Disney Positive CSR Audit

POSITIVE CSR AUDIT

INDS 3B31 Activist Design : Socially Responsible Design Jeremy Stein, Zhenyu Stein Wang, Annie Fanyuan Zheng, Christopher Xiang Kun Kong

CONTENT

3

Design & Purpose

Definition & Framework

9

Evaluation & Analysis

16 - 19

Local Bodies

Energy Efficiency Consultancy Disney Catalyst

34 - 36

48 - 49

20 - 23

Outcome & Pursuit

29 - 30 40 - 43

10 - 15

Internal Stakeholders

Member of Society

24 - 25

4 - 8

31 - 33

Childhood Development Gender Empowerment Worker Safety Alliance

26 -28

37 - 39

AR Remote Disney Experience

REFERENCES PICTURE REFERENCES

44 - 47

Design & Purpose The role of the designer is to

evaluate and design opportunities for and with like-minded individuals or organizations who share a scope of a vision that aims to provide socially and environmentally responsible means for human beings to meaningfully exist.

The Walt Disney Company provides meaningful experiences. While there are issues in relation to corporate social responsibility, the designer is responsible for realigning the mission - from one of stakeholder appeal to that of providing opportunities for a meaningful existence rooted in the scope of our framework and Walt Disney’s original mission statement:

“to make people happy�.

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or k

De fi n

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& Fr a n m o i e it

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Disney Operation Map

Disney CSR framework

6

Relationship of Current Positive CSR and Disney Daily Operation

Design & Purpose TO understand The Walt Disney

Company through the scope of corporate social responsibility a framework was developed to understand all the parties involved.

The framework involves three areas of focus, “internal stakeholders”, “locally bodies”, and “members of society”. The Walt Disney Company’s internal stakeholders are integral to the company’s existence. Internal stakeholders include, business partners (manufacturers, distributors), investors, employees, and customers. Internal stakeholders are involved with The Walt Disney Company’s five main business areas: Media Networks, Parks & Resorts, The Walt Disney Studios, Disney consumer products, and Interactive Media. Local bodies are the

governments and communities affected

by Disney’s physical infrastructures, mainly its parks and resorts. The large number of people drawn to physical attractions dramatically changes landscapes and business operations in the area of location. The Walt Disney Company’s operations have a lasting impact environmentally and socially both of which directly affects members of society. Members of society includes future generations as well as the international society. The three framework areas are connected, a benefit to one area positively impacts the other two. This connectivity allows for a complete overview of corporate social responsibility and reveal opportunities for The Walt Disney Company.

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n & An o i t al a u

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Internal Stakeholders 10

stakeholders & investors The Walt Disney Company’s

‘Accelerator Program’1 stimulates economic growth. Startups gain seed money, direction, and the opportunity to work closely with a large successful business (The Walt Disney Company).

Members of society benefit from the new businesses that are developed through future economic contributions as well as the creation of jobs. Disney gains new business partners through a symbiotic relationship that is the startup program which strengthens the overall business by expanding their internal stakeholders. New business partners bring in technical solutions and opportunities which benefit established business partners. In a world that is rapidly evolving Disney invests in opportunities to gain partners with

the tools to help their large business adapt. These investments are important for new up and comers who may not have had realized success without the leg up. The Walt Disney Company is pursuing a model of a large business investing in the future in a way that is mutually beneficial. An example of this mutually beneficial partnerships is Google’s start up venture wing Google Ventures2. Google invested in Nest, Uber, Bluebootle Coffee Co. and many other startups that gained momentum from partnering with the tech giant3.

The success of these startups, such as Uber and Nest, prove that The Walt Disneys Company’s accelerator program is a viable way to help a new business as well as their own stakeholders.

employees AtThe Walt Disney Company,

Walt Disney Company demonstrates environmental responsibility by offering monetary compensation for adhering to a commuter assistance program.

