...TIMBERLAND’S MODEL OF CORPORATE SOCIAL RESPONSIBILITY TIMBERLAND’S MODEL OF CORPORATE SOCIAL RESPONSIBILITY Timberland is a manufacturer of rugged outdoor boots, clothing, and accessories. Founded in1918 in Boston by an immigrant shoemaker named Nathan Swartz, the company has been run for almost a century by three generations of the Swartz family. Today, the company sells its product in department and specialty stores as well as in its own retail outlets in North America, Europe, Asia, South Africa, Latin America, and the Middle East. Although the company was taken public in 1987, the Swartz family and its trust and charitable foundations continue to hold about 48 percent of Timberland stock. The company’s mission embodies a strong social responsibility theme “: to equip people to make a difference in their world. We do this by creating outstanding products and by trying to make a differene in the communities where we live and work.” In 1989, Timberland was approached by City Year, an urban service corps, for young people, with a request for a donation of boots. Jeff Swartz, a grandson of the founder and CEO, said yes and agreed to join the corps for half a day of community service. Swartz later described his experience: I found myself, not a mile from our headquarters…face to face with a vision [of] America not unlike the one that drew my grandfather to leave Russia in steerage so many years ago. I spent four hours with the corps members from City Year and some young recovering...
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...Stakeholders’ Theory and Social Contract 5 1.3 Carroll Theory 6 1.4 Positive and negative light of CSR 6 1.5 How to implement Corporate Social Responsibility in a MNE ....................................7 2 TIMBERLAND AND CSR 7 2.1 Brief history of Timberland 8 2.2 The path towards CSR at Timberland: “Commerce and Justice” 8 2.3 CSR at Timberland today: the 4 Pillars 9 2.4 Timberland CSR practices: two cases in evidence 10 Case 1: Timberland entering India 10 Case 2: Timberland in China and Vietnam 11 3 TIMBERLAND’S INTERNATIONALIZATION STRATEGY 11 3.1 Timberland’s internationalization process: an overview 11 3.2 Historical context fostering or hampering Timberland’s internationalization 13 3.3 An internationalization theory applied: The Uppsala model 14 4 ROLE OF CSR IN TIMBERLAND’S INTERNATIONALIZATION STRATEGY 15 4.1 Boosting company efficiency by educating workforce 16 4.2 Improving local performances by assessing Code of Conduct compliance 16 4.3 Strengthening international relationships by supporting local development 17 4.4 Spreading global image by involving communities 17 4.5 Financing international expansion by boosting shareholders’ endorsement 18 5 TIMBERLAND VS. COMPETITORS: CSR NURTURING COMPETITIVE ADVANTAGE 19 5.1 OLI theory: an application of Timberland’s CSR 19 5.1.1 CSR fostering Timberland’s ownership advantage 19 5.1.2 CSR enhancing Timberland’s location advantage 20 5.1.3 CSR neutralizing Timberland’s internalization advantage...
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...Middle East, and Asia.[2] In 2008, Timberland had $1.36 billion in revenue with a profit of $42.91 million.[3] According to the Timberland Web site, “Our place in this world is bigger than the things we put in it. So we volunteer in our communities. Making new products goes hand in hand with making things better. That means reducing our carbon footprint and being as environmentally responsible as we can.”[4] Timberland’s commitment to going beyond market success and corporate profitability is evident in the four pillars of its corporate social responsibility (CSR) strategy. These pillars are as follows: become carbon neutral by 2010; design recyclable products; have fair, safe, and nondiscriminatory workplaces; and focus employee service on community greening.[5] Timberland is committed to using “the resources, energy, and profits of a publicly traded footwear-and-apparel company to combat social ills, help the environment, and improve conditions for laborers around the globe.”[6] Jeffrey Swartz, Timberland’s CEO, believes that the best way to pursue social objectives is through a publicly traded company rather than through a privately owned company or a nonprofit...
