Edu Toys Corporate Social Responsibility ( Toy industry)

EDUToys
CORPORATE
RESPONSIBILITY
STRATEGY

Team Members
Cagil Ilce
Ekaterina
Perelygina
Jim O’Shea
Julia Werner
Muhammed
Arshad
Thondikkodan
Muhammad
Yousaf
Munawar
Sara
Bouabdeli

COMPANY STRUCTUREAND
OUTCOME ISSUES
Cagil ILCE 2925193

ABOUTTHE COMPANY
EDUtoys has been established in Ireland to change approach of the
world. Edutoys has been produced electronic toys which has
extremely high specifications to make big differences in life
perspective.
MISSION- COMPANY PURPOSE
• Changing educational approach with EDUtoys
VISSION
• Make daily life fun and building productivity in every day
VALUES
• Creativity
• Care
• Education - Learning
Cagil ILCE 2925193

MARKET INFORMATION
EDUtoys has been produced in Ireland.
COMPANY STRUCTURE
EDUtoys has a polycentric company structure
BRAND PERSONALITY – ADVERTISEMENTVALUES
EDUtoys aims to change approach of education in the
world. Brand has a personality as REBEL. Branding
strategy is based on this personality to storytelling, e-
marketing strategy and image of company.
ABOUTTHE COMPANY
Cagil ILCE 2925193

•Management of target market of EU
•Challenge: within the polycentric structure, native
workers from target market can create a good strategy
on their market
•Cross culture effects on employee performance
Cagil ILCE 2925193
POTENTIAL BUSINESS ISSUES OF
COMPANY STRUCTURE

POTENTIAL BUSINESS ISSUES OF
COMPANY STRUCTURE
•Cultural differences between head office and branches
As much as possible face to face meetings within social sharing can provide
strong communication.
•Competitive Labour Markets
Employees are increasingly looking beyond paychecks and benefits, and
seeking out employers whose philosophies and operating practices match
their own principles. In order to hire and retain skilled employees, companies
are being forced to improve working conditions.
Cagil ILCE 2925193

• Improved financial performance
• Lower operating costs
• Enhanced brand image and reputation
• Increased sales and customer loyalty
• Greater productivity and quality
• More ability to attract and retain employees
• Reduced regulatory oversight
• Access to capital
• Workforce diversity
• Product safety and decreased liability
Cagil ILCE 2925193
POSITIVE OUTCOMES OF SOCIAL
RESPONSIBILITY

STAKEHOLDER
THEORY
JuliaWERNER

JuliaWERNER
Stakeholder approach
TraditionalView (Shareholder view)
• Only the shareholder are important
and the company has the duty to
increase value for them StakeholderTheory - Principle of who or what
really counts
• Many parties are involved
• Organizational management and business
ethics that addresses morals and values in
managing an organization

JuliaWERNER
Stakeholder-Analyses
Capital Provider
BankShareholder
Public
SocietyGoverment
Customer
Public Facilities
Consumer
Other Influences
Suppliers
Employes
Material
Knowledge,
Labor
Capital Capital
Sales
Laws,
Patents
Cultur
Regulations
Creating Engagement
and Loyalty for EduToys

JuliaWERNER
Corporate Responsibilities towards Stakeholders
Employees:
• Fair payment
• Safe and healthy working conditions
• Giving amount of privacy and trust
• Timely appraisal and fair rewarding
system
• Supporting education and focus on
maximizing the potential of each
employee
Suppliers:
• Speedy and fair transactions
• Welcome proposal from any size
supplier
• Promote mutual growth based on
mutual trust
• Ensure close communication to each
supplier

JuliaWERNER
Customer / Consumer:
• Respect in all ways of contact
• High quality products
• Fair price
• Good and prompt service for
complaints and queries
• Providing company information
Public Facilities:
• Products that suffused safety
performance
• Continue striving to meet the needs
• Providing school activities for
children with disabilities
• Changing the education approach

JuliaWERNER
Shareholders / Banks:
• Communicate theVision in a precise,
timely and clear cut version
• Provide disclose of the annual
financial reports
• Provide a website which contains
news schedules and a possibility to
ask questions
• Frequent Meetings to exchange
opinions and vote for decisions
Society:
• Capacity building
• Creating employment and wealth
• Reducing waste
• Hosting work experience events
for students with disabilities
• Improving quality of life
Government:
• Timely Payment of proper
taxes
• Respecting rules and
regulations
• Provide complete and correct
information to government
officials

