AWA: Academic Writing at Auckland

Microsoft is a leading vendor in offering programming tools and technologies, such as Windows, which is broadly used by organisations and developers (Iansiti, & Levien, 2004). Firstly, this essay will examine the association between Microsoft and two concepts; corporate social responsibility and stakeholder theory. Secondly, it will define the meaning of sustainability and discuss the approach Microsoft has taken to respond to the economic component. Thirdly, it will examine Microsoft’s initiatives towards addressing environmental sustainability, and lastly, this essay will explore Microsoft’s commitments among the concerns of social sustainability.

Corporate social responsibility (CSR) is based on the notion that businesses are beyond that of a profit-seeking entity, therefore have obligations that benefit the broader communities (Werther, & Chandler, 2006). Microsoft’s approach to CSR mirrors that of a proactive approach, whereby the company is continuously engaged in responsible activities to achieve the highest industry standards that are beyond the pursuit of profits (McKee, Kemp, & Spence, 2013). Moreover, Microsoft’s approach is reflective of a stakeholder theory which conceptualizes the idea whereby firms incorporate perspectives of stakeholders into their strategic outlook (Chandler, & Werther, 2014). This ensures that stakeholders needs are met, thus in return, provides success and survival of the company beyond the short-term. Microsoft’s business approach involves proactive engagement with suppliers, customers, human rights specialist to policymakers, and many others to advance greater progress (Microsoft, 2017). The company’s CSR obligations are also evident through their philanthropic contributions, whereby they believe that investing their greatest asset - their technology – has powerful forces capable of advancing a more equitable world that will help address the three pillars of sustainability; economic, environmental and social (Microsoft, 2017).

Sustainability is concerned with achieving the present needs in today’s society without compromising the chance for future generations to cater their own needs (McKee, Kemp, & Spence, 2013). Moreover, economic sustainability revolves around the idea of an economy’s capacity to consistently generate substantial growths that would produce long-term economic development (McKee, Kemp, & Spence, 2013). Microsoft’s approach towards economic sustainability is founded on a growth mindset, which is primarily focused on improving productivity and efficiency within the economic sphere. An essential element to their initiative is expanding economic opportunities to many corners of the world, whereby they envision technology as an enabler for people and other organisations to accelerate innovation and achieve sustainable growth (Microsoft, 2017). An example, namely the 21st Century Skills for Employability is a programme partnered with Microsoft which commits to helping address the challenges of unemployment across Europe (Bonfiglioli, Moir, & Ambrosini, 2006). The programme reached more than 2,000 technology centers in local communities that aimed to help people develop skills and gain certification in computer technology, hence, enabling people to undertake better-paid work and improve productivity to ensure a sustainable economy (Bonfiglioli, Moir, & Ambrosini, 2006). With the growth of a digital economy, Microsoft has made substantial progress on economic sustainability by applying innovative opportunities to deliver IT skills to society, and therefore this is consistent with a strategic CSR approach.

Environmental sustainability is based on the long-term preservation of the environments natural resources, to conserve water and enhance people’s quality of life (McKee, Kemp, & Spence, 2013). Businesses are expected to make long-term investments that will help put pressure on concerning issues such as the use of fossil fuels, climate change, air and water pollutions and global warming (Nguyen, & Slater, 2010).  Microsoft has been committed to leveraging the use of technology to solve some of these environmental issues. Their commitment towards environmental sustainability is to “[empower] every person and organisation on the planet to thrive in a resource-constrained world” (Microsoft, 2017 p. 36). The company has expanded their commitment by focusing on specific key areas which they believe has the most significant impact; these included energy, carbon, and water (Microsoft, 2017). Microsoft has been carbon neutral since 2012 and has invested in technology research, thereby allowing their datacenters to be powered by wind, solar and hydropower electricity (Microsoft, 2017). The management of water resources has also been a critical area of concern; therefore, the company launched an innovative technology tool; “Water Risk Monetizer,” which helps organisations such as Microsoft measure their true risks of operating in areas that are water-scare (Microsoft, 2017). Microsoft’s commitment towards environmental sustainability is evidence of being more than implementing sustainable principals; it is a reflection of their proactive approach to achieving the industry’s highest standards by promoting the well-being of their stakeholders.