Disney pays out $2 a day to walk to work and $1 to cast members who take public transit or carpool. In turn, local communities enjoy a reduction of road congestion and members of society benefit from diminished carbon emissions. The main beneficiary of the commuter assistance program are cast members who are positively rewarded for taking an environmentally beneficial or healthy route to work.

employees are known as cast members4. Many of the park and resort jobs pay minimum wage however The Walt Disney Company demonstrates a high degree of corporate social responsibility through the benefits it provides. To help protect its park staff, members free screenings and vaccinations were offered during the recent measles outbreak. Providing free medical services benefits the health of their employees and other members of society who may come in contact with guests of the parks. The

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Employees are hired in an equitable manner as half of all employees of The Walt Disney Company are women.

Within management and administration, the rate of female employees is 42%.

Even at 42%, The Walt Disney shows a far greater commitment to equity and hiring than Google who only has a female employee population of 30% while Apple falls even further behind at 20%.

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business partners Business partners in their

operations must abide by a strict code of conduct set by The Walt Disney Company in their Code of Conduct for Manufacturers5. The Walt Disney Company also enforces established codes of conduct such as the Institute for Supply Management Code of Ethics6 - Disney Consumer Products are manufactured in over 29,000 facilities worldwide7. Apart from worker safety guidelines and environmental concerns, The Walt Disney Company also uses a strategic partnership method whereby they primarily take on businesses owned by women or minorities. Businesses who claim they are women or minority owned and MWBE8 (Minority and Women-owned Business Enterprise) certified are assessed by WBENC9 (Womens Business Enterprise National Council). The international society who

purchases these products benefits from Disneys strict guidelines as the products or content they receive was produced ethically. Local communities benefit from The Walt Disney Company’s adherence to fair working conditions as they can rely on the corporation to uphold safety and equity. An example of their high standard for working conditions comes from reports which outlines that at the new park in China the builders will only allow 8 hour work days - it is common for employees to be overworked in this part of the world10. The Walt Disney Company demonstrates responsible behaviour by protecting the rights of stakeholders.

Comparatively, Apple, like Disney, a U.S. based company with stakeholders in China does not protect their workers - reports indicate regular shifts of 11 hours11.

customers The

Walt Disney Company must produce responsible content as the attractions, products, and media reaches millions of children - 600 million all age viewers of programing worldwide12. Apart from creating content aimed at education some of its internal stakeholders (its youth audience) was engaged with ‘Disney’s Friends for Change’13. Disney’s Friends for Change used its biggest stars in public service announcements geared towards children. The campaign is aimed at promoting environmental awareness and even gave its viewers

the ability to vote on areas for donation.

The Walt Disney Company surpases its duty to provide responsible programing through such initiatives. Youth viewers benefit through general awareness of key issues such as the environment or internet security through participation in the national cybersecurity awareness month14. The Walt Disney Company is also working to ensure healthier foods are available at park locations. For example, the default beverages and sides are healthy choices such as 100% juice, low fat milk, apples, and fruits and vegetables15.

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Local bodies 16

local communities Throughout The Walt

Disney Company’s infrastructure, electronic systems are actively monitoring energy use with the aim of conserving resources16. Disney trains its employees to participate in conserving energy as well17. Local communities such as the Orange County Public School system benefit from Disney’s resource management expertise. Disney worked with the school system to control their resource management18.

The local community of Orange County benefitted from the implementation of Disney’s electronic monitoring devices as well as integrating the

model of staff awareness where the administration and teaching staff is also responsible for maintaining low resource consumption. Overall, the local community gains environmental benefits from less resources consumed as well as economic savings. Fireworks are loud and cause toxic smoke which harms communities where they are set off. The Walt Disney Company through its Imagineering department developed low smoke and noise emitting fireworks replacing explosive black powder with compressed air. Disney values the safety and health of the communities it operates within.

Fireworks are loud and

cause toxic smoke which harms communities where they are set off.

The Walt Disney Company through its Imagineering department developed low smoke and noise emitting fireworks replacing explosive black powder with compressed air19. The Walt Disney Company values the safety and health of the communities it operates within.

