Ethics Audit Analysis of Microsoft Corporation, Essay Example

Microsoft Corporation is the leading software development firm. In the past, the company had few computer professionals and small businesses but currently, it produces electronic devices and software for computer systems. The company provides online services, and it has diversified its products. Although the company faces a lot of challenges, it managed to be ranked third in the Global CSR Reputation Ranking. The company has expanded its operations, and its devices exist in almost every country. The mission of this firm is to empower every organization and individual on earth to achieve more. The company also believes in what people make possible. This paper will analyze ten principles outlined in the UN Global Compact Guide about Microsoft Corporation. Incorporating these principles into policies, strategies, and developing integrity culture indicates that a firm is setting the pace for long term success.

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The first principle is that businesses should respect and support protection of the internationally decreed human rights (Compact 1). The company is committed to respecting all the human rights. This principle is evident with the mission of assisting organizations and people all over the world realize their full potential. The company has developed various programs, policies, and practices in different areas in pursuing its mission including labor rights, equality, free expression, diversity, security, access to education, and privacy (A Cloud For Global Good 1). The second principle is ensuring that they are not complicit in human rights abuses (Compact 1). The firm uses technology to make sure that it is not complicit to human rights. Furthermore, it establishes and delivers private, reliable, and secure computing services and experience to everyone in the world. For instance, the company provided the first internet browser which helped the consumers to control potential online tracking.

The third principle is that a business should uphold the freedom of associations and recognition of collective bargaining right (Compact 1). Although this firm sets high standards for treatment of employees with the hope of serving as an example to the other businesses, it does not control the policies of its employees. This company denies its employees the right to collective bargaining. In 2010, the company said that it would determine its stand in recognizing collective bargaining for the firm, but it has not taken any initiative (Day 1). However, the corporation gives its employees the freedom of associating with each other.

The fourth and fifth principle in the labor standards are the elimination of all forms of forced labor and the termination of child labor (Compact 1). The permanent workers of Microsoft Corporation enjoy the best treatment because they are well paid with lots of benefits. However, in China, the firm uses teenage slave labor to build the Xboxes with a fee of only $ 0.65 per hour ( Congressional-Executive Commission on China 239). Additionally, the teenagers are forced to work 15 hours shift in a crowded condition. The company in China is very crowded and it does not have air conditioning which imposes a lot of risk to the workers. The report shows that the air conditioning is only turned on when the foreign clients come. The issues regarding forced labor and child labor are mainly experienced in China ( Congressional-Executive Commission on China 239). The other suppliers of the corporation usually ensure that they abide by the UN Compact principle when engaging in different activities.

The other labor policy is the elimination of discrimination regarding employment and occupation (Compact 1). The firm enhances this policy by supporting an ethnic and cultural diversity of its staff. Furthermore, it offers equal employment opportunities to all the qualified applicants and employees. The company has also established various initiatives to integrate and promote diversity in the firm to demonstrate its commitment globally and locally. For instance, diversity in the educational program, people with disabilities, and advisory councils. Other important programs developed by the firm include Microsoft outreach and women at Microsoft.

Supporting a precautionary approach to the different environmental challenges is another important principle (Compact 1). The sustainability of the environment is a significant issue which needs a good response from all parts of the society. In addressing this issue, the firm is focusing on engaging in global partnerships and responsible environmental practices (Honan 86). The aim of the firm is reducing the various environmental influence of its products and operations. The company also utilizes the power of its technology in minimizing the environmental impact of its products and operations.

The eight principle is undertaking initiatives which promote higher environmental responsibility (Compact 1). Microsoft Corporation is working with customers, government, and the leading environmental organizations in bringing the power of cloud computing and information technology to help in addressing the various environmental challenges in the world. The firm also promotes the environmental sustainability by eliminating waste where possible through recycling its facilities (Honan 86). Making the environmental stewardship part of a business relationship with suppliers and customers helps in improving the environment. The firm also does this strategy by keeping the clients informed and welcoming their feedback.

