The business of sustainability putting it into practice
Intel CSR Analysis
1. Corporate Social Responsibility Initiative
Gurvinder Singh
300900760
Corporate Social Responsibility (002)
Natalie Chinsam
10 October, 2016
2. Abstract
In this modern business world, no firm can deny the importance of Corporate Social
Responsibility. Firms have a separate department that deals with Corporate Social
Responsibility. Every year, companies release a report of CSR. That report provides the details
related to steps taken by the company in the direction of fulfilling those responsibilities towards
the society. In this report, the Corporate Social Responsibility Report of Intel has been discussed.
Intel’s work in the direction of Environment Sustainability with the perspective of International
Development has been defined along with its success and failures.
Company Overview
Intel was founded on 18 July 1968 by Robert Noyce and Gordon Moore. Intel is the world
famous manufacturer of advanced integrated digital technology platforms. A platform consists of
a microprocessor and chipset. Platforms made by Intel are used in Notebooks, Laptops,
Desktops, and mobiles. Company has its headquarters in Santa Clara, California. Intel has 190
facilities located in more than 60 countries. Intel uses third party foundries to make certain types
of components and it also uses subcontractors to manufacture mass level products and system.
Components of the platform are assembled in China, Vietnam, and Malaysia. There are 5 main
products of Intel: Platforms, Intel Security Products, Communication and Connectivity, Non-
Volatile Memory Solutions, and Intel Custom Foundry. Intel believes that its commitment
towards corporate responsibility creates value for the company and its stakeholders. The
company sells its products primarily to Original Design Manufacturing companies and Original
Equipment Manufacturing companies.
The competition in the industry depends upon the introduction of new technologies. Market
acceptance of new products is the main challenge that Intel faces in this tough competition. The
companies that sell goods to the companies for internal usage and customer-facing processes are
the biggest challenge for Intel. Company spent $12.1 billion on Research & Development in
financial year 2015. Intel values 4 Ideals: Quality, Risk taking, Great place to work, Discipline,
Customer orientation, and Results orientation. Intel has a goal to connect 5 million women with
the program by year 2020.
(Company Profile, 2016)
3. Project Description
This project deals with the initiative taken by Intel in direction of Corporate Social
Responsibility. The context in which this initiative was taken, has been defined critically. Critical
analysis of the initiative has been undertaken to find the positive and negative aspects. Intel’s
policy features have been discussed in detail. Suggestions have been provided to improve the
policy of Corporate Social Responsibility.
Critical Analysis of CSR Initiative
“Intel is committed to being a leader in environmental sustainability, especially in the
communities where people operate. Reducing our environmental impact not only benefits our
business, but is right thing to do.”
- Neil Tunmore
Vice President, Technology & Manufacturing Group, Intel
Director, Corporate Services, Intel
(Company Profile, 2016)
These words by the vice president of the company, make it clear that the company is well
committed to environmental sustainability. Intel understands the importance to keep the
environment free of pollution and the industrial impacts. The multi national company has taken
many important steps to fulfill its motive in the direction of Corporate Social Responsibility.
Some of the main features of Intel’s policy for Corporate Social Responsibility are given
below:
1. While most of the companies outsource most of their production, Intel designs and
manufactures most of its products in its own wafer fabrication facilities. I reduce time to
market and scale new products more rapidly. (Company Profile, 2016)
2. In year 2003, Intel formalized the responsibility for overlooking the Corporate Social
Responsibility with the CEO and the Board of Directors. (Company Profile, 2016)
3. There is quarterly meeting of CEO, President and Vice President, and General Manager
to deal with the issues related to overlooking of Corporate Social Responsibility.
(Company Profile, 2016)
4. 4. Management review committee is responsible for taking decisions related to energy
conservation issues. (Company Profile, 2016)
5. Intel has a goal to reduce the water usage on per unit basis below the level of year 2010
by year 2020.
