International Business Environment: CSR Analysis of Schneider Electric

This essay critically evaluates Schneider Electric's approach to Corporate Social Responsibility (CSR) within the context of the International Business Environment. It explores the company's initiatives, including EcoStructure, renewable energy integration, and community engagement through the Schneider Electric Foundation and the VolunteerIn platform. The analysis utilizes stakeholder theory and Carroll's CSR model to assess how Schneider Electric balances economic, legal, ethical, and philanthropic responsibilities. The essay examines the company's commitments to sustainability, circular economy principles, and employee well-being. It also details Schneider Electric's efforts in health, water, air cleansing, rural development, and community betterment. The student's work highlights the company's dedication to creating shared value, addressing stakeholder needs, and minimizing risks, ultimately contributing to a sustainable environment.

International Business
Environment

TABLE OF CONTENTS
Organisation’s approach to corporate social responsibility.......................................................3
REFERENCES...........................................................................................................................9

Organisation’s approach to corporate social responsibility
Currently there is a growing perception among the organizations that the business
success and the shareholder value and not be achieved only through maximising the profits.
It can be achieved only through market oriented and responsible behaviour. The
organizations are very well aware that they can contribute to the sustainable development by
effectively managing their business operations which will result into enhancing the economic
growth and competitiveness (Wang and et.al, 2016). This all can be done while ensuring
environmental protection including consumers interest. In this essay, Schneider Electric is
taken as an organization, which is a French multinational corporation. It is a specialized in
electric equipment and providing digital solutions. It is this essay, different theories and
models are used for critically evaluating the organizations approach to Corporate Social
Responsibility as a means of taking advantage over its competitors.
The Corporate Social Responsibility is the business model that helps the businesses be
socially responsible for its business operation and take initiatives to minimize the negative
impact (Crane, Matten and Spence, 2019). It covers wide array of issues which includes
corporate citizen ship, stakeholder approach, equality and diversity, ethical consumerism and
green washing. Sustainability refers to the various social, economic and environmental
factors which includes sustainable development, recycling and waste management and
climate change.
The organization has taken various initiatives for effectively managing its corporate
social responsibility. The Schneider Electric has come up with EcoStructure innovation idea
which is IoT enabled, interoperable architecture in homes, buildings, infrastructure, data
centres etc. Eco Structure has brought best in class engineering efficiency to the building. The
EcoStructure architecture integrated with software is ready for smart manufacturing which
has the potential for delivering the new business opportunities for machine builders which
will result in increase in profitability and productivity (Jamali and Karam, 2018). Schneider
Electric is adding solar, wind and other different renewable sources of energy in its energy
mix. It has also added green tariffs, power purchase and energy certificates agreements in all
aspect in its decarbonization strategy. These measures will help the organization in
minimizing the energy supply risk and will also assist in long term energy saving. Along with
this, four local platforms have been set up for providing technical skills, financial solutions
that can support business creation. Schneider Electric has also committed to provide technical

training and financial loans to 80 entrepreneurs by 2021. The organization has created its own
foundation known as Schneider Electric Foundation which uses innovation and the
engagement of the community for investing in education, minimized the skill gap and
increase the awareness of sustainability. This foundation has completed its 20 years in 2018.
The aim of tis foundation is to build a fairer and low carbon society and give the future
generations the key to transform the world. It has invested over €19.5 million to help the local
communities.
The organization has also developed VolunteerIn platform that which is a global
platform which aim to be a place where each employee of Schneider Electric can find a
mission that best suits his or her interest. This platform provides an opportunity to employees
and retirees to identify the causes within their community and put contribution to the projects.
As for now, approximately 7000 employees are already registered. The circular economy has
been adopted by Schneider Electric and everything it does is based on it (Sustainability.
2020). The organization has lowered the cost of ownership for its customers, it is preserving
the natural resources for the future needs, creating new revenue sources for the company. The
main aim of circular economy is to maximize the value of the goods across its lifespan and in
order to do this, the organization has gone beyond 3Rs and followed 5Rs which are – repair,
refurbish, remanufacture, recycle and reuse. Schneider Electric’s circular economy initiatives
has incorporated its action plan for offering products and services having minimal
environmental impact. The organization has committed to 75% global sales under its green
premium initiatives, also 120,000 metric tons of primary resource consumption avoided
through ecoFit, recycling and take back programs.200 sites labelled as zero waste to landfill
and 100% cardboard and pallet to be used for transport packing for a certified sources by the
end of the year 2020.
Also, Schneider Electric has taken actions for establishing the work life balance in the
workplace and giving equal opportunities to the workforce and the coming generations. The
company has introduced new People Vision in the year 2018 in order to transform the way
work is done because crating and developing a sustainable workforce means focusing on
employee’s wellness. The Schneider Sustainability Impact (SSI) contains health and equity
commitments which makes sure that employees feel safe and valued in the organization. By
2020, it is committed to achieve 70% in employee engagement index, 100% of the employees
are working across countries having deployed the Global family Leave Policy and also 95%
employees are working with commitment to achieve gender pay equity.

