BIEM 17

THE WALT DISNEY COMPANY

Introduction

Founded in 1923, The Walt Disney Company (in the report then simply called Disney) is an

American multinational operating in the media and entertainment industry. It is globally well known

and operates in several divisions ranging from television and broadcasting to theme park resorts and

consumer products. Through the power of storytelling originated from creative minds the group

aims at informing and inspiring people all around the world.

Corporate Social Responsibility policies

The company annually reports its responsibilities toward society and makes the information

available through the CSR Report. The document rotates around five main themes primarily

focusing on a world of belonging, balance and hope and then shifting to human capital management

and operational responsibility.

Diversity, equity, and inclusion are the principles characterizing the first argument of the report. In

it the group puts people at the center of the stage and evidences the necessity to create an inclusive,

collaborative and culturally responsible work environment. In order to do so, it implements

initiatives to make progress toward a workforce that reflects the market by, for example, attracting

diverse tech talent and breaking barriers to entry. Together, it fosters diversity and inclusion by

forming internal teams for specific communities (for example, LGBTQIA+), building more

inclusive storytelling and making theme parks more accessible for people with physical and mental

disabilities. Finally, it financially supports unrepresented communities and the next generations of

creative and coding talents.

In the second part of the report, Disney takes meaningful measures to support wildlife conservation,

reduce greenhouse gas emissions and create a healthier planet. To achieve this, between 2020 and

2030, the group has established a set of environmental goals which include different aspects of the

crisis we face. For what concerns emissions the group is investing in certified natural climate

solutions, increasing energy efficiency, and redesigning its build environment to get to net zero

emissions from direct operations by 2030. This implies usage of 100% zero carbon electricity that

can be supported by internal plans such as the Mickey-shaped solar facility or by the purchase from

external suppliers. On the other side, waste and water usage constitute a wide range of action for the

group and both comprehend the necessity to be reduced and detached from previous habits. The

company invests in search of solutions to reduce the massive use of plastic and to make seafood

more sustainable. Finally, it focuses its attention on the selection of lower impact and sustainable

materials both for construction and manufacturing and develops projects aiming at recycling and

reusing them (for example, selling Limited-edition duffel bags and pouches made from a recycled

tarp previously covering Sleeping Beauty Castle).

Communities are the core of the third part of the report. Disney has supported initiatives to bring

comfort and joy to children in hospitals by improving their patient experience and granting wishes

since 1980. Thanks to 13 million service hours in 40 years, volunteering is strongly heartfelt within

the group and operates for the resolution of environmental and social problems around the globe.

In the fourth part of the report, talent is developed and recognized through programs aimed at

attracting and engaging diverse teams while creating a respectful, collaborative, and safe work

environment. Employees’ mechanism of feedback, processed through surveys and Coffee talks,

allows the group to understand their needs while consequently obtaining high engagement and

satisfaction levels. These latter constitute the basis for human capital strategy and are flanked by

celebratory and uplifting programs. To empower employee’s well-being and working performance,

the company implements mental and physical health programs along with learning experiences
aimed at improving soft and hard skills. Moreover, through comprehensive rewards package, it

gives access to health and savings benefits or time-off programs and, through Disney Aspire, it

offers 100% tuition for eligible hourly full-time and part-time employees at a network of colleges

and universities.

Lastly, in order to do business with integrity, honesty and respect, Disney adopts governance

policies and practices representing stakeholders’ interest and introduces Standards of Business

Conduct for employees and Codes of Business Conduct and Ethics for Directors. Meanwhile, in the

supply chain, attention is paid to responsible sourcing that comprises focus on human rights,

reduction of the environmental footprint, safety monitoring and promotion of supplier diversity. For

example, in 2022 the Supply Chain Code of Conduct has been updated by including formalized

quality and safety expectations for suppliers, thus making products less harmful to consumers.

Because of the strong digital involvement of the group, it has been recently implemented a robust

and comprehensive global privacy program guaranteeing control over personal data and low

cybersecurity risks. Finally, through the Nutrition Guideline Policy, healthy food and beverages

have been promoted to kids in responsible advertising and marketing campaigns and, through

digital wellness education programs, digital issues and opportunities have been supported.

Standards and models to which Disney refers

Although Disney’s commitment to a better future has been globally recognized, the group has not

yet obtained either the ISO 14001 or the EMAS certification due to its failure to meet all the

required standards. However, here are some examples of other certifications and awards recently

obtained.

