Sustainability and CSR: A Comparative Report on Apple and Samsung

Desklib provides past papers and solved assignments for students. This report compares Apple and Samsung's CSR and sustainability.

Business Report
Assessment Task:
Student Name:
Student ID No:

2
Table of Contents
i. The two companies being researched................................................................................................3
Identification of the two companies.........................................................................................................3
Industries.................................................................................................................................................3
Countries of operation.............................................................................................................................3
Social reporting/ performance issues relevant for the companies............................................................3
ii. Comparison among the two organisation with respect to social, economic and environmental
issues dealt with in their reports.................................................................................................................4
iii. Sustainable Development goals relevant to the organizations and extent to which these are
addressed....................................................................................................................................................5
iv. Identification of Sustainability phase/s (Dunphy, Griffiths and Benn)................................................6
v. Extent of social reports reflecting values of chosen companies.........................................................7
vi. Conclusion of reports of the two companies......................................................................................8
References...................................................................................................................................................9

3
i. The two companies being researched
Identification of the two companies
The two organisations chosen for research are Apple and Samsung which are the key competitors
in terms of Smartphones.
Industries
Apple: Apple Inc., which was earlier recognised as Apple computer Inc., is a multinational
organisation which was set up by Steve Jobs, Ronald Wayne and Steve Wozniak (apple.com,
2019). The organisation began with the first colour graphics computer being created, which was
termed as Apple II. This organisation sells innovative goods like iPod, iPhone and the iPad. The
organisation is recognised to create and sell modern and stylish goods.
Samsung: Samsung Corporation is one of the biggest electronic manufacturing organisations all
over the globe it is a Korean conglomerate organisation (samsung.com, 2019). It deals in the
electronic goods, the Smartphones as well as featured phones.
Countries of operation
Apple: The retail outlets of Apple are in 24 Nations involving 272 in the United States and 234
all over the world. These are Australia, Belgium, Austria, China, Canada, Hong Kong, France,
Thailand, Taiwan, Germany, Italy, the UAE, Singapore, Sweden, Spain, South Korea, Turkey,
the United Kingdom, Argentina, Chile, Peru, India, the Netherlands, Macau and Switzerland.
Samsung: Samsung is a Global organisation which has its existence in almost every key Nation
all over the globe. So show the organisation has its research and development, engineering for
manufacturing and sales offices in UK UAE USA, engineers, Canada, Mexico, Saudi Arabia,
Kuwait, Iraq Iran, Russia, Germany, Poland, India, China, Vietnam, Bangladesh, Thailand,
Malaysia, South Korea and Japan.
Social reporting/ performance issues relevant for the companies
Currently one of the highly important goals of the worldwide organisations is to be known for
the responsible management and ethical performance. The private organisations have
responsibility towards the society and also the integration of CSR into business strategy needs a
constant procedure to understand, improve and monitor (Høgevold & Svensson, 2016).

4
Apple: Due to the specific business model of outsourcing the entire production procedure and
the features of its products, the key material issues for Apple are in terms of the environmental
effect as well as in supply chain management (MacRumors, 2019). The carbon footprint is the
major tool used to recognise the key sources of emission in the product life cycle of Apple and in
terms of supply chain the concern his of inadequacy of great governance and strong institutions,
along with the abusive labour practices and non compliance of law.
Samsung: In case of Samsung, there have been key issues like in China, the suspicion of Tianjin
Zhonghuan producing fake records for considering the actual overtime hours of the employees
lead to ignorance of Chinese labour laws and overtime hours of the staff being more than the
permits of the law (Chinadaily.com.cn, 2013). Even the supply chain has issue of an equal pay
for equal jobs and the base which is considered to be extremely low with the staff members
getting pressurized to work overtime to make sure that there is Steady flow of revenues.
ii. Comparison among the two organisation with respect to social, economic and
environmental issues dealt with in their reports
First of all, for keeping the shareholders informed, both organisations hold their general meetings
for briefing their investors regarding the growth of the organisation and discussion of different
issues. Also they are continuously focusing on provision of the best possible value for the money
to the clients and shareholders. Also with client satisfaction as the consideration, the
organisations are trying to create environmental friendly and user-friendly goods with high
quality and innovation. These organisations work in collaboration with government and non-
government businesses for bringing improvements with respect to Staff welfare, safety and
environment. Both organisations audit regarding the supplying partners behaviour to the
workers. A few of the areas which have been constantly under check by these organisations are
the health and safety of workers, lengthy working hours, discrimination and child labour as well
as fair treatment.
Apple: There is an employee education and development program for Apple’s suppliers for
improving the knowledge in different subjects (Images.apple.com, 2019). Also the organisation
has joined the fair labour Association with the motive of improving workers life all over the
world.