JuliaWERNER
Stakeholder-Relevance-Metrix
InfluencesonStakeholders
Importance of Stakeholders
Employes
Goverment
Suppliers for
rare material
Suppliers for
general material
Society
Bank
Customer
Public facilities
Shareholder

MNC’s,
GLOBAL SOCIETY,
GLOBAL SUPPLY CHAIN
Ekaterina PRELYGINA

MNC’s and Global Society
Transparency
Digital devices, Internet: Social Media, Virtual reality,
English language
Diversity/Unification, Ethical norms,
Legal & Political issues
Tax evasion,
Bribery and
Corruption,
Ecological
problems.
Info
Standards of life,
Megacities
EduToysInformation Information
Info
West
East
CSR issues
Ekaterina PRELYGINA, 2915047
(WTO, 2013)
(CheeYew Wong, Jan Stentoft Arlbjørn and John Johansen, 2005)

Meso or organizational level
Macro or political level
GOVERNMENT
Micro or individual level
Pressure upon company for ethical
development
MAJOR CUSTOMERS
EduToys
management
EMPLOYEES
NGO’s,
PRESSURE GROUPS,
CHARITY
ORGANISATIONS.
Frameworks,
codes,
agreements
Codes of
conductExternal ethical
review / audit
Law InfluenceCodes of
conduct
Codes of
conduct /
ethics etc.
Ethics
hotlines
Professional
codes
Legally binding requirements
Non-legally binding requirements(Fisher and Lovell, 2003, p. 207)
Frameworks,
codes,
agreements

MNC’s: Codes of conduct & ethics 1
According to ILO (International Labour Organization), ”business ethics is a way for companies
to promote self-regulation , deterring government intervention and regulatory action”.
 Codes of conduct – tends to be instructions or sets of rules, concerning behaviour.
 Codes of ethics – tends to be reasonably general in their tenor, encouraging employees to
display particular characteristics such as loyalty, honesty, objectivity, integrity, etc.
The purpose:
 Damage limitation (e.g. when being sued for negligence by its staff)
 Guidance (reminding role)
 Regulation (prescribing & proscribing role)
 Discipline and appeal (role of a code as a benchmark for the
estimation and punishment)
 Information (for the external audience)
 Negotiation (disputing tool for professionals, employers,
governments, etc.)
1 (Fisher and Lovell, 2003, p. 205)

EduToys Supply Chain
Relationship management
Europe, China
R&D and Technology, SW Development, Testing
Europe
Warehouses
Recycling points
Europe
Distributers
Stores
Chains
Recycling points
Info
China
Plastic housing
for toys
Battery
production
Assembling
Recycling
EduToysInformation
Supply chain Distribution
Information
Info
Materials
Customers
Information, product, service, financial, knowledge flows
Ekaterina PRELYGINA, 2915047(Bowersox, Closs and Cooper, 2007)

Ethical Audit Standards
For a modern business, an ethical supply chain is no longer an optional "feel-good" PR tool.
Today, consumers, governments and NGOs are putting increasing pressure on brands and
retailers to ensure transparency throughout their supply chains. Social accountability is an
important element of a company's sourcing and marketing strategy, which helps ensure better
product quality, foster consumer loyalty, and emphasise good corporate citizenship
Comprehensive ethical audit should cover the following
aspects
 Hygiene, health and safety
 Waste management
 Child and young labor
 Labour practices, including forced labour, worker
representation, disciplinary practices and discrimination.
 Working hours and wages
 Client-Specific EthicalAudit Protocols (if required)

International Standards & Requirements
 ITCI (International Council ofToy Industries)1
 SA 8000 (SocialAccountability Standard) 2
 SMETA (Sedex Members EthicalTrade Audit) (AAG) 3
 ETI Base Code (EthicalTrading Initiative ) (ILO) 4
 Initiative Clause Sociale (ICS) (France) 5
International Requirements: (ISO, Safety of Toys)
 Mechanical Hazards (ISO 8124)
 Flammability (ISO 8124)
 Migration of Certain Elements
 ElectricToys – Safety (IEC 62115)
 Laser/LED Safety (IEC 60825)
 Age appropriateness analysis
1 http://www.toy-icti.org/
2 http://www.sa-intl.org/index.cfm?fuseaction=page.viewpage&pageid=1689
3 https://www.sedexglobal.com/products-services/suppliers/
4 http://www.ethicaltrade.org/
5 http://www.intertek.com/auditing/ics/
 Employment is freely chosen
 Freedom of association
 Working conditions are safe and hygienic
 Child labour shall not be used
 Living wages are paid
 Working hours are not excessive
 No discrimination is practised
 Regular employment is provided
 No harsh or inhumane treatment is
allowed

