Johnson & Johnson: A Model of Corporate Social Responsibility

Corporate social responsibility is defined as a self-regulating business model critical in helping a business remain accountable to its stakeholders. Companies can understand the implications of their operations in the various aspects of society, such as social, environmental, and social. Johnson & Johnson is a parent corporation with operations in research and development, production, and sales of products in the health care sector. Its operations are classified in different segments, which include medical, consumer, and pharmaceutical products. The Company has invested in its corporate social responsibility in various spheres of the society, such as management of climate change and upholding the social wellbeing of its consumers. Consumers not only seek quality products and services, they want to see business that are social responsible. It therefore means that companies are investing in social missions to appeal to its consumer base, ultimately enhance their competitiveness in the market. The paper seeks to examine the activities of Johnson & Johnson that are critical in averting climate change. A literature review will underscore how the Company aligns its competitive strategies with the social mission of managing its carbon emissions, therefore, addressing the global issue of climate change.

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Literature Review

Corporate social responsibility (CSR) has been utilized by organizations for success and has emerged as an important business ideology that underlines the expectations of organizations concerning social and environmental standards. Sharma (2013) seeks to examine the role played by the CSR in organizations. It is essential in the successful functioning of the organizations since it impacts customer relationships, motivates employees, it's a sign of true commitment, and develops a positive workplace environment, among others. CSR enables organizations to thing beyond the fundamental ethics to be actively involved in the communities they operate. The process tries to develop long-term trusting relationships with consumers. The collective effects of CSR operations enhance organizational success.

Haque (2018) researches the contribution of CSR toward innovation and opportunities for businesses. He defines CSR-driven innovation as the innovative operations that seek to develop a profitable product in an innovative manner that is important to society and the environment. Some of the benefits include improved functionality, friendly prices, ease of operations, and enhanced product and service quality. For instance, a company known as Echotex Limited based in the U.K. and has operations in Bangladesh developed an innovative way of addressing the issue of "Long Hours and Low Pay," referred to as New Look (Haque, 2018). It was a strategic move for the Company that was critical in finding solutions to emerging issues and identifying more business opportunities. In Bangladesh, there had been problems revolving around low prices. The development of the CSR-driven strategy improved the business sustainability through affordable prices.

Szutowski & Ratajczak (2016) studies the correlation between an organizations innovation and its CSR practices. The authors posit that there is an increasing importance of CSP practices towards the Company's value. The authors examined various factors that affected this relationship. These include external factors such as attitude, performance, company attributes, and research and development. They also examined the type and degree of novelty and the features of the corporate social responsibility in relation to innovation. It was established that the effects of innovation of CSR were established on the type of innovation and the extent of novelty.

Discussion

Johnson & Johnson is a multinational corporation that has been working on the development of medical equipment and pharmaceutical products. It is important to examine how the Company has invested in corporate social responsibility in the context of climate change. The Company understands that it has a linked relationship with the environment, which greatly affects human health. The business operations have effects on the environment, and this can result to climate change through carbon footprints ("2011 Corporate Social Responsibility Report" 2011). The Company has, therefore, developed long-term environmental goals and performance standards. It has focused on the reduction of the effects on the environment for more than three decades. Over the years Johnson &Johnson has received accolades for their efforts to save the environment and therefore control climate change. For instance, the U.S. Environmental Protection Agency (EPA) has indexed the Company as a Performance Track Leader for significant commitments to the safeguarding of the environment (Kan, n.d.). The Company received the Climate Protection Award in 2006 for their decisions to use cleaner sources of energy and minimize their carbon footprints. It was also ranted number three out of 500 companies in 2009 for the Newsweek's Green Ranking List (Kan, n.d.). It is therefore important to examine the CSR practices that Johnson & Johnson have implemented to avert climate change. The Company's current focus is outlined below:

Climate Friendly Energy Policy

The Company has a climate policy that reiterates the need for the protection of the environment and natural resources. There is a belief that the health of the society is related to the health of the planet. According to the Intergovernmental Panel on Climate Change, the Company is in agreement that the concentration of greenhouse gases in the atmosphere is, to a great extent, contributed by human activity, which results in climate change ("Climate Policy," 2018). The climate policy outlines the commitment of the Company addressing climate change. These commitments include the development of strategies and programs to minimize carbon footprint, the establishment of goals for GHG emission reductions, elimination of commodity-driven deforestation, and ensure compliance.