5
Samsung: On the other hand Samsung makes use of specially created recruitment program for
the disabled people as it shows concerns regarding the health, education and development of kids
and youth. There is a program known as Samsung hope for children (Samsung Electronics
America, 2019).
Style: In terms of Style, the CSR report of Apple shows its environmental responsibilities,
climatic changes, resources, safe materials and the improvements which are focused by apple. In
the report of 2017 for Samsung, there is the explanation of the vision of the organisation with its
methodology and message by the president appoint the environment aspects, social aspects and
the development of people i.e. employees are also focussed in the report.
The focus of Apple is to power the facilities all over the globe with complete renewable energy.
The renewable energy is been created for meeting the business requirements. The environment is
at the top priority as per the report however in Samsung the focus of environmental program is
on preserving the local environment, products stewardship, green & clean procedure and creation
of accident free facilities.
iii. Sustainable Development goals relevant to the organizations and extent to which
these are addressed
Apple: In the CSR report off 2017 for apple, the focus is on various issues which involve
- Safeguarding and making more sustainable forest for getting higher renewable resources,
- Neutralizing paper in more effective manner,
- Ensuring sustainable food sources by engagement with communities for encouraging
sustainable agricultural activities,
- Expansion of food access and livelihoods,
- Provision of protected and safe water by encouraging attempts to restore a critical by national
river system,
- Saving water,
- Harmonization of people,
- Saving sea turtles, saving tigers, saving wildlife and nature by deployment of new
technologies for safeguarding the important species and
- Supporting the communities to decrease human and wildlife conflicts.

6
A reassessment of Apple's Supplier Responsibility Report states that the corporation is taking
action to end unethical practices amongst is suppliers. These have incorporated usage of juvenile
labour at 10 locations, hazardous working environment at 2 facilities, forgery of audit supplies at
four locations, and corruption at a location.
Samsung: As per the CSR report of 2017 in Samsung, the sustainability program includes
various initiatives which less stress on creation of a better world and enhancement of the
economic value of the organisation. At the UN General Assembly, the sustainable development
goals were formally taken up in year 2015 to be carried out from 2016 to 2020 for the
organisations, society and government to attain the worldwide shared goal of setting up a
Sustainable Society all over the globe. In this report the goals involve 167 targets and 17
objectives like dealing with extreme poverty dealing with inequality and injustice and also
handling the climatic changes. The organisation focuses on achieving these sustainable goals
played by the UN and therefore there has been focus on reducing the waste in making it zero by
the year 2014. There are certain other sustainable goals like engaging the employees, supporting
education, handling wastewater, dealing with other ways managing hazardous substances,
dealing with greenhouse gases and environmental pollution along with focusing on workforce
development and security.
iv. Identification of Sustainability phase/s (Dunphy, Griffiths and Benn)
Dunphy, Griffiths and Benn laid down the six phased model which is a significant tool to assess
the company’s progress towards sustainability (Benn, Dunphy & Griffiths, 2006). This model
includes the environmental and human sustainability elements (Gutsche, 2016).
Apple: Apple belongs to the strategic proactivity which is the 5th phase of the model. From
2013 onwards the organisation has made sustainability as a significant element of the
organisations business strategy. At present organisation is making use of social and national
capital for setting up strategic advantages by the innovative goods and services find various
communities are positively impacted and helped by the company. There are various initiatives
taken up by the organisation for or helping and supporting the different communities in different
nations. Various programs are laid down for hiring best talent into the company. The training and
skill development ventures are also laid down for developing high amount of competence in
people and the teams.

7
Samsung: Samsung is also on the 5th phase of the model because that is strategic proactivity and
Samsung has its sustainability management aiming to build integrated values. There is creation
of economic values by maximization of profit and shareholder values. The organisation takes on
stronger responsibility being a worldwide citizen for creating social values. There is delivery of
innovative goods and services along the value chain and values are generated in areas of society,
economy and environment. There is monitoring of financial and nonfinancial effects that the
organisation brings on society buy the procedures which can maximize the positive effects
minimizing the negative impacts.
v. Extent of social reports reflecting values of chosen companies
Apple: The vision of apple in terms of sustainability is the creation and maintenance of an
ecosystem of suppliers who support the business operations. It has the vision of improving lives
and caring for environment. It focuses on increasing its entire sustainability, protection of
environment and conservation of precious resources.
Apple has increased its membership and engagement into the sustainability (Triplepundit.com,
2019). For achieving the vision, the organisation is forcing its manufacturing partners to
collaborate in fight against the climatic changes and it has made its key suppliers to use only
renewable energy by the end of year 2019. The focus is on making use of only the renewable
resources and preservation of precious resources. Organisation has started using 99% of the
paper for product packaging from the recycled or responsibly managed sources. It is also trying
to encourage sustainability by protecting forests. The supply chain is also Bing created by only
the renewable resources and recycled material and the organisation is continuously working to
show what is possible and inspiring others for creation of healthier environment.
Samsung: The organisation has a vision of inspiring the world and creating the future, which can
be achieved by innovative technology and goods. The objective of this vision is to be a beloved
brand, innovative organisation and a well light organisation. Therefore the organisation puts in
its attempts to create, innovate, and share value with the partners and society.
As per the CSR report of Samsung, there is serious consideration of the responsibility as a
corporate citizen. There are local sustainability programs created for dealing with the unique
requirements of every region and allowing the workers to give back to their hometown. The key