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...1. How would you characterize Timberland’s exercise of its corporate power in society? Is Timberland using its influence responsibly? If so, how? Timberland’s exercise of its corporate power in society can be characterized as Corporate Social Responsibility. Timberland, from its inception in 1918 to being bought out by VF Corporation all the way to present day, has been acting responsibly to the community and makes an effort to better society in general. While they continue to be 100% accountable to their shareholders, it is the company mindset that they are about service to a truth that is larger than self. Timberland is making strides with their CSR through charitable contributions; which includes both cash and substantial product donations. In addition, they are giving footwear to children in Afghanistan as well as through sustainability; reducing carbon emissions and using renewable energy sources. 2. Has Timberland balanced its economic and social responsibilities through its various programs, such as the annual Serv-a-Palooza event and sustainability goals? Are the company’s programs examples of enlightened self-interest? Timberland has incorporated a balance of its economic and social responsibilities; and the event, Serv-a-Palooza, was a prime example of this. The event celebrated their 100th anniversary where 566 employees, including the leaders and family members of newly added VF Corporation, volunteered in various projects including greening a community...
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...IN C O R P O R ATE CITIZENSHIP March 2004 • NUMBER 5 A SERIES ABOUT INTEGRATING BUSINESS AND COMMUNITY DEVELOPMENT PRACTICE TEAMING UP TO BRAND AND BOND: Timberland Partners with City Year, SOS, and SkillsUSA is fast becoming an essential business competency. Many companies are coming to find that developing the economic assets and social and human capital of low-income communities pays dividends to the bottom line. In the short and long term, this kind of strategy develops untapped markets, new labor pools, effective suppliers, and new operating sites. Leading businesses find that integrating business and community development creates new pathways to achieve longterm sustainable success—a “win-win” proposition for the business and the community. In this series we profile examples of this integrated approach across a range of industry sectors. Timberland strengthens its brand identity through partnerships that promote social justice and a service ethic worldwide. In 1989, the nonprofit youth service corps City Year asked Timberland to donate 50 pairs of work boots for young adults serving their communities. That request sparked a relationship based on a shared vision of making a difference in the community, and set Timberland on a trajectory of a growing commitment to community service. THE BUSINESS CHALLENGE In the 1980s, Timberland was an entrepreneurial, high-growth company aspiring to grow into a larger-scale enterprise. Accomplishing that transition would...
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...Case Study: Timberland’s Model of Corporate Social Responsibility Yichao Chen 1215615 1. Timberland’s exercise of its corporate power in society should be characterized as Corporate Social Responsibility. CSR means that a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, communities and environment. According to the article, Timberland exercising its power to affect the people (By launching Path and Service Program to affect their employees to contribute to the society), help the communities (cash and products donations such like giving footwear to schoolchildren in Afghanistan) and try to protect the environment (renew energy sources to reduce carbon). By the actions above, we can say Timberland is using its influence responsibly. 2. The annual Serv-a-Palooza event is a serves event that the company employee volunteers work on some projects to support local New Hampshire communities and areas in Missouri where affected by tornados. The sustainability goals of Timberland are reducing carbon emissions by using renewable energy source. These two programs surely balanced its economic and social responsibilities even though these programs may cost the company some money. The reason is both of these programs increase the reputation of Timberland in the society, especially the communities that surround them and had been helped by them. The reputations Timberland earned will stimulate the...
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...these organizations see such initiatives, broadly called "corporate social responsibility," as a strategic weapon in the war for talent, as well as a vehicle to fuel business growth. The government, businesses and society are much more interactive than in the past. Corporations are more aware of their role towards the society. They are responsible bodies that feel a sense of duty towards commonwealth and the environment. This has come with a growing realization that they, as an integral part of the society, can contribute towards the empowerment and upliftment of the society. This is the foundation thought behind the tripartite golden handshake between—businesses, civil society and governments. Corporate Social Responsibility (CSR) can be defined as the "economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time". The concept of corporate social responsibility means that organizations have moral, ethical, and philanthropic responsibilities in addition to their responsibilities to earn a fair return for investors and comply with the law. CSR requires organizations to adopt a broader view of its responsibilities that includes not only stockholders, but many other constituencies as well, including employees, suppliers, customers, the local community, state, and federal governments, environmental groups, and other special interest groups. Today, in this competitive business environment, CSR is viewed as the key to not only...
