A Comparative Report on Corporate Social Responsibility Strategies

This report offers a comparative analysis of the Corporate Social Responsibility (CSR) activities of Microsoft, Apple, and American Express. It begins with an executive summary highlighting the importance of CSR in modern business and the report's objective to evaluate the contributions of these three companies. The report then delves into a detailed discussion, comparing their approaches to CSR, stakeholder orientation, focus on CSR issues, and the scope and standards of their CSR activities. Microsoft is portrayed as a leader in CSR, emphasizing technology's role in improving lives and adhering to Carroll's CSR pyramid. Apple's CSR efforts are evaluated, noting areas for improvement, particularly within its supply chain. American Express's approach is examined, highlighting its commitment to creating social, economic, and environmental value. The report compares stakeholder engagement strategies, CSR issue focus (including employee treatment, philanthropy, human rights, and environmental sustainability), and adherence to CSR standards. The report utilizes data from company reports, external assessments, and news articles to support its findings and concludes with a summary of the comparative analysis.

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Executive Summary
Corporate Social Responsibility (CSR) has become an issue of utmost importance in the
world of business. Companies are directed towards becoming socially responsible
organizations contributing towards better living conditions both socially and ecologically.
This paper aims at reviewing and commenting on the CSR reports and activities of three
companies –Microsoft, Apple and American Express. Each of these organizations makes
their fair share of contributions towards a better a world and this report evaluates the extent of
their contribution. To state the obvious, the emerging concept of CSR is rapidly becoming
popular among the business organizations and every organization is striving to have a
positive impact on their surroundings.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Approach to Corporate Social Responsibility........................................................................3
Microsoft............................................................................................................................3
Apple..................................................................................................................................4
American Express..............................................................................................................4
Stakeholder Orientation.........................................................................................................4
Microsoft............................................................................................................................4
Apple..................................................................................................................................5
American Express..............................................................................................................5
Focus on CSR Issues..............................................................................................................6
Microsoft............................................................................................................................6
Apple..................................................................................................................................7
American Express..............................................................................................................8
Scope and Standard of CSR Activities..................................................................................8
Microsoft............................................................................................................................8
Apple..................................................................................................................................9
American Express..............................................................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................11

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Introduction
Corporate Social Responsibility (CSR) is referred to the initiatives taken by an
organization to assess, evaluate and provide accountability for the organization’s impacts on
the welfare of the environment and the society (Takkar, 2015). This paper aims to compare,
contrast and review the various CSR activities of three companies –Microsoft, Apple and
American Express. The paper compares and evaluates the CSR activities of the stated
companies with respect to a few issues of the CSR framework such as employee treatment,
philanthropy, protection of human rights, and environment sustainability. The first section of
the paper discusses and compares the approach of each company to CSR. The second section
compares and contrasts the extent to which each company is able to meet the needs of the
stakeholders. The third section comments on how the companies have focused on the various
CSR issues. The fourth and final section discusses the scope and standard of CSR activities
within each company with respect to the company’s size.
Discussion
Approach to Corporate Social Responsibility
Microsoft
Based on recent records, Microsoft has been ranked as one in CSR. Microsoft claims
that their mission is guided by the objective of empowering every person as well as every
organization in the world (Freundlieb & Teuteberg, 2013). They aim at using their
technology, employees, grants and voice to enhance the lives of people by helping them get
access to the opportunities and the benefits offered by technology (Microsoft.com, 2018). In
this context, it can be stated that Microsoft is committed ethically, equally and transparently
to operating their business (Carroll, 2016). Microsoft in fact, follows Carroll’s pyramid

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model of CSR that states that there are four essential paradigms to CSR –philanthropic
(donations towards social welfare), ethical (following moral and ethical values while dealing
with stakeholders), economic (paying good returns for maximizing the value of the
stakeholders), and legal (following the land’s laws).
Apple
Apple, however, is ranked lower in their CSR activities than Microsoft. They claim to
be driven by their commitment to ensure that everyone within their supply chain is given the
respect and dignity they deserve (Apple.com, 2018). They claim that they have been working
hard to improve the living standards and to secure human rights as well as provide for
extensive educational opportunities (Chan, 2014). They also claim that they are pushing for
higher environmental standards with each passing year.
American Express
American Express does not hold a very high place among the socially responsible
corporations. Their approach is to become the most respected service organization of the
world at a time of massive social and environmental changes (About.americanexpress.com,
2018). They are driven by their aim of creating social, economic and environmental value
across every stakeholder groups they possess (About.americanexpress.com, 2018). They are
inspired to form a culture involving efficient employees, satisfied stakeholders, engaged
consumers and sustainable environment and communities.
Stakeholder Orientation
Microsoft
Microsoft gathers outside perspectives within their business decisions via feedback
channels because they value the opinions of their stakeholders. Through various portals like
online feedback, surveys on product satisfaction and other research forums Microsoft gathers

