The Walt Disney Company: Corporate Social Responsibility Report

INTRODUCTION

As the world’s largest and most prominent media and entertainment conglomerate, the Walt Disney Company has undertaken the considerable responsibility of giving back to those who have helped it become the powerhouse it is today. Corporate Social Responsibility (CSR) is the “policies and practices of corporations that reflect business responsibility for the wider social good” (Moon, 2014). The Walt Disney Company is well known for incorporating CSR practices and activities throughout their business model; in 2009, Disney was listed as a leader in Corporate Social Responsibility according to the Boston College Center for Corporate Citizenship and Reputation Institute (Conolly, 2009), and in 2011, Disney won the Jane Goodall Global Leadership Award for Corporate Social Responsibility (Business Chef, 2013). Corporate social responsibility policies, practices, and initiatives have become a staple demand of consumers and stakeholders; this demand has caused companies to devote more time and energy towards incorporating CSR activities and policies into their organizations without coming off as fake or attention-grabbing (DeSantis Breindel, 2015). This report attempts to analyze, discuss, and evaluate the current CSR policies and activities currently implemented by the Walt Disney Company and how the company has managed to gain and maintain the reputation of being a socially responsible model and leader within the media and entertainment industry and beyond.

THE WALT DISNEY COMPANY OVERVIEW

The Walt Disney Company consists of eleven television and film studios, ten radio and other media networks, thirteen resorts and amusement parks that are found around the world, and five direct-to-consumer providers/ organizations (Disney, 2020). All of these contribute to Disney’s mission of “entertaining, informing, and inspiring people around the world through the power of unparalleled storytelling,” while also reflecting the brands, minds and innovative technologies that make Disney the world’s “premier entertainment company” (Disney, 2020). Disney’s ultimate goal is to benefit their guests, employees, and businesses while making the Company a desirable place to work through their consumer social responsibility efforts (Business Chef, 2013). “Our ability to do good in the world starts with our people,” said Disney Executive Chairman Robert Iger. “They are our most important assets, and we are committed to doing what we can to enable their success while celebrating and promoting their unique talents and perspectives” (Disney 2019 CSR Report p. 3).

The Walt Disney Company’s mission and values have spearheaded the Company’s CSR strategies and plans. Multifaceted and implemented throughout the entire business model, Disney’s CSR is successful because it is linked with the Company's mission and values. One of the main issues companies and brands have with CSR is trying to support an issue or cause but coming off as “greenwashing” it instead (DeSantis Breindel, 2015). In combining it’s CSR with its company values and missions, the Walt Disney Company makes the causes and social issues it supports meaningful for its customers, employees, and stakeholders. This also makes it easier for the Company to undertake new CSR initiatives and causes without coming off as doing so for public relations or media attention; the Company’s current corporate philanthropy is able to be easily leveraged for new commitments as they have gained the trust and respect of consumers, employees, and stakeholders through their past CSR work and its combined nature with the Company’s brand mission and values.

WALT DISNEY’S MAIN CSR ISSUES OF CONCERN

The Walt Disney Company mainly focuses on the environment, community, and labor standards while focusing heavily on volunteerism (Disney, 2020). These specific topics, among others, were found to be the social issues most significant to the Company’s stakeholders in the Company’s 2019 CSR Report. In order to accomplish its goals and measure success, the Walt Disney Company starts with education within the company. Disney considers education as the “key to opportunity,” (Disney 2019 CSR Report p. 3) and by giving employees the tools needed to pursue their educational goals, Disney not only helps them further their career goals but creates internal stakeholders who are dedicated to the Company’s external CSR goals.

1. The Walt Disney Company and the Environment

The environment remains at the forefront of Disney’s external CSR issues, and the Company is committed to “environmental stewardship focused on using resources wisely and protecting the planet as [the Company] operates and grows” (Disney 2019 CSR Report p. 7). In their CSR Report, Walt Disney claims its goal towards protecting and contributing towards a safe, healthy environment is to reduce greenhouse gas emissions, minimize waste, and conserve water resources.

Towards reducing greenhouse gas emissions, the Walt Disney Company aims to reduce net emissions by 50% from 2012 levels by 2020; in 2019, the Company reduced its net greenhouse gas emissions by 47% from 2012 levels (Disney 2019 CSR Report p. 8). This was done through a mix of investments in sustainable design innovations, energy efficiencies, low-carbon fuel sources, renewable electricity, and natural climate solutions (Disney 2019 CSR Report p. 8). Towards minimizing waste, the Walt Disney Company aims to achieve 60% waste diverted from landfills and incineration by 2020; in 2019, the Company diverted 57% of operational waste as compared to 2014 (Disney 2019 CSR Report p. 9). This was done through a series of waste management initiatives that aimed to “reduce, reuse, recycle, and compost materials; utilize non-thermal and thermal waste-to-energy programs, and focus on behavior change initiatives with our guests and employees” (Disney 2019 CSR Report p. 9). Finally, concerning the Company’s goal to conserve water resources, the Company aimed to hold global potable water use flat to its 2013 levels; this goal was achieved in 2018 and in 2019 (Disney 2019 CSR Report p. 9). In order to reach its goal, the Company monitored its water footprint through overall conservation measures and by transitioning operations to non-potable water sources where and when feasible (Disney 2019 CSR Report p. 9).