Greenhouse Gas Emissions

The Company is dedicated to a 20% minimization of the carbon emission by 2020 relative to the 2010 standard. The Company attained a 6.1% reduction in its emissions in addition to a 3.4% improvement in sales. The leadership understand that commitment to address issues of climate change present a challenge and therefore created a $40 million yearly budget for projects concerning energy and carbon emissions ("Johnson & Johnson," 2016). For example, the Company is leveraging wind power in the provision of water to communities. It also acquired a privately-owned energy supplier which enabled the reduction of pollution through the use renewable energy with less greenhouse gas emissions. It is part of the commitment to shift to renewable energies. The Company can produce and procure approximately 20% of electricity sourcing from renewable energy by 2020 and has set goals to be 100% reliant on renewable energy.

The Company's energy use has reduced by approximately 5% from 12,565 billion British Thermal Units to 11,948 billion BTUs between 2010 and 2014 ("2014 Citizenship & Sustainability Report," 2014). It has focused on the improvement of operation efficiency to reduce energy utilization. The Company adheres to the Greenhouse Gas Protocol provided by the World Business Council for Sustainable Development. Also some of its sites are the guidance of European Union Emissions Trading System program. Between 2005 and 2014, there were many projects approved for the reduction on energy reliance. These include 132 energy efficiency projects, 30 Solar P.V. projects, 14 cogeneration projects, six geothermal and biomass projects, three wind projects, and two fuel cell projects ("2014 Citizenship & Sustainability Report," 2014). The Company has also been in the development of green building designs, which necessitates the incorporation of sustainability in new facilities. It seeks to comply with the Leadership in Energy and Environmental Design in all its new buildings and facilities. These projects have been geared towards improving energy efficiency and therefore reduce greenhouse gas emissions.

Ozone Depleting Substances (ODS)

The Company has eliminated the use of chlorofluorocarbons (CFCs) and seeks to eliminate the utilization of HCFCs by 2025 and therefore comply with government directives. The achievement of this objective was initiated by the requirement of all production sites to develop HCFC phase-out plans in 2014 ("2014 Citizenship & Sustainability Report," 2014). Currently, the Company is not involved in ODS related operations. These operations have been critical in reducing these substances, and therefore improved climate.

Fleet-Related Carbon Emissions

The Company set a goal is attaining 20% fleet emissions efficiency improved by 2015. It was reported that the global CO2 emissions per vehicle reduced by approximately 19% relative to the 2010 baseline ("2014 Citizenship & Sustainability Report," 2014). The goals were realized due to the extensive use of hybrid vehicles in all its operations globally.

Shipping-Related GHC Emissions

The Company does not own the fleet system for the ship of its products. It, however, works with the fleet service providers to ensure the reduction of environmental implications from product transport. The activities to reduce emissions include the utilization of multi-compartment trailers, elimination of deadhead miles, and use of freight consolidation opportunities, among others. These strategies have helped reduce yearly carbon emissions in 2014 by approximately 13,783 tons ("2014 Citizenship & Sustainability Report," 2014).

Sourcing of Raw Materials

There exists great complexity related to sourcing of raw materials since it is connected to issues of biodiversity and climate change. The Company has a sourcing program for forest materials and palm oil, which prevents deforestation. It has Responsibility Standard for Forest Material program which seeks to enhance sustainable management of forests. It therefore means there are standards for new products and forest-based product such as office papers, paper-based packaging, wood building materials, and wood furniture among others ("2014 Citizenship & Sustainability Report," 2014). The Company also used Palm Oil for the production of its consumer products. The extensive use of palm oil might lead to deforestation in some regions. Trees play a critical role in the reduction of the greenhouse effect through the synthesis of carbon emissions.

Recommendations

The strategies employed by Johnson & Johnson in addressing climate change have been, to a great extent, successful. There is greater efficiency in operations, and sales have improved. However, more need to be done to deal extensively with climate change and hence the recommendations for the Company. It is recommended that Johnson & Johnson implement a more extensive climate change policy and collaborate with other stakeholders in the industry. The policy should balance the mitigation and adaptation practices and should partner with other healthcare organizations for the formulation of comprehensive climate change policies. It can also prioritize and invest in equipment that enables adaptation to climate change. Research and development should be utilized in the forecast and address of present and future needs as a result of climate change.

Conclusion and Recommendations

There has been an increased consensus that human activities are the highest contributor to greenhouse gas emissions and, therefore, climate change. Johnson & Jo...