In 2012 Disney Digital Studio Services obtained from the International Organization for

Standardization the ISO 9001 certification for its excellence in business practices. The service
offerings certified concerned the image and sound digital workflows performed in the new Digital

Studio. By putting clients first, the group has been recognized for its focus on customer

requirements, attention to service delivery and commitment to continuous improvement.

In 2013 Disney has been recognized with LEED Awards by the U.S. Green Building Council, a

non-profit organization operating in sustainable building design and construction. The first Platinum

certification in Disney portfolio was granted to The Grand Central Creative Campus (GC3) Phase 2

for its low footprint design and architecture combined with functionality and opportunity to learn.

The silver one was given to The King’s Mountain Technology Center, a Disney property in North

Carolina, which excelled in low water usage, close management of waste disposal and efficient

usage of power to cool the data center at least fifty percent of the total hours per year.

For what concerns workers, Disney applies to the production of components and materials in

physical form the International Labor Standards to stimulate the creation of a safe, inclusive, and

respectful workplace environment. The program includes general provisions for suppliers aimed at

improving business conditions while encouraging continuous actions to meet the standards'

requirements.

Results achieved and success obtained

Comparing the CSR Report of 2022 to the previous ones we can outline the results achieved by the

group during the years in five different areas of action.

For what regards diversity and inclusion we notice a constant increase in the percentage of people

of color and women employed respectively in U.S. and worldwide. Even in the Board of Directors

for 2023 it figures out that 7 members out of 11 represent women or other ethnical unrepresented

groups. In this category of action, the group also evidences a propensity to spend money in favor of

diverse suppliers, organizations serving the LGBTQIA+ community and veterans.

To accelerate the group's sustainable transition several objectives have been reached and different

plans containing the targets for scope 1, 2, 3 emissions have been released. For example, at the end

of 2022, Disney has diverted from landfills and incineration 58% of total Company operational

waste and approximately $6.7 million in Disney Conservation Fund were donated to support more

than 60 nonprofits focused on species and habitat protection. Finally, the company has won two

Environmental Media Awards and 96 Green Seals (of which 38 achieved Gold Seal status) for the

promotion of environmental action and innovation through storytelling and sustainable production.

Communities around Disney have benefited from financial and non-financial help coming from

charitable giving and volunteers. Over the years, the group has managed to donate more than $230

million to charity comprising a significant portion of $140 million directed to programs serving

underrepresented communities. Furthermore, more than 480 000 service hours, 160 000 toys and 3

million books have been donated to families and educators.

Although the commitment outside the group is significant, Disney deserves a large share of

resources to employees making it possible to entertain, inform, and inspire people all over the

world. At the end of 2022, 13 000 employees were enrolled in Disney Aspire, the education

investment and career development program, and 22 new mentoring programs were created,

increasing by approximately 44% the overall involvement. New programs, such as Disney IGNITE

(for leadership skills) and the First Global Well-Being Week, were launched to empower employees

with learning experiences from senior leaders and to shift attention to mental and physical well-

being.

In order to conduct business in accordance with high standards of business ethics and new

regulations the group has performed different maneuvers and reached different objectives. By

focusing on business integrity, it has updated the Human Rights Policy, expanded the Supply Chain

Code of Conduct, and invested more than $24 million in the Supply Chain Investment Program to

drive improvements in working conditions. It has then expanded digital wellness education with
new programs in Belgium, Bulgaria, Kenya, Nigeria, and South Africa and reached approximately

100% of food & beverage meeting nutrition guidelines in advertising across our media platforms

oriented to kids and families.

Objectives and future developments of Disney’s policies

Policies and procedures in which the group is directly involved cover environmental, social and

governance questions. In the last few years, the group has obtained several awards and recognitions

for the numerous objectives it has reached in all the areas above listed (for some examples see Table

1 in the Appendix). I will make an in-depth analysis of the main solutions discussed and adopted to

face current challenges.

For what concerns sustainability and conservation, the group is committed to different policies and

procedures among which is the “2030 Environmental Goals White Paper”, the “Live Animals in

Entertainment Policy” and the “Paper Sourcing and Use Policy”. In the “2030 Environmental Goals

White Paper” the company addresses the climate crisis by intervening in five main areas and taking

the following actions:

 Emissions: considering a 2019 baseline reduce their absolute amount from scope 1 and 2

operations by 46.2% and achieve net zero emissions from direct operations by 2030. Reduce

scope 3 emissions in line with a ‘well below 2°C’ scenario and reach 100% zero carbon

electricity. Invest in natural climate solutions where needed.