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...rland1) I believe that Timberland is exercising its corporate power in society very strongly in many evolving ways. First and foremost it is important to know that the company's mission already embodies a strong social responsibility theme hence making the exercising of corporate power in society a must "to equip people to make a difference in their world" This statement is part of the company's mission and did not state which "world" hence they are allowing themselves to make a difference in every person's world no matter what race or standard of live one is living. Furthermore this was clearly and strongly demonstrated through out the company's evolving history of "giving back to the community since 1989 when Timberland was approached by the urban service corps for young people, City Year. They gladly donated their boots and the CEO even joined for half a day of community service. From there onwards the 50 pairs of donated boots grew to over $10million in support to City Year allowing expansions across the USA and South Africa. Later on in 1992, after years of dedicated work on the program the official Timberland CSR program was formally launched as " Path to Service". Employees are encouraged to participate in this program as soon as they are hired and although participation is voluntary 95% do so and the program is cited as one of the most valuable benefits offered by the company proving that the culture of Timberland is one of "helping hand". By 2008 the program evolved...
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...For an organization to have corporate power, the business needs to have the power to influence the society, economy, and the government. In this case, Timberland is able to influence the government, economy, and society by practicing in social responsibility despite the fact that it is not the largest firm. As a result of the Timberland Company exercising in social responsibility, they are attentive to stakeholders that affected by its business operations, the community, and the natural environment. I agree that Timberland has achieved a balance of its economic and social responsibilities. In this case, Swartz expressed, “At Timberland, doing well and doing good are not separate or separable efforts.” While its social programs come with a price tag, it seems that the goodwill and social reputation that is enjoyed by Timberland results into the economic benefits for the company. One of the arguments that can be in favor of Timberland’s social responsibility initiatives is that they were able to balance their power with its responsibility. Furthermore, they were able to improve stakeholder relationship which results to enhancing their company’s reputation. One of the arguments that can be against the Timberland Company exercising some of these social responsibility initiatives is that these initiatives are good for the society but it lowers their economic efficiency and profitability. If I was an executive...
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...After reading the discussion case Timberland’s Model of Corporate Social Responsibility, I have come to believe that Timberland did balance its economic and social responsibilities through the programs mentioned, Path to Service, GREEN, their grants and donations, and their new sustainability goals. To be economically balanced means to strive to ensure that your business is profitable while still providing value to your stakeholders. The main stakeholders in this situation are not only City Year and their “young people” but also the employees over at Timberland. There are many more stakeholders that are gaining value from this. According to the book, stakeholders are composed of both market and nonmarket stakeholders. The market stakeholders are the employees, the customers, suppliers, distributors, wholesalers, retailers, stockholders, and creditors. The nonmarket stakeholders are the nongovernmental organizations, communities, governments, general public, media, etc. The market stakeholders in this situation were most definitely benefiting. The employees were benefitting from the cultural experience they were gaining as well as from the fact that while it was a volunteer program, it was also paid. Employee morale was probably boosted as a result of the company-sponsored community service activities. Creditors, suppliers, and the distributors, wholesalers, and retailers were all benefitting because more shoes were being donated, thus more supplies were being ordered, put on credit...
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...management issues1 Identification of management issues2 rationalisation behind unethical behaviour2 corporate governance and social responsibility2 recommendations3 Implementation of recommendations3 references4 1.0 BACKGROUND The purpose of this case study is to identify the management issues of Satyam Computer Services Limited’s, former chairman Ramalinga Raju when he admitted to corporate fraud in 2009, and how these issues could be addressed. Satyam Computer Services Limited, (now known as Mahindra Satyam) is a “leading global information communications and technology company”. (Anon., n.d.) It is a part of the “US $15.4 billion dollar Mahindra group, a global industrial federation of companies of the top 10 business houses based in India”. (Anon., n.d., p. 1; Anon., n.d.)). 1.1 INTRODUCTION TO MANAGEMENT ISSUES “India’s corporate community experienced a significant shock in January 2009 with damaging revelations about board failure and colossal fraud in the financials of Satyam.” (Afsharipour, 2010)Ramalinga Raju and the CFO of the company were charged with “conspiracy, cheating and falsifying records. Raju was also allegedly using salary payments to fabricated employees, in order to steal money from the company.” (Anon., n.d.) This case study will explore the unethical behaviours of Ramalinga Raju, but also how ethical standards and social responsibility factors in with Satyam’s Computer Services Limited’s own management issues, which would have also contributed...