Some of the major milestones achieved by Intel in this area are listed below: -
(i) Intel has achieved certificate of Leadership in Energy and Environmental Design for
more than 14.5 million square feet space in 45 buildings. (Roos, 2010)
(ii) Intel is the largest voluntary corporate purchaser of green power in the United States
since 2008. (Green Power Partnership, 2016)
(iii) Since year 2008, Intel has invested more than $145 million in projects of energy
conservation at their facilities worldwide. This step has helped to save 3.19 billion
kwh of energy. (Intel Self assessment , 2016)
(iv) Latest solar installation by Intel in Folsom, California, is the largest private solar
carport in the US. (Meehan, 2016)
(v) In year 2015, Intel adopted two new alternative energy goals to reduce the carbon
footprint. (Hill, 2015)
(vi) Since year 2008, Intel has recycled more than 75% of the total waste generated in
their operations. (Company Profile, 2016)
International Development Initiative
All the goals and achievements by Intel show that it is working in right direction of International
development. The company has invested in green power, which shows that it cares for the
environment and committed to use the energy resources that cause no or least pollution.
Investment of a huge amount on energy conservation proves that the organization cares for the
society. Continuous focus on solar energy shows that the company is interested in using
renewable sources of energy. Intel is aware of the problem of global warming and environment
pollution, which both are the major international issues. It is the duty of each business
organization to take such initiatives and help the governments to tackle the problem of pollution.
Intel is such an organization, which is not only working to save energy but also to recycle the
resources used. The firm has achieved a very big goal by recycling 75% of the total waste
generated.
5. Failures
1. In the previous report, the company had a goal to reduce the use of water up to the level
of year 2007 by year 2012. But the results showed that the actual use was increased by 12
percent.
2. Company had a goal to reduce the chemical waste by 10 percent from the level of year
2007. However, the rate of waste actually increased by 54 percent.
3. Company had a goal to reduce the energy consumption by five percent per chip per year
from year 2007 to year 2012. Actual results showed that the energy consumption
decreased; but, the level of decrease was very less than the amount targeted.
Suggestions
Looking at the targets, success and failures of the targets of Corporate social responsibility, I
would like to suggest some important points which are explained below:
1. The company should regularly review its progress in terms of units of energy saved and
units of material saved from being wasted.
2. Intel should organise monthly meetings at management level, to ensure that the work is
going in right direction.
3. To dispose the hazardous material filtration, autoclaving, and under pressure heat should
be used.
4. Sustainable purchasing can be a main measure in order to save the monetary as well as
environmental sources. Getting supplies with green certification and from local suppliers
are optimum examples for sustainable purchasing.
5. Transparency is an important tool to get the stakeholders involved in Corporate Social
Responsibility. For this, the firm has to be honest, and upfront and must provide
information to the stakeholders.
6. Accountability should be fixed for the actions in the organization. If a department or
individual breaches the CSR policy, then necessary action should be taken and optimum
measures must be taken.
6. Summary
Intel is working on environmental sustainability since last many years. The company has set
up goals to for upcoming years. In the past few years, there had been some deviations in the
results as the company was not able to meet the goals of CSR. But, the management has
taken necessary decisions to bring better results. Management is focusing towards energy
conservation and reduction in the amount of resources being wasted. Company has got
success in many fields and is working in the right direction. We hope that Intel would be able
to meet its CSR goals by year 2020.
7. References
Company Profile. (2016). Retrieved from csrreportbuilder:
http://csrreportbuilder.intel.com/PDFfiles/CSR-2015_Full-Report.pdf
Green Power Partnership. (2016, 07 25). Retrieved from US Environmental protection agency:
https://www.epa.gov/greenpower/green-power-partnership-national-top-100
Hill, J. S. (2015, 05 26). Intel Moves To Top HQ With Renewable Energy. Retrieved from Clean
Technica: http://cleantechnica.com/2015/05/26/intel-moves-top-hq-renewable-energy/
Intel Self assessment . (2016, 06). Retrieved from supplier.intel.com:
https://supplier.intel.com/static/eicc/2016%20Intel%20SAQ%20Summary%20June%202
016%20Legal%20Approved%20Final.pdf
Meehan, C. (2016, 02 18). Intel Unveils Largest Solar-Power Carport in US. Retrieved from
SolarReviews:
http://www.solarreviews.com/news/intel_unveils_largest_solar_carport_021816/
News Release . (2011, 02 01). Retrieved from newsroom.intel.com:
https://newsroom.intel.com/news-releases/intel-increases-renewable-energy-credit-
purchase-to-2-5-billion-kilowatt-hours/
Roos, G. (2010, 04 23). Intel achieves first LEED gold for design center. Retrieved from
Environmental Leader: http://www.environmentalleader.com/2010/04/23/intel-achieves-
first-leed-gold-for-design-center/