Social Responsibility in Intel International Business
1. Problem Definition
Intel is a worldwide famous company, which was founded in 1968 by Gordon Moore and Bob Noyce. From the earliest period constant leader and driving force of the company was Andrew Grove with demanding confrontational management style. This strict management has led Intel to the global corporation with branches in more than 40 countries and staff of 83 500 employees in 2008. Annual Total Revenue has reached $35 127 billion in 2009; the share of International Business (outside of US) in this year has reached 82%.
Globalization, rapidly changing markets, economic recession and slow recovery, new forms of global enterprises such as “postmultinational global corporations”, increasing of Intel International Business influence Intel to correct its Corporate Social Responsibility Management in cross-cultural and international contexts. 2. Justification for Problem Definition
Corporate Social Responsibility is “the set of obligations an organization undertakes to protect and enhance the society in which it functions” (p. 125 of International Business. Ricky W.Griffin, Michael W. Pustay, 2007, 5th ed).
The main areas of social responsibility application are: stakeholders (concentration on customers, employees and investors), natural environment, and general social welfare (making contributions to charities, philanthropic organizations, non-profit associations; supporting social-cultural organizations and improving health and education).
According to the Intel Corporate Responsibility Report of 2008, Intel main objectives in key corporate responsibility areas are: 1) Environment – to focus on reducing water consumption and identifying new ways to reduce the generation of chemical waste; 2) Workplace – to work toward achieving workforce parity; 3) Supply Chain – to continue to advance the integration of Electronic Industry Citizenship Coalition tools into Intel processes and encourage environmental responsibility among suppliers and improve their diversity; 4) Community – to maintain at least 40% of employee volunteerism rate; 5) Education – to focus on the Intel Teach Program (training more than 1,1 million teachers annually) and the Intel Higher Education Program. Environmental area. Over the past decade, Intel pointed its activities to implement a progressive water management system that reduces the use of water by millions of gallons each day by using advanced technologies such as brine evaporation system, osmosis technologies in the following countries: China (Chengdu, Dalian, Pudong), Costa Rica (San Jose), Ireland (Leixlip), Israel (Qiryat-Gat), Malaysia (Kulim, Penang). The decreasing of water consumption is presented in Table #1. Table 1
|Key Indicators |2008 |2007 |2006 |2005 | |Environmental | | | | | |Global warming emissions (million metric tons of CO2) |2,85 |3,85 |4,02 |3,78 | |Energy use (million kWh - includes electricity, gas, and diesel) |5 643 |5 757 |5 793 |5 292 | |Water use (millions of gallons) |7 792 |7 517 |7 651 |6 756 |
Social area. As we can see information in Table #2, last four years was a period of reducing staff. The shares of women (around 30%) and number of teachers trained (1,1 mln) are stable and investments in employee training raised. Table 2
|Key Indicators |2008 |2007 |2006 |2005 | |Social | ...
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