Corporate Social Responsibility: Besi Industries

Corporate Social Responsibility: Besi Industries


The world market is full of companies whose primary goal is shareholders wealth and profit maximization. In Gray-Owen and Adams seven positions of social responsibility, proponents of social contract believe that all the decisions made by companies should ensure they serve the public interest and that a company’s behavior towards the society should be justified by the ethical norms of a particular societal behavior (Flammer, 2015). Therefore, corporate social responsibility should be one of the primary goals of a company. Corporate social responsibility refers to the voluntary activities undertaken by corporations to thrive in an economic, social and environmentally competitive manner (Linneman, 2015). Companies should incorporate CSR into their core business so as to cope with the increasing demand of changing business environment which has made many global companies understand the significance of addressing both social and economic challenges over the key stakeholders and the surrounding environment.

BE Semiconductor Industries N.V, Besi corporate social responsibility report and the importance of suitability report for the stakeholders will be addressed in this report. Besi remains to be one of the biggest corporation in the service provision of semiconductor assembly tools and types of equipment for the worlds both electronics and semiconductor industries. (Linneman, 2015). The company majors its activities on the environment conservation, society, and community development projects, as well as upgrading the human resource policies while focussing crucially on voluntary work for it continually offers charity work support, with an advanced focus on community outreach driven by an effort to engage in corporate social responsibility.

Examination of Besi Suitability Report

Besi main objective is addressing CR topics in its policies that are important to its operation. This semiconductor company encourages creativity and innovation in the ever changing markets and upcoming technologies.Besi aims to be the world’s leading providers of semiconductor equipment by use of the current information regarding the whole world use of its diverse portfolio of brands to differentiate its services, and consumer products (Torres, 2015). All these activities are aimed at realizing the best global operations standards in both the social and environmental jurisdiction (Flammer, 2015). With the high population which continues to increase day by day, consistent climate alteration trends which influence the rate of business operations, Besi remains a vital industry in its corporate social responsibility engagement.  Human resources, the environment, and products are the primary essential corporate social responsibilities that support the company’s sustainability to the stakeholders.


People refer to the employees of Besi, who play a very crucial role towards the attainment of the enterprise’s goals. Effective employees policies lead the company to the achievement of its profitability targets, sustainability, and a favorable going concern growth. Besi strives to have the best employer plans and invests huge funding in the involvement, training, supporting, and development of the staff (Moyniham and Pandey, 2010). The company has well-established safety measures made for the well-being of the personnel. As a result of effective employer-employee relations, Besi has in future benefited from an increased market and presence in the Asia.

Goods and services

Besi contributes towards the differentiation of its products from those of its competitors. The production of semiconductors has adverse environmental effects of pollution, through waste disposals, the company controls this challenge by having proper waste disposal alternatives that ensure and efficient control to a cleaner environment (Singhapakdi, 2015). The company analyses and takes the advantage of potential unexploited opportunities to create new unique strategies of assembling semiconductors and components utilized in the most upgraded electronic devices such as smartphones, tablets, logistical systems and intelligent automotive technology.

The Environment

Every business operates in an environment surrounded by both internal and external factors. Besi understands the impact of the environment on its operations. Besi has set goals to significantly reduce its ecological pollution through its waste emissions and disposal mechanisms (Flammer, 2015). The company’s energy policy motivates the employees to formulate positive transformations in the job environment energy usage. Besi also emphasizes on the sparing usage of water, effectiveness, and minimization of the total wastages generated from the business operations (Ho, 2015). The company’s considerable sustainability impact lies in the supply chain. Therefore, the company places a particular emphasis on the transportation and packaging.

The business climate remains to be the major factor that Besi struggles to protect. The company strives to strengthen its brand product attractiveness and reinforce interest with their customers, potential clients, retention of existing customers and create a lasting bond with the world communities (Torres, 2015). Besi major goal is benefiting their employees, businesses, and guests as well as marketing the company’s position in the world’s market pace through their consumer corporate social responsibility activities.

Usefulness and Suitability of The Report to The Stakeholders

The usefulness and practicability of the appropriateness of this report have a crucial significance to the company’s major stakeholders. In Besi, the assurance with its key stakeholders namely, the general public, suppliers, employees, customers, government, and shareholders is beneficial for the company against issues of risks that affects its business and performance levels (Moyniham and Pandey, 2010). First-hand information from the stakeholders has an accumulated importance to the company’s corporate social responsibility goals since the data obtained is useful for the company to set aims that are advantageous to the community as a whole as well as upgrading its reputation.


Customers play a significant role in the company’s growth. Besi provides high and standardized quality of customer service to assist in the formulating sound corporate social responsibility goals and thus they should remain one of the primary focus resource for Disney company(Torres, 2015). Besi has formulated several strategies and policies to ensure that the rate of customer satisfaction in semiconductor production and supply are in a greater position for the regular and consistency involvement in performances evaluation.


The human resources of Besi that is, employees usually owes the company an obligation to implement its policies and put them in practice with a close reference to the ethical standards and a conducive working environment within the business premises (Flammer, 2015). The employees expect the company to establish both social and ethical standards and develop safety measures in the working environment. Besi understands that a high-quality level of personnel satisfaction is primary in the realization of high profitability.


Investors expect the company to act in the maximum shareholders interest. The investors and shareholders of the company owe the company a duty to protect their investment and establish quality standards which promise a competitive return on their investments while striving to run its operations responsibility as a corporate body (Ho, 2010). Besi invites its shareholders in meetings for them to as any question relating to their investments during the annual general meeting (AGM).