1. The Walt Disney Company and the Community

In recognition of the continued support given to them by communities around the world, the Walt Disney Company places a high value on giving back to communities in need. The Walt Disney Company does so through community outreach and collaboration in conjunction with its CSR practices. While not mentioned in their 2019 CSR Report, the Walt Disney website claims that in addition to charitable giving, “Disney supports local economies by contributing significant tax revenue and by consuming local goods and services” (Disney 2020). In 2019, the Walt Disney Company also gave $338.2 million in cash and in-kind donations to nonprofit organizations that “brought comfort, inspiration, and opportunity to kids, families, and communities around the world” (Disney 2020).

According to the Disney website’s ‘Charitable Giving’ page, the current philanthropy being conducted in this area includes the Walt Disney visits to various children’s hospitals and wish-granting in conjunction with the Make A Wish Foundation, investments in youth, and the Disney Conservation Fund. The Walt Disney Company also encourages its employees to partake in their own philanthropy by matching financial donations to charitable organizations through the program Disney Employee Matching Gifts (Disney 2020).

1. Walt Disney and Labor Standards

In combining the company’s CSR practices with its company values and mission, the Walt Disney Company is able to create and maintain safe, diverse work environments for its employees throughout the supply chain. With more than 220,000 employees, the Walt Disney Company has designed a program that ensures every worker is given benefits and support to suit their needs and those of their families; this includes healthcare, competitive pay, family support, and a safe, diverse work environment (Disney 2019 CSR Report p. 12-16). A unique aspect of this is that Disney claims to adapt and evolve these benefits to meet the needs of its growing and changing workforce by providing additional benefits to help employees with their work and life needs (Disney 2019 CSR Report p. 12).

In terms of its supply chain, Disney differentiates itself from other conglomerates by declaring its commitment to “understanding and addressing supply chain working conditions and respecting human rights” (Disney 2019 CSR Report p. 18). Disney enforces this commitment through the implementation of its Standards of Business Conduct, Human Rights Policy, and International Labor Standards program, which includes a Code of Conduct for Manufacturers (Disney 2019 CSR Report p. 18). These codes are audited by the company’s Audit Committee, which works alongside the company’s Board of Directors to ensure the integrity of the Company’s financial statements and compliance with legal and regulatory requirements (Disney, 2020).

1. Disney and Volunteerism

According to the Walt Disney Company website, volunteerism is a central and enduring part of the company’s culture and is the cornerstone of the company’s community engagement efforts (Disney, 2020). The company boasts over 11 million hours of volunteering around the world (Disney, 2020), and routinely encourages millions of Americans to commit to service efforts in their communities (Business Chef, 2013). Through the Disney VoluntEARS Grants program, employees and cast members can turn their hours of volunteer service into a financial contribution to a charity of their choice (Disney, 2020). The company has also offered free tickets to a million people in exchange for a day of volunteer service from an organization of their choice in the past (Business Chef, 2013).

WALT DISNEY’S CSR PHILOSOPHY, STRATEGIES, AND TACTICS

The Walt Disney Company has turned its CSR policies and practices into an investment and these investments have served to strengthen the company’s operations and competitiveness in the marketplace. Disney’s CSR goals and objectives are interlinked with the strategic objectives of the company’s different businesses and media/ entertainment production companies, allowing the conglomerate’s CSR efforts to also directly affect Disney’s Generic Competitive Strategy and its Intensive Growth Strategies (Williams, 2019). This multifaceted, internal CSR strategy has allowed Disney to remain not just competitive with other businesses, but at the top of the entertainment and media industry.

Each of Disney’s CSR strategies and tactics aligns with their internal and external corporate goals and missions; these strategies and tactics are also interwoven with the main issues that Walt Disney defines as “measures of success.” Essentially, the completion of these CSR initiatives marks the growth and progress of the Walt Disney Company. This is something unprecedented and it is something that Disney has perfected; it is also the reason why Disney has remained the powerhouse it is today. As Disney provides the internal check and balance system to its own company practices, outside consumers and members of the Marketplace have no need to call out the Company on social media or other media outlets. In other words, the public does not need to hold Disney as accountable as other organizations or businesses because Disney has created a system where the company’s continued success depends on internal accountability. This system has simultaneously generated blind trust in the Company, so publics and consumers are more willing to take Disney’s practices at face value over usual internet skepticism; this can be either a good or bad thing depending on the way one looks at it, but so far, Disney has shown to take this consumer trust seriously, and has not abused the power awarded by its reputation.

