ABB: Providing "Access to Electricity"|Business Ethics|Case Study|Case Studies

ABB: Providing "Access to Electricity"

            
 
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Case Details:

Case Code : BECG052
Case Length : 11 Pages
Period : 1992-2005
Pub. Date : 2005
Teaching Note : Available
Organization : ABB Group
Industry : Electric Equipment industry
Countries : Switzerland

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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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Background Note Contd...

In 1994, ABB published its first environmental report. In 2000, ABB added the social dimension to its practice of measuring its environmental and economic performance.

Taking the three dimensions - social, environmental and economic performance into account was called The Triple Bottom Line Approach, and this formed part of its annual sustainability report (Refer Exhibit II to know about ABB's evolution into a company with a triple bottom Line approach).

The social policy at ABB was guided by regular stakeholder dialogs at the company headquarters and at the regional levels where it operated. The social policy was implemented after conducting stakeholder dialog sessions to test it and seek ways to implement it and measure its performance. The dialog process started in January 2002 and the sessions were conducted in 43 countries.

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The stakeholder groups included national and international Non Governmental Organizations (NGOs), business partners, central and local governments, academia, trade unions, consultants, members of the media and religious groups. The social policy of the company dealt with employee welfare, community involvement, response to suppliers, and the ethics that the company followed while doing business.

The framework of ABB's social policy was based on the United Nations' Universal Declaration of Human Rights, the International Labor Organization's fundamental principles on rights at work, the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises and the Social Accountability 8000 (SA 8000) standard, and an auditable standard for the protection of workers' rights developed by the Social Accountability International (SAI).6 Sustainable performance at ABB had the four objectives - improving the company's financial performance, extending its environmental management practices, implementing its new social policy, and supporting electrification projects to promote economic development.

Excerpts >>

6] Previously known as Council on Economic Priorities Accreditation Agency, the agency located in New York works to improve workplaces and do away with sweatshops.

 

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