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.

— Jay Rasulo, Senior Executive Vice President and Chief F inancial 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.

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.

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.

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.

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.

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.

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. 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. 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.

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.....

Questions

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.