Discuss about the Corporate Social Responsibility and Reporting.
Globalization and rapid expansion of business have imposed greater responsibilities in analyzing the several impacts caused by these on the entire economy, society and environment (Manetti, 2009). The scope of this essay is to analyze the quality of CSR reporting by Orange.com internet business in the year 2015 against criterion laid down by GRI standards. Corporate Social Responsibility is a term that describes the several impacts that a corporate does on its surroundings by the course of its business and other activities.
Global Reporting Initiative (GRI) is an international organization that provides guidelines to corporates for disclosing the critical positive or negative impacts created by the corporate on economy, society and on environment (GRI.org, Retrieved on 24th November 2016). Thus, GRI guidelines enable generation of reliable as well as relevant standardization to access risks and opportunities such that stakeholders of businesses can make an informed decision. GRI guidelines can be applied to all organizations across various sectors and types. GRI Index is the Standard criterion for measurement. It includes disclosures related to company profile, economic performance, labor practices, environmental performances, human rights, product responsibility and impacts on society.
Figure 1 : Orange.com's CSR claim
Source : (Orange.com, Retrieved on 24th Novemeber 2016)
Orange.com is a France based telecommunication and internet provider that has business in other parts of the world. The company was formed in the year 1988 and has its headquarters in Paris, France (Orange.com, Retrieved on 24th Novemeber 2016). It currently has over 3 billion estimated internet users world over. The company is publicly owned with the Government of France also having considerable stake. The essay analyses the company’s 2015 reports, which was presented to its various stakeholders.
Evaluation of Report Quality of Orange S.A.
GRI G4 Guidelines have been superseded by the GRI guidelines that publish each aspect of economic, social and environmental evaluation for companies. GRI Indicator Protocol Set contains standardized reporting guidelines, Performance Indicators (PI) has standards on energy, emissions and biodiversity. There are 30 environmental indicators guidelines 4.0 as EN1 to measure materials by weight, EN30 environmental expenditures by investment. ESG metrics provides a standardized framework for quantifying social, governmental and social cost as well as benefits from companies. GRI standards had immense dependence on international labor practices and environmental impact. Hence ISO 14010, ISO 14011, ISO 26000 and ISO 14012 were for assessing environmental impact whereas OHSAS 18001 concerned to health and safety risk management.
Figure 2 : GRI Standards
Source : (GRI.org, Retrieved on 24th November 2016)
Orange.com CSR report of 2015 highlights aspects required to be disclosed in GRI guidelines (Isaksson, 2009). During the 2016 General Meeting conducted by Orange, it published an, “Integrated Annual Report” that welcomes feedback from public as well as various stakeholders of the company regarding its CSR initiatives. The report was created with an aim to depict it as a responsible company that adheres to sustainable measures in order to create greater value for the society and its customers. Stéphane Richard, the current CEO of the company focuses on humans for the various endeavors they take (Daub, 2007). The company uses feedback mechanism from its various stakeholders whether internal or external for providing better solution to the customers and society. GRI Standards evaluations of Orange have been undertaken below encompassing standards pertaining to social, economic, environmental and employees related. Hence all standards specified by GRI has been covered in the report submitted by Orange.
Figure 3 : Orange.com stakeholder Analysis
Source: (Orange.com, Retrieved on 24th Novemeber 2016)
Social benefits: The company’s CSR reports have set several targets for itself to be attained by 2020 to become the most ethical and responsible company. It aims to generate higher revenue to meet economical aspects of GRI reporting. Extend support to entrepreneurs by 10% to provide social and economic benefits. Attain workforce diversity by including 35% women. Take steps to reduce overall CO2 emissions by 50% to cater to environmental regulations. Conduct audits with Joint Audit Cooperation (JAC) to enhance social and economic performance. Collect over 30% of customer’s used mobiles to meet waste reduction and recycling norms (Perrini, 2006).
The company is making several strategies and advancement in each field to achieve its desired targets and it has been successful too. GRI Standardization requires that a company make sustained investment, which Orange’s 2015 report indicates that its sustained Capital sending had been increased to 9.3% to Euro 6.486 billion alone in a year. The company has also been reaching out to customers for social development and its broadband customers is France constitutes 48.8% and 81% in Spain. This criteria will help the company attain GRI standardization for economic performance. It has also made social development by reaching out to almost 16.4 million customers across 14 African countries, who transact through Orange Money, accounting for almost 35 mission transactions every month. Africa is considered a under developed economy hence, the company’s reaching out to the country’s customer base and educating them regarding internet payments is really encouraging (Nikolaeva, 2011).
