An analysis of the financial records of ABC health and beauty company for the years 2016 to 2018 indicates that the company is experiencing growth in many respects. Key financial metrics, total assets, cash flow balance, and revenues show a rising trend. On the other hand, a look at Apple reveals that they are one of the most active corporations in the CSR scene. Lisa Jackson, the company’s Environmental Initiatives vice president, leads the company’s CSR programs; she reports directly to the CEO (Dudovskiy, 2021). For example, apple supports the local community in Oregon by partnering with Bluestone Natural Farms to transform compostable organic material generated from sites into material for use on farms (Dudovskiy, 2021). In the Philippines, the company launched a 100 KW solar project (Dudovskiy, 2021). In addition, the company has provided training courses to over 4 million people since 2008. These are robust indicators of their commitment to CSR.
Despite Apple’s commitment to CSR, they are also wholly committed to the financial part of the triple-bottom-line (TBL) approach. Apple’s revenue has increased YoY since 2019 from $260B to $360B in 2021 (Apple Inc. Yahoo Finance, 2022). In addition, the company made a net income of $55B with diluted earnings per share of $2.97. Apple remains one of the most profitable corporations in the world and has the world’s largest market capitalization. In addition, the balance sheet shows that their total assets increased from $338B in 2019 to $351B in 2021 (Apple Inc. Yahoo Finance, 2022). These results indicate that Apple is taking care of the financial component of TBL.
Patagonia is an apparel company based in California, United States of America. The company is famed for having one of the most comprehensive CSR programs. The company’s mission is that they are in the business of saving the earth (Patagonia Mission Statement, n.d.). Patagonia had a previous mission they ran for 45 years about saving the planet (Environmental Activism – Patagonia, n.d.). This consistency indicates that Patagonia has been in the sustainability business before it was a trend. In one of their initiatives, they have imposed an ‘earth tax’ on which they make a 1% contribution of their revenues to environmental initiatives (Environmental Activism – Patagonia, n.d.). Patagonia’s CSR approach is three-pronged; environmental and material programs, social responsibility, and where they conduct business. On materials, Patagonia places emphasis on preferred fabrics, traceability, and virgin cotton. On the other hand, social responsibility is about fair trade (Environmental & Social Footprint – Patagonia, n.d.). The company, however, acknowledges that they may not manufacture every bit of their inputs, but they can choose the right partners who meet their CSR standards.
A good indicator of a company’s priorities is its mission and vision statements. For example, ABC’s vision is to lead the globe in business-to-consumer sales while producing and engaging in programs that sustain the health of people and the planet. On the other hand, ABC’s mission is to provide high-quality beauty and health products while providing exceptional services to customers that deliver value, excite them, and inspire loyalty.
The three companies analyzed firmly commit to the sustainability approach in business. However, initiatives must be measurable for them to be impactful. This is the reason why KPIs are needed to monitor their commitment. For example, Patagonia, ABC, and Apple all have partners who source their raw materials from places that utilize cheap labor, such as the Philippines. A key metric that could monitor this is the number of partner companies that practice fair trade. Another metric to check their CSR is the percentage of women and minorities on their boards. Another metric could be the number of donations to environmental groups. The importance of such metrics is industry benchmarking, where the comparison of related companies occurs.
References
Apple inc. (AAPL)Balance sheet—Yahoo finance. (2022). Web.
Environmental & social footprint—Patagonia. (n.d.). Web.
Environmental activism—Patagonia. (n.d.). Web.
Patagonia mission statement 2022 | Patagonia mission & vision analysis. (n.d.). Web.