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Social Considerations in Engineering Design
- 1. Real World Considerations in the Design of Electronic Products Social Considerations http://www.comingalongside.org/Social%20Consequences/
- 2. Social Constraints in Engineering Design Social constraints in an engineering design look at what a consumer or community is willing to accept in terms of look, function, status, and social value of a product. Other Social considerations emphasize the impacts that making a product, delivering that product to the consumer, and use of the product have on society. Along the Supply Chain Beyond the Supply Chain
- 3. Social Considerations along the Supply Chain Where a company chooses to source raw materials and process, manufacture, and assemble those raw materials into marketable products can often have significant social impacts on local workers and communities.
- 4. Social Considerations along the Supply Chain While these decisions are historically made based on economics (e.g. low cost labor and materials), considering the social consequences of outsourcing decisions can be done using a wide range of metrics, measures, and indicators, and reports by non-government and government agencies. Some provide holistic or big picture indicators of how well countries are serving their citizens and some provide more specific measures. Both are useful to corporations operating in the U.S. for making decisions about where and how to do business around the world.
- 5. Improving understanding of Social Considerations In a globalized economy, we have many different choices about where we extract natural resources, process those resources, and manufacture/assemble those resources into products. http://www.socialprogressimperative.org/global-index/ The Social Progress Index (developed by the Social Progress imperative) evaluates how well a country meets the needs of its citizens. Knowing and understanding this index for a country in which a company is considering doing business helps it invest wisely to support the way forward to a healthier society. Social Considerations along the Supply Chain
- 6. The Social Progress Index http://www.socialprogressimperative.org/global-index/ Basic Human Needs Well-Being (sustain quality of life) Opportunity (to move forward) + Social Considerations along the Supply Chain The Social Progress Index focuses on social, rather than economic indicators to avoid difficulties in distinguishing cause and effect. It also focuses on outcomes rather than inputs, in order to get closer to the lives of real people in the countries and societies evaluated using the index.
- 7. http://www.socialprogressimperative.org/global-index/methodology/ The Social Progress Index: Basic Human Needs Nutrition and Basic Medical Care: • Depth of food deficit • Maternal mortality rate • Child mortality rate • Deaths from infectious diseases Water and Sanitation: • Access to piped water • Rural access to improved water sources • Access to improved sanitation facilities Shelter • Availability of affordable housing • Access to electricity • Quality of electricity supply • Household air pollution attributable deaths Personal Safety: • Homicide rate • Level of violent crime • Perceived criminality • Political terror • Traffic deaths Social Considerations along the Supply Chain
- 8. Basic Human Needs Does a country provide for the essential needs of its inhabitants? Image generated at: http://www.socialprogressimperative.org/global-index/ Social Considerations along the Supply Chain
- 9. http://www.socialprogressimperative.org/global-index/methodology/ The Social Progress Index: Foundations of Well-Being Access to Basic Knowledge: • Adult literacy rate • Primary school enrollment • Lower secondary school enrollment • Upper secondary school enrollment • Gender parity in secondary enrollment Health and Wellness: • Life expectancy at 60 • Premature deaths from non-communicable disease • Obesity rate • Suicide rate Access to Information • Mobile telephone subscriptions • Internet users • Press Freedom Index Environmental Quality: • Outdoor air pollution attributable deaths • Wastewater treatment • Biodiversity and habitat • Greenhouse gas emissions Social Considerations along the Supply Chain