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local government When Disney builds a park

or resort, local governments and communities benefit. In Hong Kong, 18,000 jobs were created from parks operating in these locations20. In Tokyo and Paris, the numbers are 14,000 and 10,000 jobs respectively21. Other than job creation, there are social benefits produced from building new parks. For example, when building the location in Paris, the metro was extended and the motorway was improved which decreased congestion on both lines22.

The infrastructure upgrades have far reaching economic impacts which

benefit local governments in the long term so much so that The Walt Disney Company is granted tax benefits23.

An increase in tourism significantly improves the economic input for the hospitality industry within close geographical proximity. The Walt Disney Company brings positive infrastructure and an injection of economic growth.

Residents of San Francisco’s Silicon Valley are under stress due to heavy congestion from an increase in motorists commuting to work24. Unlike Disney, the influx of tech corporations have made the living situation worse.

Member of society

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international society Donations from various

charity27. The donations aim to support at risk species and areas as well as restore damage to the earth which is in respect to the international society.

Actions such as planting trees provide a carbon sink as well as a habitat for animals. The education program complements land conservation efforts by educating young people so that they learn to protect the environment.

Members of society are protected through actions of conservation and educations from The Walt Disney Company.

films are used to protect wildlife around the world. While some donations go to organizations, Disney insures that direct action is taken to protect the environment. In Brazil’s Atlantic Forest, 3 million trees were planted and around the world conservation land is acquired through the Disney Worldwide Conservation Fund25. The fund also ran an education campaign to raise awareness about chimpanzee conservation which reached 60,000 school children26. Donations from the fund are not tax deductible as it is not a

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future generation Disney’s

operations are forward thinking and inclusive in their design towards future generations.

Working with Harvest Power, The Walt Disney Company invested 3 million to build a biodigester facility to produce heat and electricity from organic waste28. The trains that run through various parks are fueled with biodiesel. One hundred and twenty thousand tonnes of organic material are converted into 5.4 megawatts of combined heat and electricity equivalent of powering 2,000 florida homes29. The Walt Disney Company concerns itself with efficiency of resources used through smart systems planning while competitors such

as Six Flags look for economical solutions - fixed rates from brokers30.

The difference is in the way the rise in energy pricing is tackled, Disney aims to recycle - competitors pursue a purchasing strategy. In terms of responsible resource management, systems development is a sustainable solution and pricing strategies are a temporary fix. Thinking of future generations, The Walt Disney Company is developing solutions so that they can sustainably continue operating.

The energy produced from anaerobic digestion only provides a small amount of disneys overall power usage however their efforts may lead to pursue more sources of sustainable energy.

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Ou

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Relationship of Purposed Opportunities and Disney Daily Operation

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Energy Efficiency Consultancy

26

The

Disney Institute holds professional development courses for individuals and works with organizations to develop custom business solutions31.

Energy consumption and environmental impact is a mainstream concern for organizations. As large organizations look for efficiencies to save money and actions to improve corporate social responsibility, the Disney Institute will expand its services to offer environmental consultancy. The Walt Disney Companies ability to work with the Orange County Public School system to implement an energy efficient resource management system demonstrates their ability to consult and provide effective solutions in this area32. Expanding services to offer an energy efficiency consultancy will provide an economically viable business opportunity for the Disney Institute.

In addition, helping other businesses attain efficient resource management improves The Walt Disney Company’s social corporate responsibility impact.

A

near future opportunity would be to expand the energy efficiency consultancy, - should it prove effective -into a building systems consultancy.

The Walt Disney Company would use its expertise gained from building large public infrastructure projects, parks and resorts to help other businesses develop public spaces. Spaces that are energy efficient and incorporate all the aspects that are used to create phenomenal Disney environments. The ecosystem of a Disney park includes facilities for shopping, eating, waste management, transportation needs, and many other aspects valuable to organizations looking to erect public spaces. A building consultancy is expanding on the work The Walt Disney Company pursues in their customer service consultancy which has been sought after by companies such as Haagen-Dazs International, American Airlines, and even the country of South Africa33.