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valuable insights from the customers. Microsoft has launched platforms like Disability
Answer Desk (DAD) and the Windows Insider to gain feedback from the customers as well
as from the ones who are disabled (Sandoval, 2013). They engage traditional as well as
socially responsible investors on various topics related to corporation and governance. Such
associations with the investors have led to CSR initiatives like their human rights
commitment under the Global Network Initiative (Microsoft.com, 2018). In the fiscal year of
2015, they have reached out to investors holding above 30% of their shares (Chan, 2014).
They gain feedback from their employees through the MS Poll with more than 85% response
rates (Microsoft.com, 2018). They engage with non-profit organizations on issues ranging
from child security to environment sustainability. They have also collaborated with UN
agencies for developing tools to take their mission forward.
Apple
Apple has considerably performed high in satisfying the requirements of the
stakeholders. The company successfully meets the requirements of its customers, investors
and employees. However, there is scope for them to improve their CSR performance in
satisfying the needs of the firm workers within the supply chain. Differences in the
organizational context, makes it difficult to impose rules and regulations on the suppliers.
However, Apple possesses the power to oblige the suppliers into compliance with the
company’s Supplier Code of Conduct (Apple.com, 2018). Therefore, it can be stated that
Apple’s major effort at CSR should be improving the overall compliance in the supply chain.
American Express
The American Express engages with each of their stakeholder groups. Their team of
Investor Relations provides information about the organization regarding its strategies,
performance and objectives to the socially responsible investment community
(About.americanexpress.com, 2018). Their employees are well fed on the progress and

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current news of the company’s performance and strategies. The employee feedback is also
given much importance and collected via the yearly employee survey (Guerreiro, Rita &
Trigueiros, 2016). The American Express maintains direct relationships with the customers
and treats them with dignity and reverence. They continuously engage the customers through
social media and customer service channels. Their team of Government Affairs provide
context and education to important decision-makers involving legislators, business partners,
government officials and trade associations (About.americanexpress.com, 2018). They
collaborate with non-profit organizations preserving unique places of historical value for the
next generations. They also provide grants to encourage community service
(About.americanexpress.com, 2018). Their Serve2Gether and Give2Gether programs support
non-profit organizations.
Standard of CSR Activities
Microsoft
Microsoft has earned 74.1 as score for RepTrak CSR assessment (Forbes Welcome,
2018). Infact, Microsoft has dedicated itself to improving education as one of the major
global issues (Microsoft.com, 2018). Unlike Apple, Microsoft functions as an open platform
demonstrating good citizenship as well as good governance. It is therefore, obvious to state
that Microsoft has adequately met and has even overshot the standards set for the protection
of human rights and other CSR activities on a global standard.
Apple
Apple is one of the firms that have degraded in their CSR reputation. Recently, Apple
had demonstrated disinterest in unlocking its iconic iPhone in order to help the law
enforcement department in an ongoing shooting investigation (Forbes Welcome, 2018).
Moreover, Apple operates its CSR activities in a closed platform which fails to demonstrate
good citizenship on their part. Furthermore, many Apple employees show ambiguity and

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dissatisfaction regarding their work environment. Such records evidently demonstrate that
Apple has not been able to sufficiently meet with the set CSR standards.
American Express
American Express is successfully meeting the requirements of the customer base.
Ponemon has rated American Express as one of the most trusted companies protecting
privacy for ten years (About.americanexpress.com, 2018). They have also increased customer
satisfaction by 24% since 2011 (About.americanexpress.com, 2018). They have contributed
an amount of $36 million to about 400 grants and has worked with more than 6000
organizations through their program of employee gift matching (About.americanexpress.com,
2018). They have supported over 100 non-profit organizations through their grants
(About.americanexpress.com, 2018). They have also exceeded their aim of reducing carbon
in the year of 2016 by a significant 30% since 2011 (About.americanexpress.com, 2018).
Such range of activities show that American Express has successfully been able to meet the
set CSR standards than most organizations of the similar nature.
Focus on CSR Issues
Microsoft
In the fiscal year of 2017, Microsoft Philanthropies donated over $12 billion in their
software services to non-profit organizations to help them get access to the technology
required for the current digital economy (Microsoft.com, 2018). They have updated their
Global Human Rights Statement and have worked with the office of the Human Rights in the
UN helping them to develop technology for predicting, analyzing, and responding to
situations related to human rights. They have launched privacy dashboard that helps users to
control their data activity across Microsoft services. They consider the General Data
Protection Regulation (GDPR) important for data privacy protection and is committed to its
compliance across their cloud services. They have created a cost-effective wet method for the

