Corporate Social Responsibility (CSR) is becoming an increasingly important activity to businesses globally. As globalization accelerates and international corporations serve as global providers, these corporations have progressively recognised the benefits of providing CSR programs in their various locations. CSR activities are now being undertaken throughout the globe. What is corporate social responsibility? It is a concept whereby companies integrate social and environmental concerns into their business operations and in their interaction with their stakeholders (employees, customers, shareholders, investors, local communities, government), on a voluntary basis. It is used as a framework for measuring an organisation's performance against economic, social and environmental parameters. The rationale for CSR has been articulated in a number of ways. In essence it is about building sustainable businesses, which need healthy economies, markets and communities.
Due to the combination of the financial downturn of the global economy and the issues facing our planet and our communities, means business as usual is not enough. Therefore, in order to make a meaningful difference, Dell must inspire and innovate. Corporate responsibility is a vital component of Dell's overall business by building trust with customers and stakeholders by demonstrating our positive impact on society and the planet and developing meaningful measures for reporting our progress. Dell is committed to being a responsible corporate citizen.
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Basically, Dell's 2009 CSR report is looking at three aspects of activities which are environmental responsibility, social responsibility and corporate accountability activities. By looking at the activities for the past financial year, it outlines future goals for the company. Thus, contribute to the company long-term success. The key milestones from our fiscal year 2009 corporate responsibility initiatives are listed in the Figure 1.
Figure 1: Key milestones from our fiscal year 2009 corporate responsibility initiatives
Environmental responsibility of Dell in 2009 marked the second anniversary of CEO Michael Dell's announcement that aspires to be the greenest technology company on the planet. Dell has been recognized by the U.S. Environmental Protection Agency (EPA) for its leadership in green power. Besides that, it has also improved its position in EPA Fortune 500 Green Power Challenge rankings from No. 12 (year 2009) to No. 3 (year 2008).
In the environmental area, there are many main achievements being claimed in the year 2009.
Addressing Climate Leadership by Reducing Greenhouse Gas Emissions
Since 2004, U.S. investment in green power and renewable energy certificates - including solar, wind and gas energy conversion - has grown from 12 million kWh to more than 112 million kWh. To support the scientific consensus on climate change as evident in the commitment and actions, Dell supports to reduce emissions to levels guided by science and are actively focusing on energy efficiency and transitioning to cleaner and renewable forms of electricity in their operations (See Figure 1). Dell has pledged to reduce their own operational emissions, maximize green power purchases from utilities that serve their facilities and responsibly offset the remainder which is, to be operationally carbon neutral.
Therefore, in fiscal year 2009, Dell has focused on some of initiatives, such as energy efficiency in Dell operations, green-power purchases, and responsible offsets in order to address climate change leadership.
Creating Sustainable Operations
Managing the operations in a sustainable way is a core component of Dell's apparitional goal to become the greenest technology company on the planet. Dell struggle to use water, energy and forest products, and they also aspire to meet a target of zero waste. Dell also continues to focus on forest stewardship by streamlining the packaging and reducing the usage of paper. Major components of our commitment include Green electricity, Waste recycling, Forest protection by using forest-friendly paper, Greener building and operations following LEED guidance.
For example, in April 2008, Dell began powering its global headquarters in Round Rock, Texas, with 100- percent green power. As part of our commitment to become carbon neutral, the 2.1- million square-foot campus receives 40 percent of its power from Austin Community Landfill's gas-to-energy plant. The facility's remaining power needs are met by existing wind farms.
However, Dell continues its effort by completed 88 improvement projects, with a projected annualized savings of 17 million kWh during fiscal year 2009.
Developing New Product and Packaging Solutions
Moreover, Dell recognizes their opportunity to support their customers' environmental goals, too by helping them to use energy responsibly through Dell's innovative products and services.
Always on Time
Marked to Standard
Green and Energy-Efficient Product Development
To achieve the objective of make Dell laptop and desktop systems 25 percent more energy efficient by 2010, Dell is taking an innovative "green by design" approach for all of their products, using the most energy-efficient components, integrating ENERGY STAR and Energy Smart, and meeting or exceeding energy and environmental standards.