8
stakeholders are found out by the annual stakeholder review carried out by every department by
internal discussions. Along with the development of innovative technology goods, Samsung
gives you significance to act as responsible corporate citizen in the communities of operation.
CSR programs are focused on social and environmental requirements and also on giving back to
the communities of operation. There has been a Samsung Ho project launched in 2009 which
focuses on the areas of community development, education, social welfare, sports and culture. In
these areas, the requirements of every community are emphasized by focusing on innovation for
growth of community. The other programs are “Samsung hope for children”, “hope for culture”,
“sports functions”, “employee engagement” as well as “safety of employees” (Samsung US,
2019).
vi. Conclusion of reports of the two companies
Apple: With respect to environmental sustainability, there has been improvement in Apple after
the announcement of the Newsweek's US ranking in 2011 where the ranking was 117. After
2013 the data centres of Apple has been running on 100% renewable power. From April 2016
the 100% renewable energy is utilised for 463 facilities of Apple in 40 Nations (apple.com,
2019b). This renewable energy is created by the organisation only by creating its solar rays,
biogas fuel cells, micro-hydro generation systems. For reducing the carbon footprints form of
Apple is finding out methods to decrease emissions from the vehicles used by business fleet. The
waste management team of Apple has been successful in disposing hazardous wastes in
responsible manner. The management of the organisation is also focus on minimising the usage
of water and it is trapped in the landscaping cooling and cleanliness approaches at the production
facilities. From year 2015, there has been method of gathering defined data for empowering the
conservation strategy. All the steps are carried out by apple to elevate the organisation to the
subsequent phase of dunphy model. But for remaining in the same stage, the organisation
management has to maintain the uses of these approaches while keeping the environment secure
and safe.
Samsung: With respect to the sustainability, Samsung has a policy which focuses on creating
integrated values. The organisation takes on by the responsibility as a citizen to make societal
values. Organisation monitors the financial and nonfinancial effects that it brings on to the
society and tries to maximize the positive effects while minimising the negative impacts

9
(Samsung US Newsroom, 2019). The organisation focuses on innovating methods to fulfil the
social responsibility and it incorporates in the direction laid by the United Nations for creating
social values. It also focuses on ensuring sustainable usage of water resources and creating
highly energy efficient goods by utilisation of IoT Technology. It operates the Smart School
program for offering ICT enabled education to vulnerable communities and also offers career
development programs in alignment with the lifecycle requirements of the workers. It helps
Malaysia, India and different emerging markets in creating and improving the communications
network along with support to the creation of disaster safety communications network.
References
apple.com. (2019). Site Map. Retrieved from https://www.apple.com/sitemap/
apple.com. (2019b). Supplier Responsibility. Retrieved from https://www.apple.com/supplier-
responsibility/
Benn, S., Dunphy, D., & Griffiths, A. (2006). Enabling Change for Corporate Sustainability: An
Integrated Perspective. Australasian Journal Of Environmental Management, 13(3), 156-
165.
Chinadaily.com.cn. (2013). Samsung gives back through social responsibility initiatives.
Retrieved from http://www.chinadaily.com.cn/beijing/2013-06/28/content_16679157.htm
Gutsche, R. (2016). Firm-Value Effects of CSR Disclosure and CSR Performance. SSRN
Electronic Journal.
Høgevold, N., & Svensson, G. (2016). Framing the development and directions of business
sustainability efforts. Corporate Governance: The International Journal Of Business In
Society, 16(4), 709-725.
Images.apple.com. (2019). Retrieved from
https://images.apple.com/environment/pdf/Apple_Environmental_Responsibility_Report_20
17.pdf
MacRumors. (2019). Apple Stores: Everything We Know | MacRumors. Retrieved from
https://www.macrumors.com/roundup/apple-retail-stores/

10
Samsung Electronics America. (2019). Report&Policy | Sustainability | Samsung US. Retrieved
from https://www.samsung.com/us/aboutsamsung/sustainability/report-and-policy/
Samsung US. (2019). Strategy | Sustainability | Samsung US. Retrieved from
https://www.samsung.com/us/aboutsamsung/sustainability/strategy/
Samsung US Newsroom. (2019). Social Responsibility - Samsung US Newsroom. Retrieved
from https://news.samsung.com/us/category/corporate/social-responsibility/
samsung.com. (2019). Home. Retrieved from https://www.samsung.com/us/
Triplepundit.com. (2019). Why Tim Cook's Leadership Won't Lead Apple to the Next Phase of
CSR. Retrieved from http://www.triplepundit.com/story/2014/why-tim-cooks-leadership-
wont-lead-apple-next-phase-csr/42941