Philips Case Study

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Part I

About Philips

Philips is a 120 year old Dutch company headquartered in Amsterdam with business focused in the following areas:-
a) Philips Consumer Lifestyle
b) Philips Healthcare
c) Philips Lighting
Philips is one of the largest electronics companies in the world with presence in more than 60 countries.
Key Figures:-

History of CSR at Philips

Philips had set Board of Management’s guidelines for environmental performance in 1970 and issued a general environmental policy in 1987 which was updated in 1991 and 1998. Philips became a member of World Business Council for Sustainable Development in 1993. In 1994 Philips launched its first comprehensive corporate
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Over 2000 employees work on production lines for Philips. Labour rights violations identified are:-
Health, Safety and Sexual Harassment:
In September 2005, a female employee was moved to another production line due to pregnancy. According to the Mexican organisation CEREAL, she was working on a production line for television components with solder containing lead and tin (although Philips claimed that its processes are lead free). On 17 November she had a bleeding and was not allowed to leave the premises which further lead to miscarriage of the baby. No economic, psychological or medical assistance was given from Jabil or Philips. In 2006 and 2007 there were several cases of health and safety problems and sexual harassment at Sanmina.
Repeated temporary contracts
Sanmina employed workers for several years on contract basis (illegal under Mexican law). This increases job insecurity, rights to vacation days and right to compensation in case of dismissal. Further workers were forced to sign voluntary resignation letters from time to time.
Excessive wage
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17.5% reduction was recorded in days away from work incident rate (DAFWIR) and zero work related fatalities.

LG Electronics

LG Electronics has a social responsibility as a global leading company to actively tackle the environmental issues including climate change that arise from greenhouse gas (GHG) emissions. It has established the following strategic directions for climate change response: “Reduction of GHG emissions associated with production,” “reduction of GHG emissions associated with product use,” “reduction of GHG emissions across the value chain,” and “commitment to social responsibility based on promotion of low-carbon culture,” and make a wide range of efforts to deliver results.
LG Electronics is fully committed to the proposal set by the UN and other accountable organizations to "reduce CO2 emissions by at least 50% below 1990 levels by 2050 in order to relieve global warming", and upholds this requirement. And LG Electronics supports that global GHG emissions are to peak by 2015 and supports mandatory cuts in domestic emissions in industrialized countries of at least 30% by

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