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Disney Catalyst 29

The Walt Disney Company’s internal

stakeholders greatly benefit from the Disney Accelerator program34. The program is mutually beneficial to both parties involved. Currently, the accelerator program brings ten startups to Los Angeles. As The Walt Disney Company enters new markets across the globe (namely in Europe and Asia) the opportunity arises to reach startups through expanding the accelerator program internationally. While the program requires a steep investment from The Walt Disney Company, the long term payoff would be mutually beneficial. Having access to startups around the globe expands the talent that The Walt Disney Company could foster into new internal stakeholders as Google has done with Nest35.

Childhood Development 31

Disney

has removed commercials on their various child geared television channels (Disney XD, Disney Junior, radio Disney online and other ABC channels) which feature unhealthy foods - garnering praise from Michelle Obama36. In the aim of reducing obesity, The Walt Disney Company has developed healthy food products to be sold in stores. On the packaging are icons - such as the ‘Mickey Check’37- which helps shoppers make healthier food choices. The Walt Disney Company has proven to be

a leader in providing a message and means to pursue a healthier life through alternative foods and responsible advertising38. There is an opportunity for the company to become an authority on healthy food. The Walt Disney Company would act as a consultant to other companies aiming to produce healthier foods or promote a healthy message.

Working as a health consultant would provide the opportunity to evaluate products and, should they pass The Walt Disney Company’s health standards, carry the Mickey Check icon.

Consumers

now know that The Walt Disney Company cares about their health through their healthy advertising campaigns and products.

This knowledge of good corporate social responsibility establishes trust in The Walt Disney Company and their Mickey Check icon. The incentive for outside companies to display a Mickey Check icon is to leverage trust established by The Walt Disney Company onto their products. The health evaluation is mutually beneficial for other organizations and The Walt Disney Company whose positive corporate social responsibility will reach more members of society by having their icon on other businesses products.

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Gender Empowerment

34

As The Walt Disney Company

expands around the world, they are entering markets where the cultural norm may be that women are discouraged from working. A new park was recently completed in Shanghai, China where the gender gap is closing, 45% of the workforce is female39, but equal pay is not yet attained. Women are likely to be paid 30% less than males for the same type of work40.

An opportunity for The Walt Disney Company is to fight gender inequality by championing women’s rights.

The recent release of films featuring empowered female protagonists such as Elsa of Frozen and Merida of Pixar’s Brave (Pixar is owned by

Disney) demonstrate The Walt Disney Company’s drive to champion gender equality. The protagonists in Brave and Frozen empower young female viewers41. These characters provide positive role models that will influence women to pursue treatment that is equal to their male counterparts. The Walt Disney Company is providing young women around the globe with positive female role models and aims to do business with organizations that are owned by women through their supplier diversity42 initiative. They can expand their corporate social responsibility efforts through education initiatives aimed at raising awareness of gender issues towards children.

Opportunities

part of their Interactive Media branch, The Walt Disney Company developed online interactive environments with Club Penguin - which has 200 million registered user accounts44. Disney’s ability to engage youth online will be leveraged as an opportunity to engage children in understanding gender equality issues. The Walt Disney Company has many opportunities for teaching youth about gender issues which is expanding on their corporate social responsibility effort towards gender equality.

to engage children exist through educational programs, online interactions, and continuing to provide content with strong female characters.

Educational programs could be provided in co-operation with the local government which would allow The Walt Disney Company to reach out to children in a similar way in which they educated 60,000 youth on chimpanzee habitat conservation43.