Besides, Dell also subscribes to the EPEAT registry, which is a system to help buyers evaluate, compare and select electronic products based on their environmental attributes. The energy efficient products are also being sold by Dell, such as OptiPlex 960 desktop system which is the combination of highest-efficiency desktop power-supply technology and power management; LED Laptop Displays which consumes an average of 43 percent less power at maximum brightness compared to cold cathode fluorescent lamp (CCFL) technology which could save the extraordinary cost and carbon.
All Dell Latitude, OptiPlex and Precision systems, as well as all displays, printers and projectors, have power management enabled in the factory. Factory enabled power management is also available for some Vostro products and ENERGY STAR Inspiron and Studio systems.
Dell has implemented robust compliance assurance processes to ensure that its entire supply chain adheres to Dell's precautionary chemical-use policies.
Elimination of Brominated Flame Retardants and Polyvinyl Chloride
To avoid the use of brominated flame retardants (BFRs) and polyvinyl chloride (PVC), Dell is currently produces the products by using plastics that can be flame retardant with nonhalogenated compounds and by using design strategies that reduce the need to use flame-retardant plastics. For example, in 2008, Dell introduced several mainstream products featuring halogen-free laminates and chassis plastics, including Dell UltraSharp 2009W, SP2009W, E2009W, E2209W, SP2309W and 1909W monitors, Dell's Studio Hybrid desktop and the Dell Latitude E4200 laptop.
Furthermore, Dell leads the industry in packaging innovations by creating the smarter packaging that are 3Cs : cube, content and curb metric. In December 2008, Dell committed to eliminate 20 million pounds of packaging by 2012 by shrinking packaging volume by 10 percent (cube), increasing to 40 percent the amount of recycled content in packaging (content), and increasing to 75 percent the amount of packaging material that is curbside recyclable (curb).To accomplish the "3 Cs" goal, Dell has introduced new packaging that using the new materials that are curbside recyclable, are designed for higher cube utilization and incorporate recycled material, such as air cushions in Europe, and other cushioning material, such as a thermal-form HDPE cushion.
Leading in Free and Convenient Global Recycling
Dell is committed to the environmentally responsible reuse and recycling of the products when they will no longer be used by the customer. To facilitate this process, Dell has invested in well-utilized collection networks for used consumer equipment throughout the world. For example, Dell promote whole-unit reuse and, when that's not possible, Dell will recover the resources in their equipment to keep them out of landfills. During fiscal year 2009, Dell has exceeded their goal by successful in recovering 275 million pounds of materials through the takeback programs. (See Figures 5 and Figure 6 ) Due to this, Dell became the first major computer manufacturer to ban the export of nonworking electronics to developing countries, as part of its global policy on responsible electronics disposal.
Achieving Our Commitment Through Engagement and Empowerment
To achieve the goal of becoming the greenest technology corporate on the planet, Dell relies on the talents, dedication and ideas of their employees. For the effort to commit in the environment responsibility, Dell engages in policy advocacy, such as promoting recycling, monitoring on the restrictions of materials use and enhancing energy efficiency as well as helps promote active participation in industry solutions. For example, Dell Environmental Health and Safety team in Penang, Malaysia created a project to recycle the silica desiccant gel that Dell uses to absorb moisture in the packaging and manufacturing process and reuses it for cat litter.
Enabling Progress Through Services and Solutions
To support the customers with their own environmental objectives, Dell have created the services and solutions that helps IT professionals assess their operations and identify ways to improve them by using the tools, such as energy-efficiency calculators, Greenprint Advisor and data-center capacity planner. Examples of Dell Services are Virtualization Solutions and Energy-Smart Data-Center. Virtualization Solutions refers to companies large and small are turning to virtualization as a means of consolidating to fewer, higher-performing servers. However, Optimization Assessments Dell helps customers achieve energy efficiency in existing facilities and newly acquired data centers.
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Being a trustworthy company and inspiring others to be principled as well is the focus of Dell efforts in corporate accountability in CSR 2009. Due to this, Dell has carried out a lot of actions in order to built integrity and trust with their employees, customers and supply chain.
