MASTER OF BUSINESS ADMINISTRATION

MGT 606: Corporate Social Responsibility

FINAL ASSIGNMENT
October 2018

Student’s signature: Date:

27.10.2018

Total number of pages including this cover page : pages

Submission Date 27.10.2018 Due Date 28.10.2018

Subject
Student ID 23-20029 MGT606-CSR
Code
Student’s Full
Myo Min Ko
Name

Lecturer’s Name U Zayar Min Swe

Table of Contents
1. Background of the Company …………………………………..………………….....….. 3
2. Objectives …….……………………………………..……………………….…. 3
Social Objectives ……………………………………………............…………… 4
Development of Human Resources Objectives ………………………………… 4
Governance and Stakeholder ………………………………............…………… 4
Management based CSR ………………………………………………………... 5
3. Business Case for the CSR Project Activities …………………………………. 5
Education ……………………………………………………............…………… 5
Health Care Activities ………………………………............…………… 6
Environmental ………………………………............…………… 6
Charity Work ………………………………............…………… 6
HR based CSR ………………………………............…………… 6
4. Due Diligence CSR Activities ………………………………………………… 7
Proposal to Protect of Snake Bite ………………………………………………. 7
Proposal of Education ………………………………………………………….. 7
Proposal of Electricity ………………………………………………………….. 8
Proposal for Green Environment ………………………………………………. 8
5. Types of Activities and Methodology ……………………………………………. 8
6. Implementation Timeline and Cost ………………………………………………. 10
7. Evaluation and Follow up …………………………………………………………… 10
8. References …………………………………………………………………………… 11

Background of Galaxy Sportswear Company

The Galaxy brand is the largest sportswear production business in Myanmar. All
innovations are discovered by providing the products and experiences for athletes. The
Galaxy sportswear company was founded by athlete Aung Win (football player) and his
coach man in 1996. Its original name was Sky Blue Sports (SBS).
 After that in 2010, the relationship of SBS and Soe Myat Min (football player)
was coming to end and SBS made its own line of footwear, which included the Spiral
planned by Galaxy. So the Spiral trade mark was utilized by Galaxy in 2011 and then
was registered with the Myanmar Patent and Trademark Office in 2012.
Galaxy had made itself as a leading brand in Myanmar athletic market and
covered half of its market share. Also Galaxy with the association made various
marketing communication ways to reach the customer and to make them aware about
products.

Current Situation
 Today Galaxy business has widespread arrangement of its offerings, which are available
throughout in Myanmar.
 It had an income of Kyats 327 million before the end of financial 2017.
 It has created about Kyats 1200 million of combined free income from operations
through 2017.
 Galaxy strives to expand its brand through adopting development technique. By obtaining
of ASEAN, Galaxy has expanded its position as the greatest football maker Company in
the Myanmar market.
 Galaxy has obtained a strong name or title in the market of running basketball and
football categories in Myanmar and ASEAN countries.

Objective
 To Bring Inspiration and Innovation to Every Athlete in the World
(If you have a body, you are an Athlete)

Better Performance in Social Objectives

 Athletes push themselves toward higher and higher levels of performance. Galaxy
approaches corporate responsibility. It’s creating value for the business and innovating
for a better world.

As environmental, social and economic challenges in the world proliferate, they demand
best performance. Galaxy is using the power of their brand, the energy and passion of the
people and the scale of business to create a meaningful change. The opportunity is greater
than ever for sustainability strategy to drive business growth, build deeper consumer and
community connections, and create positive social and environmental change.

Galaxy is focusing corporate responsibility efforts in the areas in which they can have the
greatest impact and create the most value: Through the materials they design into
products, through the process of making those materials and products, and in the world of
sport where products are used.

Through a variety of processes, including stakeholder consultation and lifecycle

assessment, Galaxy has identified their most significant impact areas that include Energy
& Climate, Labor, Chemistry, Water, Waste, and Community. As the brand evaluates and
manages key impacts, they develop a better understanding of how interrelated they are
and how an integrated approach to product design and process innovation can yield
benefits across multiple impact areas.

The Nike Foundation

The Nike Foundation leverages the power of insights, innovation and inspiration to stop
the cycle of intergenerational poverty. As a company, Nike believes in the power of
human potential. At the Nike Foundation, we invest exclusively in what we see as the
greatest source of untapped human potential in the world today: adolescent girls.

The Nike Foundation is pioneering a new approach to development by creating insights-

driven innovations, strategic partnerships and solutions that can be scaled to enable and
equip adolescent girls to realize their potential. When a girl in poverty completes
 secondary school, marries and has her first child later, she helps to create economic
growth, political and social stability.

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Nike released an updated version of its Corporate Social Responsibility report last week, and
while many mainstream media outlets reduced its contents to a simple reduction in
overtime, the company actually laid out a broad series of goals that will likely have a
serious impact on the way sourcing is conducted in the future. Nike has laid out three
goals for the company involving human resources, environmental sustainability and
advocacy. The company will be working to improve conditions in all contract factories; it
will minimize its global environmental footprint through innovation; and it will “give
excluded youth around the world greater access to the benefits of sport.”

With the recent increased attention given to environmental and corporate responsibility,
Galaxy’s latest report offers some good insights into new techniques and strategies that
can help any company.

In a letter, NKE CEO Mark Parker said that reducing excessive overtime in its contract
factories is a primary goal for the company, but it is only one of four HR targets that he
plans to attain by 2011. Nike also plans to implement a “tailored human resources
management system” in all contract factories. Nike will also be encouraging other brands
to join them and aims to have 30% of their supply chain monitored in partnership with
 other companies. Finally, NKE will transition 90% of their footwear line to lean
manufacturing processes.

