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Corporate Social Responsibility (CSR) is a topic that is increasingly capturing the interest and imagination of people in the business world. According to The Institute of Directors, a UK-based trade group, Corporate Social Responsibility (CSR) is about businesses and other organizations going beyond the legal obligations to manage the impact they have on the environment and society. In particular, this could include how organizations interact with their employees, supplier, customers and the communities in which they operate, as well as the extent they attempt to protect the environment. Besides, Michael McComb writing in the South China Morning Post,
"The notion of companies looking beyond profits to their role in society is generally termed corporate social responsibility (CSR). It refers to a company linking itself with ethical values, transparency, employee relations, compliance with legal requirements and overall respect for the communities in which they operate. It goes beyond the occasional community service action, however, as CSR is a corporate philosophy that drives strategic decision-making, partner selection, hiring practices and, ultimately, brand development. "
2.0 Importance of CSR
Most importantly, findings from scientific research are becoming increasingly clear with regard to how CSR essential for the long-term sustainability of a firm. Firms that blindly and narrowly pursue the profit motive, without concern for the broad spectrum of stakeholders that are relevant to the long run, are increasingly shown to lack sustainability. But it's not only important to realize the importance of these groups. Firms must also be able to "connect the dots" and understand how various stakeholders, and the satisfaction of their needs, represent interrelated challenges. For example, the strategic management of human resource is related to customer satisfaction, and it is essential for firms to attempt to understand and deal with this connection.
Furthermore, CSR is an important business strategy because, wherever possible, consumers want to buy products from companies they trust; suppliers want to form business partnerships with companies they can rely on; employees want to work for companies they respect; and NGOs, increasingly, want to work together with companies seeking feasible solutions and innovations in areas of common concern. Satisfying each of these stakeholder groups allows companies to maximize their commitment to another important stakeholder group-their investors, who benefit most when the needs of these other stakeholder groups are being met:
" I honestly believe that winning companies of this century will be those prove with their actions that they can be profitable and increase social value-companies that both do well and do goodâ€¦.Increasingly, shareowners, customers, partners and employees are going to vote with their feet-rewarding those companies that fuel social change through business. This is simply the new reality of business- one that we should and embrace."
Chairman and Chief Executive Officer
Hewlett Packard Company
3.0 Johnson & Johnson's CSR
Johnson & Johnson's CSR is outline in their Credo, which was written more than 60 years ago by General Robert Wood Johnson who was Chairman of the Board. The Credo depicts Johnson & Johnson's responsibility towards its customers, employees, communities and shareholders. The beginning of the company's worldwide philanthropy programme officially dates to 1906, when Johnson & Johnson sent medical supplies to aid the victims of disasters the San Francisco earthquake and fire.
Throughout Johnson & Johnson's history, social responsibility has been an essential part of the business. The responsibility takes many forms, including manufacturing high quality products, protecting the environment, promoting good health and safety at work and at home, and addressing the needs of communities in which the company's employees live and work. The company's philanthropy program reaches people on six continents, and focuses on five key platforms which are Woman's and Children's Health, Community Responsibility, Access to Care, Advancing Health Care Knowledge, and Global Public Health (with a specific emphasis on HIV/AIDS).
4.0 Responsibility toward Communities
4.1 Saving and Improving Life
Coping in the aftermath
The Johnson & Johnson Family of Companies, Huaxi Hospital Mental Health Center and the Ministry of Health of China (MOH) have partnered in a Post-quake Children's Psychological Rehabilitation and Aid Program to assist those in most need during the rebuilding process after the devastating earthquake that struck Sichuan Province in China in May 2008 which killed more than 80000 people and injuring hundreds of thousands more. Johnson & Johnson companies partnered with Huaxi Hospital of Sichuan to train 600 health workers on basic psychological intervention skills in several counties and major cities in Sichuan. In turn, these health workers will train 3000 volunteers to provide basic psychological support for the people in remote and underserved areas. This network of mental health professionals and volunteers will have broad reach into remote areas. They have witnessed many positive changes although the program only started for four months. The program expands into seven areas in Sichuan in 2009. The Johnson & Johnson Family of Companies will continue to improve the health and psychological wellness of children in the disaster areas.
For Safety's Sake
Accidental injuries are the leading cause of death of children and teenagers. A simple safety measure, such as child resistant components on lighters, can prevent thousands of childhood injuries and save lives. European Child Safety Alliance (ECSA) has been working in partnership with the European Commission, the Consumer Safety Institute in the Netherlands, and Johnson & Johnson to address child safety issues. Support from Johnson & Johnson has enabled programs such as the European Home Safety Campaign, which led to the ban on non-child resistant lighters. The campaign also addresses other safety issues in the home, such as falls, burns and scalds.
4.2 Building Health Care Capacity
Leading with Impact
Johnson & Johnson support the Management Development Institute (MDI), an intensive one-week long training program that enhances the management skills of health care leaders in East and West African AIDS-service organizations dedicated to the care, treatment and support of people and their families living with HIV/AIDS. The programme is held annually in Kenya and Ghana. More than 200 leaders from 12 countries have graduated since 2006. The goal of the program is to empower young women with knowledge and skills on HIV/AIDS and reproductive health.
