Disney Citizenship: Lending a Mouse Ear to Hear How to Help Society
We believe that our efforts to be a good corporate citizen have a direct impact on our financial strength, as well as our reputation as one of the most trusted and admired companies in the world.2
—Jay Rasulo, Senior Executive Vice President and Chief Financial Officer, The Walt Disney Company
In 2014, The Reputation Institute ranked the Walt Disney Corporation third behind Google and Microsoft for their Global CSR Reputation. Disney scored a total ranking of 72, while Google had a ranking of 72.7 and Microsoft had a ranking of 72.1. It was the fourth year in a row that Disney was ranked as a company with one of the highest Global CSR Reputations.3
Citizenship Commitment
Disney has established a citizenship framework that focuses on two major components: acting responsibly by conducting its business in an ethical manner and inspiring others by promoting the happiness and well-being of families and children.
“Acting responsibly” is broken down into six areas: ethical conduct, responsible content, environmental stewardship, civic engagement, respectful workplaces, and responsible supply chain. “Inspiring others” is broken down into four areas: live healthier, think creatively, conserve nature, and strengthen communities.4
Acting Responsibly
One of the underlying values of Disney is to act responsibly. Disney states that being ethically responsible for its actions not only strengthens its bond with its consumers, but it is an effective recruiting tool to attract and retain exceptional employees. Disney has identified six components related to acting responsibly: ethical conduct, responsible content, environmental stewardship, civic engagement, respectful workplaces, and responsible supply chain.5
Ethical Conduct
Disney believes that ethical conduct is critical to establishing and maintaining a positive relationship with its customers. If it does not conduct itself in an ethical manner, Disney will lose the authenticity of its communication and interactions with children, families, and society. Disney has established five goals related to ethical conduct: comply with governance policies and practices, disclose relevant citizenship information in a timely manner, encourage employees to be consistent with Disney’s Standards of Business Conduct, integrate corporate citizenship in all daily decisions made by Disney managers, and integrate corporate citizenship into the daily conduct of Disney employees. Disney has established a corporate citizenship group that includes the following areas: community engagement, strategic philanthropy, healthy living, and the natural environment. Disney’s Integrated Supply Chain Management group’s responsibilities include labor standards, product safety, quality, environmental performance, and regulatory compliance.6
Responsible Content
Disney’s goals for developing responsible content include creating age-appropriate entertainment experiences for children; crafting marketing campaigns that consider the positive aspects of the entertainment experience while respecting the needs of the consumers; continuing the ban on cigarette smoking in Disney films; focusing on promoting safety for children, families, and guests; presenting diversity in cultures and backgrounds in Disney’s entertainment experiences; giving parents and guardians relevant information on the content of the Disney entertainment experiences; using feedback from parents and guardians to improve the entertainment experience; and recognizing children for their positive contributions to society.7
Environmental Stewardship
Disney’s long-term environmental stewardship goals include zero-net greenhouse gas emissions, zero waste, and the conservation of water resources. In 2014, Disney had reduced its net greenhouse gas emissions by 31% from the levels established in 2012. Disney has established a goal of reducing the 2012 level by 50% by 2020.8 Disney has also installed a 1-megawatt fuel cell in its Pixar Animation Studios to supplement its electricity use and is also planning to install a fuel cell in its Burbank Studio Lot campus.9 Disney has a 2020 goal of diverting 60% of its generated waste from landfills and incineration. In 2014, Disney diverted 48% of its waste from landfills and incineration.10 Disney also has a goal of maintaining the 2013 potable water consumption levels by 2018 and to develop water conservation plans for any new Disney sites.11
Civic Engagement
Disney’s civic engagement goals are to promote the idea of giving through entertainment and to engage with Disney’s stakeholders on a regular basis. Disney identifies critical stakeholders as not only investors but also nongovernmental organizations, local communities, families, children, and Disney fans.12
Respectful Workplaces
Disney’s goals related to its workplaces include maintaining safe places to work, developing a workforce that is diverse and is engaging in the global marketplace, supporting the career development of all Disney employees, and encouraging the participation in health and wellness programs by Disney employees and families.13 Disney has also established a United States Veterans Initiative and a Women’s Initiative. Through its Heroes Work Here program, Disney hired 3,800 veterans as of October 31, 2014. Disney also has established programs to provide growth and support to female Disney employees.14
Responsible Supply Chain
Disney’s goals related to having a responsible supply chain include supporting the positive treatment of the labor force producing Disney products. This treatment includes the promotion of a safe, inclusive, and respectful workplace for workers producing Disney products; compliance with policies that support safety and chemicals management in the production of Disney products; and minimization of the negative environmental impact of the production of Disney products.15
Inspiring Others
Disney believes that it has a unique opportunity to inspire families and children to take actions that improve their lives and the lives of others. In addition, because children and families trust the Disney brand and develop an emotional bond with Disney, Disney has an obligation to use this strong bond to help improve the world everyone lives in. Disney has separated inspiring others into four components: live healthier, think creatively, conserve nature, and strengthen communities.16
Live Healthier
In 2006, Disney was the first major media company to create nutrition guidelines for any food products associated with the Disney brand and characters through their media platforms, which included television channels and radio stations. By the end of 2015, Disney’s goal is to have 100% of its advertising on food products in compliance with the nutrition guidelines established by Disney. In 2014, 50% of the advertising was in compliance with the nutrition guidelines.17 Disney is also moving forward with the enhancement of the nutrition level of its licensed food sales. Disney has established a goal that 85% of its globally licensed wholesale food sales must meet its global nutrition guidelines. In 2014, its global wholesale food sales were 71% compliant, while the North American sales had met the global goal of 85%. Disney states that it would not be able to reach 100% compliance because there are certain foods that they produce, such as candy and cakes, that would not comply with the nutrition guidelines. Since 2006, Disney has been able to provide more than 4 billion healthy servings of fruits and vegetables to families.18
Disney also established the “Mickey Check” program, an easy way to identify healthy nutritious choices in all of Disney’s parks, resorts, and cruise lines. Furthermore, Disney uses storytelling and endorsements from its characters to encourage children and families to try nutritious foods through its TRYit program. The TRYit campaign was able to reach 100 million households weekly in 2014, with 75% of the surveyed children expressing a willingness to make changes in their habits related to their health. Disney also is active in sponsoring programs that helped build more than 50 playgrounds, developed creative ways for children to spend their recess time outside, and helped food banks provide fresh fruit and vegetables.19
Think Creatively
Disney has partnered with the Boys & Girls Clubs of America to establish a six-week creativity learning program that is targeted at middle school children, to help reduce the level of learning loss during the summer months. This program has been executed by 260 Boys & Girls Clubs and has had 8,500 participants. In addition, Disney has financially supported the Playworks program, which encourages innovative play among children in low-income schools. This program has been established in 44 schools and has had more than 24,000 participants.