For effective analysis of corporate social responsibility of Schneider Electric,
Stakeholder theory of CSR can be applied. The stakeholder theory has been proposed by
Edward Freeman. It is similar to CSR but in this it starts from the world instead of business
and looking for ethical obligation there. The stakeholder analysis lists out those individuals
who will be mostly affected by the organization’s actions (Benlemlih and Bitar, 2018).
Schneider Electric has worked hard for creating value not only the shareholders of the
organization but for the society at large. This approach of creating shared value has enabled
impressive business growth for the organization and also it has allowed its expansion
regionally as well as in its product portfolio. Through this approach, Schneider Electric has
bought values to the lives of communities where it operates and also by influencing those
aspects of the society which has a huge role with the business operations. With the help of
this approach, Schneider Electric can create the most value various aspects which are-
nutrition, Schneider Electric has put a major focus on investing in the health, nutrition and
medication of communities where they are operating, as well as on sanitation and hygiene.
The major focus of the organization remains on ensuring health safety for children
and infants. Next is water, the organization is working hard with other parties and external
and internal support systems to make sure that its business operation is no impact on the
quality of water or causing any water pollution. Along with that it is timely administering its
sewage plants to ensure that the waste is disposed off optimally without affecting the water.
Third air cleansing, in this Schneider Electric strives hard to maintain the carbon units as per
the rules and regulations. It also makes sure that all its operation units are way from the
residential areas which will help in reducing the negative impact of its business operation to
the public (Martínez, Fernández and Fernández, 2016). Fourth is rural development, the
organization focusses on the developing the communities where it mostly operates and the
nearly areas and also the places from where it gets its raw materials, other inputs and labour.
There Schneider Electric provided various employment and livelihood opportunities for the
raising the living standard of these communities along with the quality of life.
In order to make sure that it is not affecting the society and the environment as a
whole, Schneider Electric has made certain commitments which has helped it in giving a
shape to its CSR and create shared value approach. This has helped it in giving back to the
society for all that it has taken as well as developing a sustainable environment. These
commitments are the long-term goals which takes into account different aspect. It has
committed for healthier lives of individuals and families; Schneider electric is focused on

helping individuals for maintaining a proper balance between health nutrition and physical
exercise which is essential means of a healthier lifestyle and living. Because of the today's
busy schedule, it becomes quite challenging to maintain the healthy life (Lange and Bundy,
2018). The organisation has worked continuously with the intention develop programs and
products that will help the entire community to manage their time and stay motivated towards
better well-being. Also, the organisation has the long-term commitment for enhancing the
lifestyle of the communities in which it operates. The company has planned to do this by
sharing nutritional facts and information which will help in increasing nutritional awareness.
It has also made programs which shares useful information to the individuals so that we can
make better dietary decisions.
Next is it is committed towards betterment of the community. Schneider Electric has
worked towards developing the rural communities mostly the places it is operating its
business. The company is not only involved in creating employment opportunities but also in
infrastructure development and deployment of educational program which will result into
improving the living standards for the people. It also conducts vocational training programs.
The company towards various diversity programs in order to ensure that all community
groups are involved in the employment cycle (Wang and et.al, 2016). Apart from this
organisation has also conducted various training and skill enhancement sessions for all
community groups. Next is taking care of the planet. Schneider Electric is very well aware
about the need of protecting the natural resources. It is the active fighter Water Preservation
as there is a high scarcity of clean drinking water which strives the organisation to provide
communities clean drinking water installing filter plants. The increasing urbanization has
completely changed the natural landscape of the nature or environment. The organisation has
made sure all its operational sites are structured and designed in such a way that it will have
no ham or risk the natural environment. The changing climate and weather conditions also
affects the business operation of the organization thus, it has created safe green spaces which
will ensure high environmental sustainability and enrichment of ecosystem.
Thus, based on the stakeholder analysis it can be said that Schneider Electric has
taken effective steps for the taking care of its communities and other stakeholders. The
organization is very effective in dealing with its stakeholders by taking care of their needs
and desires and makes sure that they are happy with the organizations policies and norms. It
has ensured that every sort of risk is minimized and is not hazardous to the lives of the
stakeholders.