Social sustainability is about improving quality of life for people, by regarding opportunities such as fair income distribution, basic healthcare investment and access to education (McKee, Kemp, & Spence, 2013). Microsoft’s approach towards social sustainability focuses on empowering and bringing out the best in people, whether it’s in the workplace or around communities. Microsoft committed to offering a substantial support system for employees at every level of the organization through varies compensation and benefits. For example, they provided training, and specialized software for medical needs, free stress management session, counseling, and child/elder care services (Microsoft, 2017). Moreover, Microsoft partnered with non-profit organisations to introduce a grant known as YouthSpark, which focused on making education in computer science more accessible for young people (Microsoft, 2017). The grants approach assisted in addressing sources of inequality such a fair income distribution, between those who have the opportunities to obtain digital skills to succeed in the 21st century, amongst those who do not (Microsoft, 2017). The company also takes considerable measures to hold their suppliers accountable to their code of conduct which includes proper practices around health and safety, human rights and labor (Microsoft, 2017). These examples of approaches portray how Microsoft is contributing towards social sustainability because they conduct social goods in areas where they find are insufficient to address society’s needs to the fullest.

Microsoft’s initiatives outlined throughout the essay in response to the three pillars of sustainability is an absolute reflection of corporate social responsibility and the stakeholder theory. Microsoft committed to economic opportunities such as 21st Century Skills of Employability, which helped address unemployment in Europe to improve productivity thus ensuring a sustainable economy. Furthermore, the company also delivered environmentally sustainable approaches by investing in technologies allowing their datacenters to be powered by cleaner energies. Moreover, Microsoft responded to social sustainability through strategies such as the YouthSpark grant, which helped address income inequality by making education in computer science more accessible. In summary, the company acted with a multiple-constituency approach – by embracing the needs and interest of their stakeholders, they had motivations beyond profit maximization that helped achieve a larger end, and that itself is reflective of corporate social responsibility and stakeholder theory.

References

Bonfiglioli, E., Moir L., & Ambrosini. V. (2006). Developing the wider role of business in society: The experience of Microsoft in developing training and supporting employability. Corporate Governance: The international journal of business in society, 6(4), 401-408. Retrieved from https://doi-org.ezproxy.auckland.ac.nz/10.1108/14720700610689513 

Chandler, D., & Werther, W. B. (2014). Strategic corporate social responsibility. Stakeholders, globalization, and sustainable value creation. (3^rd ed). United States: SAGE Publication.

Iansiti, M., & Levien R. (2004). The keystone Advantage: What the new dynamics of business ecosystem mean for strategy, innovation and sustainability. Boston: Harvard Business Review Press.

McKee, A., Kemp, T., & Spence, G. (2013). Sustainability and corporate social responsibility: Ensuring the future. In A. McKee, T. Kemp., & G. Spence (Eds.), Management; A focus on leaders (pp. 528-569). Frenchs Forest, N.S.W: Pearson Australia.

Microsoft. (2017). Corporate social responsibility report (Report No.3). Retrieved from http://download.microsoft.com/download/0/0/6/00604579-134B-4D0E-97C3-D525DFB7890A/Microsoft_2017_CSR_Annual_Report.pdf

Nguyen, D. K., & Slater, S. F. (2010). Hitting the sustainability sweet spot: having it all. Journal of Business Strategy, 31(3), 5-11. Retrieved from https://doi-org.ezproxy.auckland.ac.nz/10.1108/02756661011036655 

Werther, W. B., & Chandler. D. (2006). Strategic corporate social responsibility. Stakeholders in a global environment. United States: Sage Publication.