A Detailed Report on Corporate Social Responsibility at Siemens Inc.

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Corporate Social responsibility
Table of Contents
INTRODUCTION............................................................................................................................................................4
Sustainability Dimensions........................................................................................................................................5
Primary activities......................................................................................................................................................5
CARBON NEUTRAL OPERATIONS PROGRAM................................................................................................................5
Fleet emissions reductions.......................................................................................................................................6
Energy efficiency program.......................................................................................................................................6
Decentralizing energy systems.................................................................................................................................6
PROTECTION OF THE ENVIRONMENT AND CONSERVATION OF RESOURCES...............................................................7
Calling for sustainability at all levels........................................................................................................................7
Approaching Sustainability Holistically.....................................................................................................................7
Implementing effective and transparent sustainability reporting process...............................................................8
Setting Goals............................................................................................................................................................ 8
CONCLUSION............................................................................................................................................................... 8
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INTRODUCTION
While it is the sole aim of any business to generate maximum profits for its various shareholders,
businesses are also required to make sure that their activities do not negatively affect the wider
society; Organizations are therefore required to act in ways that are considerate of needs and
aspirations of their various stakeholders. Among the areas of focus for an organization in
corporate social responsibility include a focus on the environment, ethical labor practices,
undertaking philanthropic activities, supporting community welfare projects among others
(Pullman, Maloni & Carter, 2009). Corporate social responsibility refers to having in place
initiatives to assess an organization’s impact on the environment and social well-being (DiSegni,
Huly & Akron, 2015). Sustainability refers to the act of not negatively affecting the environment
or depleting natural resources. This report will focus on the sustainability aspect of corporate
social responsibility with special emphasis on Siemens Building Technologies Inc.
One major focus for many organizations that are socially responsible is the environment. This is
mostly because businesses whether big or small all have a carbon footprint. Organizations,
therefore, take different steps to ensure that the carbon footprint so produced is reduced in order
to minimize the negative impact on the society. Some of the most common environmental efforts
put in place especially in the European countries include usage of green energy and adoption of
eco-friendly travel and office policies (Morelli, 2011). Also included is ensuring that each
business takes upon itself the responsibility of ensuring that their net impact on the environment
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is kept at its minimal. Siemens Building Technologies is currently the most sustainable Company
world over. To achieve this status, the company has in the recent years identified and
implemented a number of measures which are focused on sustainability efforts (Carroll &
Shabana, 2010).
Sustainability Dimensions
At Siemens Company there are three dimensions of sustainability which are profit, people, and
the planet which must be balanced at all times. The business is cognizant of the fact that people
are an important asset in achieving maximum profits and long-term business growth. For this
reason, therefore, the business ensures that it treats people fairly and with respect (Jabbour &
Santos, 2008). Part of this fair treatment is a reduction of its negative impact on the environment
and working towards a healthy planet for the present and future generations.
Primary activities
In its sustainability endeavor, Siemens Company carries out three primary activities including
focusing on sustainable business practices under which the organization is focused on being the
market leader in as far as sustainability is concerned and ensuring that sustainability is
incorporated in all areas of the organization (Zhao,2016). The Second activity involves the
company helping its customers to become more resourceful through innovation and helping them
to minimize their negative impact on the environment. Finally, the company is engaged in
ensuring sustainable development of the society. To achieve this, the company has strived to
ensure the best employer of choice for many job seekers engaging in philanthropy and improving
the quality of life for people in Canada and other parts of the world.
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CARBON NEUTRAL OPERATIONS PROGRAM
The company has put in place several initiatives to help it achieve its sustainability goals and
maintaining balance in the sustainability dimensions. Part of these strategies includes the
company’s vision of being carbon neutral by the year 2030. This program was launched in the
year 2015. The program is based on four pillars:
Fleet emissions reductions
Under this pillar, the company aims at minimizing its fleet emissions by at least 30% by the year
2020.Currently, the fleet emissions from the company stand at 300,000 Tons of carbon per year.
The company aims at achieving this by improving the efficiency of its transport (In Gonzalez
Perez & In Leonard,2013).
Energy efficiency program
The company has from the year 2016 invested more than 100 Million Euros to enhance energy
efficiency at its sites. The program which is ongoing is targeted at saving more than 20 Million
Euros per year upon completion of the implementation. In 2016 alone, the company started a
total of eleven energy efficiency programs.
Decentralizing energy systems
The company has a long-term target of meeting at least 10% of all the electricity demand from
energy systems distributed on sites such as solar panels, wind turbines, intelligent energy
management systems, energy management systems and small gas turbines. Trough this the
company has recorded a reduction of 90% of primary energy consumption at its new
headquarters (In Thangavel & In Ś rīdēvi, 2014)
Using renewable sources of electricity
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The company has in the recent years continued to improve in its use of renewable energy and
electricity with half of its Germany sites entirely using green energy. Since the launch of Carbon
Neutral operations program the company has significantly reduced its collective carbon
emissions as compared to the previous years.