 Water: implement localized watershed stewardship strategies and increase availability of

sustainable seafood.

 Waste: achieve zero waste to landfill for wholly owned parks and cruise line by 2030 and

reduce single use plastics in parks and resorts. By 2025 eliminate single use plastics on

cruise ships.
  Materials of Disney-branded products: use recycled or certified sustainable paper and wood.

Implement the usage of plastic containing at least 30% recycled content and lower impact

alternative textiles. Design packaging for reusing or composting. Ensure all facilities

participate in the Higg index or maintain a sustainable manufacturing certification.

 Sustainable design: design new projects that achieve near net zero. Maximize water

efficiencies and support zero waste operations (by 2030 create 90% diversion for

construction waste for projects in US and Europe).

The “Live Animals in Entertainment Policy” concerns the safety and the respect of animals adopted

in film productions, photo shoots, media broadcasts or special events. In these cases, welfare and

conservation components should be integrated into their presentation and guidelines dictated by

American Humane Association (AHA) must be followed.

The “Paper Sourcing and Use Policy” is about responsible internal paper usage and sourcing. In

2012 and 2013, the company planned to maximize recycled content, FSC and without chlorine

paper while at the same time minimizing its consumption in day-to-day operations. The policy is

still operating and will be crucial to make the company almost paper free.

Social objectives embrace different policies covering worker protection, charity actions, privacy,

and human rights.

The “Charitable Giving Guidelines” define the philanthropic mission of the group and the

requirements to be fulfilled for company-directed contributions. The group invests in three focus

areas (World of Belonging, World in Balance, World of Hope) to promote equity, sustainability, and

community support. In doing so, “Disney Wishes Program” and “Disney VoluntEARS Program”,

have increased their financial and human resources and plan to serve more people in need in several

different countries.
The “Human Rights Policy”, updated in 2022, commits to use the United Nations’ Guiding

Principles on Business and Human Right to prevent and solve human rights negative impact in

internal operations. Focus areas are around content, in which freedom of information and

expression and intellectual property rights are guaranteed, supply chains and people. The last

category is the broadest and covers the respect of labor rights as well as guidelines and policies

designed to promote the physical and digital safety of children. Routine updates are applied to the

policy and tend to go in the direction of high protection and security both for consumers and

workers.

The “Privacy Policy” illustrates the processing of information collected online and offline and

follows the applicable law of the country in which it is operated. It is a delicate theme in the case of

personal data of children as it implies collection limitations and eventual parents’ notification. To

accommodate new technologies, industry practice or regulatory requirements the policy may be

subject to changes.

The “Supply Chain Code of Conduct” is influenced by the “Human Rights Policy” and the “2030

Environmental Goals White Paper” and provides guidelines for any person or entity engaged in the

production or provision of goods or services (for an example see Table 2 in the Appendix).

Standards include directives on working hours and wages and will be integrated into business

operations, including through a range of specific measures to monitor compliance.

Governance aspects are made of different policies and can include, for example, the usage of

independent, third-party auditors and audits, the cultivation of a more diverse board of directors and

the standards for an ethically business conduction in compliance with the law.

The “political giving and participation in the formulation of public policy” states the Disney

participation in public policy debates on core issues affecting the group’s operation. The
engagement can happen both through direct advocacy and trade associations. This last aspect has

requested additional transparency with respect to their membership and some disclosures have been

made. Nevertheless, the group has declared that it will provide the Company’s primary purpose for

each trade association membership and will prohibit trade associations from using dues to make

contributions to political candidates.

Finally, the “Standards of Business Conduct” provides the information, the resources and the tools

necessary to conduct cast members’ and employees’ actions ethically and in compliance with the

law. The document preserves the company’s reputation, and its objective is to create a work

environment based on trust, integrity, fair competition, and teamwork.

Strengths and weaknesses of Disney’s activities

Due to its long-time operation and credibility, the company’s activities present many strengths.