Toys industry issues: Certification
Standards of quality and safety mean that all items compulsory have to be tested and evaluated at
different stages to assure the fulfilment of global toy safety standards (such as EN711 (Europe Toy
Standards & Regulation) or ASTM F963 2 (Toy Safety Standard Required by U.S. Law))
European standard EN 71 specifies safety requirements for toys. Compliance with the standard is
legally required for all toys sold in the EU (13 parts).
ASTM F963 has been recently changed in the following parts, concerning
our company:
 Heavy Elements
 Microbiological Safety
 Stuffing Material Requirements
 Acoustics
 Cords, Strap and Elastics inToys
 Ride-onToys
 SqueezeToys
 Battery OperatedToys
 Magnets
 Expanding Materials
 Labelling / Instruction / Producer Marking
1 https://law.resource.org/pub/eu/toys/en.71.1.2014.html
2 https://www.astm.org/Standards/F963.htm

Why perform an Ethical Audit?
 Ensure decent working conditions and
human rights throughout your supply
chain
 Comply with statutory requirements (e.g.
Modern SlaveryAct 2015)
 Prevent unauthorized subcontracting
 Receive an accurate picture of ethical
compliance in our supply chain
 Foster cooperative relations with our
suppliers improve brand image and
increase consumer loyalty
Toys industry issues: Ethical audit

What does it mean for the company?
Financial issues (additional costs)
 Permanent internal control (creation of special
department)
 EthicalAudit (external)
 Searching for reliable suppliers (ethical partners)
Legal issues
 Careful tracking of the transition of requirements from
the category of recommendations to mandatory
 Breach of mandatory requirements may lead to serious
damage, up to the liquidation of the company.
Reputation risk
 Breach of ethical norms may lead to loss of company
reputation and, as a result, loss of customers and
profits.

EMPLOYEES
Muhammed ArshadTHONDIKKODAN

Employees and CSR
•What benefits get from CSR ?
(Exforsys, 2015)
-BoostWork Ethics and Performance
-Creates an impact on employee
attitude and level of awareness
-Strengthening commitment towards
job
-Job satisfaction
-Grow positive perception about their
employer
(World Economic Forum 2016)

EDUTOYS HIERARCHY
CEO
Administration
HR
Production
Manufacturing
(Outsourcing)
Purchasing
Sales and Marketing
Sales Marketing
Branding
Distribution
R&D
Finance

ISSUES OF EMPLOYEES
• Unsafe workplace and
Insufficient Safety
Training
• Unfair Payment

• Unawareness ofWorkplace
culture
• Discrimination ( Unequal
Treatment)

WaysTo Solve These Issues
• Duty of Care
- Clean, Healthy and Safe working Conditions
- SafetyTraining for Job
-Avoid Rudeness and Bullying
-Wellness Programs
- Healthcare Coverage
• FairTerms and Conditions
- Employee contracts, FairTrade
- Extra payment for Extra Effort
-Workers Committee
• Better Work place Culture/ Environment
- off the job CulturalTraining
- Flexible Internal Communication channel (Open flat structure)
-Regular Feedback system

COMPLIANCE &
ENCOURAGING RIGHT
BEHAVIOUR

Whistle Blowing
Encouraging the reporting of Right Behavior
•Train staffs to be Open and responsive to bad news
• Communicate reporting of unethical, illegal, bad news or not correct
activity
• Encourage reporting by taking immediate actions

Code of Conduct
Edu Toys COC Cover:-
•Respect each other
•Responsiveness
•Freedom of expression
•Drugs and Alcohol
•Obey the Law Rules Regulations and
policies
•Professionalism
•Communication

Ethical Organization Culture
•Hiring Right People ( Assess with Hofstede’s
Cultural dimension)
•Offer EthicsTraining
•FiringWrong People
•Reward people for doing right things
•Communication of code of conduct

ENVIRONMENT
MuhammedYousaf MUNAWAR

Most of the toys are made of plastic and can be hazardous or dangerous for the environment
or health. Some of the concerns are explained below:
Health Concerns:
Some plastics are likely to have some toxic chemicals which can have bad impact on human
health.As children are more likely to be exposed to them chemicals and could affect their
health because their organs are still developing. EDUToys will be making toys from
polyethylene which is a safe and BPA
and phthalate free plastic which can be very
friendly to kids.Whereas wooden toys will also
be an option as there is no environmental or
health hazard associated with it.
Environmental Concerns

Impact on Environment:
EDUToys will be having less to no effect on
environment as our products will be made from
recycled plastic (milk and yoghurts containers
etc) which can be shredded into flakes and
reprocessed into our raw material.The plastics
used will be 100% recycled High density
polyethylene. So instead of creating landfills
we will use these plastics to create products.