Ethics and Compliance: Ensuring Integrity Throughout Our Business
To ensure integrity through the business, Dell's Ethics and Compliance program provides guidance to help Dell in meeting this objective. There are three key components that Dell focuses in this Ethics and Compliance program, which are culture, compliance and credibility.
Dell is adopting a culture where the employees can be confident and proud that they act legally and ethically. To achieve such a culture, Dell is aligning the Global Ethics and Compliance Office with Global Human Resources and other internal partner organizations. Continuous attention to the Code of Conduct, and to the policies and procedures that flow from the Code, helps Dell set behavioral expectations for the employees and business partners so that Dell can maintain focus in its evolving business environment.
For Dell, compliance is about following to the local laws throughout the global business and to the internal rules defined in Dell's Code of Conduct. Effective and aligned compliance programs are even more important during times of economic uncertainty. Now, more than ever, Dell's shareholders and other stakeholders expect Dell to run the operations profitably, safely, legally and ethically.
However, credibility is refers to what ensure that our customers, employees, shareholders and other stakeholders know and recognize Dell's commitment to ethical and legal behavior. By binding the ethics and compliance efforts to overall business goals, Dell strive to inspire trust and aspire to be a role model in the business world. Dell also continues to learn from its stakeholders.
Taking Global Citizenship and Ethical Sourcing to the Next Level
Dell's Worldwide Procurement Supply Chain Supplier Environmental Responsibility Team works with regional Tier 1 suppliers on Electronic Industry Citizenship Coalition (EICC) Code of Conduct compliance in the areas of labor, environmental, and health and safety management systems. As part of our corporate accountability commitment, we continue our conference calls with socially responsible investors (SRIs). On these calls, we highlight recent achievements, which for fiscal year 2009 included hiring additional auditors outside of the U.S., improving the comprehensiveness of our QuarterlynBusiness Reviews (QBRs) and expanding our supplier workshops.
Supplier Diversity: Building Partnerships for Better Business
Supplier diversity nurtures the connection between our employees and our customers for better business. Dell's Supplier Diversity Team is committed to provide equal access to procurement opportunities for qualified small, minority and woman-owned businesses in the U.S. Besides that, Dell also offers supplier coaching and an Executive Mentorship program in order to further support the growth of our diverse suppliers. Because of the well-doing of Dell in fiscal year 2009, Dell is recognized as a member of the Billion Dollar Roundtable, a company that brings together businesses that achieved spending of at least $1 billion annually with minority and woman owned suppliers.
Acting with Integrity, Every Step of the Way
In Dell, they believe in corporate accounting is the tool for the sustainable growth of our business. Thus, creating and improving open communication throughout the stakeholder path (from employee to supplier to customer) is essential in measuring the Corporate accountability in Dell corporation. Thus, Dell is continuing in enabling innovation, not only in the products, but also in the transparency with the stakeholders.
In term of Social Responsibility, Dell is making difference by seeking innovative ways to help others through its technology, resources and employees by partnering with non-governmental organizations to address key issues facing the global world. Through this collaboration, Dell hope to build a better and connected future.
Giving Around the World
Due to today fast-changing environment , Dell has turned its 1-percent inspirational goal into actions by closing technology gaps in emerging countries. For example, focus on education, digital inclusion and green solutions, which enables all to participate in the newly connected world.
Bridging the Technology Gap
In Brazil, Dell sponsors The Digital Citizen Project, a social initiative developed by Pensamento Digital Foundation whose goal is to use technology to help youth from low income populations gain marketplace skills.
Besides that, Dell has donated computers to schools in Beijing, Shanghai, Dalian, Hangzhou, Tianjin, Xiamen and Chengdu in China in order to help bridge the digital gap between the children of rural migrant workers and the Internet Age. And 19 Dell Learning Centers were established in China by the end of 2008.
Moreover, Dell also provided a grant to expand the Dell Learning Center at the Cerebral Palsy (Spastic) Children's Association of Penang in order to improve digital literacy. A new network server and 10 additional Dell computers expanded learning opportunities in the classrooms and many new equipment was added to the 20 Dell computers, such as printers and assistive learning devices.
