Corporate & Social Sustainability Flashcards
(41 cards)
1
Q
Name the five corporate sustainability strategies.
A
- Keeping your house in order.
- Reducing the impact of your products.
- Stakeholder engagement.
- Research & innovation.
- Philanthropy.
2
Q
‘Keeping your house in order’ is one of the corporate sustainability strategies; describe.
A
- Energy reduction and company-wide low-carbon policies.
- Waste reduction and low emissions of hazardous substances.
- ISO14001 - Management & Auditing Processes
- Public reporting of performance.
3
Q
‘Reducing the impact of your products’ is one of the corporate sustainability strategies; describe.
A
- Design for environmental policies.
- Life-cycle thinking for driving policy-making.
- Engagement with manufacturing supply chain to reduce impact.
- Engagement with supply chain for fair working practices.
- Consider use-phase impacts and end-of-life management.
4
Q
‘Stakeholder engagement’ is one of the corporate sustainability strategies; describe.
A
Engagement with:
- Employees
- Investors & analysts
- NGOs and environmental organisations
- Governments
- Public
5
Q
‘Research and innovation’ is one of the corporate sustainability strategies; describe.
A
- Investment into research aiming to improve the long-term performance of products and services.
- Research into how a company’s products and services can support a move to a more sustainable future.
6
Q
‘Philanthropy’ is one of the corporate sustainability strategies; describe.
A
- Gates Foundation.
- Philanthropic initiative.
7
Q
Give three examples of companies demonstrating sustainable initiative at a corporate level.
A
IBM
- VP for Corporate Citizenship.
- Directors and coporate governance committee.
Apple
- VPs for: Environmental Environment; Policy; Social Initiatives.
- Supplier responsibilty.
Samsung
- Governance Committee of Board.
8
Q
Give three examples of companies demonstrating explicit policy and strategy statements.
A
IBM
- Alignment to IBMs values.
- Cross-sector collaboration.
Philips
- Mission and Vision
- ‘Improve the lives of 3bn by 2025’
Tesla
- Expand EV product line to all major segments.
- Development of self-driving capability, approx. 10x safer than manual.
9
Q
Name three statutory and three voluntary reporting schemes.
A
Statutory
- UK non-financial reporting.
- UK energy savings opportunities scheme (ESOS)
- EU Emissions Trading Scheme (EU ETS).
Voluntary
- Corporate Social Responsibility Report (CSR).
- Carbon Disclosure Project (CDP).
- Responsible Business Alliance.
- Global Reporting Initiative (GRI).
10
Q
Give a brief overview of the Global Reporting Initiative.
A
- Provides the world’s most widely used standard on sustainability reporting and disclosure.
- 93% of the top 200 companies use this standard.
11
Q
Give a brief overview of the Carbon Disclosure Project.
A
- Supports companies and cities to disclose the environmental impact of major corporations.
- Aims to make environmental reporting and risk management a business norm, and drive disclosure, insight and action towards a sustainable economy.
12
Q
What are the scopes of GHG emissions reporting? Briefly describe each.
A
Scope One
- Burning the fuel at the company (heating/transport).
Scope Two
- What the company buys in.
- e.g. emissions from powerhouse.
Scope Three
- Everything else up & down the supply chain.
- Whole life impact.
13
Q
What is Internal Carbon Pricing? Give an example of use within a corporation.
A
- Internal Carbon Pricing is a financial value assigned to both emitted and avoided carbon emission.
- It provides an incentive or added reason to reallocate resources towards low-carbon activities.
- Can be used in determining the business case for R&D investments.
Microsoft
- 14 internal efficiency initiatives.
- 2.7e6 MWh of green power across US, earning the EPA’s Green Power Partnership.
- 18 carbon offset project in 16 countries.
14
Q
List datacentre decisions as a result of Internal Carbon Pricing.
A
- Siting (for low build cost and free climate cooling).
- Electricity Sourcing (lowest electricity price/CO2e).
- IT Equipment (Piecemeal servers/ push to virtualisation).
- Non-IT Load (Industry standard aircon).
15
Q
Why was the Ethical Trade Initiative (ETI) formed?
A
- Stakeholder concern, including reputational risk from medial and high-profile NGO campaigns.
- Workers rights.
- Working conditions.
- Child labour.
16
Q
Give a brief overview of the ‘Fairtrade’ initiative and some of its issues.
A
- Began with tea and coffee in 1990s.
- Predominant focus on living wage and smaller producers.
- Caused the ‘label dilemna’.
- Accusation of pursuing a western corporate agenda.
17
Q
Name three key playes in the supply chain who must be engaged for ETI to work.
A
- Buyers.
- QA/Technologist.
- Auditors.
18
Q
Name two key dangers of western companies imposing initiatives on developing/producer countries.
A
- Encouraging the Potemkin Village Effect: fake impressions based on when auditors visit.
- Being accused of neo-colonialism.
19
Q
What is the ETI Base Code? (10 items)
A
- Employment is freely chosen.
- Freedom of association and bargaining.
- Working conditions are safe and hygenic.
- Child labour shall not be used.
- Living wages are paid.
- Working hours are not excessive.
- No discrimination.
- Regular employment is provided.
- No harsh/inhumane treatment.
- Provisions of the above constitute minimum and not maximum standards.
20
Q
What are the principles for ETI membership? (4 items)
A
- Demonstrate a clear committment to the ethical trade.
- Integrate ethical trade into core business practice.
- Drive year-on-year improvements to working conditions.
- Report openly and accurately about their activities.
21
Q
Name two pilots for the ETI initiative. Who was involved to ‘smooth relationship hiccups’? What were three learning points?
