Nintendo Csr Activities
CSR has gained importance in the business world during the last twenty years. CSR has become one of the most important concepts in business. Business ethics can be regarded as themoral values and principles that govern the actions of a person, or a group of people, in a business environment, defining what is right and what is wrong. Businesses nowadays need to consider the effect of their actions on their stakeholders; choice based purely on financial gain may end the business in an undesired state.
This reportaims tocritically examine a Nintendo’s CSR activitiesusing relevant CSR theories. We selected Nintendo Co. , Ltd as we believe it will help us understand the theories and examine the different practices that the global businesses can use to improve their CSR. A brief history of Nintendo Nintendo Co. , Ltd. Is an international company located in Kyoto, Japan, it wasfounded on September 23, 1889 by Fusajiro Yamauchi. Nintendo initially started by producing handmade cards, TheCompany had also tried several small businesses, such as a cab company and a love hotel.
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Nintendo eventually developed into a video game company, and became one of the most influential in the industry, and Japan’s third most valuable company. Nintendo’s CSR activities as seen through different perspectives Corporate Social Responsibilities (CSR) is a form of corporate self-regulation integrated into a business model. It acts as a built-in, self-regulating mechanism in which a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. (Saether, Kim T. ; Ruth V. Aguilera).
By analyzing Nintendo’s CRS activities we found that they are considering three components of sustainability which are economic, Social and environmental. (Harris 2000) Environmental perspective A company must maintain a stable resource base and at same time avoid over exploitation of renewable resources and maintenance ofatmospheric stability. Nintendo is concerned with doing their part to help environment by e researching new ways to make products, more environmentally-friendly as possible from planning, development, production and after-sales service.
Nintendo designed standards for eco-friendly products that respect the global environment and improve energy efficiency to reduce CO2 emissions. Moreover they selecting materials with a lower environmental load from the viewpoint of appropriate chemical substance control and selecting recyclable packaging materials. Nintendo offers many recycling options to consumers and businesses to help minimize the waste disposal of video game products such as “Take Back Program at no cost.
In the year 2010, Nintendo of America processed 860 tons of returned products (U. S. nd Canada) of which 65% was reused and 35% recycled. They also requiredfrom their recycling partners to be certified in Quality, Health and Safety, and Environmental management systems (e. g. ISO 9001, 14001 and 18001). Nintendo was awarded LEED Gold Status by the U. S. Green Building Council, placing it among the nation’s top-rated buildings for sustainability and environmental friendliness. Social Perspective Is the integration of the social concerns in the business, which means distributional equity, adequate provision of social services including health and education and gender equity.
Nintendo offers employees different programs to improve healthy lifestyle choices, such as subsidized transportation options including the free use of an onsite Zip car and bus passes. Give them the opportunity to relax and spend time with family though earned vacation, sick and holiday time. An on-site corporate fitness center and subsidized membership to sponsored fitness clubs, or a health club allowance. A free confidential Employee Assistance Program (EAP) to assist employees dealing with legal or financial issues, lifestyle planning, stress management, child/elder care planning, and more.
Nintendo games rated for age 15 and over are black, while other games remain white. Nintendo designed the gaming systems to automatically record which game titles are played and for how long each day so that parents and guardians can be better informed about their children’s gaming activities. Nintendo enables parents and guardians to restrict the display of 3D images on the Nintendo 3DS system using a Parental Controls feature. Nintendo have cooperated with a program that fosters communication between elderly people and children.
Economic perspective Nintendo employsapproximately 4700 people around the globe in its multinational branches. The company strives to maximize long-term corporate value and is working to achieve a highly transparent and sound system of corporate governance. To protect the Investment of the shareholders & the future of the company, Nintendo is taking anti-counterfeiting protection measures in many countries, and Nintendo continues to take legal action against those who infringe upon its intellectual property.
Nintendo is now what is arguably the most influential company in the video game industry, and Japan’s third most valuable listed company, with a market value of over US$85 billion. Why Nintendo adapts CSR? CSR area of greatest focus for Nintendo because of how much external effect its products have. This includes the materials used in products, the energy efficiency of its products, as well as the recyclability of its products. Nintendo began carrying out CSR in 2007. So what makes them adapt CSR: . Shareholder felt that their activities to society were insufficient and that they need to consider Nintendo CSR on an even more global scale, considering that 80% of their net sales come from overseas. 2. Consumers labeled Nintendo as “conflict minerals”; as a result, it becomes necessary to determine that materials harnessed for production are not causing human rights abuses since a large part of Nintendo’s demographic is children. They adopted the same standards required for toy manufacturers.
A general manager in the Quality Assurance Center commended Nintendo for its devotion to eliminating harmful chemicals and its openness to suggestions to do it better. 3. Government believed that the toxicity of these materialsaffects the environment. The Europe established union that aimed at evaluating the safety and controlling the use of chemical substances and restricts the use of harmful material lead.