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collection of magnesium dust that complies with the China Central Safety Bureau Standard.
They have implemented a Worker Hotline to give a voice to their workers. They have also
reduced child labor in Congo from 77% to 97% through their partnership with Pact (Chan,
2014). They have spent over $2.6 billion in their program for supplier diversity with disabled,
minority, veteran and female oriented businesses (Microsoft.com, 2018). They have collected
employee feedback with 86% response rate (Freundlieb & Teuteberg, 2013). They have
conducted training programs for the employees. They have also started programs for the
benefits of the employee families. They have contributed towards the betterment of
communities through their initiatives like Microsoft Philanthropies, CityNext,
YouthSpark,and the 4Afrika Initiative. Supporting the greener grid, they have made a deal of
renewable energy for powering their datacenter at Wyoming by wind (Badshah & Thomas,
2013). They have demonstrated carbon-neutrality in their policies. They have launched
platforms like the Water Risk Monetizer and the Smart Energy Azure Demonstration to attain
environmental sustainability.
Apple
Apple ensures that people working in their supplier chain are treated fairly. They
collaborate with the suppliers closely to put an end to bonded labor, child labor and excessive
hours of work (Apple.com, 2018). They also ensure that there is responsible resourcing of
their materials. They have ensured that there are safer and sustainable mining conditions
Indonesia. Apple strives to create proper working conditions for its employees (Khan, Alam
& Alam, 2015). They have started training programs for the enhancement of the employee
skills. They also ensure that the employees are well informed on matters related to the
progress and strategies of the business (Apple.com, 2018). They have also created new
opportunities for the employees through the Supplier Employee Education and Development
(SEED) platform (Clarke & Boersma, (2017). They created a credential system for schools in

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collaboration with Dell, the local government and the Rural Education Action Program
(REAP) of the Stanford University ensure that the vocational schools in China are training
the students in appropriate skills required to succeed (Chen & Lee, 2014). They are also
working towards the betterment of the environment quality. They have worked at reducing
the carbon footprint and started a program that aims at energy efficiency (Apple.com, 2018).
They have implemented ways to use renewable and clean energy for their operational
functions. They have also launched a waste reduction program allowing the suppliers to
reduce, recycle and reuse waste (Apple.com, 2018). They have also worked at increasing
safety conditions for their employees.
American Express
American Express places their customers at the center of their actions. They work
hard to provide their customers with the best quality products. They engage with customers
with platforms like Relationship Care (About.americanexpress.com, 2018). They have
created a provision for their employees called the Ombudsperson Office where the employees
can approach with any issue related to work (About.americanexpress.com, 2018). This
platform is associated with the International Ombudsman Association that is in compliance
with the company’s standards and ethics. They strive to maintain an anti-corruption and anti-
money-laundering environment. They also aim at protecting the human rights and offer equal
treatment to all its employees (About.americanexpress.com, 2018). They aspire to maintain
employee diversity and support the development of women-leaders within the organization
through the Win Shadow program. They have also implemented employee training and
development programs for the enhancement of employee skills. They provide the employees
with flexible working hours and suitable working conditions as well as with additional family
benefits. They serve the community through charitable organizations, development of rising
leaders and through preservation of places with historical value (About.americanexpress.com,

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2018). They have donated in various disaster management schemes like for the Nepal
earthquake for which the company had donated $200,000 (Alexander, Havercome &
Mujtaba, 2015). Their 2Gether platform collaborates with non-profit organizations for the
betterment of the society. They aim at reducing their carbon footprint and at investing in
green and clean power as well as at minimizing waste and water chemicals.
Scope of CSR Activities
Microsoft
Microsoft has rightly been ranked one in their CSR activities. With respect to their
company size, their CSR activities are diverse, appropriate and ethical. They strive
tremendously and effectively to achieve a better society and a better environment
(Microsoft.com, 2018). They invest a considerable amount of their total revenue collection
into the welfare of the society and towards its development. However, it is advisable that they
provide and work better towards environment sustainability especially towards the cause of
the imminent climate change.
Apple
There is no doubt that only recently has Apple started to invest and prioritize their
CSR activity with utmost seriousness. Therefore, though their present Chief Executive
Officer (CEO), Jeff Williams, claims to have made considerable progress in the CSR
activities, there is still a good scope of improvement (Dudovskiy, 2016). However, given to
their overall company strength they must improve their CSR initiatives. They must invest a
larger portion of their revenue into their CSR strategies and especially into philanthropic
activities. They must also work better at contributing to communities as well as at providing
better employee benefits.

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American Express
In regards to their overall size, American Express covers most of the CSR issues as
Microsoft does but does not go much into their depth like Microsoft (Janssen, Sen &
Bhattacharya, 2015). In fact, it can be recommended that American Express must engage its
stakeholders better. They must increase the reach of their philanthropic activities. They must
also contribute to noble causes like abolishing child labor. They must also engage their
customers and employees at a better and higher level.
Contents of the CSR Reports
Microsoft
Microsoft’s CSR report of 2017, retells the company’s aims and visions. It mentions
the company’s policies and the practices. It also mentions the CSR principles of the company
(Microsoft.com, 2018). It mentions the extent to which the company the company engages in
the activity of protecting and promoting human rights. It also mentions the company’s
endeavors towards providing better security of data and privacy of the users (Microsoft.com,
2018). The report includes the steps taken by the company to ensure a better environment for
the suppliers. The report also mentions the organization’s treatment toward their employees.
The report includes initiatives taken by the organization to connect and engage better with
communities. The report also mentions their standards of activities to ensure environment
sustainability. Furthermore, the report highlights the CSR activities undertaken by the
company in the fiscal year of 2017 along with the CSR issues around which the company
functions such as using technology for the betterment of society and environment, working
towards empowerment of communities, and protection of human rights along with other
issues (Microsoft.com, 2018). The CSR report however, does not cover to a satisfactory
extent the philanthropic activities of the company.