A
Costa Rican bananas and Kenyan cut flowers.
- Department for International Development (DfID).
Learning Points
- Learn as much as you can about the history of the relationship.
- Be flexible with who you work with.
- Things are not always as they seem.
22
Q
Why is child labour a complicated issue?
A
- Worldwide 1 in 10 children work.
- Usually working for family, doing agricultural work.
- Many work and attend school.
- Only 5% of the value of a chocolate bar goes to the grower.
23
Q
List the benefits of being an ETI member for a business. (4 items)
A
- Increased working with supplies.
- More productive relationships.
- Opportunities for innovation. - Address issues at the supplier level.
- Provide evidence in future in case of claims. - Campaigners tend to focus on non-engaged companies.
- ETI is a very public indicator of best practices. - Better reputation makes it easier to recruit graduates.
- Good corporate messages.
24
Q
Give an example of an accident/disaster that demonstrates the slow implementation of ETI code.
A
- Rana Plaza factory collapse in Bangladesh.
- Despite pressure from stakeholders, factory were too slow to implement changes.
25
What is the purpose of the 'Dodd-Frank Wall Street Reform and Consumer Protection Act 2010'?
- To require consumers to audit their supply chains and report use of conflict materials in their products.
26
Name four key conflict materials and give an example location.
- Tungsten, tin, tantalum and gold.
| - Congo
27
What is the purpose of the 'Conflict Free Sourcing Initiative'? What is the location of the highest impact in the supply chain?
- To relieve pressures and concern on the use of conflict materials.
- Conflict-Free Smelters: point closest to material exploitation where the material origin can be influenced.
28
Give an example of a corporation implementing measures against the use of conflict materials.
- Intel.
- Work with supply chain to develop a method through which manufacturers can trace the origin of their source materials.
- Goal of all products being conflict-free from 2016.
- 'Bag and Tag' protocol to create retraceable paper trail.
29
What is the 'Statutory Disclosure Requirements Act'?
Any company with turnover >$36m must issue a statement with the following:
- Anti-slavery policies.
- Due diligence within supply chain.
- Identifies high risk areas and applies appropriate mitigations.
- Became law in 2015.
30
What are the ramifications of not conducting a report in line with the Statutory Disclosure Requirements Act?
- Authorities can seek an injunction to force a statement.
- Customers may cease trade.
- Increasing customers requesting a copy of the report before providing their tender.
31
What is the 'Public Services Act 2012'?
- Requires bodies to choose social providers based on their social value created in the area, not cost alone.
- 10-20% of the tender is social value.
- e.g. How the social provider will improve the lives of those in the local neighbourhood.
- Private sector bodies fulfilling public sector contracts require suppliers to have a social value strategy.
32
Which SDG does 'social issues in the electronics industry supply chain' most closely link to?
SDG 8:
| - Decent work and economic growth.
33
What was typical of 1980s electronics manufacturing companies?
- Concentrate on core competencies.
- Encourage competitors to operate at reduced rates (benefit of economies of scale).
- Manufacture in Asia, where overheads and labour are cheap.
34
Give an overview of the 'Responsible Business Alliance'. Name the five key codes.
- Formerly the 'Electronics Industry Citizenship Coalition'.
- Places pressure on suppliers.
- Members must adopt a code of conduct.
- At a minimum, must require their next tier suppliers to acknowledeg and implement the code.
The five key codes are (LHEEM):
1. Labour
2. Health and Safety
3. Environment
4. Ethics
5. Management System
35
List some of the criticisms of the Responsible Business Alliance.
- Need to only demonstrate 'working towards' the compliance.
- Vague with respect to unions & collective bargaining.
- Independant verification not required.
- Public release of findings not necessary.
36
How does the Responsible Business Alliance fall under disagreement with the International Labour Organisations wage laws? What is the implication?
- RBA states suppliers must comply with all applicatble wage laws (incl. overtime, benefits, minimum wage etc) of that country.
- ILO suggests that a minimum 'living wage' should instead be paid, based on the cost of living in the local economy.
- Implication is that NGOs suggest the RBA sets the barrier low, aksking for baseline compliance with existing laws.
37
What are the difficulties in creating a code of conduct? How do NGOs encourage companies to create a code?
- Requires enforcement, which requires people. People are expensive.
- Enforcement can increase the cost of the supplier.
- NGOs increase the cost of non-enforcement by placing consumer pressure.
38
Expand on the Apple-Foxconn relationship.
- Foxconn are a major supplier to a number of electronics companies, including Apple.
- Investigation by the Fair Labor Association found widespread problems.
- 360 recommendations suggested; 284 implemented within 6 months.
- Apple roll out education in Foxconn facilities following riots.
- 20 months later, all but 4 actions implemented.
- Greenpeace praise Apple's transparency in the supply chain.
39
Why was Apple the target of the Fair Labor Association's investigation? What was the consequential 'ripple effect'?
- Labour cost of approximately 5%.
- Apple's gross profit margin is about 70%; plenty of space to soak up increase in costs.
- Apple's customers are not price sensitive.
- The ripple effect was the Apple/Foxconn were the public focus, but the target was the entirety of the electronics industry.
40
List some apprehensions with the Fair Labor Associations' investigation into Apple.
- FLA paid by Apple to conduct investigation. Cadfod's research was presented in a very different tone.
- Western values being imposed on non-western countries inappropriately.
- Western consumer imposing 'late-modern' values on companies in early states of development.
41
What is the 'Responsible Minerals Initiative'?
- Extension of the Responsible Sourcing Initiative.
| - Auditing of smelteries.
