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About us (2017) EY (Ernst & young) is the largest professionals firm in the world headquartered in London, United Kingdom and it is the one of the “Big Four” firms in accounting. It was founded in year 1989 by the merger of Ernst & Whinney and Arthur Young & co. an oldest component from 1849 and known as Ernst & Young after rebranding in 2013. According to Fortune magazine in year 2016 EY has secured 49th position out of 100 best companies. Recently this company has announced that they are going to open an executive support center in Tucson, Arizona, and it will lead to 125 new jobs opening. Services i.e. offered by EY are Assurance, Tax advisory, consulting, and financial advisory and EY has 231,000 staff members in over 700 regional and local offices around 150 countries of the world. According to the survey held in 2016, revenue generated by company is categorized as per their offered services i.e. 38% of revenue generated by Assurance which comprises Audit, accounting advisory, investigation of fraud, and climate change, Tax Consists of 28% of company’s revenue which further comprises Tax accounting, Transaction Tax, Human capital, and international tax services, Advisory has 26% of the revenue with services like IT risk and assurance, Risk improvement, Actuarial, Transaction Advisory Services consist of 9% of revenue of company. Apart from all the provided services company has worked on a lot of things for the betterment of society and still doing because company is not evaluated by financial gains but also by it social performances and contribution to the society (Wood, D.J., 2010). Society plays an important role for any kind of business because every kind of your action in your business impacts on society and this paper consists of the critical review of EY Company’s social performance (Jones, Hillier and Comfort. 2014).
Analysis of EY’S Social Performance:
Social performance is defined as the measurement of the organization’s actions towards social values and environment, in other words social permanence is making a company’s special mission accomplished. EY is effectively working towards it to achieve its social mission by introducing many policy and actions. The company has initiated a program to encourage the entrepreneurship i.e. a publicity activity includes World Entrepreneur of The Year program which is in over 60 countries. This award is given to many individuals every year decided by the panel of several business leaders decided by EY and all the winners are gathered in Monte Carlo, Monaco for the award. EY sponsors education show of children to encourage the mathematics literacy within children named Cyberchase on PBS Kids on a television brand PBS Kids Go. Further EY has setup the standard i.e. National Equality Standards (NES) which is the very good initiative for the business’ purpose which works against the discrimination and provides equality, diversity, and inclusion criteria. Also for supporting young people for future EY has setup EY foundation a charity setup (Lindgreen, and Swaen,2010). EY also works for NGO for providing those better resources either financially or emotionally, it organizes blood donation camp and the blood further used for saving the lives of humans, a mentoring program which provides scholarship for the various purpose. “Give Back to Society” and “Recommend student for Scholarship” two best initiatives from EY according to this approach people form EY raise funds and the funds further reaches to the predetermined destination like NGO. According to “Recommended student for Scholarship” any staff member can children go to school (Sikka, 2010).
EY is also concerned towards the environment and impact on the environment, considering carbon economy and carbon footprint EY has started applying some practice i.e. EY’s Climate Change and Sustainability Services. A network named EcoCare is working to make world greener with 850 passionate volunteer who are EY member firms in Americas and they are finding various ways to make world greener. “Green Schools” campaign with collaboration with U.S. Green Building Council (USGBC), who is committed towards environment of U.S. by providing cost effective and less energy consuming building, is effectively processing around schools of U.S. EY’s Baseline Measurement which was conducted in 2008 shows that EY has reduced 7.5% and it was 203,535 metric tons of CO2 in 2012. EY is continuously improving their energy efficiency in the offices by installing Energy-efficient lighting, reducing energy consumption, expanding our LEED footprint, and utilizing open-work concepts (Carroll, and Shabana, 2010).
Impact on Society:
The entire Young entrepreneurs or the person who wants to become an entrepreneur are encouraged by EY’s The World Entrepreneur of The Year program because this approach from company is very effective as selected individuals are rewarded and guided from world’s best business leaders. Form the business prospect company is working with equality services that help individuals to work effectively because these services are focused against discrimination and differences in cultures and values so individuals can be motivated towards works with equal opportunities provided by National Equality Services. All the stockholders of the company are working effectively because they have equal opportunities to grow as company is having equality services as mentioned above which completely focus on the work and rewarding them according to it without any kind of discrimination because EY has set up some criteria regarding this. Young people i.e. the most critical part of society is very much affected by the services of EY because EY always launches services and plans that supports them for education and entrepreneurship which can further helps to create a healthy environment. Company is also working towards the development of child literacy because they are part of society who will further create a society worth living regarding this EY sponsors a show called Cyberchase on PBS kids i.e. to improve child literacy towards mathematics. EY has made many efforts for the all part of society and affect them positively by providing them various sources and services. For helping the people who are not able to get peeper source and not financially strong EY has setup many charity in UK to provide them equal opportunity to grow. An annual cloth collection was held in December 2015 by collecting clothes from residential colonies and schools for the NGO named Goonj. During blood donation camp 797 people in overall offices of EY were donated blood and this blood was further sent to the people. Company is having a great impact on the socioeconomic situation in the society by some operation i.e. charity programs, investment in various communities, investment in launching the new production lines, employment opportunities, paying regular taxes, and development of infrastructure through this kind of activities company is helping in resolving society’s problem (Orlitzky, et al, 2011).
EY also works to minimize negative impact to environment by introducing many actions around the cities and regulations within the offices to create a better environment for the society. There are various efforts are imitated from company in forms of campaign, programs, and action like EcoCare, collaboration with USGBC for the greenery in schools at U.S., working to reduce carbon footprint and succeeded in that, and many regulations has made within the offices that improves energy efficiency (Ali, et al, 2010).
Conclusion Regarding Company’s Social Performance:
The company has taken many initiatives towards betterment of society and that actions have positively implemented, this initiative includes all the aspect of society and impacts on every kind people and resources of the society (Lai, et al. 2010) EY is majorly focusing on young population by providing resources to them like sponsorship, scholarship for education, sponsoring TV shows that encourage them for literacy and encouraging them for the entrepreneurship. EY provides best workplace to employee and other stakeholder by providing them equal opportunity and best employment services i.e. followed by anti-discrimination policies so everyone get equal chance to grow. Finally, EY is very much concerned about the environmental impact and continuously working towards it, so it can be minimized because it is essential to create a better environment for the betterment of society. Majorly company is considering carbon footprint and energy efficiency, according to EY’s baseline measurement held in 2006 company has reduces 7.5 per cent carbon footprint. Company is also installing much energy efficient lighting within the regional or local offices, introduced much regulation for the energy consumption, and, trying to expand LEED footprint because company understands the value of environment (Murray, and Dainty, 2013.)
This critical review of EY’s social performance has evaluated that Companies should not forget their social responsibilities for the sake of some financial profit because it is the society that helps to promote business and EY has fulfilled all the requirement of society. Interests of the companies has decreased towards social responsibilities because of the financial crisis and sustainability is observed expensive i.e. needed for the long term but expensive for the short term buy EY has always focused on social responsibilities and satisfied the need of society by various action i.e. very effective for the society to create a better environment.
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