The First Line of Defense
The UCLA /Johnson & Johnson Health Care Institute (HCI) educated Head Star parents in the U.S. on treating everyday childhood illnesses at home, in order to declines in hospital emergency room visits and missed work and school days. The results are tangible and profound. HCI has taught thousands of parents how to treat everyday childhood illnesses at home since it began operations in 2001. Researchers found that visits to hospital emergency rooms dropped by 58 percent; the average number of days missed at school for children dropped by 29 percent; and the average number of days lost at works was reduced by 42 percent, tracking 9240 enrolled families during 2002 - 2005 in 35 states. In addition, parents also reported feeling more confident in making health care decisions and in sharing knowledge with others in their families and communities.
4.3 Preventing Diseases and Reducing Stigma
Soccer, An Agent of Change
The Nawa Sport program is cooperation between the Academy for Educational Development (AED) and Johnson & Johnson, in partnership with NawaLife Trust launched in 2008. The program uses the large-scale appeal of soccer to inspire young men ages 14 to 25 to get involved in the community activity, which could provide a way to teach them about HIV/AIDS prevention. Coaches and players practice and compete to test their skills through an innovative curriculum that continually integrates soccer with information about HIV transmission and prevention. It gives all involved a greater sense of accomplishment and involvement within the community. More than 3000 Namibian young man involved. The percentage of participants who stated they could remain faithful to one sexual partner has jumped from 25 percent before the program to 75 percent following program completion.
Healthy Habits for a Healthy Weight
"Healthy Habits for a Healthy Weight" is a programme that begun in 2007 to raise awareness about the connection between diabetes and obesity. Johnson & Johnson encourages healthy eating and exercise habits among children and educates families and teachers on effective ways to transmit positive nutritional messages to children in partnership with Project Hope and the Neza Health District in Mexico. "Healthy Habits for a Healthy Weight' programme focuses on third graders using a variety of formats such as health fair, classroom workshop, and weekly homework assignments to reinforce messages about healthy habits at schools, local health centers, communities and homes. More than 2400 third graders and their parents in Mexico have benefited from this program.
5.0 Responsibility toward Employees
5.1 Workplace Safety
Reducing Ergonomics Injuries
Ergonomics injuries, such as strains from doing repetitive works or overexertion, account for a considerable part of injuries in the workplace. In the late 1970s, Johnson & Johnson began to recognize ergonomics factors as an employee's safety risk. At that time, many jobs in Johnson & Johnson facilities required repetitive motion, lifting and other movements now known to cause musculoskeletal injury. Ergonomics injuries accounted for 48 percent of lost workday cases within Johnson & Johnson when the use of computers became widespread in the 1990s. In 1995, they introduced ERGO to solve this problem. The global program was refined in 2001 to further diminish ergonomics injuries and set ergonomics standards for operating companies worldwide. They evaluated all manufacturing tasks and classified them as high, moderate or low risk. Johnson & Johnson senior management authorized an aggressive strategy to abolish or amend the high risk tasks. Approximately 50 percent of the high ergonomics risks in manufacturing were reduced to low risk as a result of this effort. Ergonomics-related injuries continue to decline as ergonomics initiatives continue today. Ergonomics injuries made up 28 percent of lost workday cases at the end of 2006.
Johnson & Johnson introduced SAFE Fleet to protecting their employees, families and customers from injury on the road and provides services to more than 35000 employees worldwide. The company vehicle is a workplace for many of these employees. Field representatives spend 40 to 60 percent of their working time driving their vehicles on company business. The Johnson & Johnson SAFE Fleet programme has helped keep our field representatives safe on the road. Their rate of accidents per million miles (APMM) driven has decreased 39 percent; at the same time, the size of our fleet has increased by 153 percent since 1995. In 2007, they finished the year at5.30 APMM, just slightly below their 2006 APMM of 5.32. They believe that their opportunity for on-going improvement lies in the continuing engagement of business managers who set the expectation for safety and addressing the difficult challenge of driver disruption. They are conducting pilots with cognitive and risk-based tools to improve driving behavior and launch behavior-focused communications in 2008.
5.2 Mental Well-Being
Employee Assistance Programmes
When Johnson & Johnson launched its first employee assistance programme (EAP) since 1978, they have understood that employees' personal challenges are inextricably to their work lives. Issues linked to substance abuse, child rearing, relationships or other sources of stress can have an impact on the health, happiness and quality of life of their employees and their families. The EAPs are intended to give employees access to training, assessment, counseling and intervention to make sure that all employees interested in reaching out to their EAPs feel comfortable doing so, services can be accessed electronically, by visiting an onsite EAP counselor or representative, by contracting an offsite service, or via a toll-free phone number. Their EAPs continue to progress as new issues surface and programs are need to support the mental well-being of employees. For example, they have carried out multigenerational training to assist younger employees and older employees (baby boomers) improve the way they communicate and collaborate with each other. They also work closely with their worldwide security group to make sure that if tragedy or emergency happens at one of their facilities, they are ready to support employees. They extended their EAPs to have superior global reach across 466 locations and 57 countries in 2006. Their EAP services are provided to 88 percent of their workforce, up from 75 percent in 2006, and 30 percent in 2005.