Encouraging the diffusion and development of environmentally friendly technologies is also an important principle (Compact 1). The firm believes that the environment and technology can empower individuals to achieve sustainable future. Furthermore, Microsoft supports renewable energy to help in conserving the environment (Honan 86). The implementation of the carbon fee is another good strategy that supports environmental sustainability. The internal carbon fee places the price on carbon, and the fee is used to improve the efficiency of energy and increase the purchase of renewable energy. The fee also helps in funding the community projects offsetting carbon.

Regarding the anticorruption principles, a business should work against all forms of corruption including bribery and extortion (Compact 1). Corruption has a negative impact on the community including promotion of hunger, crime, and poverty. It is regarded as the leading obstacles to social development and economic growth. In dealing with corruption, the firm has implemented and adopted various principles which prohibit bribery of government leaders and promote commercial bribery (Koehler 307). The company also ensures that there is no corruption by enhancing a culture of trustworthiness and integrity. Furthermore, the employees are frequently reviewed to ensure that they adopt this culture.

The strengths of the corporation include having a massive worldwide reach. The firm has been producing quality commodities for over forty years. Thus, most of the customers all over the world regard it as the best. Furthermore, the company has a lot of cash. It is ranked fifth of the worlds largest businesses, and this shows the amount of money it has spent (Moutinho 474). The firm also has an excellent track record because it offers products needed by the customers. The firm also has an excellent brand reputation, robust financial performance, and strong distribution channels (Moutinho 474). The weakness of the company includes charging high prices for its commodities. The other weaknesses include poor investments, overexposure to the PC market, and criticism over the security flaws (Moutinho 475).

The company should use the plenty of money it has on developing the best software because it has the best programmers (Moutinho 475). The other opportunities for the firm include offering cloud-based services and engaging in mobile advertising. Some of the recommendations that will help the company continue to be top ten in the Global CSR tracking include engaging in more mergers and acquisitions because it has a lot of capital. This strategy will help the company increase its market share and revenue. The company can also capitalize on the overgrowing demand for smartphones because it is the emerging growth in both the developing and developed countries (Moutinho 475). Developing innovative commodities and service will help the company to increase its revenue. Criticisms occur in every business. Therefore, the best way to deal with criticism is to accept them. The best way of dealing with criticism it to stop thinking that it is a personal attack. Immediate feedback usually enhances growth. Another thing is to determine whether the criticism is accurate or not. In case they are true you should find the best ways of solving the issues.

In conclusion, Microsoft Corporation has played a major role in adhering to the ten principles of United Nations global impact. The firm should improve in environmental sustainability and child labor. Furthermore, this firm has various strengths including having a huge market share, track record, and brand reputation. However, some of its weaknesses include charging high prices and poor investment. Therefore, for the firm to continue being top ten in the rankings, it should ensure that it adheres to the UN Global Impact. The firm should also acquire more companies and capitalize on the overgrowing demand for smartphones n the work to enable it to compete effectively with the competitors.

Works Cited

"A Cloud For Global Good". A Cloud for Global Good. Web. 7 Oct. 2016.

Compact, UN Global. "The ten principles." (2011).

Congressional-Executive Commission on China: 2011 Annual Report: Hearing before the Committee on Foreign Affairs, House of Representatives, One Hundred Twelfth Congress, First Session, November 3, 2011. Washington: U.S. G.P.O., 2011. Print.

Day, Matt. "Microsoft Declines UnionS Invitation To Bargaining Table". The Seattle Times. N.p., 2015. Web. 7 Oct. 2016.

Honan, Brian. Iso27001 in a Windows Environment: The Best Practice Handbook for a Microsoft Windows Environment. Ely, UK: IT Governance, 2010. Internet resource.

Koehler, Mike. The Foreign Corrupt Practices Act in a New Era. , 2014. Print.

Moutinho, L. Worldwide casebook in marketing management, 2016. Internet resource.