STAGES OF CORPORATE CITIZENSHIP IN DOW CHEMICAL COMPANY
The Dow Chemical Company is a leader in providing innovative chemical, plastics and agricultural products and services. Currently, Dow sits at the second largest chemical manufacturer in the world. The social and operational movement of the company will be analyzed through:
A. Citizenship Concept (Stage 5 – Change the Game)
Dow embraces its role as a corporate citizen and commits at being a strong influence of positive change. Evidently, Dow ranked first in corporate governance in five consecutive semi-annual assessments. Corporate citizenship in Dow is well-realized by the employees, retirees, their immediate communities, end-users of the products and the governments and municipalities ( 2006).
In 2006, Dow supports a variety of program directed towards improvement of education, health, culture and government among others. Continually, Dow pledge at developing products essential for human progress and focusing on fitness and well-being of the people ( 2006).
B. Strategic Intent (Stage 4 – Value Proposition)
Functional leadership, providing metrics through systems and data, the delivery of most effective technology (MET) (2007) and balance the internal investments are the core strategic intent of Dow. In particular, the integrated approach leads to two primary strategic focuses on leveraging the modern technology or eCommerce: 1) increase efficiency of value chain through eProcurement practices and 2) build new businesses that will develop low-cost alternative channels and creating new solutions-oriented ventures. Currently, Dow has been attempting to integrate e Strategies into their planning and employ a flexible approach in governance to keep with the evolution of strategic focus through adjusting the models (2000).
C. Leadership (Stage 2 – Supporter, in-the-loop)
Leadership organizations within Dow ensures that decision-making is placed at the proper level and purports that proper checking and balances are in place. The Board of Directors are responsible for conducting thorough review through solid and diverse experiences and credentials. The board also embodies the corporate governance guidelines, codes of business conduct and financial ethics. The corporate officers support the board and occupy the management role ( 2007).
D. Structure (Stage 3 – Cross-Functional Coordination)
As a publicly traded company, Dow is governed by stockholders. The organizational practices include electing and voting and setting of schedule and agenda. The executive body and the five committees consistently communicate with stockholders and support each other towards achieving strategic priorities and organisational goals (2006).
Particularly, Dow Company is engaged in succession management. Working processes at Dow involves the CEO, the vice-president of human resources and the Workforce Planning Strategic Center. When Dow implements the work process, they continually refine and adjust company’s systems. As well as soliciting feedbacks from the line executives, monitoring developments of new technologies and learning from other leading organizations (2007).
D. Issues Management (Stage 4 – Pro-Active, Systems)
Member control, the company’s capabilities in evaluating its environmental and social impacts fall short and the company lacks in policy and systems of handling complaints on operational level are some of the issues faced by the management (2006).
In 2005, Dow launched the Managing Issues website wherein employees can communicate their sentiments/concerns to the management. This provides the employees a resource to learn company issues and Dow’s top public issue priorities. The site aids at aligning actions to Dow’s corporate strategies and reflects the focus on preserving Dow’s values and integrity (2005).
E) Stakeholder Relationships (Stage 3 – Mutual Influence)
Stakeholders identified by Dow includes stakeholder who have a need and who gets credit for the work and funding, decision and beneficiary stakeholders (2007). Dow upholds their reputation through strengthening of the stakeholders’ relation and engages them in the process.
In Dow Company, external stakeholders are actively involved in line with their commitment of seeking input and promoting partnerships. The company facilitates meeting Corporate Social Responsibility (CSR) targets and community engagement. Dow Chemical institutionalizes external stakeholders in corporate decision-making ( 2006).
E. Transparency (Stage 3 – Public Reporting)
In 2006, Dow Chemical ranked sixth for their transparency capability (30%). The commitment of the company aspires from one of its ‘Guiding Principles of Sustainability’ ( 2006). The company is committed to sound governance through the management and independent auditors in meeting competence and integrity ( 2007).
Evidently, the Dow Company is in positive and improving direction. The combination of its reputation, resolving priority issues and strengthening the stakeholders’ relationship is the three interrelated actions (Around Dow, 2007) which shape the culture of Dow. The company also converges its strategies with the maximum use of the modern technology in incorporating corporate citizenship efforts. Thus, the employee engagement and stakeholders participation is always available.
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