Besi has set up health and safety measures towards the surrounding local communities as well as all communities at large which it serves. The company’s policy encourages reliance on security, healthy and stable communities to aid in reaching its key stakeholders who include customers, suppliers, employees, and both the existing and potential investors (Singhapakdi, 2015). Since all this is aimed at creating a positive rapport and impact on the communities through the excellent corporate and employee conduct, the company has well-laid customer service whereby their stakeholder’s complaints are addressed.

Local Government

Local government is established to maintain law and order in the business environment. Therefore, the government expects Besi to comply with corporate responsibility local rules and regulations (Rosemann and Vom, 2015). The established government laws are aimed at taking control over the businesses operations such that the company is required to run its activities in a manner that cares for the health, safety, and security of the communities within the environment which they operate.


The company’s suppliers expect to establish a foreseeable and mutual relationship that is beneficial to both the suppliers and the Besi. Besi involves their suppliers through dialogues and annually constructive audit reports (Ho, 2010). The company has a certified internal and external audit given yearly for all significant production equipment on both ethical and social corporate responsibility agenda.

Presentation to The Stakeholders

In the analysis of activities and results of Besi company, the following aspects will be presented to the stakeholders while explicating the company’s operations regarding management systems.

Employees organizational structure

Human resource management is one of the most sensitive department in Besi. In Besi, every region where the company operates have three appointed managers who are responsible for all activities of the firm and are always required to submit their monthly reports to the chief HR manager. The company values both gender and geographical diversity in the acquisition of personnel and management (Rosemann and Vom, 2015). Similar opportunities are given to all the workforce to compete for the vacant applications. In particular, Besi code of conduct encourages female employees to work in the senior positions and aims at raising the number of female engineers in its operations. This analysis report is presented as below:

Indicator                                                         2012                2013                2014

Female employees                                                      1n Percentage (%)

  • Asia 19                    19                    19
  • Switzerland 12                    14                    13
  • Australia 10                    10                    11
  • Netherlands 10                    9                      9

Total                                                               15                    16                    15

Female personnel in management

  • Asia 9                      13                    13
  • Switzerland 9                      13                    13
  • Australia             6                      5                      3
  • Netherlands 6                      6                      8

Training and Development

Employee training and development is very basic for all organizations and Besi works towards its perfection. Besi conducts both annual and semi-annual employee training and development accompanied by effective reviews on the effect of the activity on the company’s performance; this assists in the fulfillment management systems with KPLs for all the employees(Moyniham and Pandey, 2010). Training is planned and offered both at the individual departmental and senior HR levels. In future, the company aims to advance technical know-how integration amongst the employees and create cross-functional skills.

In some continents, for example, Asia, training, and development initiatives are connected to career development programs, in which Besi provides both technical and managerial opportunity for the personnel. The program offers leadership skills, communication, coaching, and delegation strategies helpful in the performance review and management as well as teamwork of the company (Moyniham and Pandey, 2010). Performance evaluation is conducted on a regular basis to test the effectiveness of the training programs with the help of four strategies namely:

  • Direct feedback from the participants.
  • Post program completion performance analysis.
  • Tests are conducted by the participants before and after the program so as to access technical knowledge and skills required.
  • Complete feedback assessment before and after the program to test the effectiveness of the process.

At the company’s plating and packaging in the Netherlands done in 2014, the employees participated in individual training programs since Besi provided an internal opportunity for all the personnel (Flammer, 2015). In 2015, the company put an extra effort in the promotion of training through the establishment of a training portfolio. Given the changing environmental factors, employee engagement remains relevant for the company. This is presented below;

Indicator                                                         2012                2013                2014

Total headcount                                              1479                1434                1510

Labour turnover                                              10%                 14%                 11%

New employees hired                                     9%                   11%                 20%

Employees who received a                             98%                 99%                 98%

Yearly performance

Packaging and Waste Disposals

Besi operates to reduce the generation of material waste as well as minimization of environmental pollution. In 2014, the volumes of waste disposal used, in the same situation the company registered high levels of revenues and therefore spend a lot of funding to reduce this effect to a significant level. In 2015, Besi reduced packaging material consumption for its suppliers by approximately 50 percent when compared to 2012. The quality of packaging has been increased so as to offer adequate protection to the products being transported.

The transportation of Besi produced products, equipment, spare parts, and assemblies has in the past been the primary focus of the company (Linnenman,2015). The company is concerned with fixing the right speed, reliability, cost, and environmental effects of its operations; this is an act of CR. In 2015, the company had set strategies of reducing carbon (IV) oxide emissions by 50 percent plus a 20 percent reduction in the freight costs as compared to 2012 goals a considerable effort is also employed in the prevention of contaminated water leakages and temporary spilling at all production sites.

The below diagram presents to the stakeholders the effects of the actions taken by the company towards environmental protection.

Indicator                                 Unit                 2012                2013                2014

Hazardous waste                     ton                   17                    23                    15

Non-hazardous                        ton                   175                  157                  204

Total waste                             ton                   192                  180                  219

Kg/revenue                                         700                  708                  579

Water usage                            volume            23540              26512              30020

Vol/revenue    86                    104                  79

Based on the human rights, labor conditions, health and safety working areas, environment, ethics of work, integrity, transparency, and compliance with the law and regulations, Besi conducted research in 2014 for the same to upheld effective semiconductor production.


Besi is fully committed to putting into use its efforts towards giving back to the society through its diverse corporate social responsibility projects. To be assured of future sustainability in the market for its semiconductor  products and services, the company operates in collaboration with the key stakeholders (Linneman, 2015). Corporate social responsibility is everyone’s duty irrespective of whether individual, in a partnership or as a company. Therefore, all business corporations should carry out their activities for the optimal benefit for its stakeholders, since this acts as a promising determinant of the companies success in the environment within which it operates.


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