Nintendo’s 2010 CSR Report claimed that the company fully follows EU initiatives and designated an internal department with the task of conducting chemical analyses for all its products through each stage of development. . Regarding Employee, Nintendo ensure that children are not being employed, and they are making an effort to protect employee especially the minor through safety measures, restrictions and posters on equipment. CSR guidelines demonstrate a clear desire to have to a better working environment for employees and a better standard of living. Code of conduct To firmly base its business operations on compliance, Nintendo has established and implemented region-specific codes of conduct. Nintendo of America Inc. has adopted a Code of Conduct that applies to all of its employees, officers, and directors.
As set forth in its Code of Conduct, Nintendo expects those working for and representing the company to maintain a high standard of conduct, to treat others with respect, and to conduct them in an ethical and professional manner. Nintendo emphasizes courtesy, dignity, respect, and safety as corporate values, and seeks to create an atmosphere of mutual respect for all Nintendo employees, temporary workers, contractors, vendors, customers, and visitors. Purpose of Code of Conduct Nintendo has implemented region-specific codes of conduct for many reasons first to gain and secure the trust of their shareholders and investors.
Secondly to ensure the fair, appropriate and timely disclosure of information and to make sure that the corporate management policy is well understood by all the parties. That is why they are providing stakeholders with prompt access to information by immediately posting reports from the meetings on website in both Japanese and English. Code of conduct tools Nintendo Co. , Ltd. has established the Compliance Committee, under the supervision of the Executive Management Committee, to develop policies for facilitating compliance.
The committee includesexecutive management, legal affairs and compliance and its major overseas subsidiaries. They have established a system, called the Compliance Hotline, for the internal reporting of compliance issues and employees can report suspected illegal actions or other misconduct directly to the President. They also established in-house standards to ensure that important information is handled appropriately. They are focusing on compliance training. In fiscal year 2010, a total of 587 employee participated in compliance training and educational programs.
CSR activities in Comparison with similar companies Nintendo covers many areas in its CSR activities including Product Quality and Safety, Customer Service, Employee Welfare and Wellbeing, Environmental sustainability, product Recycling, Corporate and Community Activities and Corporate Governance. And when compared to other companies in the same field it seems that they are all performing similar activities with regards to the economy, social and environmental perspectives. However there are certain criticisms that come up with regards to risk management of certain situations.
One example is that of the response to the 2011 Japanese earthquake where one of Nintendo’s rival companies “SONY computer entertainment” had taken larger efforts to not only support the Japanese community in the affected areas, Sony had gone a step beyond by pleasing their investors by transferring employees from damaged areas and implementing a plan to distribute the working shifts through the night in order to maintain the level of production. Nintendo took the short way out of a sticky situation during the 1997 Pokemon anime incident which caused epileptic seizures for many children.
Nintendo pointed out that they manufacture the game and not the cartoon. In comparison Sony and Microsoft have better rebound skills when faced with a crisis or potential risk. Sonyhad taken great strides to handle the Hacking of its online service;The PlayStation Network outage was the result of an “external intrusion” on Sony’s PlayStation Network and Qriocityservices, in which personal details from approximately 77 million accounts were stolen and prevented users ofPlayStation 3 and PlayStation Portable consoles from playing online through the service by implementing tronger protection software, providing free memberships to its PS plus program as well as free downloadable games and an online insurance policy.
Microsoft had extended the warranties on all its initial lineup of xbox machines when faced with the defective xbox 360 units AKA the “red ring of death” Criticism regarding Nintendo’s CSR activities Nintendo’s Nature of business is in the video game industry, which is part of the entertainment umbrella. It does not play a crucial part in everyday life and can be replaced by other forms of entertainment or forgone entirely in difficult times.
Thus the motives of the CRS activities can be viewed as self beneficial to Nintendo rather than simple philanthropically behavior. There may be a form of Ethical consumerism in Nintendo’s actions as it hopes to gain customer support through its CSR activities. Nintendo is a global company that has to contend with many competitors and changing market forces. The CSR activities give it a much needed edge, as does Social awareness and Ethics training. With regards to the product safety and employee code of conduct Nintendo could be preemptively preparing for possible future Laws and regulations that may hinder its operations.
As for Crises and their consequences, proper handling of volatile situations may quickly turn a negative situation into a positive one. Recommendations Nintendo can improve its social activities; moreover it can be more vocal about its attempts. The company has taken good measures when it comes to areas like the environment however the efforts are not promoted properly to the society. Nintendo can also improve its reaction to crisis situations and try to match the activities done by rival companies in the industry.
Conclusion It seems that Nintendo has done a relatively good job in its CSR activitiesNintendo follows the shared value creation model, by educating and empowering its employees and their customers thought its innovative strategies in order to promote a sustainable business model they have shown a Proactive behavior by anticipating responsibility and doing more than is required. They have implemented their own corporate codes of ethics which slightly differs according to country and location.
The code of ethics Define principles or standards that Nintendo wants to uphold; moreover it sets practical guidelines for employee behaviour. Nintendo not only fulfils the legal and economic responsibilities that are required by society it also takes a step forward by fulfilling ethical responsibilities which are desired by society as well as some philanthropic responsibilities desired by the society