PROTECTION OF THE ENVIRONMENT AND CONSERVATION OF
RESOURCES
Over the years the company has maintained a commitment to improving the efficiency of its
energy and resources in order to align itself with the international regulations regarding the
protection of the environment. The company has rolled out an environmental protection
management system in an all its production facilities and offices as part of meeting the
established international standards. The company’s efforts have enabled it to have no landfill
waste. The company has also managed to recycle 100% of its hazardous and non-hazardous
wastes in some of its branches such as those in Germany, Newcastle and United Kingdom. To
reach where it is today in terms of sustainability, the company has undertaken several steps to
positively impact its stakeholders (In Gonzalez-Perez & In Leonard, 2013).
Calling for sustainability at all levels
The company implements sustainability at various levels within the organization from the bottom
to the top levels. This strategy helps in ensuring that there is a collaborative effort towards
sustainability from all fronts within the organization. This has ensured that there is sufficient
implementation of high-quality standards of environmental sustainability all levels (Seliger,
Khraisheh & Jawahir, 2011).
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Approaching Sustainability Holistically
The Company approaches suitability in a holistic manner basically at a strategic level which
includes implementation of a top-down method. This not only helps the company to contribute to
environmental sustainability but it also in enabling it to positively impact the society through its
activities through sustainable value creation. Just like Siemens, Organizations should, therefore,
have specific policies which are well defined and view sustainability as part of their corporate
approach to ensure that their activities impact both the environment and organizations positively
(McWilliams & Siegel, 2011).
Implementing effective and transparent sustainability reporting process
Apart from the sustainability strategies that have been adopted by the organization, the company
has ensured that they are adequately communicated to the various stakeholders of the company
which has facilitated accountability and transparency (Székely & Knirsch,2007). For example,
the company publishes annual sustainability reports which have helped the company to
communicate its sustainability initiatives as well as achievements from these initiatives. This has
also facilitated comparison of sustainability progress between different periods and with other
companies.
Setting Goals
Just like any other long-term strategy, goal setting becomes quite critical in ensuring long-term
success. Siemens Company sets goals that are measurable, accurate and clearly defined. The
setting of goals has enabled the organization to measure progress and also in the identification of
any challenges (Epstein & Buhovac, 2014). This has enabled the organization to keep track of
its progress and enabled it to make adjustments aimed art realizing its sustainability agenda.
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CONCLUSION
In conclusion, sustainability has become integral to all organizations that wish to compete
effectively in the market. As part of international regulations, organizations have been compelled
to put in place sustainability strategies to minimize their negative impact on the environment.
Siemens Building Technologies Inc. is a good example of organizations that recognize the
importance sustainability as a corporate social responsibility goal. Basically, in as far as
sustainability is concerned; the company is focused on profit, people, and the planet. It therefore
ensures that in its pursuit of profits, it does not negatively affect the society and the environment
The Company has adopted a number of programs including Carbon neutral program which is
based on four pillars and policies on protection of the environment and conservation of the
environmental policies in order to help it achieve its sustainability goals. These strategies have
helped the company to emerge as the most sustainable company in the world for at least two
years consecutively. The efforts put in place by Siemens Building Technologies Inc a global
reputable organization, therefore, support the statement that sustainability is an important social
responsibility goal.
REFERENCES
DiSegni, D. M., Huly, M., & Akron, S. (2015). Corporate social responsibility, environmental
leadership and financial performance. Social Responsibility Journal, 11(1), 131-148.
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Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in
managing and measuring corporate social, environmental, and economic impacts.
Berrett-Koehler Publishers.
Székely, F., & Knirsch, M. (2007). Responsible leadership and corporate social responsibility::
Metrics for sustainable performance. European Management Journal, 23(6), 628-647.
Zhao, F. (2016). Siemens’ business excellence model and sustainable development. Measuring
Business Excellence, 8(2), 55-64.
Jabbour, C. J. C., & Santos, F. C. A. (2008). Relationships between human resource dimensions
and environmental management in companies: proposal of a model. Journal of Cleaner
Production, 16(1), 51-58.
Morelli, J. (2011). Environmental sustainability: A definition for environmental professionals.
Journal of environmental sustainability, 1(1), 2.
Pullman, M. E., Maloni, M. J., & Carter, C. R. (2009). Food for thought: social versus
environmental sustainability practices and performance outcomes. Journal of Supply
Chain Management, 45(4), 38-54.
Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A
review of concepts, research and practice. International journal of management reviews,
12(1), 85-105.
McWilliams, A., & Siegel, D. (2011). Corporate social responsibility: A theory of the firm
perspective. Academy of management review, 26(1), 117-127.
Seliger, G., Khraisheh, M. M. K., & Jawahir, I. S. (2011). Advances in Sustainable
Manufacturing: Proceedings of the 8th Global Conference on Sustainable
Manufacturing. Berlin: Springer Berlin.
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In Gonzalez-Perez, M.-A., & In Leonard, L. (2013). International business, sustainability and
corporate social responsibility. Bingley, UK : Emerald Group Publishing Limited,
In Thangavel, P., & In Ś rīdēvi, J. (2014). Environmental sustainability: Role of green
technologies. New Delhi : Springer,
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