Another important theory that can be applied in respect to CSR activities of Schneider
Electric, that is, Carroll’s CSR model, which is a framework that argues why the organization
should meet their all social responsibilities. This model is based on 4 responsibilities which
are required to be addressed by the organization. The first is economic responsibility, which
refers to continuous earning in order to survive and grow (Carroll, 2016). It refers to the
responsibility of the organization towards its shareholders for providing better return on
investment, employees welfare and safety and customers demand for good quality products
as satisfying the stakeholders is the major priority of the organization. At Schneider Electric,
diversity is the integral part of it. It is working on to create a culture where all forms of
diversity are considered as a real value to the company. It has come up with the global family
leave policy which is focussed on supporting the diverse needs of the people. The
organization has launched HeForShe which is an invitation for men along with people of
other genders to stand in women in order to create a united force for gender equality.
Schneider Electric considers freedom of association for dealing with its employees. It
respects the rights of the employees to join, participate or quit the organization. Schneider
Electric also takes care of its employees and employee representative bodies and supports
collective bargaining. It also provides secure working conditions which includes preventing
any kind of verbal or physical violence and is committed to reduce the security risk of its
employees.
Next is legal responsibility, which refers to adhering the legal rules and regulations.
This is the proactive duty of the businesses to comply with relevant laws and accept the laws
for the social good. Schneider Electric has committed to taking care of the rights of the
children which includes free education, and contributing towards elimination of child labour
and is not supporting employment of children below the age of 18. The organization has also
prohibited and does not support forced labour either directly or indirectly. Also, it will refrain
from working with those who are using forced labour for their business operation. Schneider
Electric follows Global Health & safety Policy which helps the organization in ensuring that
high standards of health and safety are implemented for all the employees working in the
company. The organization also ensures that employees have access to medical coverage
(MOUSAVI, SHAHVEISI and REZAEI, 2018). Along with that, financial security is
provided to the employees’ dependents in the event of death of the employee in the form of
Life Assurance coverage. It also guarantees that minimum wages will be given as set by the
local regulations wherever it operates. In cases where minimum wages is not sufficient

enough, it compensate employees to meet them. Also, Schneider Electric strives to avoid any
situation of harassment and if situation occurs, the organization will implement certain
procedures while handing the situation and prevent repetition.
Third is ethical responsibilities, means doing what is right even though it is not
required by the law. In simple words, it refers to the obligation to perform ethically and
proactively responding to the needs of the consumers, public and society at large. Schneider
Electric in 2018, has made progress in reducing the carbon emission for both customers and
the company. The climate action is the part of its 2018-2020 Schneider sustainability impact
that covers 21 impact and is aligned with UN. It is working to alleviate poverty, protecting
the planet and bringing peace and prosperity (Baden, 2016). The key initiatives for 2018-
2020 is to create energy saving using EcoStructure for its customers and shifting towards
renewable sources of energy. EcoStructure platform is very important for the organization for
reducing the carbon emission by 120 million metric tons by the end of the year 2020. It
provides its customers control over energy use which empower them to achieve sustainability
goals by tracking and reporting the energy used and carbon reduction. The customers who are
using EcoStructure platform have reduced up to 50% carbon emission. Schneider Electric has
partnered with Iron Mountain with the commitment to become world’s leading companies to
use 100% renewable sources of energy by 2050.
The last responsibility is philanthropic responsibility. It refers to giving back to the
society and this responsibility is discretionary but still it is very important. Schneider Electric
had joined hands with French Development Agency and European Institute for Cooperation
and Development. The main purpose of this is to provide access to energy and provide
support in agriculture. Under this project, 100 solar kits and lamps are provided to the
vulnerable households in that area (Uhlig, Mainardes and Nossa, 2020). Along with that it
has also provided local women’s cooperative with a mill, kneading machine and a
refrigerators which is powered by solar microgrid for the purpose of economic development.
Last year, the organization joined a coalition to provide training in the energy sector through
its campaign called #PoweringJobs. The aim of this campaign is to address the skill gaps in
the emerging countries and also speeding up the deployment of decentralized renewable
energy solutions. It has also entered into the agreement with Jesuits for launching two
electricity programs. It was mainly for underprivileged people in Lubumbashi. It has also
committed to provide instruction program and equipment and training as well for 500
workers by 2020. Apart from this, Schneider Electric has taken an initiative to launch a