Economic impacts, the country has made tremendous economic impacts as it has been a high revenue and profit earner within the industry. The drive of the company to become a leading telecommunication company is achievable with its diversified range of products. The company also is a large tax payer and employer, from where government collects income taxes and corporate taxes. Thus, GRI Standardization criteria is achieved, as such large tax revenues collected can be used for betterment of that country and its citizens.
Orange has taken an initiative to create digital education for social development, which is one of the standards for GRI. It has reached out to as many as 500 schools from Orange Foundation by distributing over 40,000 tablets to children. GRI standardization lays down that impacts on society includes that on its children as well as adults. Digitalization of education will set newer boundaries in education allowing more and more children take up various course and make contribution to the society.
It has made an initiative towards LoRa network to connect objects to 17 urban areas in France, as a part of its social initiative. The company has made investment for developing 4G networks across 13 European countries. GRI Standardization and general public accepts that technology have made immense contribution to their lives. Orange’s CSR report highlights several impacts it has made in achieving and increasing its customer base and providing internet usage to consumers.
Environmental impacts, the company aims to reduce CO2 emission to adhere to environmental norms of the GRI by monitoring energy use and with sharing of equipment. It further intends to make several other endeavors to extend its ISO 14001 certification to the entire Group. With growing Global emissions and rise in Greenhouse Gas effect and carbon footprints, the company aims to reduce the same adapting technology in a dynamic way. This is a major requirement in meeting GRI Standardization to be able to reduce CO2 emissions hence reduce environmental impact. Orange repot covers all aspects it can apply in order to meet this growing concern.
Product responsibility, Internet and smart phone users are growing rapidly all around the world with immense needs to develop payment methods, education, cities, and connected homes and so on. Orange CSR report demonstrates their product creation to cater to these growing needs by developing 51 solidarity FabLabs with support from Orange Foundation across 9 countries. Due to rise in cybercrime, the company has launched 6 Orange Cyberdefense centers all over the world (Ballou, 2006).
Employees, the Company has over 156,000 employees with more than 7%, who work from home. The company believes that their human resource is key to driving change hence there is a high amount of importance attached to them. Most of the employees recommend Orange as the most preferred employer compared to other brands. With human resource and labor exploitation on the continuous rise employee benefit policies and procedures can significantly impact and alter status of corporation and have a high impact on society. Ornage’s report reflects its several initiatives taken to enhance the impact and in making their workplace a loved one amongst all
The company’s Board of Governance includes several stakeholders including internal and external. It uses feedback on CSR and ethics on its reports and policies to evaluate its actions made for creating a sustainable organization for the betterment of the society. The CSR objectives of the company is formed by receiving active feedback taken from its various stakeholders such that they can be involved in the process of creating a larger impact on the society. Thus, the quality of the CSR report developed by Orange meets the GRI Standardization in order to create a more sustainable and ethical organization for the future.
Corporate ethics involves implementing right or wrong decisions for the company that can impact its long term success. Corporate ethics and good Corporate Governance can lead to sustainable CSR strategies. Orange has developed report as per latest GRI Guidelines published for incorporating overall CSR objectives. The quality of the report attends to several diverse issues that the company aims to target and deliver. But the company’s strategies are in line with the deliverables. Orange can achieve the economic, social and environmental aspects of its CSR strategies by complying with the several guidelines issued by the GRI. As per its customers are concerned it claims to be the most efficient and effective company that has attained growth and brand value with customer likings and association with the brand. The company in order to generate a greater brand value needs to develop an all-around strategy and deliver the same
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Orange.com, Retrieved on 24th Novemeber 2016. Orange.com CSR report 2015. https://www.orange.com/en/content/download/37532/1150176/version/2/file/Bilan+2015_VA-final.pdf.
Perrini, F. and Tencati, A., 2006. Sustainability and stakeholder management: the need for new corporate performance evaluation and reporting systems. Business Strategy and the Environment, 15(5), pp.296-308.