporate reputation: South Korean consumers' perspectives’, Journal of Business Research, vol. 67, no. 3, pp. 295-302. Peisakhin, L & Pinto, P 2010, ‘Is transparency an effective anti corruption strategy? Evidence from a field experiment in India’, Regulation & Governance, vol. 4, no. 3, pp. 261-280 Romani, Simona, Silvia Grappi, and Richard Bagozzi. "Explaining Consumer Reactions to Corporate Social Responsibility: The Role of Gratitude and Altruistic Values." Journal of Business Ethics 114.2 (2013): 193-206. Web. Scherer, AG & Palazzo, G 2011, ‘The new political role of business in a globalized world: A review of a new perspective on CSR and its implications for the firm, governance, and democracy’, Journal of management studies, vol. 48, no. 4, pp. 899- 931. SONY 2019, Corporate Info, SONY, retrieved 8 May 2020, SONY 2019, Corporate Social Responsibility, SONY, retrieved 8 May 2020 SONY 2019, Sony's Purpose & Values, SONY, retrieved 8 May 2020 Weber, RH 2010, ‘Internet of Things–New security and privacy challenges’, Computer law & security review, vol. 26, no. 1, pp. 23-30....