Lenovos CSR approach

Throughout history weve seen businesses make a continuing commitment to

contribute to economic development across the globe while also achieving their own
financial objectives. However, the means through which this is realized has changed
dramatically as time has progressed. Now, we are seeing companies prioritize the
welfare of their employees and put a premium on the effects of their business practices
on the environment and society at large. Incorporating self-regulation into ones
business model has become increasingly popular this is known as Corporate Social
Responsibility.
A companys implementation of CSR lies on the premise of providing a more
transparent outlook of their business practices and transactions while going above and
beyond that of which the law requires either for some social good or cause. CSR is a
way for companies to benefit themselves while also benefitting society, (Reeves).
Through CSR, companies are able to establish a long-term mentality rather than
worrying about quarter-to-quarter reports, as well as differentiate their brand from other
competitors in similar or identical industries. Using CSR cannot solve the worlds
problems but instead it gives businesses the opportunity to interact with their employees
and customers on a level that they would not have been able to otherwise (Reeves).

Lenovo is a public Chinese-American multinational company that manufactures

computer technology hardware such as workstations, personal computers, electronic
storage devices, and smartphones. The company is headquartered in Beijing, China
and Morrisville, North Carolina. In 2014, Lenovo dominated the market in personal
computer unit sales beating other vendors such as HP, Dell, and Asus (IDC).

Lenovo has implemented corporate social responsibility into their business model
and they have done so for a number of years now. Lenovo has made a commitment to
demonstrate leadership with sustainability and responsibility programs that have been
recognized by the global community (Lenovo Group). In their 2014 fiscal year
sustainability report they outlined their target types, objectives, key performance
indicators, targets, and whether they met, partially met, did not meet, or are on track to
meet those specific targets.
Among those target types are product energy, product materials, waste
management, site energy consumption, site air emissions, and supplier environmental
performance. Through these target types Lenovo set metrics on which to determine the
success of their initiatives. For example, one of Lenovos objectives with respect to site
air emissions is the absolute reduction of CO2e emissions from their worldwide
operations. To meet their goal they set up metrics to compare their reduction relative to
their 2009 fiscal year numbers. Currently they are on track to reduce CO 2e emissions by
16% in 2016 and 20% in 2020 (Lenovo Group). In their CSR approach, another
objective they set for themselves was to minimize the consumption of packaging
material in an effort to become more environmentally friendly. They were able to meet
their goal by eliminating 300 tons of packing material consumption through design
optimization.
As mentioned before, in their CSR approach Lenovo also sets a premium on the
welfare of their employees. Lenovo prides itself on diversity by having 54,000
employees who speak more than 40 different languages and live in more than 50
countries. However, regardless of the diversity in their workforce Lenovo aims to

maintain a single working culture one single DNA strand. They have implemented the
5 Ps that help drive the working culture they seek to create plan, perform, prioritize,
practice, and pioneer (Lenovo Group). They also look to become more transparent to
their staff by fostering an all hands mentality. Lenovo outlines that their meetings,
typically every quarter, are to be utilized as open forums where anyone is welcome to
voice their concerns and pitch ideas in an effort to create an innovative atmosphere.
Lenovo makes a commitment to preserving the environment. This can be seen
not only in their established environmental programs but also in the products they
produce and sell. They are often pioneers in their field, in March 2014, the Lenovo Miix
2 11-inch tablet received the first ECOLOGO and GREENGUARD Dual Certification for
tablet products, (Lenovo Group). It was reported that Lenovo received no notices of
violation or breaches of regulatory requirements last year.
Among the green programs (eco-labels) the company participates in is EPEATTM,
which rates computers across eight different environmental categories and awards them
a label of Bronze, Silver, and Gold based on their performance. They also partake in the
ENERGY STAR program that promotes energy efficiency and reduction in green house
gas emissions. If Lenovo meets the set standards they are awarded an energy star
label that helps customers make more informed decisions based on lowering electricity
expenses (Energy Star).
Along with eco-friendly programs and initiatives, Lenovo also makes a variety of
social investments to create a positive impact in our society as a whole. The foundation
of their social commitments rest on three programs: Next Generation Hope Fund,
Global Disaster Assistance, and Community Outreach, Collaborations and Partnerships.

Lenovo supports global education from K-12 higher education. Through Next
Generation Hope Fund they provide equipment as well as financial contributions to
school related organizations around the globe. Along with financial support they supply
their expertise to the generation of tomorrow.
Disaster relief is also a big part of Lenovos CSR model. Whenever natural
disasters occur, such as hurricanes, typhoons, tornadoes or earthquakes Lenovo is
willing to step in wherever possible. During FY 2013/14, Lenovo donated US$25,000 to
support tornado disaster relief efforts in the state of Oklahoma in the United States,
(Lenovo Group). Lenovo defines their corporate responsibility by following the making
the world better because of Lenovo principle. It was reported for fiscal year 2014
company employees in North America completed roughly 7500 hours of community
service.
Lenovo has successfully integrated their CSR approach into their business
model. CSR often receives criticism not because of its implementation but because of
the underlying reasons a company may have to use it. However, customers are more
inclined to purchase products or services from a business that they perceive to be
socially responsible.
Works Cited

ENERGY STAR. (2015). Retrieved December 5, 2015.

Group, L. (2014, March 31). The Lenovo Experience: Building a more sustainable
group. Retrieved December 5, 2015.

PC Leaders Continue Growth And Share Gains As Market Remains Slow, According to
IDC. (2015, January 12). Retrieved December 7, 2015.

Reeves, J. (2012, February 21). Six Reasons Companies Should Embrace CSR.
Retrieved December 7, 2015.

By IDC Charts