Corporate Social Responsibility and Governance: A Comparative Analysis of IBM, Microsoft and Woolworths

Governance 1
Governance in globalizing world: Microsoft, IBM and Woolworths

Governance 2
Introduction
Corporate social responsibility is dominated with the valuable strategy and agenda for the
business to improve the standards for the better of people, plant and prosperity. The main
purpose of this essay is to contribute towards the evaluation of corporate social responsibly in the
governance of business in perspective domestic market. The corporate governance is also
valuable for the business in relation to integrating the sustainable development through social,
environmental and economic benefits. To evaluate the CSR implications over the business, three
businesses as IBM, Microsoft and Woolworths organizations are discussed with the market of
USA, UK and Australia respectively. In relation to this essay, corporate governance is assessed
in order to bringing up with positive image. The comparative analysis of these selected
businesses has been carried out to determine the impact of CSR activities over the societies,
economy and perspective environment. Moreover, the governance system of UK, USA and
Australia is analyzed with respect to the CSR activities.

Governance 3
Background of IBM, Microsoft and Woolworths
About IBM: The IBM is a renowned brand in the information technology industry. It is an
American multinational IT company which is operating its business from it’s headquartering in
New York, USA. It was established in the year 1911 and now it has operating its business in
more than 170 countries. In its business operations, it has engaged into the manufacturing and
market for the computers, hardware, middleware and it also provide the consulting and hosting
service (Doublethedonation, 2018). On the other hand, IBM, US is also maintaining the record of
patents from last 25 years of its business excellence. It has also generated the revenue about
US$79.139 billion in the financial year 2017. Along with this, the company has also listed in top
30 most companies in Dow Jones and it has also hold the record for employees over the 380,000
(IBM, 2017).
Background of Woolworths: The Woolworths business is one of the leading retail chain
companies which are operating in the line of supermarket or grocery in the Australian market.
The headquarter of Woolworths is locate at New South Wales, Australia. The retail business is
operating more than 1000 supermarket store across the Australian market. It is embodied towards
creating value for the customer and its slogan is “The Fresh Food People” and it is also known
for the cheapest price selling and money back guarantee for its defective quality and products. It
has generated the operating income of AS$ 2.326 billion in the year 2017 and it has employed
205,000 employees to carry out its business activities (Woolworths, 2017).
Background information about Microsoft: The Microsoft business is also headed under the
Information Technology industry and it is also multinational company. The IT Company delivers
the products as windows, servers, software, and computer electronics. With this, it is an oldest

Governance 4
valuable company and it is also ranked in largest IT Company which is also generating the
higher revenue by software development (Microsoft, 2017).
Corporate social responsibility
In this globalized economy, the value of corporate social responsibility cannot be ignored as the
several organizations are increasing which have introduced the CSR practices with its business
practices. CSR is an approach in which business put the efforts in external activities for the
business in order to derive the social, environmental and economical development. In context to
the US market CSR activities are not mandatory for the organizations to integrate with it. But in
the corporations have donated the $17.8 billion in year 2017 and 65% of Fortune 500 companies
are also offering the programme for gift matching. The most of multinational organizations have
engaged into the social responsibilities for grabbing the opportunities for business development.
The benefits of CSR activities are determined by the corporations as enhancing the brand image
of company in the global market (Fatma et. al, 2015). Due to the social integration with the
perspective community than the media coverage also increases for the company as the external
people do not know how many efforts company is putting for benefitting the society,
environment and economy.
In addition to this, the corporate have also experienced that employee engagement can also be
boost by the company if company is working for the development of society through activities.
In relation to this, employees also become loyal for the company if the business is doing well for
the society and people and employees feel proud for volunteering by the business to support the
community in a hazardous situation. On the other hand, the investors and external stakeholders
are also important for the business as they are key people for the business so the CSR practices
also contribute towards attracting and retaining the investors for long term. At the same time, the

Governance 5
companies also assign the duties to the employees while carrying out the CSR activities than it
also impacts the investors as they think that the company does not care about profit but the
perspective society as well.
Apart from this, the organizational benefited from the CSR practices but the employees also get
benefits from the social responsibility activities as organizations care outsider the organizational
walls is directly create the positive environment for work. In addition to this, the creativity and
innovation in the employees can also be blossom in their job task for developing the ideas for
productive decision making. On the other hand, personal and professional growth of employees
can also be encouraged when the employees are taking voluntarily for worthy practices. Apart
from this, the customer is an important part of the organization and the customers also think that
the company has engaged into molding the world towards better with which they have transacted
so it also influence the customers to make them happy and satisfied (Bipiz, 2013). In contrast to
this, it is necessary for the company to work for the higher cost social activities, it can carried out
with lower cost so it might not be a higher cost for the business. With respect to this, CSR
practices for business also drive the opportunities for the corporations in the new and existing
and new market with potential customers and increased revenue. It is also assessed that
embracing CSR practices are also resulted into the attainment of competitive advantages over its
competitors.
On the other hand, if the business is lacking in concern to the corporate social responsibilities are
also facing the issues related to the loyalty and image of business in the perspective community.

Governance 6
Comparison of CSR practices of IBM, Microsoft and Woolworths
The IBM, Microsoft and Woolworths have valuable brand image in its perspective markets with
the fully integration with its product and service to worldwide people. These businesses are
different to each other in its business line but the corporate social responsibilities are to play the
responsibilities in reliable manner. These companies have engaged into the practices of CSR so
that it can be in touch with the perspective communities. The IBM business is delivering the
corporate social responsibilities in different segments such as education, environmental practices
and social wellbeing and development. The IBM business has adopted the corporate environment
reporting system for the company from the year 1990 in which it discloses the information
related to the CSR activities and programs of company for societal development (IBM, 2016).
The global reporting system is initiated by the IBM business with the tools and programs like
OneReport, Ecovadis and CDP in which it provides the information about its CSR activities for
environmental development. In comparison to this, Microsoft has also engaged into the social
responsibilities with its mission to empower each person and organizations so that more can be
achieved. In order to ensure the CSR, safety and human rights, Company integrate and apply
with its power of technology.
Along with this, the Microsoft has taken initiative to strengthen the 300 million young people
with respect to the purpose of employment, entrepreneurship and education. With respect to this,
the Woolworth has also engaged into the CSR activities in the Australian market. In order to
provide the benefits to the society and environment, Woolworths has engaged into the
enhancement of awareness about the issues of sustainability among the employees of
organization it is useful for the company to get benefited from its initiative for the development
of society and environment in effective manner. Woolworth business has also engaged into the