Internet campaigns could include games targeted towards children in areas where gender inequality exists. As

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Worker Safety Alliance 37

The

Walt Disney Company sets strict standards for business partners who manufacture Disney Consumer Products. These standards help The Walt Disney Company only take on accredited businesses45. The Walt Disney Company uses third party watchdogs to oversee business operations - WBENC to evaluate MWBE certification46. The Walt Disney Company demonstrates corporate social responsibility in their aim to partner with equitable manufacturers and inclusion of third parties to provide insurance. However, with 29,000 manufacturing facilities around the globe47 it becomes impossible to have eyes in every factory to ensure workers are being treated fairly and safely even with third party affiliates. The Walt Disney Company can improve fair hiring practices and working conditions through an alliance with other manufactures to pressure governments to aid in the monitoring of working conditions.

Forty

thousand fingers are lost every year in foreign workshops48 - pressure from governments through heavier sanctions will push manufacturers to clean up their practices. Large corporations such as Walmart, Dell, Apple and The Walt Disney Company have multiple operations in countries with poor worker safety histories49. These organizations while exploiting lower working wages end up supporting the economy and providing jobs where there may otherwise be none. Therefore organizations must act responsibly to ensure that workers are paid a livable wage and under the exact environment that is spelled out in their terms and conditions for manufacturers. Through

a partnership, large organizations would form a syndicate that will only operate in countries where governments provide monitoring and proper penalties for worker safety and equity violations. Governments greatly benefit from economic activity that these organizations bring which is why they would agree to impose harsher penalties and take an active role in monitoring conditions. For The Walt Disney Company, organizing and pursuing this initiative would greatly improve their credibility of insuring their products are produced responsibly.

Pursuing this opportunity would increase the perception of corporate social responsibility from the viewpoint of customers.

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AR Remote Disney Experience

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The Walt Disney Company’s parks

consume large amounts of energy and water which is addressed by integrating efficient management systems to conserve resources. As The Walt Disney Company expands globally, its carbon footprint decreases as the number and distance of flights decreases.

Parks stimulate the economy of the communities in which they are located.

Travel is not a basic human need and while The Walt Disney Company works to reduce their environmental impact, the ‘need’ to visit a Disney park once in a person’s lifetime should be questioned. New technologies and sharing systems provide opportunities for The Walt Disney Company to truly reduce their environmental impact while reaching more individuals.

The

mobile sharing app SnapChat released a feature known as Mystories50.

Within it, users of the app will receive stories from events such as car shows and hockey games. For Halloween, for their ‘Not So Scary Halloween Party’ Disney hired a popular snapchatter to take over their account to bring stories to users all over the world52. The Walt Disney Company is utilising ‘aurasma’ as an in park experience. When a park visitor hovers their phone over a piece of advertising or media with star wars content, there are virtual effects to engage the user - a spaceship comes to life on the phone and begins shooting lazers. Disney engages many internal stakeholders (200 million53) through their virtual worlds where users roam

around online through games and interactive experiences. There is a long term opportunity for The Walt Disney Company to provide a magical experience to users in remote locations.

Augmented reality systems provide the tool for this opportunity. Through expanding content within the Integrated Media faction of The Walt Disney Company, there would be shift towards a dynamic online experience which uses minimal resources. Other than energy and resource conservation, pursuing interactive experiences would provide access for persons who are physically unable to reach Disney parks due to illness, disability, or economical factors.

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Interactive experiences

such as Aurasma and Club Penguin are offshoots of feature films or park attractions. There is an opportunity to create a meaningful virtual experience.

Disney partners with the Make-AWish Foundation to provide and inpark experience. Some critically ill children are unable to make the trip to Disneyland. With the goal of reaching more critically ill children The Walt Disney Company would create a virtual Disney experience - as meaningful as a true park experience. This platform would be released to the general public by which there would be a revenue stream that relies on an environmentally friendly model.