Generally, initiatives are trusted by employees and investors and, by covering different action

themes, offer a good range of possibilities for them to be involved. When this happens, strong

advertising and reporting inform everyone coming across the company of its seriousness in taking

environmental and social responsibilities. To internally make this mechanism efficient, the group

has created Standards and Codes of Conduct to address employees’ and cast members’ behaviors

toward an inclusive and proactive approach. The same has been done with the “Supply Chain Code

of Conduct” to incentivize suppliers to act fairly and respectfully. Another force of the group’s

activities is their growing support for trends concerning unrepresented communities’ inclusion,

sustainability, and workers’ protection; in the end, it allows the firm to keep up with the times and

increase its reputation. Finally, the decision to follow UN Development Goals and other ESG

framework/standards is a positive key for the group to align with global strategy and being able to

collaborate with other multinationals.

On the other side, the size of the group affects its possibility to strictly monitor activities and,

sometimes, to intervene in a prompt and decisive manner. In fact, even though the group spreads

internally many regulations to adopt, engaging different people in different countries is a challenge

and can create misunderstandings or criticisms. Another fragility concerns the environmental

objectives taken in the “2030 Environmental Goals White Paper” in particular when looking at

scope 3 impact on total emissions. As they constitute 75% of them, they will involve a massive

effort by the group to try to get to net zero by 2050 and keep global warming around 1.5°C as the

Paris Agreement specifies. Finally, solidity and credibility of the group’s operations is strongly

affected by the public opinion that recently has not hesitated to lead on ethnic and racial

stereotypes, cultural imperialism, and standardization of entertainment.

Improving policies and the sustainability profile of Disney

Personally, I believe the group is improving its policies well to become a company leader in

environmental, social and governance aspects. The approach followed is credible to the extent that

all employees and cast members believe and apply it. The standards and codes of the group

constitute a great example of guidelines with which it is possible to build better results based on

trust and teamwork. However, to reach all the pre-established goals, it is necessary to take a few

more steps.

To improve the sustainability profile of the company I would focus on bringing the environmental

issue to the hands of employees by creating more voluntary projects and environmental programs to

incentivize them to commit to sustainability. For example, organizing and managing a vegetable

garden in the headquarters in Burbank would be significant to grant the possibility to employees

and guests to benefit from fresh food in the common canteen. Events around it could be organized

to give the opportunity to touch it firsthand and contribute for one moment to its growth. For what

concerns external donations I would suggest the group to adhere to the 1% for the planet program to
give at 1% of annual sales revenue to environmental organizations. Even though that would mean a

large amount of money, I believe it would be welcomed by public opinion and this would improve

the company’s reputation.

To foster social well-being, I would suggest the introduction of the 60% or 80% working week. This

measure has already been adopted in some countries of Europe and allows the employees to fucus

on other projects and hobbies in the other remaining non-working days. In the case of Disney, it

would mean creating new job opportunities and obtaining a more productive work environment

continuously enriched by external experiences. For employees, this would signify a better work-life

balance and more personal time to spend with loved ones.

Conclusion

Analyzing the ESG strategy of the group we recognize the foresight and the practicality of Disney’s

actions. A wide range of initiatives is making the social and environmental transition possible while

at the same time involving employees, directors, cast members and customers. The group is a

worldwide example in ESG issues management, and the policies explained in this report confirm it.
Appendix

Sources:

CSR report: https://impact.disney.com/app/uploads/2023/06/2022-CSR-Report.pdf

Environmental goals: https://impact.disney.com/app/uploads/2023/06/2030-Environmental-Goals-

White-Paper.pdf

The Walt Disney Company: https://en.wikipedia.org/wiki/The_Walt_Disney_Company

ISO 9001: https://www.disneydigitalstudio.com/digital-studio-services-achieves-iso-9001-

certification/

LEED Awards: https://thewaltdisneycompany.com/disney-recognized-with-leed-awards-by-the-u-s-

green-building-council/

SDG indicators: https://impact.disney.com/app/uploads/2023/06/2022-Data-Reporting-

Frameworks.pdf

EMAs: https://sites.disney.com/socialresponsibility/2023/04/06/disney-honored-for-environmental-

storytelling-television-and-studio-groups-lauded-for-efforts-in-storytelling-and-sustainable-

production/

Privacy policy: https://privacy.thewaltdisneycompany.com/en/

Standard of business conduct: https://impact.disney.com/app/uploads/Current/TWDC-Standards-of-

Business-Conduct.pdf

Controversies: https://it.wikipedia.org/wiki/Controversie_legate_a_The_Walt_Disney_Company

1% for the planet: https://www.onepercentfortheplanet.org/

Tables, images, and graphics

Table 1: examples of Recent Awards and Recognition

Table 2: examples of provisions in the “Supply Chain Code of Conduct”