Saturday, December 1, 2012

CSR in Acer lnc




Many of today’s businesses think of CSR asmaking these types of paternalistic, charitable  contributions. However, he continues, there is another form of CSR, that is, the stewardship principle. According to this view, corporations become stewards or public trustees by using their resources to affect all people in society in fundamental ways, not just stockholders. This latter principle led to modern stakeholder theory in which corporate managers recognize the need to interact meaningfully with all groups who have a stake in the organization’s activities. Although stewardship ideas were discussed in the works of Abrams, Bowen, and Eells, it was during the 1960s and 1970s, that CSR underwent some of its most important iterations.

In the  most  widely read textbooks  published  after 1970, the process of public relations is described by using decision making models and two-way communication. Cutlip  and Center  offered four stages in their  public relations model: fact-finding and feedback, planning and programming, action and communication, and evaluation. This idea was slightly altered and became the four-step management process:
  • Defining the problem  (or opportunity) 
  • Planning and programming 
  • Taking action and communicating
  • Evaluating the program
Acer Incorporateds principal activities are to develop and market mobile and desktop PCs, servers and storage, LCD monitors, high-definition TVs, and handheld/navigational devices. The company is the worlds number 4 ranking vendor for total PCs and notebooks (after Dell, HP and Lenovo). Its  other  activities include  repair  services  of  Acer  brand products,  investing,  financing,  ,  and provision of internet, electronics services and information storage.


With 58 percent, notebooks make up the largest share of Acers total IT-products sales. Displays, desktops and others, count for 19, 15 and 8 percent of sales, respectively. Acers main market is Europe, the Middle East and Africa, in which 65 percent of its products are sold. The Americas and Asia Pacific each contribute 13 percent to total sales while the Chinese market makes up 9 percent of total IT-products sales. Acer has streamlined its operations in recent years, spinning off its manufacturing operations (now Wistron), as well as its consumer electronics and peripherals business (now Benq). It still holds stakes in both companies. Acer now outsources its manufacturing. It sells through resellers and distributors worldwide.


Acer Incorporated is part of the Acer Group. The Acer Group comprises several companies and markets a broad spectrum of branded IT products, e-business solutions and services. In addition, the group supplies multiple brands of IT products including components and software in Greater China. The Acer Group employs 6,100 people, while Acer Incorporated employs 5,300 people supporting dealers and distributors in more than 100 countries. As an ethical and responsible enterprise, Acer believes in building a people friendly environment that cultivates innovative thinking, and in creating a sustainable company while providing positive contributions to society. Acer regard the interests of our customers, employees and shareholders with foremost importance. With company growth and profitability achieved, Acer holds to the spirit of giving back to the society that sustains it and is committed to implementing CSR for sustainable operations. However, Acer’s interest in CSR is very recent and seems to focus predominantly on environmental issues. Only in 2005, Acer published its first Corporate Environmental Report. The report mainly focuses on the environmental performance of Acer while human and labour rights are hardly addressed. Acer also does not have a code of conduct which mentions these themes. Neither is there any information on human and labour policies on its website.

Acer is committed to ensuring that working conditions in its supply chain are safe, that workers are treated with respect and dignity, and that business operations are environmentally responsible and ethical. As a result of this overarching commitment, Acer will not accept any supply chain activities in the DRC or adjoining countries that fuel conflict of tantalum, tin, tungsten, and gold. Acer supports the conflict mineral provisions contained within the Dodd-Frank Wall Street Reform and Consumer Protection Act (H.R. 4173), and will support similar requirements in other regions of the world. Acer commits itself individually and through participation in the EICC/ Global e-Sustainability Initiative (GeSI) Extractives Working Group to support EICC/GeSI due diligence programs, OECD due diligence guidance and piloting, smelter audit and verification programs, inregion sourcing schemes, and engagement with stakeholders for collaboration and efficiency. Acer understands that a certification program may be a necessary solution in the future. Acer will support a certification process should all the relevant stakeholders agree to go down that path. In the meantime, Acer will continue to support the audit and verification programs established by the EICC and GeSI.

