A Case Study on Biochemical Oxygen Demand Online Monitor

Assessing CSR and Applying Social Life Cycle Examensarbete i Hållbar Utveckling 82 Assessment: A case study on Biochemical Oxygen Demand Online Monitor

Assessing CSR and Applying Social Life Cycle Assessment: A case study on Biochemical Oxygen He Wan Demand Online Monitor

He Wan

Uppsala University, Department of Earth Sciences Master Thesis E, in Sustainable Development, 30 credits Printed at Department of Earth Sciences, Master’s Thesis Geotryckeriet, Uppsala University, Uppsala, 2012. E, 30 credits Examensarbete i Hållbar Utveckling 82

Assessing CSR and Applying Social Life Cycle Assessment: A case study on Biochemical Oxygen Demand Online Monitor

He Wan

Content

1. Introduction ...... 1 1.1 Project Background ...... 1 1.2 Purpose ...... 2 1.3 Delimitations ...... 2 1.4 Thesis Structure ...... 3 2. Conceptual Framework ...... 3 2.1 Sustainable Development ...... 3 2.2 Business CSR Level ...... 5 2.2.1 CSR Level 1 ...... 6 2.2.2 CSR Level 2 ...... 7 2.2.3 CSR Level 3 ...... 8 2.3 Social Life Cycle Assessment ...... 9 2.3.1 Definition of Goal and Scope...... 9 2.3.2 Life Cycle Inventory Analysis ...... 11 2.3.3 Life Cycle Impact Assessment ...... 12 2.3.4 Interpretation ...... 12 3. Methodology and Research Design ...... 13 3.1 Research Approaches ...... 13 3.1.1 Inductive Approach ...... 13 3.1.2 A Case Study Approach ...... 13 3.1.3 Qualitative and Quantitative Approach ...... 14 3.2 Data collection ...... 15 3.3 Trustworthiness...... 15 4. Empirical Findings and Analysis ...... 16 4.1 Corporations’ CSR level ...... 16 4.1.1 Boffin Company...... 17 4.1.2 Universtar Science & Technology (Shenzhen) Co.LTD ...... 19 4.1.3 Discussion ...... 21 4.2 SLCA on BOD online monitor ...... 22 4.2.1 Definition of Goal and Scope...... 22 4.2.2 Life Cycle Inventory ...... 27 4.2.3 Life Cycle Impact Assessment ...... 27 4.2.4 Interpretation ...... 30 5. Conclusion...... 35 5.1 Corporations’ CSR level ...... 35 5.2 SLCA on BOD online monitor ...... 36 5.3 Overall Purpose ...... 37 5.4 Future research ...... 38 6. Acknowledgements ...... 38 7. Reference ...... 38

Abbreviations

BOD Biochemical Oxygen Demand CSR Corporate Social Responsibility ELCA Environmental Life Cycle Assessment GRI Global Reporting Initiative ISO International Organization for Standardization LCI Life Cycle Inventory LCIA Life Cycle Impact Assessment NGO Non-governmental Organization SETAC Society for Environmental Toxicology and Chemistry SLCA Social and socio-economic Life Cycle Assessment TBL Triple Bottom Line TQM Total Quality Management TRM Total Responsibility Management UNEP United Nation Environment Programme WCED World Commission on Environment and Development

Assessing CSR and Applying Social Life Cycle Assessment ： A case study on Biochemical Oxygen Demand Online Monitor produced

HE WAN

Wan, H., 2012: Assessing CSR and Applying Social Life Cycle Assessment：A case study on Biochemical Oxygen Demand Online Monitor. Master thesis in Sustainable Development at Uppsala University, No. 82, 68pp, 30 ECTS/hp

Abstract: Wuhan China and Borlänge Sweden collaborate to promote sustainable business growths. This thesis, being part of sustainable business project, aims to understand how business can contribute to sustainable development and explore mechanisms of social life cycle assessment. In an effort to answer research questions and further to achieve the general purpose, a BOD online monitor case study is described and analyzed by applying both qualitative and quantitative approaches. Data collection is based on interviews and documents. In the case of BOD online monitor, the thesis identifies Boffin and Universtar companies’ CSR levels. It also observes that SLCA method is able to discover Boffin and Universtar’s social performances at life cycle impact assessment stage and disclose online monitor’s social impacts at interpretation stage. The thesis finally concludes that business’ CSR level can be evaluated from three dimensions: companies’ goals on conducting business, business operation performances and resolved problems. SLCA method is able to disclose enterprises’ social performances, discover underlying factors that might hinder corporations’ ability to contribute to sustainable development and improve product’s social at the same time.