- 10. Social Considerations along the Supply Chain Well-Being Does a country provide foundations (education, environment, information) for healthy living? Image generated at: http://www.socialprogressimperative.org/global-index/
- 11. Social Considerations along the Supply Chain http://www.socialprogressimperative.org/global-index/methodology/ The Social Progress Index: Opportunity Personal Rights: • Political rights • Freedom of speech • Freedom of assembly/association • Freedom of movement • Private property rights Tolerance and Inclusion: • Tolerance for immigrants • Tolerance for homosexuals • Discrimination and violence against minorities • Religious tolerance • Community safety net Access to Advanced Education • Women's average years in school • Years of tertiary schooling • Inequality in the attainment of education • Number of globally ranked universities • Percent of tertiary students enrolled in globally ranked universities Personal Freedom and Choice: • Freedom over life choices • Freedom of religion • Early marriage • Satisfied demand for contraception • Corruption
- 12. Social Considerations along the Supply Chain Opportunity Does a country provide its inhabitants with opportunities to advance upward in society? Image generated at: http://www.socialprogressimperative.org/global-index/
- 13. Social Considerations along the Supply Chain Data adapted from: http://www.socialprogressimperative.org/global-index/methodology/ The Social Progress Index – a generalized index that provides a holistic sense of the social benefit of purchasing raw materials, outsourcing to or otherwise doing business with both developing and developed countries. Country Rank Overall Human Needs Well Being Opportunity USA 16 82.85 91.23 75.15 82.18 China 92 59.07 73.74 65.4 38.08 India 101 53.06 58.87 57.38 42.93 Philippines 64 65.46 68.23 68.86 59.3 Bangladesh 100 53.39 61.94 62.73 35.5 Cambodia 99 53.96 53.86 67.52 40.52 Norway 1 88.36 94.8 88.46 81.82 Australia 10 86.42 93.73 79.98 85.55 Russia 71 63.64 74.1 67.63 49.19
- 14. Expanding beyond the Social Progress Index Social Considerations along the Supply Chain Both non-profit (e.g. Amnesty International) and for-profit (e.g. Maplecroft) organizations provide information that allow a company to reduce the risk that its practices contribute to violations of human rights around the world.
- 15. Social Considerations provided by Amnesty International Social Considerations along the Supply Chain Amnesty International provides a credible, comprehensive assessment of the state of human rights in over 150 countries. Image and data from: http://www.amnestyusa.org/our-work/countries
- 16. Social Considerations along the Supply Chain Maplecroft provides an annual index of the risk of human rights violations in a broad range of countries around the world Social Considerations outlined by Maplecroft Country Human Rights Risk Sudan Extreme risk Democratic Republic of Congo Extreme risk Russia Extreme risk Somalia Extreme risk Iraq Extreme risk Brazil High risk Spain High risk Canada Low Risk United States Medium Risk More comprehensive information about human risk violations around the world can be found at: https://maplecroft.com/portfolio/new- analysis/2013/12/04/70-increase-countries-identified-extreme-risk-human-rights-2008-bhuman-rights-risk-atlas-2014b/
- 17. “Multinational corporations are particularly vulnerable to allegations of complicity in human rights abuses, due to their complex supply chains… Business investment is deeply rooted in emerging economies and many of these countries are affected by social tensions. A decline in the human rights risk landscape is not only an unacceptable situation; it is also a forecaster of political risk and business disruption.” Maplecroft CEO, Alyson Warhurst. Social Considerations along the Supply Chain Bolster company Image Why pay attention to social considerations along the supply chain? Increase business stability Support global economic growth Maintain professional ethics
- 18. Social Considerations beyond the Supply Chain The social impact that companies have by doing business all over the world including their home countries, goes well beyond the supply chain, extending to their own workers, local communities, and other spheres of influence. Let’s now take a look inside the company for a holistic view of the social responsibility companies hold and the social impact that its business practices have on society.