rence e f s e r

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1. http://disneyaccelerator.com 2. https://www.gv.com 3. Ibid 4. http://corporate.disneylandparis.com/about-our-company/disney-glossary/c.xhtml 5. http://thewaltdisneycompany.com/citizenship/respectful-workplaces/ethical-sourcing/ils/ code-conduct-manufacturers 6. http://thewaltdisneycompany.com/about-disney/disney-business-services/suppliers 7. http://thewaltdisneycompany.com/citizenship/act-responsibly/responsible-supply/il 8. http://www.mwbe.com 9. http://www.wbenc.org 10. http://www.nst.com.my/node/72170 11. http://www.businessinsider.com/china-labor-watch-apple-iphone-workers-2013-7 12. http://www.disneyabctv.com/division/index_worldwide.shtml 13. http://citizenship.disney.com/friends-for-change 14. https://www.staysafeonline.org/about-us/news/celebrate-national-cyber-securityawareness-month-this-october 15. http://cspinet.org/new/pdf/fact_sheet_defaults.pdf 16. http://www.fsec.ucf.edu/en/media/enews/2007/pdf/HowDisneySavesEnergy.pdf 17. http://thewaltdisneycompany.com/citizenship/policies/environmental-policy 18. http://hpac.com/bas-controls/disney_saves_energy 19. http://www.businesswire.com/news/home/20040628005659/en/Disney-Debuts-SaferQuieter-Environmentally-Friendly-Fireworks 20. http://www.slideshare.net/nurshamimahsamsuddin/assignment-1-case-study-hong-kongdisneyland?next_slideshow=2

21. Ibid 22. http://www.slideshare.net/nurshamimahsamsuddin/assignment-1-case-study-hong-kongdisneyland?next_slideshow=2 23. Ibid 24. http://www.bizjournals.com/sanjose/news/2014/03/06/silicon-valley-traffic-worsened-23. html?page=all 25. http://www.bustle.com/articles/21549-going-to-a-good-cause-disneynatures-bars-andother-charitable-movies 26. Ibid 27. http://thewaltdisneycompany.com/citizenship/reporting/summary-table 28. http://www.theguardian.com/sustainable-business/2014/oct/17/disney-world-biogas-foodwaste-energy-clean-tech 29. Ibid 30. http://articles.courant.com/2008-07-22/news/ctride0721.art_1_amusement-parkselectricity-rates 31. https://disneyinstitute.com 32. http://www.fsec.ucf.edu/en/media/enews/2007/pdf/HowDisneySavesEnergy.pdf 33. http://www.nytimes.com/2012/04/22/business/media/in-business-consulting-disneyssmall-world-is-growing.html?pagewanted=all&_r=0 34 http://disneyaccelerator.com 35 https://www.gv.com/portfolio/ 36 http://articles.latimes.com/2012/jun/06/business/la-fi-ct-disney-food-ads-20120606 37 http://thewaltdisneycompany.com/disney-news/press-releases/2012/06/walt-disneycompany-sets-new-standards-food-advertising-kids 38 http://www.nhs.uk/news/2012/06june/Pages/disney-bans-junk-food-adverts.aspx

39 http://www.catalyst.org/knowledge/women-labor-force-china 40 ibid 41 http://www.thedailybeast.com/articles/2013/11/29/disney-s-sublimely-subversive-frozenisn-t-your-stereotypical-princess-movie.html 42 http://thewaltdisneycompany.com/about-disney/disney-business-services/supplier-diversity 43 http://thewaltdisneycompany.com/content/connecting-kids-nature-1 44 http://allthingsd.com/20130412/making-club-penguin-safe-for-kids-is-never-done-disneysays/ 45 http://thewaltdisneycompany.com/about-disney/disney-business-services/supplier-diversity 46 Ibid 47 http://thewaltdisneycompany.com/citizenship/act-responsibly/responsible-supply/ils 48 http://www.nytimes.com/2008/01/05/business/worldbusiness/05sweatshop. html?pagewanted=all 49 Ibid 50 http://infospace.ischool.syr.edu/2013/10/10/what-are-snapchat-stories/ 51 http://www.fastcompany.com/3037309/this-brand-creator-collaboration-on-snapchat-ishow-ceo-evan-spiegel-should-have-tried-to-ma 52 https://www.youtube.com/watch?v=fvA6fmfbCps 53 http://allthingsd.com/20130412/making-club-penguin-safe-for-kids-is-never-done-disneysays/

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