Challenges of Corporate Social Responsibility: Microsoft Corporation

Challenges of Corporate Social Responsibility: A Case Study of Microsoft Corporation
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Date of Submission Challenges of Corporate Social Responsibility: A Case Study of Microsoft Corporation. Microsoft Corporation is an American multinational company that deals in the production of computer software, electronics, personal computers, among others. Founded in 1975, the company has risen to dominate the personal computer market globally and achieved its position as the most publicly-traded company in the world as of 2018. A corporate social responsibility (CSR) report is a business operation whose purpose is to create a forum where a company can consolidate the social and environmental concerns in its business operations with stakeholder-company interaction which elicits favorable responses from them. Additionally, touches on all areas of business activity, and is an important aspect of understanding the relationship between business and society. The case study focuses on Microsoft Corporation’s corporate social responsibility for 2020 titled “Reimaging a better future together”, the company’s performance in the Dow Jones Sustainability Index and the Global 100 index, and the challenges therein. Launched in 1999, the Dow Jones Sustainability Index is the major standard for corporate sustainability and Microsoft has appeared in its rankings for almost a decade. In 2020, Microsoft Corporation was included in North America, World and World enlarged families of the index, despite the global Covid-19 pandemic. This shows the company’s notable role and ability in responding to global sustainability trends. However, it is yet to be recognized top in the software category within which it is classified. Just its inclusion in the index qualifies it to have a high corporate social responsibility that meets the requirements of the competitive index among the business giants of the world since 50% of the sustainability score is subjective to the industry to which the corporation belongs (Fides, 2018). The index credibly provides the sustainability indices for companies as it only includes those that score that are 30% of their industry’s top performers. This, therefore, suggests that Microsoft Corporation has had sustainability scores that are competitive in the world rankings. Additionally, Microsoft Corporation’s position in the index has been less volatile since its debut into the index which shows that its sustainability is not only concerned with stability but also controlling risky management decisions. The Dow Jones Sustainability Index operates based on rejecting corporations that fail to operate sustainably and ethically. The Global 100 index is a list of the most sustainable corporations of the world that is compiled by the Corporate Knights investment advisory firm. The methodology used by the ranking involves a keen analysis of a corporation’s market capitalization and sustainability disclosure rate. Sustainability refers to a company’s ability to meet the needs of the existing generation without compromising those of the future generation. Commitment to climate change mitigation remains to be an important aspect...