The Dell Foundation
For more than a decade, Dell provided the children the Dell Foundation in order to equip them for the digital world. This Foundation aims to proactively address fundamental requirements for children to learn and excel in a connected global economy. Through grants to companies addressing health and human services, education and technology access, the Foundation assists the primary communities that Dell calls home, such as Central Texas, Middle Tennessee, Oklahoma and Northwest North Carolina.
Employees Working for Positive Community Impact
In addition. Dell is also committed to giving back to the communities where we live and work. In fiscal year 2009, Dell, together with its employees and the Dell Foundation, contributed more than $24.5 million to nonprofit organizations globally.
One Dell : One Community
Through "One Dell : One Community campaign", the employees align their passions with a charity of choice and share their talents and time. In fiscal year 2009, more than 36% of Dell employees participated in September's Global Community Involvement month. Despite the current economic downturn, the employees understand the impact they have on their communities and are excited to help make a difference through volunteerism, team-building events and direct giving. For example, the Team-Building Match program offers a financial match of $125 for Dell U.S. employee groups that participate in team-building volunteer activities. Besides, Dell employees in the United Kingdom also participate in an annual charitable-giving campaign and have raised thousands of dollars for charitable organizations. Dell has set their 2010 goal which is to explore how to expand these programs appropriately to the global employee population.
Through the Direct Giving program, Dell employees have work together in times of crisis to help those in need. For example, after the Sichuan Earthquake in China, the Dell global employees in more than 20 countries donated nearly $1.4 million in cash and 300 boxes of goods, weighing six tons, to help affected citizens.
Wellness: Creating a Healthy Workplace and Community
The another way that Dell make a meaningful difference is Creating a Healthy Workplace and Community to the employees and their employees. By providing them with simple and convenient resources, Dell aspire to create good consumers who make healthy decisions.
Although knowing that smoking is bad to our health, but yet still many find difficult to stop using tobacco. Therefore, Dell is helping their employees for this change by providing free tools and resources, which includes a three-month supply of tobacco cessation prescription drugs to help reduce craving, personalized coaching and tips through an online resource and by telephone and membership to a Well at Dell health center's tobacco-cessation program and access to 24/7 relapse support for encouragement and guidance to overcome temptations.
Finally, there are 959 employees among 6,127 tobacco users who have committed to our Well at Dell QuitNet program to date and the more than 955 employees who have graduated from the program. Due to the positive results, Dell is encourage to continue to reach out to smokers by offering ongoing tobacco-cessation programs.
Commitment to Positive Work Environments
As stated in Dell's Code of Conduct, Dell is committed to working with socially responsible companies that comply with all applicable laws and regulations in the locations where they conduct their business, embrace high standards of ethical behavior, and treat their employees fairly, with dignity and respect. Dell is avoid working with companies that do not adhere to laws regulating wages, hours and working conditions. Companies must demonstrate a commitment to the health and safety of their employees and not use forced or indentured labor, or use raw materials or finished goods produced by forced or indentured labor.
In fiscal year 2009, Dell made some important contributions to protect human rights. For example, Dell provided a monetary grant to an India-based non-governmental organization to help provide digital education and training to children of sex workers and young women rescued
from trafficking. This partnership created a computer-literacy training center in Hyderabad where students are trained in basic computer skills, matched with an internship and then assisted with job placement upon completion. Besides that, Dell is an equal opportunity employer and prohibits discrimination and harassment of any kind. The nondiscrimination policy was updated in year 2009 which includes gender identity, pregnancy and HIV status.
Moreover, in partnership with the EICC and our supply chain, Dell improved working conditions at its suppliers through the audit process. Dell recognize that audits are not the only way to demonstrate the human-rights efforts, but this is where it need to start. Dell will continue to improve in this area, not only through additional audits but through working sessions with stakeholders, supplier training and a new Dell Code of Conduct in fiscal year 2010.
Addressing the Global Issue of HIV and AIDS
As the global issues of HIV and AIDS is getting serious, Dell commits to partnering with our industry counterparts through the EICC and stakeholder working groups to improve conditions in the worlds.
Fighting HIV and AIDS
CEO Michael Dell is working together with the Global Business Coalition, in which Dell is a corporate member has made it a priority to provide access to medication and education to the employees, communities, customers, suppliers and other stakeholders. For example, Dell offers HIV testing at the corporate offices in Round Rock, Texas.