Plastic Packaging:
The normal plastic packaging is also a form of environmental
pollution and is increasing the danger of life for land animals
as well as marine creatures to fatal consequences. Our
products will be packed in 100% recyclable cardboard and will
not contain additives like twist ties or bubble wraps. Printing
will also be used using minimal colours or using soy inks.

Recycling:
Recycling of mixed plastics is a big challenge as there are a lot of components in it and
can be hard to recycle. Only if they can be separated and can be recycled. It makes
increasing sense economically as well as environmentally and recent trends
demonstrate a substantial increase in the rate of recovery and recycling of plastic
wastes, but some significant challenges still exist from technological and economic or
social behaviour issues relating to the collection of recyclable wastes.

Social Responsibility
• EDUToys will be running initiatives and programs to help educate people
about the plastics used and the way to use plastics. It will also help improve
education about recycling and its impact on the environment.This initiative
will help parents to choose better toys for there kids and will also help
increasing awareness about recycling them.

EduToy’s Consumer
Geographically/Demographically - EduToy’s consumer’s is based in well developed countries where
Education is seen as a right rather than a privilege.
- Both genders
- Parents with kids
Psychologically/Behavioral: - Parents who encourage their kids to be familiar with technology from a
young age.
-They believe in Creativity, learning in a fun way and especially productivity.
Sara BOUABDELI

Our consumer Segmentation would also be very Multi-variable and encourage
every parent to get our product. i.e:
- Preschool and day nurseries.
- Parents who cannot necessarily afford EduToy but who would save money to
be able to get it as a birthday gift for their children.
Ethical responsibilities to their employees, customers and society as a whole.
One of Edutoy’s intangible objectives is to ensure that the consumer is
approaching our product with a good conscience and to do so; we will build
trust bonds between both parties.
Sara BOUABDELI

- Honesty is EduToy’s policy.
EduToy rhymes with ethics, loyalty and honesty; the process our product goes into is safe for children as it is
the environment.
In the age of the Internet, it is easier than ever to say the wrong thing, and the results can be extremely
damaging.We would like to have a strong online presence using pull marketing.We will create valuable
content to solve clients' problems via blog posts, downloadable e-books, videos, podcasts, and more can all
offer helpful information.
-Treating our Customers as parents, as people and not income.
Consumers aren’t figures, contact options and survey providers, they need to be listened to and their concerns
need to be taken into account.
We realize that the first thing that comes to mind when referring to manufacturing and production is child
labor; the reason why we are taking into consideration launching a campaign around this theme.This will allow
us to not only promote EduToy but also reach a maximum of customers by a mix of feelings and facts.
-We care about the environment as much as the consumer does.
A department within the company will take care of all the environmental issues the world is facing and that
might coincide with EduToy such as Recycling, chemical waste and pollution.
Sara BOUABDELI

CSR Strategy
At EduToys our goal is to implement a business strategy that will be
beneficial not just to ourselves, but to our stakeholders too.We
recognize that no business operates alone on a self-contained basis. We
believe that societal problems can create economic costs in the firm’s
value chain.
We combine the philosophy of shared value in our strategy (eg. our
employee conditions) and internalizing our externalities (eg. managing
and recycling waste) to create a palpable benefit to not only us, our
shareholders, but our stakeholders too.
Jim O’Shea

CSR Strategy
The first step for us to implement an effective CSR strategy is to look
inwards. We want our employees to be engaged with working for us to
innovate and bring the best products to our market.
We regard the investment into our employees as a shared value approach.
(Porter and Krammer, 2002)
Employees:
● Healthcare coverage. Eg. J&J
● Facilitate quitting smoking and smoke free zones.
● Training and Development
● Wellness program including fitness facilities (Gym
subsidies).
Jim O’Shea

Inputs
• Healthcare coverage. J&J
• Facilitate quitting smoking and smoke
free zones.
• Training and Development
• Wellness program including fitness
facilities (Gym subsidies).
Shared value
• Less absenteeism and training,
• Labour turnover
• Healthier employees
• Competitive advantage for hiring!
Jim O’Shea
CSR Strategy
Employees:

CSR Strategy
Customers:
● Begin by targeting a market that can afford this product.
● Then introduce a Edutoys schools initiative to give free toys to
underprivileged/disabled schools.This will introduce our product to the
marketplace while also reflecting a positive philanthropic image.
● Place recycling points for our products at these market channels while
promoting them. Eg.Contractual obligation, coupons, stickers)
Not only is it imperative to us that we see the educational
development of our customers improve, they are also integral to our
recycling chain. Our performance is based on how well our products
help their performance.Their development and growth will directly
grow our demand for our products.
Jim O’Shea

CSR Strategy
We have recognised that China is one of the few places that has the distinct
capabilities to manufacture our products in order to make them affordable and
available to our customers. Because of the nature of our supply chain we have
limitations to how we can implement a socially responsible relationship.
However, this is key to our recycling strategy which internalises the externality
of environmental waste. (Meyer & Kirby, 2010)
Suppliers:
● Participate in using recycled material through contract
● Must have ethical pay and work conditions that comply
● This mitigates costs and can be advertised as being socially responsible to
our customers.
Jim O’Shea

Jim O’Shea
CSR Strategy
•Notes:
•Consider what happens if a firm invests in a wellness program—less
absenteeism and training, healthier employees+ competitive advantage for
hiring!(By investing in employee wellness programs, health care costs.)
•social harms or weaknesses frequently create
•internal costs for Orms—such as wasted energy
•or raw materials, costly accidents, and the need
•for remedial training to compensate for inadequacies
•in education. (Porter and Krammer, 2002)
•Rewards—health, safety, environmental performance,
•and employee retention and capability

REFERENCES
https://www.iisd.org/business/issues/sr.aspx
Anon, Adverse Health Effects of Plastics | Ecology Center. Available at: http://ecologycenter.org/factsheets/adverse-health-
effects-of-plastics/ [Accessed March 14, 2017].
Freeman, R. Edward (1984). Strategic Management: A stakeholder approach. Boston: Pitman. ISBN 0-273-01913-9.
Miles, Samantha (2012). "Stakeholders: essentially contested or just confused?”
Journal of Business Ethics. 108 (3): 285–298. doi:10.1007/s10551-011-1090-8.
Sztuka, A., 2017. Stakeholder-Analyse.
Available at: http://www.manager-wiki.com/externe-analyse/32-stakeholder-analyse [Accessed March 1, 2017].
Kadian-Baumeyer, K., 2017. Effects of Business Decisions on Shareholders -Video & LessonTranscript,
Available at: http://study.com/academy/lesson/effects-of-business-decisions-on-stakeholders.html [Accessed March
20,
2017].
http://www1.udel.edu/alex/chapt9.html
http://www.mycustomer.com/community/blogs/jtripton/5-ways-to-strengthen-your-bond-with-customers

REFERENCES
Bowersox, D. J., Closs, D. J. and Cooper, M. B. (2007) Supply chain logistics management. 2nd ed. Boston, MA. : McGraw-Hill.
Available at: http://trove.nla.gov.au/version/30456210 (Accessed: 30 March 2017).
CheeYewWong, Jan Stentoft Arlbjørn and John Johansen (2005) ‘Supply chain management practices in toy supply chains’,
Supply Chain Management: An International Journal, 10(5), pp. 367–378. doi: 10.1108/13598540510624197.
Ferrell, O. C., Fraedrich, J. and Ferrell, L. (2002) Business Ethics: Ethical Decision Making and Cases - Fifth Edition, Custom.
5th edition. Houhton Mifflin Custom Publishing.
Fisher, C. M. and Lovell, A. (2003) Business Ethics andValues. FT Prentice Hall.
Görg, H., Hanley, A. and Seric, S. (no date) Corporate Social Responsibility in Global Supply Chains of Multinational
Companies — Documentstore/Members Portal. Available at: https://www.ifw-members.ifw-
kiel.de/publications/corporate-social-responsibility-in-global-supply-chains-of-multinational-companies (Accessed: 30
March 2017).
WTO (ed.) (2013) GlobalValue Chains InA Changing World. Geneva: WorldTrade Organization.
https://www.astm.org/Standards/F963.htm
https://www.iisd.org/business/issues/sr.aspx
http://www1.udel.edu/alex/chapt9.html
http://www.mycustomer.com/community/blogs/jtripton/5-ways-to-strengthen-your-bond-with-customers
http://www.sa-intl.org/index.cfm?fuseaction=page.viewpage&pageid=1689
https://www.sedexglobal.com/products-services/suppliers/
http://www.ethicaltrade.org/
http://www.toy-icti.org/

Edu Toys Corporate Social Responsibility ( Toy industry)

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