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...t Malaysian-based Company (Maybank) Introduction / Objective of the term paper Company Background Maybank, a government-linked company (GLC). is the largest bank in Malaysia with more than 380 domestic and 90 international branches. In Maybank, the unionised Special Grade Clerks performs these functions: • receiving and paying of cash items within designated authority • signing of internal vouchers • checking and verifying all activities of tellers • dual control of ATM • control and release of checkbooks, PIN, bank drafts, bankers cheques etc. If one analyses the job function / authority and responsibility of the unionised Special Grade Clerk, one would note that a lot of the functions of some Unionised employees in some banks are much superior to the said officers. Non-clerical - Position hold above trainee officer, bank officers (in-charge banking hall) and etc. It was reported of estimated 4,605 or 61% of Maybank employees in the clerical and non-clerical category were NUBE members and some of them decided to form an in-house union called Maybank Non-Executive Union (Mayneu). Organizational Behavior issues identified ✓ Biasness in Performance Bonus Maybank and the National Union of Bank Employees (NUBE) had been in dispute over the alleged lack of or insufficient performance bonuses provided to lower-level employees. The dispute had been ongoing since 2009. NUBE claims that the bank did not provide a fair...
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...Ethics MGT 498 November, 2012 Ethics Edward O Wilson, an American biologist and theorist proposed that in the end, success or failure will come down to an ethical decision; one on which those now will be judged for generations to come (ThinkExist, 2012). Organizations require members to adhere to the established guidelines and ethics to maintain compliance with internal and external directives. The ability of the company to remain profitable without sacrificing ethics is a competitive advantage that will ensure consumer loyalty and enhance its reputation. Additionally, ethical decision-making contributes to a company’s fulfillment of corporate social responsibility. This analysis will describe how ethics and social responsibility influence the development of a strategic plan. Furthermore, it will provide an example of an unethical action and present an alternative method for handling the situation. Influence of Ethics The Free Dictionary.com (2012), defines ethics as a set of principles of right conduct or standards governing the conduct of a person or the members of a profession (Ethics). Although many believe that ethics and business cannot exist simultaneously, the cost of unethical behavior in organizations is unacceptable. According to Wheelen and Hunger (2010), a survey by the Ethics Resource Center of 1,324 employees of 747 U.S. companies found that 48% of employees surveyed said that they had engaged in one or more unethical and/or illegal actions during the...
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...in the contemplation of law. Limited liability is a key feature of the modern corporation. Consumer sovereignty: the idea that consumers should and do control the market through their purchases. Dependence effect: as a society becomes increasingly affluent, wants are increasingly created by the process by which they are satisfied. Moral vegetarians are people who reject the eating of meat on moral grounds. 2 In my opinion, Wal-Mart is an example of a morally bad corporation. There are three reasons to improve that: (1) Unfair competition. Our textbook describe it like this: “Some critics of capitalism maintain that capitalism breeds oligopolies that eliminate competition and concentrate economic power that a system of corporate welfare protects many businesses from true marketplace competition, and finally that competition is neither generally beneficial nor desirable in itself.” Through the case 4.5, in order to eliminate other competitors and concentrate more economic power, Wal-Mart puts pressure on suppliers to lower their prices, so that it can offer its customers...
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...Canadian Business Environment Market and Nonmarket Environments Any issues or changes that happen in one of these environments can directly cause change to the other. Since both of these are so closely related and to a great importance for a firm to run successfully, they have put more focus on managing both aspects of the company. The interrelationship between the market and nonmarket environment is heavily based on the role of management. Since a firm will operate in both the market and nonmarket environments, managers are there to measure the impact one has on the other. The issues found in the nonmarket environment are directly related to the market environment of the firm. The nonmarket environment is a little more difficult to control than the market environment, but each firm is aware of the importance of running sufficiently in both aspects in order to be successful. As shown in figure 1-1 (Baron p. 3), the relationship that the nonmarket and market environment has. Market environment determines the significance of nonmarket issues to the firm. Nonmarket environment shapes business opportunities in the market place. Analysis of the Nonmarket Environment When analyzing the nonmarket environment of an organization the main focus is the four I’s that characterize the organization. The four I’s consists of Issues, Interests, Institutions and Information. The issues aspect is the main part of the nonmarket analysis, issues of a firm can be very vast, and they...
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