British Sky Broadcasting (Sky) Group, Plc

“Business Beyond the Big Screen”

An Assessment of Sky’s Strategy on Corporate Social Responsibility, Ethics, Community and

Environmental Issues

Submitted By
Leonard Mutebi
Corporate Social Responsibility, Case Study

MBA 2009
Catholic University of Milan
29th September 2009
mutebil@gmail.com

1.0 Introduction

Without the interventions of a solid CSR strategy, it would be difficult for one to imagine
the environmental, ethical and social impacts a company solely engaged in entertainment
can have on the community. However, Sky demystified the mystery surrounding this
myth by putting in place a firm commitment on social and ethical responsibility in the
community where it conducts business. The company’s CSR strategy represents an
integral approach to conducting responsible business in and out of its corporate
perimeters.

As a premier entertainment and now communications firm, Sky maintains a large

portfolio of businesses ranging from Digital TV Channels, Broadband and Internet
communications to Gaming. In fact, more than 1 out of every 3 homes in the United
Kingdom and Ireland are Sky subscribers, with over 9.0million digiboxes installed todate.
Sky News and Sky Sports are two of its flagship viewer channels.
2.0 The CSR Strategy
As depicted in its corporate mission, Sky is strongly committed to responsible business in
the community it operates. Its overall strategy on ethical, social, and environmental issues
integrates an active participation of employees, community and not-for-profit
partnerships. The company also continuously researches to deliver green business
practices. With an underlying commitment to make technology simple for its clients, the
company aims to give its customers increasing control over how they watch TV.

3.0 The Business’ Social and Environmental Challenges

By the nature of its activities, Sky is unequivocally exposed to the vast cares of the
environment that plague the world of today’s environmentally conscious leaders. This is
directly related to the enormous number of energy consuming devices that are at the
centre of its operations. These digiboxes (Set-top boxes) present in each customer home
pose both energy bill challenges to the user, and CO2 emissions to the environment.

However, the organization also faces an unprecedented challenge inherent to the business
of entertainment. This spans social and cultural boundaries. This is because,
notwithstanding the fact that proliferation of cultural dilution in communities has
numerous roots, the media probably remains, in public opinion, the number one
aggressor.

4.0 Seeing “The Big Picture”-Tackling the Bigger Problem

The overall implementation of Sky’s CSR strategy can be easily summed up in a simple
phrase: See the Big Picture. Indeed tackling such a myriad of challenges necessitates a
broad view of the problem. And at Sky, this is centered on People, Processes and Products.
The organization has put in place a number of efforts towards its CSR strategy, involving
this unique people-processes-products approach.

Taking steps to create environmental awareness in the community, Sky leverages its
informational disseminating capabilities. In fact, using the arts and sports has proved
particularly successful. Last year, the company doubled its programming hours in Arts
from 18 to 36, putting more environmentally rich content in front of its viewers. Another
inspiring effort is its initiative to take action off-the-screen. The company undertook to the
streets to drive environmental awareness campaigns through its partnership with
Artichoke, a creative charity organization that puts on extraordinary public shows that
change the way people look at the world.

Moreover, the company is internally arranged to maximize its impact on the community.
Through such efforts, it created a unique talent development program. This program
provides graduate training in Finance, Technology and Marketing. This ensures the
company brings new talent to its business.

Infact, Sky boasts an award-winning modern apprentice scheme. This program targets to
impact young lives in the community; Because Sky believes in the culture of opportunity.
Persons of 16-18 years get a chance to work in the company’s customer contact centers.
These young people enjoy the opportunity to learn in an exciting business, while working
towards a nationally recognized qualification in customer services.

In a recent proactive effort, the company launched a campaign to replace all digiboxes
(units that connect subscribers to digital pay-TV Channels,) by new units. The new
digiboxes are more energy efficient. This effort, a culmination of the company’s strong
CSR policy, brought significant benefits both to the environment and the customers. The
new units will contribute 90,000 tones reduction of CO2 emission and save £20.0millions
off customer bills. And, in a similar development, the company has partnered with British
Recycling to in a 5-year program to have 1 million more people recycling regularly
through the Skyride Program.

Besides managing its own impact on the environment, Sky also encourages their own
people to do the same. It has patterned with Global Action Plan, a not-for-profit to pioneer
green initiatives among its staff through EcoTeams. Through these efforts, Sky deliberately
provides incentives to staff, encouraging them to adopt a lowcarbon lifestyle. Such
initiatives range from tax-free bike loans to cash-back on hybrid cars. Moreover, staff at
Sky also earn credit for positive action, like cycling to work which are then redeemed for
rewards.

The company’s Project Green Sky has also been instrumental in creating environmental
awareness among youths in schools around West London. In 2008, this initiative won the
Community Partner Award by Hounslow Education Business Partnership, for the positive
impact on the community.

5.0 Conclusion
Whereas public pressure on environmental issues and responsible business is yet to
wither, it is worth noting the contribution so far made by companies like Sky. Indeed, the
organization’s commitment to the community and the environment is strong evidence of
its healthy Corporate Social Responsibility strategy. Nevertheless, long-term impact of the
policy will only be attained through a sustained effort and commitment to this course.
And, in order to reach this level, Sky would have to make the next leap. This involves
managing the CSR policy. This requires that they establish Key Performance Indicators
tagged to business performance, evaluated and rewarded by the same measure as normal
business targets. This way, Sky will be able to attain a tightly integrated approach to
Corporate Social Responsibility, both in strategy and performance creating a lasting
positive impact on the community.

References:
1. BSkyB CSR Report-The Bigger Picture Review 2009
2. Sky.com www.sky.com
3. Sky Corporate: Interim Management Report 2009
4. Global Action Plan: www.globalactionplan.org.uk
5. Ethical Performance: www.ethicalperformance.com
6. Artichoke: www.artichoke.uk.com