Keywords: Sustainable Development, Corporate Social Responsibility, Social Life Cycle Assessment, BOD Online Monitor, Social Impact Assessment, Social Performances

He Wan, Department of Earth Sciences, Uppsala University, Villavägen 16, SE- 752 36 Uppsala, Sweden

III

Assessing CSR and Applying Social Life Cycle Assessment ： A case study on Biochemical Oxygen Demand Online Monitor

HE WAN

Summary: Companies, at present, should not only look at profits and costs, but also are expected to take social responsibilities. However, there are not consolidated statements on what kinds of companies are deemed as having social responsibilities and how they can be more responsible. In addition, social life cycle assessment, as a tool to evaluate a product’s social impacts throughout its life cycle, is encouraged to conduct case studies. This thesis, therefore, aims to understand how business can contribute to sustainable development and explore mechanisms of social life cycle assessment. The thesis identifies and divides business CSR levels into three levels in conceptual framework chapter. Business CSR levels are evaluated from three dimensions: conceptual framework, process and end goal. And then, the thesis assesses companies’ business CSR levels and explores social life cycle assessment by conducting a BOD online monitor case study. Both qualitative and quantitative approaches are used to describe and analyze the case study. Data collection is based on interviews and documents. The BOD online monitor case shows that Boffin and Universtar companies recognize sustainable business; however, they are weak in implementing goals. Boffin is weaker in corruption part, while Universtar needs to improve its performances from health and safety of working conditions and local employment aspects. The BOD online monitor has negative impacts on the governance aspect in designing process. The negative effect of corruption value was the reason why BOD online monitor has negative impact on governance. It concludes that business’ CSR level can be evaluated from three dimensions. SLCA method was able to disclose enterprises’ social performances, discover underlying factors that might hinder corporations’ ability to contribute to sustainable development and improve product’s social at the same time.

Keywords: Sustainable Development, Corporate Social Responsibility, Social Life Cycle Assessment, BOD Online Monitor, Social Impact Assessment, Social Performances

He Wan, Department of Earth Sciences, Uppsala University, Villavägen 16, SE- 752 36 Uppsala, Sweden

1. Introduction Companies in the thesis are Hubei Boffin Biological technology Co. Ltd and Universtar Cheap labour force is a key factor for Chinese Science &Technology Company. The product is economic explosion. Many manufacturers focus porous ceramic BOD (biochemical oxygen on companies’ costs and benefits, products’ demand) online monitor, which is independently qualities and customers’ needs. They do not take developed by Boffin and produced by Universtar. environmental impacts into consideration, not to Biochemical Oxygen Demand (BOD) is the mention talking about social performances and amount of dissolved oxygen required by impacts. This economic growth leads to serious microorganisms to decompose organic material social problems that a majority of companies in water in a given condition. It is used as an rely on cheap labour force and ignore employees’ important indicator for measuring the degree of human right. One typical example is the water pollution. BOD online monitor is a ‘Foxconn employee suicide events’. Foxconn, product designed to monitor and test BOD value the world’s largest multinational electronics of water. The porous ceramic is utilized to fix manufacturer, is expected to maintain high microorganism media, increase microbial standard of social corporation responsibility. In concentration and dilute organic components in contrast, it is deemed as a ‘sweat factory’ for the the sample water within a short period of time. fact that 14 employees from the same The product examines BOD value of the manufacturing plant in China committed suicide assigned water discontinuously and this value is within 2 years (CNR, 2012). This tragedy conveyed to the environmental monitoring enlightens all citizens and corporations that center through a network on an hourly basis. The Chinese should rethink about business and relative error of this product is no more than 3%. corporations. Compared to other tests as the conventional 5-day test, BOD online monitor can achieve real-time monitoring and process control (Di 1.1 Project Background Lorenzo et al, 2009). On September 7, 2011, an agreement on friendly exchange and communication programs in According to Johnson (2007, p12), sustainable 2012-2014 between Wuhan China and Borlänge development issues have to learn from CSR in Sweden was reached with sustainable terms of social parts. How can corporations development as a leading star throughout two taking social responsibilities so as to be more cities’ cooperation. Wuhan and Borlänge seek sustainable? That is a question I like to collaborations in the fields of environmental investigate. Nevertheless, people may have sustainable development and business connected diverse cognitions on how corporations taking to environmental issues. A thesis project in social responsibilities. One famous argument is sustainable business field that aims to explore that the only social responsibility of business is corporations’ social behaviors in Wuhan city is to increase its profits (Friedman, 1970). under planning in 2012. This study, being part of Corporate executives’ responsibility is to make the project, evaluates companies’ corporation large amount of money for their employers. social responsibility (CSR) level as well as Executives who are not pursuit for profits work utilize social life cycle assessment method to for non-profit organizations (Friedman, 1970). explore corporations’ social performances and This point of view, however, is criticized that product’s social impacts on Wuhan city, China. Friedman oversimplified business and the