Johnson & Johnson has offered flexible work arrangements for many years. They surveyed 4400 employees of Johnson & Johnson in U.S. to comprehend the importance of flexibility. The result shows that 65 percent of respondents who joined the company in the previous three years said flexibility was important in their decision to take the job, and 78 percent of respondents said flexibility is a significant aspect when considering whether to stay with the company. Senior management committed to raise opportunities for flexibility in acknowledgment that the sustainability of their business depends on their ability to attract and retain talented employees. Flexible arrangements include summer hours, remote work, a compressed work week, telecommunicating, occasional flexibility, flextime hours and part-time work or job sharing. Working Mother Magazine listed Johnson & Johnson as among the 100 Best Companies for Working Mothers in 2007. Johnson & Johnson has made the list every year since the launch of the Hall of Fame designation 20 years ago.
5.3 Healthy People
Johnson & Johnson try hard to provide a most favorable environment for employee health, which includes high quality nutrition. Research supports eating nutritionally dense whole foods which provide general health benefits, weight management and disease prevention. Providing healthy food choices at their facilities requires a close partnership with their food service professionals to make sure that employee can access and enjoy nutritionally sound, whole foods at every vending machine, cafeteria, catered event, food station, and whenever food is served at a company function. The results of Eat Complete program are "I have lost 15 pounds since the cafeteria started to serve healthier food," and "Prior to Eat Complete, we sold 18 cups of cut fruit per day. Now, we are selling 42 cups per day."
6.0 Responsibility toward Environment
6.1 Paper and Packaging
One of the ways Johnson & Johnson work to augment the environment is by using their purchasing power to augment responsible forest management. They are a member of the World Wildlife Fund's North America Forest and Trade Network and the Global Forest and Trade Network, both of which have helped them realize current threats to our forests and many ways they can work to protect the forests. They established a Healthy Planet 2010 goal to have 90 percent of their office paper and 75 percent of their paper-based packaging containing more than 30 percent post-consumer recycled (PCR) content or containing fiber from certified forests. 93 percent of packaging and 96 percent office paper met the goal at the end of 2008. Similarly, they have been reducing the use of polyvinyl chloride (PVC) in packaging.
6.2 Environmental Literacy
One of Johnson & Johnson's goals is to hold annual environmental literacy campaigns throughout their operating companies. Educational materials and approaches included brochures, articles, posters, social media sites, e-learning modules, web-conferencing, videos, calendars, and some materials specifically created for the children of their employees. Their employees become conscious of global environmental issues and formulate workable ideas that assist them diminish their environmental impacts through the literacy programme.
As a way to foster biodiversity, Johnson & Johnson set a Healthy Planet 2010 goal to implement biodiversity conservation plans at 100 percent of their facilities and companies by 2010. Johnson & Johnson enhance biodiversity conservation in areas which they have control or influence. All of their operating companies had a biodiversity plan sanctioned by company leadership at the end of 2008. More than 55 conservation projects are underway around the world and 66 percent aim to augment or contrary biodiversity off-site. Their recent challenge in meeting this goal is financial because resources are scarcer in today's economic climate. However, a lot of these plans are accomplished through volunteer time and resources. As an example, employees from Johnson & Johnson Consumer Products Company Canada, in Montreal, have restored 867 acres of the Sainte-Marguerite-Marie peat lands in partnership with the Canadian and Quebec governments and the Peatland Ecology Research Group. The company once used peat from these lands as the absorbent core in sanitary napkins.
6.4 Waste Reduction
Johnson & Johnson identify that waste in production process indicate inefficiency. They have a goal to diminish hazardous and nonhazardous waste in their company owed facilities by 10 percent against their 2005 baseline. They are currently meeting these targets. They have decreased hazardous waste by 4 percent and 10 percent reduction in nonhazardous waste in 2008. Their operating companies have risen recycling and they are successfully reusing some hazardous and nonhazardous waste. One example is identifying beneficial reuse markets for the recycling of their solvent-based hazardous waste. 1.2 million pounds of waste solvent was captured and reclaimed in 2008. Over the years, Johnson & Johnson has been named as potentially responsible party for 26 hazardous waste disposal sites, and they have accrued approximately $9 million in environmental liabilities. They spent approximately $4.6 million to address remediation at 21 existing and divested Johnson & Johnson properties.
The Johnson & Johnson Family of Companies touches more than a billion's lives each day through their health care products and services, their corporate giving and the volunteer effort of their employees. They are part of the daily rituals people follow to care for themselves and their families. They help doctors and nurses care for patients, heal the sick and restore the joy of good health. They also support non-profit organizations throughout the world in advancing the health and well-being of those in need.