In my research into the company I have chosen , I was unable to find an actual Corportate Social Responsiblity Initiative . With that being said it does not mean that they dont have one. On the many websites that I have done my research into General Electrics CSRI, they most definitely have a CSR . I looked on many websites and found some similiar information but alot of different material on each site. A general overview on General Electric, they have been around for 130 years and a glabally known company that operates in over 150 countries with over 300,000 employees.
With a quick look at General Electrics ratings for the different components in regards to the CSR, and a look at the average companies ratings. There are many categories in which GE above average and an area in which they are lower. Before I get into numbers , later in the paper I will explain how and why the numbers are where they are . Their overall rating is a 59, where the average rating is a 49. With the community they are below the average rating of 49 with a 48. Their employees think and feel highly for giving the a 64 rating where the average score is a 49 also.
The enviroment rating is a 59 where the average company is a 46. In regards to governance they are at a 63 as the average company is a 52. With all of these rating i will go into them each indivually and explain the reasonings why they are where there at. With an overall rating of 59 and the average being 49. Thats something to be proud of from a corporate standpoint. There are a lot of components that figure into the rating. As I stated above they have been around for 130 years and with a company being so big and so old they wont have a spotless record , but its how the company deals with the blemishes on their record.
It’s how they move forward and make themselves a better company because of it. To touch on a bad blemish on their record , the PCB conimination spills in both the Hudson River as well as New England’s Houstanic River , it cost an estimated $750 million . It took GE longer than the anybody would like to take responsibility and start the cleanup in both rivers. In consideration with all the negatives that GE has the have quite a few positves to keep working on and try to keep their reputation up, such as the 5. 5 million pounds of materials from discarded appliances since 2009, as a part of the EPA’s Responsible Appliance Disposal program.
Every year there are roughly 9 million discarded parts from discarded refrigerators that end up in land fills every year. General Electrics enviromental rating is fairly higher than the average also , theirs is 59 where as the average is 46. On the negative side of things there are quite a few incidents that reflect poorly on GE’s behalf. The river spills I mentioned and the Fukushima Daiichi disaster in 2011 was at GE’s fault due to the nuclear reactors insufficient containment vessels.
Although it was mainly caused by the earthquake and tsunami , experts had said the design was unacceptable to safeety standards and the risks that are possible. Altough GE isnt involved with anything nuclear anymore that nuclear plant disaster wasnt directly their fault the infrastructure of the reactors was at their fault. In 2005 the CEO Jeff Immelt publicly announced that they will move forward in the direction of alternate energy and other green technologies. Although many though of it as a publicity stunt , they are steadily increasing their workforce in renewable energy .
They have become a dominant factor in the alternative energy game. They were projected to install 40 % of the U. S. wind turbines by 2012. Additionally in the first three years of their Ecomagination they have brought in $53 billion in revenue from their ecomgination products and services with an annual revenue of roughly $150 billion in the same time frame. So in the same aspects as any other company they will have their highs and lows in regards not only to their revenue but the reputation as well.
In regards to the communities that GE operates in they do give back . But their rating is less then the average . Their rating is a 48 where as the average is 49. Part of theat may be because of the history with GE and nuclear weaponary. Historicall it has created some tension and protest from the public . At GE’s peak with nuclear productions they were the highest producers for components for nuclear bombs , more than any other company in America. IN 1986 GE got boycotted for their involvement in nuclear activities and unresolved nuclear liabilities.
By 1993 they were succesfully pushed out of the industry. Their fiscal and political activities. With being such a large and old company they have heavy ties in politics and lobbying. They average $20 million a year in lobbying cost between 2000 and 2011. The problem with that and the community is most believe coporations shouldnt play such a big role in politics. The goverance factor in General Electric is far better than average, with GE getting a 63 rating and average is 52. The CEO and Chairman for GE has been in such position for the last 12 years.
He has made some his strong points and weak points. Since he has taken over the stock has gone down 60%. Yet he has a lot of expertise , so much that president Obama appointed him to lead Council on Jobs and competitiveness in 2011. The socially responsible investors woudl prefer to see the Chairman and CEO to be seperate for the sake of the company and its growth. There have been a few scandals such in 2009 the SEC fined GE $200 million for “creative accounting” also they defrauded the U. S. Governemtn of $26.
5 million intended to buy jet engines for Isreali military in 1992, they voluntarily came forth when evidence of the executives “misdoing”. Over the years they have been proven to be isolated controversies rather then a trend of unethical behaviors. With all the research I did I was unable to find anything in reference to the employee part of the CSRI . So for what their iniative lacks itwould have to be that portion of it. With everything that I have learned I was really intrigued to learn about that aspect of the company and their future plans within their company.
I know that they are expanding very rapidly , they must have some plans to set into place. Overall without actually finding a CSRI its hard to evaulate it fairly. But with that being said they should have a CSRI on their website open to the public for not only research purposes but also for common knowledge purposes. Without getting to see their CSRI it’s not a accurate evaluation. But with exception to the employee portion of it I would say that the ratings that I had mentioned here in the paper are fairly accurate and fair.
There are good points to the reasonings behind the rating scores. The only one that I dont agree with would be the environement. Yes they are doing good things for the environment now, but you can’t forget about the spills in the rivers in New England and New York , not to mention the nuclear disaster overseas . All three of those “disasters” I believe that their rating should have been lower. But at the same time its hard to judge without doing the same research on the other companies that they are getting compared to .