Sustainability Management at Philips
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Case Details:
Case Code : BECG051
Case Length : 25 Pages
Period : 1995-2005
Pub. Date : 2005
Teaching Note :Not Available
Organization : Philips
Industry : Consumer Electronics
Countries : Netherlands
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
The Sustainability Program
Apart from being an innovator, Philips was also well known for fostering relationships and according high priority to the interests of the community in which it operated. In the early 20th century, the company opened elementary and secondary schools in the city of Eindhoven. Philips also contributed 60 acres of land to the city for use as a public park...
SOCIAL RESPONSIBILITY
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Social responsibility formed an integral part of Philips' sustainability initiatives. The company considered it important to enhance the quality of life of both its employees and the community in which it operated. It took many steps for improving the working conditions of employees, the development of the community, and for extending sustainability to its suppliers...
EMPLOYEE WELFARE
Employees played a major role in Philips' sustainability-driven strategy. The
company realized that employees who reached their full potential could bring
forth innovative products and service ideas and also solve problems
creatively...
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COMMUNITY DEVELOPMENT
Philips' community initiatives were an important element of its social responsibilities. Community initiatives that had the potential to make use of the company's people, products, and technology were taken up regionally...
EXTENDING SUSTAINABILITY TO SUPPLIERS
Philips followed a lean manufacturing model that required the company to depend on a supplier base that consisted of original equipment manufacturers (OEMs), original design manufacturers (ODMs), and outsourcing partnerships...
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ENVIRONMENTAL RESPONSIBILITY
Philips' stress on environmental issues began in the 1970s when guidelines for environmental performance were developed. In subsequent years, the company started establishing targets for reducing industrial waste, weight reduction in packaging, and reducing water consumption. The company also began controlling the use of chemicals. All chemicals used were divided into three categories and measures were put in place to manage them appropriately. Besides, Philips decided to make all its operations ISO 14001 compliant. A Philips Global Environmental Policy (GEP) was put in place that guided the company's environmental initiatives... |
Excerpts Contd... >>
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