- 19. Corporate Social Responsibility (CSR) Hub provides focuses on the company rather than the country by rating four key categories of socially responsible behavior. Environment Employees Community Governance Data from over 500 sources ranging from Newsweek to Thomson Reuters Aggregation and Normalization of Data across Industries Weighting CSR Score Social Considerations beyond the Supply Chain
- 20. Corporate Social Responsibility (CSR) Hub Ratings and Scores Environment Comprehensive assessment of a Company’s interactions with the Environment Energy and Climate Change Resource Management Environment Policy and Reporting Social Considerations beyond the Supply Chain
- 21. Corporate Social Responsibility (CSR) Hub Ratings and Scores Employees Comprehensive assessment of how employees are treated by the Company. Compensation and Benefits Diversity and Labor Rights Training, Safety, and Health Social Considerations beyond the Supply Chain
- 22. Corporate Social Responsibility (CSR) Hub Ratings and Scores Community Company's commitment and effectiveness in the communities where it does business Community Development and Philanthropy Human Rights and Supply Chain Products Social Considerations beyond the Supply Chain
- 23. Corporate Social Responsibility (CSR) Hub Ratings and Scores Governance Focus on ethics, leadership, and transparency within a company’s leadership Transparency and Reporting Leadership Ethics Board Social Considerations beyond the Supply Chain
- 24. Intel Corporation, An Example of CSR Hub Ratings How the company treats those on the outside who play a role in its activity How the company treats those on the inside How the company rates within its product sector Source: Data generated at CSRHub.com Social Considerations beyond the Supply Chain
- 25. Advanced Micro Devices, An Example of CSR Hub Ratings How the company treats those on the outside who play a role in its activity How the company treats those on the inside How the company rates within its product sector Which company will you purchase from? Source: Data generated at CSRHub.com Social Considerations beyond the Supply Chain
- 26. Advanced Micro Devices and Intel are ultimately very similar in terms of the social consequences of their company practices. There is little difference between their overall scores and they represent similar overall social responsibility. Large differences in the Employee scores, however, may make a difference to an individual choosing to work for one of the two companies. Advanced Micro Devices vs. Intel Corporation An Example of CSR Hub Ratings Source: Data generated at CSRHub.com Social Considerations beyond the Supply Chain
- 27. Texas Instruments National Semiconductor Analog Devices Here, there are large gaps in scores that can influence both individuals seeking employment at these companies and engineers or others involved in product design as they choose which companies to source components from. Another Example: Three companies that sell Integrated Circuits for Electronic Devices & Appliances Source: Data generated at CSRHub.com Social Considerations beyond the Supply Chain
- 28. “The number of companies engaging in sustainability reporting is at an all-time high - and growing. Now, the conversation no longer centers on whether companies should report but rather how.” CSR Hub COO, Cynthia Figge. Bolster Company Image Why pay attention to social considerations beyond the supply chain? Increase appeal of employment to potential, future employees Support global economic growth Maintain professional ethics Satisfy government and NGO oversight Social Considerations beyond the Supply Chain
- 29. Complete Educational Materials (including assignments, quizzes, and recorded lectures) on the topic of Social Considerations can be found at: http://www.comingalongside.org/Social%20Consequences/
Editor's Notes
- From CSR Hub Data Schema: "The Environment category data covers a company’s interactions with the environment at large, including use of natural resources, and a company’s impact on the Earth’s ecosystems. The category evaluates corporate environmental performance, compliance with environmental regulations, mitigation of environmental footprint, leadership in addressing climate change through appropriate policies and strategies, energy-efficient operations, and the development of renewable energy and other alternative environmental technologies, disclosure of sources of environmental risk and liability and actions to minimize exposure to future risk, implementation of natural resource conservation and efficiency programs, pollution prevention programs, demonstration of a strategy toward sustainable development, integration of environmental sustainability and responsiveness with management and the board, and programs to measure and engage stakeholders for environmental improvement."
- From CSR Hub Data Schema: "The Employees category includes disclosure of policies, programs, and performance in diversity, labor relations and labor rights, compensation, benefits, and employee training, health and safety. The evaluation focuses on the quality of policies and programs, compliance with national laws and regulations, and proactive management initiatives. The category includes evaluation of inclusive diversity policies, fair treatment of all employees, robust diversity (EEO-1) programs and training, disclosure of workforce diversity data, strong labor codes (addressing the core ILO standards), comprehensive benefits, demonstrated training and development opportunities, employee health and safety policies, basic and industry-specific safety training, demonstrated safety management systems, and a positive safety performance record.."
- From CSR Hub Data Schema: " The Community Category covers the company’s commitment and effectiveness within the local, national and global community in which it does business. It reflects a company’s citizenship, charitable giving, and volunteerism. This category covers the company’s human rights record and treatment of its supply chain. It also covers the environmental and social impacts of the company’s products and services, and the development of sustainable products, processes and technologies.."
- From CSR Hub Data Schema: " The Governance category covers disclosure of policies and procedures, board independence and diversity, executive compensation, attention to stakeholder concerns, and evaluation of a company’s culture of ethical leadership and compliance. Corporate governance refers to leadership structure and the values that determine corporate direction, ethics and performance. This category rates factors such as: are corporate policies and practices aligned with sustainability goals; is the management of the corporation transparent to stakeholders; are employees appropriately engaged in the management of the company; are sustainability principles integrated from the top down into the day-to-day operations of the company. Governance focuses on how management is committed to sustainability and corporate responsibility at all levels..."