importance of ethics for conducting business not used in many case studies (Hunkeler, 2006; (Grant, 1991). Companies should have Andrews et al., 2009; Blom & Solmar, 2009). commitments to their internal and external UNEP/SETAC (2009) encourages conducting stakeholders and provide values in a sustainable case studies with social life cycle assessment way (Branco & Rodrigues, 2007; Svensson et al, (SLCA) method. As a result, I intend to explore 2010). Another statement is that companies are SLCA through a case study. expected to extend responsibilities from supplier chains to customers (Isaksson et al., 2010). 1.2 Purpose Companies should not only look at profits and costs, but also bear social responsibilities of The purpose of this thesis is understand how caring employees and assessing sustainable business can contribute to sustainable impacts, evaluate the suppliers’ performances development and explores the mechanisms of and require suppliers to meet basic social social life cycle assessment. In the direction of requirements as well. Since there is not a accomplishing the purpose, following research consolidated statement on what companies are questions are ought to be answered: deemed as having social responsibilities and 1. How can a business’ CSR level be how they can be more responsible, in the thesis, assessed? I intend to answer this question by identifying 2. How can the social life cycle companies’ CSR levels. assessment method be used to disclose enterprise’ social performances and Furthermore, social life cycle assessment (SLCA) factors that hinders sustainable method is an evaluation tool that can be used to development? analyze a product’s social impacts and its 3. How can social life cycle assessment be producers’ social performances. A product used to improve product’s social influences on the society is reflected by impacts? companies’ performances (Dreyer et al., 2006); therefore, how companies affect society equals 1.3 Delimitations to the product’s social impacts. It exceeds current standard of CSR which mainly limits to The thesis aims to explore corporations’ business one single company (UNEP, 2009). The present CSR levels from sustainable development view. standard of CSR mainly tackles social impacts at Corporations in here refer to companies that the enterprise level while social life cycle make for profits. Hence, not for profits assessment includes a product’s whole life cycle companies are excluded for the study. process including company, plant and process levels (Benoit et al., 2010). Having similar This thesis only evaluate BOD online monitor procedures to LCA, SLCA methodfocuses on that developed by Boffin. BOD online monitors social impacts and is developed from a societal produced by other companies are not included. perspective instead of analyzing physical flows (Dreyer et al., 2006). There are some articles Moreover, social performance has the same about explaining social life cycle assessment’s meaning of social impact in the thesis. To meaning, methodologies, framework and discover corporations’ social performances measurement (Dreyer et al., 2006; Jørgensen et means to explore companies’ social impacts. al., 2008; Jørgensen et al., 2010; Benoît et al., 2010; Parent et al., 2010), but SLCA method is Admittedly, companies also are expected to be

responsible for protecting environment and take chapter, comprising of research approaches, data economic responsibilities. In this thesis, I will collection and trustworthiness etc. not focus too much on environmental and economic parts. The thesis emphasises on Chapter 4– Empirical Case Study: an evaluating corporations’ social performances and empirical case study of BOD online monitor is product’s social impacts on stakeholders. conducted to explore companies’ CSR levels and Specific economic and environmental data, such interpret how social and socio-economic life as revenues, taxes, CO2 emissions etc., will not cycle assessment method is used for disclosing be presented. enterprise’ social performances and discovering factors that hindering sustainable development It increases uncertainties if the thesis accepts all achievements. The first part of this chapter information from companies. Nevertheless, analyses two companies’ business CSR levels on considering some companies may not publish the basis of sustainable development concept. CSR reports or have formal annual reports, I will After that, social life cycle assessment method is assume that information from those companies utilized for identifying positive and negative and employees is creditable and reliable in this social impacts of both companies and product thesis. specifically at company and site level.