Star Wars: Force for Change
The Force is an energy field created by all living things. It surrounds us. It penetrates us. It binds the galaxy together. 20
—Obi-Wan Kenobi
Taking the words of the Jedi Master to heart, Disney and Lucasfilm sponsored a charitable program to create new and innovative solutions to some of the most difficult global challenges. The first challenge the program addressed was the needs of children in developing countries through UNICEF’s Innovation Labs. Disney committed $1 million to support UNICEF programs related to clean water, nutrition, health, and education. As part of the campaign, Disney created a contest during the summer of 2014 for Star Wars fans to donate to UNICEF and be eligible to win the chance to be in the Star Wars: Episode VII movie. The campaign raised more than $4.2 million for UNICEF. Disney has had a relationship with UNICEF for more than 50 years. In fact, at the 1964 World’s Fair, Disney introduced the “It’s a Small World” attraction, which was a tribute to UNICEF.21
Conserve Nature
In 1995, Disney established the Disney Worldwide Conservation Fund (DWCF), which focuses on protecting wildlife and natural habitats and developing sustainable conservation commitments. DWCF focuses on issues such as protecting threatened species and ecosystems and the creation of community conservation and environmental education programs in more than 100 countries globally. In 2014, DWCF contributed more than $25 million to fund more than 150 projects, which supported its long-term environmental commitment to eco-sustainability. Disney also actively promotes the natural environment through its Disney nature films, allowing millions of people to view various species in their natural habitats. Through its theme parks, reports, and its financial support of environmental nonprofit organizations, Disney was able to expose 13.4 million families and children to experiences related to the natural environment in 2014.22
Strengthen Communities
The VoluntEARS program allows Disney employees to volunteer within their local communities. In 2014, more than 500,000 hours of volunteer service were performed by Disney employees. Volunteer activities included volunteering at a local food bank, helping in the construction of new playgrounds, and working with various nonprofit organizations. Since 2012, a total of 1.7 million volunteer hours have been generated by Disney employees. Disney’s goal is to have an accumulated total of 5 million hours by 2020. In 2014, Disney introduced Disney Movie Moments, a program that sends first-run Disney films to more than 45 children’s hospitals in the United States. In addition, Disney provides Hospital Care Packages to more than 430 hospitals globally. The children in the hospital receive a care package that contains toys, DVDs, books, Club Penguin memberships, and a Marvel comic book specially designed for hospitalized children. As a result, Disney positively impacted 9.8 million families and children through these various programs in 2014 alone.23 Disney is also very actively encouraging reading by children. Disney donated 7.1 million books to schools and other educational programs in 2014. From 2012 to 2014, Disney donated a total of 23.1 million books, which was 5.1 million more than its target of 18 million.24
The VoluntEARS program provides funding for the “EARS to You” grants. EARS to You grants allow cast members and other Disney employees the opportunity to convert their volunteer actions into a financial contribution to various schools and charities connected with the Disney employees. Disney also has developed a Summer of Service campaign, which presents messages on its television networks encouraging the viewers to become actively involved in supporting their communities. Disney has created Friends for Change, a global community involvement initiative that encourages children and families to develop creative ideas to help their local community. Disney has also established the Disney Heroes Work Here program, which focuses on hiring, training, and supporting United States Armed Forces veterans and provides support to their families. Through activities from pledging online to protect the planet to volunteering in local communities, Disney encouraged families and children to take 3.7 million actions in 2014. Disney’s goal is to increase that level to 20 million actions by 2020.25
Strategic Philanthropy
In 2014, Disney contributed a total of $315.7 million in philanthropic giving, which included $86.6 million in cash donations, $137.8 million in product donations, and $91.3 million in other types of contributions, including in-kind donations and Public Service Announcements (PSAs).26
1-Walt Disney’s vision and values established the underlying CSR philosophy at Disney. How is Disney able to continue to embrace these values long after his death?
2-Disney claims that having a strong CSR reputation allows it to recruit and retain top-level employees. Do you agree? What characteristics do you look for in a company you want to work for?
3-Disney claims an emotional bond between the consumer and the company, which enhances its interaction with society. Identify an emotional bond you have with Disney.
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