Abstract

The case discusses the sustainability management initiatives undertaken by the Netherlands based Royal Philips Electronics, a leading manufacturer of domestic appli-ances, medical systems, lighting equipment and semiconductors. The company’s sustainability program mainly focused on social responsibility initiatives such as employee welfare & community develop-ment and environmental management. The case describes each of these initiatives in detail and explains how Philips aimed at deriving competitive advantage from them. The ‘sustainability governance structure’ and ‘governance structure for environmental management’ put in place by Philips for realizing its sustainability vision is also discussed. The case also dwells upon Philips General Business Principles that guided its activities and employee behavior in its operations across the world.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the concept of sustainability and its relevance in today’s businesses.: Need for a vision, policy and governance structure in order to achieve the goals of sustainability management.: Understand how environmentally and socially responsible beha

Keywords

Philips, Sustainability Management, Social Responsibility, Global Environment Policy, Sustainability Board, EcoVision Program, Sustainability Governance Structure, Community Projects, Measuring Sustainability, EcoDesign Maturity Grid, Triple Bottomline Approach