program in France for supporting entrepreneurship in energy related aspects in Burkina Faso
as this area struggles with unsustainable jobs especially for women and young people.
Figure 1 Carroll's CSR Pyramid. Source: Carroll's CSR Pyramid. 2020.[Online]. Available Through:<
https://www.tutor2u.net/business/reference/carrolls-csr-pyramid >.
Therefore, Schneider Electric’s CSR activities is based on these four philosophies and
has made sure that the core objective of ensuring high performance monitoring and social
responsibility can work together. The organization portrays a medium CSR standard as it has
gone beyond the legal requirement through implementing various environmentally
sustainable initiatives with respect to salary. It has also portrayed corporate citizenship by
acting socially responsible and taking the responsibility for their actions. It has mainly
worked in reducing the carbon emission and increase in usage of renewable sources of
energy. The organization has heavily invested on its employees and other stakeholders for
providing training, health and well-being. But even though it has taken number of initiatives,
it is still lacking behind some aspects to take care. Schneider Electric has provided training to
the people in the field of energy which can turn up to be beneficial for itself. The organization
has rarely made any contribution to the charity organization or sponsored any event for
providing help to different needs of the society apart from energy. The organization needs to
be sure that it is not differentiating people based on the needs of the companies.

It can be concluded from the above that Schneider Electric done an excellent job in
meeting with its corporate social responsibility. It has proved that it is very well aware of the
environmental impact that the business has over the surrounds and according to which
number of initiatives taken. The organization has always made sure that because of its
business operation communities have not to face any problem or direct exposure to risks. The
organization should invest in other activities for motivating other activities in the society and
solving the challenges faced by the communities apart from energy. Other than this,
Schneider Electric has effectively showed its support towards the betterment of its
employees, stakeholders, communities where it is carrying out its business operation and the
welfare of the society as a whole.

REFERENCES
Books and Journals
Baden, D., 2016. A reconstruction of Carroll’s pyramid of corporate social responsibility for
the 21st century. International journal of corporate social responsibility. 1(1). p.8.
Benlemlih, M. and Bitar, M., 2018. Corporate social responsibility and investment
efficiency. Journal of Business Ethics. 148(3). pp.647-671.
Carroll, A. B., 2016. Carroll’s pyramid of CSR: taking another look. International journal of
corporate social responsibility. 1(1). p.3.
Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings
and cases in a global context. Routledge.
Jamali, D. and Karam, C., 2018. Corporate social responsibility in developing countries as an
emerging field of study. International Journal of Management Reviews. 20(1).
pp.32-61.
Lange, D. and Bundy, J., 2018. The Association between Ethics and Stakeholder Theory',
Sustainability, Stakeholder Governance, and Corporate Social Responsibility
(Advances in Strategic Management, Volume 38) (pp. 365-387). Emerald Publishing
Limited.
Martínez, J. B., Fernández, M.L. and Fernández, P. M. R., 2016. Corporate social
responsibility: Evolution through institutional and stakeholder
perspectives. European journal of management and business economics. 25(1).
pp.8-14.
MOUSAVI, S. A., SHAHVEISI, F. and REZAEI, F., 2018. Developing the Corporate Social
Responsibility Model and Its Impact on the Earnings Quality.
Uhlig, M. R. H., Mainardes, E. W. and Nossa, V., 2020. Corporate social responsibility and
consumer's relationship intention. Corporate Social Responsibility and
Environmental Management. 27(1). pp.313-324.
Wang, H. and et.al, 2016. Corporate social responsibility: An overview and new research
directions: Thematic issue on corporate social responsibility.
Wang, H. and et.al, 2016. Corporate social responsibility: An overview and new research
directions: Thematic issue on corporate social responsibility.
Online
Carroll's CSR Pyramid. 2020. [Online]. Available Through:<
https://www.tutor2u.net/business/reference/carrolls-csr-pyramid >.
Sustainability. 2020. [Online]. Available Through:<
https://www.se.com/ae/en/about-us/sustainability/responsibility-ethics/ >.