Partnering with (PRODUCT)RED TM
Joining the fight against AIDS in Africa, Dell partners with (PRODUCT)RED by creating (PRODUCT)RED branded items and services and contributing a portion of the profits to the Global Fund. The Global Fund uses 100 percent of this money to finance HIV health and community support programs in Africa, with a focus on women and children. So far, (PRODUCT)RED products and events have generated more than $125 million which is enough to provide more than 760,000 people with life-saving medication for one year.
Embracing Diversity and Inclusion
With a large global employee base, Dell is a collage of races, ethnicities, religions, ages, disabilities, backgrounds, lifestyles and cultures. Inclusion is about embracing, respecting, honoring, recognizing and leveraging our differences to build a better community, workplace and world.
Besides that, Dell is also building a diverse environment that is reflective of a diverse global marketplace and an inclusive culture where everyone is engaged. Dell strive to ensure that every employee is heard and valued and that personal strengths and perspectives are assets to the company.
Global Diversity Council
Because of making diversity and inclusion a business imperative depends on leadership CEO Michael Dell is personally committed to the company's diversity and inclusion programs. Michael Dell and seven other executives from across the world review policies, action plans and progress to make sure Dell continue to maximize diversity as a competitive advantage and integrate it throughout the business.
To achieve our vision for an even more diverse and inclusive global company, a global diversity strategy is established which is reviewed regularly by the Global Diversity Council. This strategy is focused on strong, visible leadership and clear expectations on accountability for diversity and inclusion, genuine commitment to diversity and inclusion built into our business practice and through integration of these behaviors in our talent and performance management.
Driving Diversity and Inclusion in the Workplace
Driving diversity and inclusion in the workplace is important to determine the success of Dell by providing a global work force that is highly talented, committed and reflective of the global customers. Dell has an open and inclusive workplace, not only in term of race, gender and sexual orientation, but also in geographic location, education, work and communication styles, and ethnicity, among others.
Employee Networking Groups
Dell Employee Networking Groups are an unbelievable force focused on building a higher level of involvement in the global diversity practices across the business. Employee Networking Groups connect employees who share common ethnicity, gender, nationality, lifestyle or sexual orientation. They provide personal and professional development through mentoring, volunteerism and community involvement. Dell Employee Networking Groups serve as advocates for inclusion and are active in supporting, piloting and implementing several programs aligned with the company strategy. To demonstrate this alignment, Dell will rebrand Employee Networking Groups as Employee Resource Groups in fiscal year 2010.
By providing options ranging from flextime to teleworking to job sharing to compressed
work weeks, and even remote working, Dell remain committed to providing flexible work arrangements for all of the employees and make their work and life effectiveness.
Work Force Composition
As of January 30, 2009, more than than 36.7 percent of our U.S. managers, 29.7 percent of our U.S. vice presidents and 33 percent of Dell independent Board are diverse (women or people of color). At Dell, 33.1 percent of our 76,500-plus global work force and 25.1 percent of managers are women. In fiscal year 2009, Dell was involved in a class action filed by a handful of individuals involving claims of gender discrimination in pay and promotions. But, this case is in the process of being resolved.
With a commitment to develop and invest in our employees around the globe, Dell provides many opportunities for employees to learn and excel and enabling them to maximize their talents and inspire the next generation of Dell leaders. For example, Taking the Stage which is a mentoring program designed by women in order to teach, mentor and build relationships with future women leaders of Dell. However, MentorConnect is a new Web-based tool which is to help promote mentoring. This online portal connects mentees with willing mentors, broadening the geographic reach of mentoring opportunities and crossing functions and boundaries.
Driving Diversity in the External Marketplace
Besides workplace, Dell understands that with a diverse and global customer base, we need to actively reach out and engage with key partners to advance our commitment to diversity and inclusion.
Dell creates mutually beneficial partnerships with U.S. civic organizations, professional development organizations and multicultural business and community groups. Such partnerships include Asia Society, Catalyst, Congressional Hispanic Caucus Institute, Congressional Black Caucus Foundation, Human Rights Campaign, National Urban League as well as Out and Equal Workplace Advocates.