Disney as a
multinational corporation has the responsibility to be a corporate citizen. In
relation to success in corporate governance. Disney was infamous in mid to late
90s during
the reign of Michael Eisner as CEO and chairman of Disney, he recruited Michael
Ovitz who is a friend his to be the Disney president in the mid to late 90s.
After 14 months of failure in Disney Michael Ovitz was fired by the company.
Michael Ovitz received a huge payout of $140 million this causes an outcry from
Disney shareholders and a lawsuit against Disney for being irresponsible to
their shareholders. The shareholder lawsuit was settled in 2006 with the
Delaware Supreme Court deciding that the directors ultimately acted in good
faith and as such Disney could not be held liable for the cost of the Ovitz
debacle.
( Lederman, 2008, p.558 ) Speculation has been made
that that the board of directors consist with friends and other acquaintances
of Michael Eisner this is detrimental to the board‘s objectivity and decision
making ability. After this
infamous event Disney implemented a guideline that the board of directors have
to oblige. The company is committed to governance policies and practices that promote
the thoughtful and independent focusing on the shareholder interests in order
to promote and maintain high ethical standards and legal compliance the company
adopted standards of business conduct such as elimination of classified board,
establishment of strict independence requirement. The company also encourage
board membership that reflects the diversity of their shareholders, employees,
customers, guest and community.
( TheWaltDisneyCompany, n.d. )
Disney also has its Corporate Social responsibility,
few of the objectives are to minimize Disney’s environmental footprint, create
a efficient workplace wherever Disney does its business, create opportunities
the community to help the planet, utilizing the strategic philanthropy to
create a positive change in communities and to partner with communities to
raise healthy children. On the environment page Disney has launched an internal
climate solutions fund in 2010, which establishes an annual price on greenhouse
gas emissions for their business units. Product footprint and water use was
more efficient with the establishment of new company targets.
Development
of new construction has been base of an ecosystem services assessment and
sustainable design evaluation. Disney has created a suitable environment for
its employees to work in like building childcare facilities in its workplace.
The community is no exception for Disney as it implements few projects that involve
the community to make a change like for example Disney friends for change or
the Disney planet challenge. ( TheWaltDisneyCompanny, n.d. )
Ethics and culture is important to a company like
Disney as understanding is required. Disney has implemented human rights policy
statement to clearly articulate their ongoing commitment to people around the
world and to cement priorities in this area for the future. Disney has given
its respect and support international principles aim at protecting and
promoting human rights. It is critical for Disney to gain local support before
establishing into a new market and whether Disney concept, ideas and characters
fits the culture of its new venture. The success of Disney in Tokyo is an
example of it. The failure of Disney inception to the French market was an
example of poor management and lack of research done unlike Disney to do so.
Hence it is an important task for Disney to be a responsible corporate citizen
not only to focus on its shareholders but the stakeholders as well.
TheWaltDisneyCompany n.d., Disney Citizenship, Disney, viewed 27 April 2012,
TheWaltDisneyCompany n.d., Corporate Governance, Disney, viewed 27 April 2012,
Lederman, L 2008, DISNEY
EXAMINED: A CASE STUDY IN CORPORATE GOVERNANCE, viewed 27 April 2012,
<http://a.nyls.edu/user_files/1/3/4/17/49/LR524-5.pdf>
disney has taken down their old corporate website which included the corporate citizenship report 2010
disney has taken down their old corporate website which included the corporate citizenship report 2010