One of the early theorists on the process of CSR was L. E. Preston,  a consultant  to the Royal Commission  on Corporate Concentration in Canada.30    Part  of that  study  included Preston’s ideas on the corporate social response matrix, the focus of which was the management of social issues by cor- porations.31    Managers  followed  a four-step  process known  as corporate  social involvement. The stages included:
  • Awareness or recognition of an issue 
  • Analysis and planning 
  • Response in terms of policy development 
  • Implementation
On Acers website, the only information available refers to environmental policies. However, some of the assertions in the environmental report Acer published recently indicate that Acer can also be held accountable for issues related to human and labour rights in its supply chain. Acer liken the relationships within the supply chain to those of a community, and believe we can work together toward a common goal to establish Acer’s green supply chain management system one step at a time. Acer has nearly 100 suppliers, most of which are system suppliers and primary component suppliers. In terms of supply chain management, Acer makes no distinction between itself and its suppliers. Fostering a corporate culture that emphasizes creativity, Acer sets goals and lets suppliers propose the method of execution. In environmental responsibility, Acer's global operation, spanning across Europe, Middle East, Africa, the Americas, Greater China and the Asia Pacific, is devoted to:
  1. Ensuring that its products and operations meet all applicable environmental regulatory requirements.
  2. Selecting technologies that minimize harmful, non-environmentally sensitive materials; conserve energy; and are recyclable.
  3. Saving energies, preventing pollution, minimizing and recycling discards in its daily operations.
  4. Promoting awareness of its environmental policy among employees and partners in Acer supply chain.
Building an Environmental Management System (EMS) to continually monitor and improve activities. Acer applies the precautionary approach. It states that: “our product design takes into consideration the ways to reduce environmental loading from the outset of production, in addition to user needs, functionality and added value.”
In the Greenpeace Report, Acer was ranked 2.3 points out of ten which is a rather low score. According to Greenpeace, despite Acer’s adoption of the precautionary principle, the company has yet to provide timelines for the elimination of polyvinyl chloride (PVC) and brominated flame retardants (BFRs). The company scores no points on product take back and recycling.
Acer loses a point because its Hazardous Substance List fails to provide a system for identifying future harmful chemicals for elimination. Further it has no PVC-free or BFR-free models on the market, no reference to individual producer responsibility Acer only provides takeback services where required to do so by national EPR laws, no information to individual customers on what to do with their discarded Acer products and no information on the amounts of e-waste collected and recycled.

Compliance with CRS Standards
Responsibility
As mentioned above Acer demands that its suppliers adhere to green product specifications. One of the environmental objectives of the company is to establish a ‘green supply chain’. However, nowhere Acer acknowledges its corporate responsibility with regard to social issues in its supplier chain.

Stakeholder involvement
The only information on stakeholder involvement is provided by the website, which states that “Acer actively communicates with international environmentalist organizations such as Greenpeace and Silicon Valley Toxic Coalition (SVTC) to better sensitize itself with related issues as well as expectations of other sectors.” 24

Verification
It seems that Acer is presently in the process of auditing its suppliers on environmental performance. In the environmental report it is mentioned that with regard to the green supply chain the 2006 objectives are to “establish a comprehensive supplier grading system”, “complete green product management system audits of first-tier suppliers” and “advise/require suppliers to improve corporate responsibility”.25  There is no information on social audits of suppliers.

Transparency and Reporting
Overall, Acer publishes very limited CSR related information. The main sources are:
1. Acer Corporate Environmental Report: Mainly includes environmental practices. In the report it is stated that it adopts the GRI guidelines. However, unlike some other companies, it is not clear which and where guidelines are applied.
2. Acer website: also mainly addresses environmental issues.
Acer has set up an environmental management liaison window which allows the public to contact the company by e-mail on environmental issues.
 
Conclusion
from the above discussion we can conclude that the acer in social responsibility and it still has weakness that need to be improved. in terms of ensuring the health of workers and raw materials to be used, the above discussion has described some form of social responsibility as long as it done by acer, that is Ensuring that its products and operations meet all applicable environmental regulatory requirements, technologies that minimize Selecting Harmful, non environmentally sensitive materials, conserve energy and are recyclable, Saving energies, Preventing pollution, minimizing and recycling discards in its daily operations, Promoting awareness of its environmental policy among employees and partners in Acer supply chain. For public relations, acer should also ensure if there is negligence in production that can cause harm to consumers by imposing warranty or guarantee that the product is damaged due to failed production. while also expand services in areas where large enough for consumer satisfaction.