One such internal CSR strategy was the implementation of the Disney Conservation Fund, which will celebrate its 25th Anniversary in 2020. The Fund serves to raise money for wildlife conservation and grants awarded to nonprofits working in conservation efforts around the world; as of 2019, the Fund has raised over $100 million to these causes (Disney 2019 CSR Report p. 3). Another was the launch of the “Protect the Pride” global conservation campaign in 2019, in honor of Disney’s The Lion King; the campaign focused on protecting and revitalizing the lion population across Africa by raising awareness and contributing $3 million to the Wildlife Conservation Network’s Lion Recovery Fund (Disney 2019 CSR Report p. 3). Both of these initiatives not only served to promote the company’s brand externally but also contributed towards the environmental issues that Disney has deemed important to the success of the company.

To contribute to the second CSR issue identified as important, the community, Walt Disney Imagineers worked to create murals and interactive art at Texas Children’s Hospital in Houston (Disney 2019 CSR Report p. 3). The Disney Aspire Program was also implemented to give back to communities, employees, and the Company’s labor force. The Program works to give employees and their families the ability to pursue higher education free of charge or at a significantly lesser cost (Disney 2019 CSR Report p. 3). In 2019, more than half of Disney’s hourly employees within the United States participated in the program and enrolled in classes (Disney 2019 CSR Report p. 3). To encourage volunteerism in its employees, the Disney Company has created the VoluntEARs program, that allows Disney community members to join and participate in service initiatives around the world and in various topics of concern (Disney, 2020). Disney also celebrates volunteerism by rewarding nonprofits and schools in the U.S. with Disney tickets for participating in family volunteering activities (Disney, 2020).

All of these CSR initiatives align with the Disney Company’s philosophy of “entertaining, informing, and inspiring people around the world.” These CSR initiatives are designed to make employees and stakeholders interested in doing more CSR programs and holding CSR policies to higher standards. Through its CSR philosophy and implementation strategies, the Walt Disney Company is able to maintain high ethical standards throughout its various businesses, studios, and theme parks from the top of the business chain to the very bottom. It’s reflected in its CSR report, its CSR tactics, and the high regard the public has for the organization that the Walt Disney Company takes its corporate social responsibility seriously.

ANALYSIS OF DISNEY’S CSR INITIATIVES AND PROGRAMS

1. Primary Beneficiaries

The Walt Disney Company’s CSR strategy and associated initiatives and programs are part of an overall strategic positioning that benefits the entire organization, including subsidiaries like Marvel Studios and Pixar Animation Studios (Williams, 2019). Disney employees are also noted to be beneficiaries of Disney’s CSR work but are not primary recipients of the benefits gained from these initiatives and programs. The Walt Disney Company and the various companies that make up the organization reap the majority of the benefits gained from the CSR work, as the main positive benefit is respect and loyalty from consumers and stakeholders. For all that the company boasts in CSR programs and campaigns, there is no information about these initiatives being circulated in larger news media and the organization’s social media pages. In fact, while Disney is listed as one of the top companies with the best CSR programs, the average person remains unaware of the various programs being implemented by the Walt Disney Company (Williams, 2019). Having low public visibility in these areas has worked in Disney’s favor, however: this prevents any social issue initiatives that Disney undertakes from looking deceptive and allows the company to build relationships with its stakeholders, subsidiaries, and employees who participate and endorse these CSR initiatives.

1. Developing and Communicating CSR Initiatives and Programs

After reading and analyzing the Walt Disney Company’s 2019 CSR Report and their main website page, it can be concluded that Disney successfully addresses and manages stakeholder demands while balancing their CSR programs and initiatives. The Company’s multifaceted, self-regulated approach towards its corporate social responsibility has created a holistic approach that satisfies stakeholder interests, operational effectiveness and the financial objectives of the business (Williams, 2019). This CSR strategy ensures that Disney not only profits from entertaining, informing, and inspiring people around the world, but also does so ethically and authentically.

The Walt Disney Company excels in implementing its CSR programs through its strategy of incorporating its CSR into its business mission, values, and practices, allowing for CSR initiatives and programs to become an extension of the Company’s brand. Achieving the right relationship between a company’s brand and its philanthropic or volunteer efforts is a balancing act (DeSantis Breindel, 2015) -- and it’s a balancing act that Disney has essentially found and perfected. The Walt Disney Company engages in both external and internal codes of conduct and ethics that drive their philanthropy and raises its CSR communications to a higher ethical plane that can withstand external scrutiny; one of the five things that Byrum lists as an essential part of CSR communications programs.

Disney’s CSR initiatives and programs address environmental sustainability operations, community development, employee benefits, and labor standards, and volunteerism among other philanthropic initiatives and all of these are communicated throughout their brand, their mission statement, and their internal corporate communications programs (Disney, 2019). The Walt Disney Company has successfully created a program that develops and communicates its CSR ethics, standards, and programs and initiatives to its stakeholders, its employees, and its consumers/ publics. This program simultaneously contributes to the satisfaction of the Company’s corporate mission and vision statements, while promoting and marketing the organization and its partner companies to a larger global consumer population.

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