330 Wirtschaft
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Sweden’s Hennes & Mauritz (operating as H&M) is one of the biggest multinational retail-clothing companies in the world. As a result of massive criticism from campaigning non-profit organizations and news media reports that blamed H&M for unfair and substandard working conditions in their ancillary industries, in 1997 the company began to develop a corporate social responsibility (CSR) program and a code of conduct. Today H&M has a wide-ranging, broadly integrated CSR pro-gram. As a part of its commitment, the company implemented a strategy to “Use Natural Resources Responsibly”. The use of organic cotton, which is understood as cotton grown without chemical pesticides or fertilizers, is one part of the strategy.
In 2010, the company was hit by a scandal. News media reported that large volumes of genetically modified cotton from India had been falsely put on the German market as organic cotton and affected various companies, among them H&M. The search for better monitoring, controls and safeguards was on so H&M could keep its promises. This article discusses the challenge and possible improvements and solutions to recognized problems, and evaluates the company’s actions so far. It concludes that H&M can be considered a role model for organic cotton use in textile processing. However, further steps can and should be taken for improved control and information, and better customer and stakeholder relations in the CSR framework.
Making soft drinks requires fresh water – lots of it, and not only for the bottled content but more for the industrial production process. Water sourcing has become a critical issue for The Coca-Cola Company, the world’s leading beverage manufacturer, particularly for its India subsidiary. Coca-Cola India has come under intense criticism for competing for ground water with agriculture and household use in water-deprived regions. For some ten years, its bottling plants have been accused of stealing water from surrounding villages. Evidence suggests the company has indeed been somewhat responsible for water shortages, and Indian courts have held the firm liable, even going so far as closing a plant and demanding millions of dollars in compensation for damages. Not only Coca-Cola India but also its parent, The Coca-Cola Company based in Atlanta, have recognized the water issue as a major social and environmental CSR challenge with the potential to harm the international reputation and the international brand. Coca-Cola has been investing in innovative technology to reduce its water use and is engaging in community outreach campaign to repair and im-prove its stakeholder relations. The article outlines the water dilemma and analyzes the firms’ global and local responses.
Compliance and corruption in the automobile industry: Daimler’s Integrity and Legal Affairs Division
(2013)
Due to several corruption allegations in 1998, automaker Daimler had to find a way out of negative publicity. This and other incidents stimulated Daimler in the beginning of 2011 to expand their board of directors by one person that is responsible for the new Integrity and Legal Affairs department.
This article focuses on the significance of compliance with corporate and national regulations as a fact that has become increasingly important as regard for corporate social responsibility grows. In fact, the rising number of country specific standards and early considerations of specific compliance requirements during the development process are just some of the evidence that shows that CSR requirements for companies within the automobile industry are on the rise. Companies are requested to organize transparency and risk management. The furor about the Daimler corruption case expresses best how essential it is to have a profound CSR strategy and a whistleblower system embedded within a company. The result of such corruption cases in large enterprises usually leaves an unpleasant bequest for all stakeholders that are part of the company. In accordance, many automobile manufacturer have to deal with direct effects such as a decline in sales and a loss of image.
Siemens, a successful international company, is investing great sums to deal with increased competition, reinforced cost pressure as well as the need for increasing efficiency in its business. The company developed and edited a sustainability program that connects business orientations, resources and management and the companies’ interest groups. Only with satisfied and motivated employees, Siemens is able to meet its corporate objectives more successfully within a rapidly changing business environment. For that reason, Siemens tries to achieve sustainable working conditions, whereby working culture and working environment play a paramount role. On this account, Siemens felt compelled to establish a changing working culture by developing a new project “Siemens Office – New way of working” in order to enhance employee satisfaction that will strengthen Siemens’ rank as an excellent employer.
This case study is aimed to figure out how far the positioning as an employer of choice could be attributed to an enhanced attractiveness of Siemens as an employer that results from an increased satisfaction of employees due to the establishment of a mobile working environment.