Atmospheric Issues (Stationary sources)

Galaxy laid out some important environmental targets it wants to achieve by 2020. Galaxy
has been working hard over the last two years to reduce CO2 emissions and has exceeded
goals. Over the next seven years, they plan to make all Galaxy brand facilities completely
carbon-neutral and all Galaxy facilities carbon-neutral by 2025.

Land Issues (waste management by design)

Galaxy also set targets for waste reduction at all manufacturing facilities and has even taken
the waste reduction process several steps further up the supply chain and into the design
process itself. The company has been using its eco-friendly Galaxy considered product
line as a laboratory to figure out new design methods that reduce waste at the factory.

Galaxy has set targets to

(1) Design all footwear to produce minimal waste

(2) It will implement similar design methods in apparel, and eventually all Galaxy products
will follow this design ethos.

“An environmentally friendly product made under poor labor conditions is a hollow success.
A product made under good conditions but is bad for our planet is a missed opportunity.
We don’t believe in tradeoffs,” the report stated. “We know a better shoe sacrifices
nothing except what didn’t belong there to begin with. The same can be said about
corporate social responsibility. It shouldn’t be about business tradeoffs, managing
problems and mitigating risks. It should be about harnessing innovation to create
something new and better.”

Nike Corporate Social Responsibility and Sustainable

Innovation
 Nike is one of the best known brands in sports shoes and apparel industry. In the past it has
courted several controversies related to child labor and ethics down its supply chain.
However, in the recent years the brand has invested a lot in CSR and sustainability. The
brand has been known for its great products and excellent marketing and advertising
strategy. However, CSR activities have also an important aspect of a brand’s image. Most
big brands have made heavy investments into social and environmental initiatives. On
the one hand while laws in this area have grown more stringent, on the other customers
also prefer the brands with lower environmental impact. Some two decades ago, the
brand was facing heavy criticism for low wages and difficult working conditions as well
as for the use of child labor down its supply chain. However, in the last decade Nike
made major improvements that have changed its image a lot since then. In both the areas
of CSR and sustainable business, Nike has achieved major milestones.

In the recent years, Nike’s focus is on halving its environmental impact while doubling its
manufacturing rate. It is focused on creating a better future for the world and the
communities in which it operates through sustainable innovation. Sustainable innovation
is the key to a better future and therefore Nike has increased its focus on sustainability
since it has the potential to revolutionise the way Nike does business.

The social enterprise must evaluate its actions based on its impact on society, not just the
bottom line. As stakeholder expectations rise, an inauthentic or uneven commitment to
citizenship can quickly damage a company’s reputation, undermine its sales, and limit its
ability to attract talent. For organizations, a new question is becoming vital: When we
look in the mirror held up by society, do we like what we see?

Corporate citizenship is no longer simply a corporate social responsibility (CSR) program, a

marketing initiative, or a program led by the CHRO. It is now a CEO-level business
strategy—defining the organization’s very identity. Issues such as diversity and inclusion,
gender pay equity, income inequality, immigration, and global warming are being openly
discussed by individuals, families, and political leaders around the world. And our
research shows that many stakeholders are frustrated with political solutions to these
problems and now expect businesses to help address these critical problems.
In a letter to investors in early 2018, BlackRock CEO Laurence Fink indicated that people
are “turning to the private sector and asking that companies respond to broader societal
challenges.”1 This sentiment, confirmed by this year’s Global Human Capital Trends
research, prompts CEOs and the entire C-suite to hold their companies to higher
standards. In this year’s Global Human Capital Trends survey, 77 percent of our
respondents cited citizenship as important and 36 percent rated it as very important.

The term “citizenship” can refer to everything an organization does that impacts society. We
define it as a company’s ability to do social good and account for its actions—both
externally, among customers, communities, and society, and internally, among employees
and corporate stakeholders.

What is driving the intense focus on citizenship for organizations and society?

First, organizations now operate in a highly transparent world. Internal and external behavior
is almost impossible to hide.2 In 2017, dozens of stories about gender bias, unequal pay,
and poor executive behavior made the headlines. Any mistreatment of customers can be
instantly filmed and shared with a global audience. And in 2018, for the first time, most
US public companies will be required to disclose their “CEO pay ratio,” which compares
the CEO’s compensation to employees’ median pay.3

Second, it is now clear that millennials, who make up over half the workforce in many
countries,4 tend to have sky-high expectations for corporate responsibility. A 2017 study
by Deloitte found that millennials are becoming increasingly sensitive to how their
organizations address issues such as income inequality, hunger, and the environment.
Eighty-eight percent of millennials believe that employers should play a vital role in
alleviating these concerns, and 86 percent say the business success should be measured
by more than profitability.5

Third, corporate citizenship now directly impacts customer and employee brand. A recent
Nielsen study found that 67 percent of employees prefer to work for socially responsible
companies, and 55 percent of consumers will pay extra for products sold by companies
committed to positive social impact.6 The Deloitte millennial study mentioned earlier
 found that millennial employees who believe that their employer supports the local
community are 38 percent more likely to stay at that employer for five years.7

Finally, more and more businesses are becoming embroiled in issues of political, social, and
economic controversy. These debates are challenging CEOs to take political positions on
behalf of their employees and customers. Kenneth Frazier, the CEO of Merck, believes
that “business exists to deliver value to society.” He has taken vocal political positions
and redefined how the pharmaceutical industry contributes to society.8 High-profile
global commentators such as Nicholas Kristof and Yale professor Jeffrey Sonnenfeld
have called on businesses to seize their potential to help address social problems and
improve lives.9