The thesis also has limitations. There is only one Chapter 5–Conclusion: structure of the study is case study, which is a very small sample summarized and key findings are demonstrated. compared to the whole BOD online monitor Contributions of the study and suggestions of industry. Hence, the result is only applicable in future research are also shown in this chapter. this case and cannot reflect enterprises in the whole BOD online monitor industry. 2. Conceptual Framework 1.4 Thesis Structure

Chapter 1 – Introduction: Introduction chapter 2.1 Sustainable Development illustrates current Chinese business situation and Sustainable development, which is widely project background. It defines overall purpose of recognized in 1987 through Our Common Future, the thesis and proposes research questions. In the is defined as “development that meets the needs meantime, it also indicates the study’s of the present without compromising the ability delimitations and limitations. of future generations to meet their own needs” (WCED, 1987, p43). In this definition, Chapter 2–Conceptual framework: this part sustainable development not only focuses on reviews sustainable development concept at first. economic growth, but also concerns about After that, it demonstrates CSR levels according generational equity and utilizations of natural to sustainable development concept and people’s resources. The report indicates that economic cognitions on corporation’s social growth should on a basis of using resources responsibilities. Further, social life cycle sustainably and efficiently. Nevertheless, WCED assessment is elaborately described. committee limits this definition to sustaining human existence and intergenerational equity Chapter 3–Methodology: methods for (Johnson, 2007; Kates et al, 2005). Another conducting the thesis are explained in this criticism of this report is that goals are too

ambiguous to find applicable answers. The largely adopted by national governments (United report admits that we should take measures to Nations Division of Sustainable Development, mitigate environment deteriorating problems, but 2001), whereas the Global Reporting Initiatives it does not offer concrete resolutions on how we selects indicators to evaluate how corporations can reach sustainable goals (Gilbert, 2002). affect sustainable development at organizational level (Kates et al, 2005). Three-pillar-model of sustainability, namely triple bottom line (TBL), is an appropriate In conclusion, sustainable development is framework formulated at the Copenhagen interpreted in various means. Our common Summit in 1997, which narrows down future report and three-pillars-model of sustainable development concept and promotes sustainability are more like guiding principles sustainable development from three dimensions: that structure a conceptual sustainability environmental, social and economic aspects framework. The second way of understanding (Herrmann et al.). The Johannesburg Earth sustainable development is to measure if Summit on Sustainable Development (2002) sustainable goals have been achieved by various declared to achieve three-pillar sustainability at indicators. It applies sustainable principles to multiply degrees, such as local level, country specialized evaluating approaches and facilitates level, regional level and global level. the decision-making process. Sustainable development is deemed as a process of changes Sustainable development goals, clarified in this rather a static state (Roome, 1998). It forces us conference, needs to be assessed and achieved to discover factors influencing the long-term by integrated ways. Nonetheless, the benefits instead of emphasizing on transitory three-pillar-model is still criticized for being profits. Sustainable development, at the same difficulty of measuring sustainable performances time, aims to reach a collective and integrated (Norman & MacDonald, 2004). Researchers are society improvement on the same progressive inclined to deem triple bottom line as a reminder path (Strange & Bayley, 2008). The third way is rather than an accounting tool (Pava, 2007; to define sustainable development on the basis of Johnson, 2007). Those researchers who intend to diverse practices. After evaluating and analyzing carry on sustainability assessment are based on on account of given indictors, different societal the principle of triple bottom line but refine stakeholders are able to identify specific indicators on basis of their recognitions and problems and reach practical solutions according empirical cases under each dimension (Atkission, to their own roles and responsibilities (Kates et 1999; Hardi & Zdan, 1997; Swisher et al., 2003; al, 2005; Strange & Bayley, 2008). Beheiry, 2009). Strange and Bayley (2008, p30) displayed a Sustainable assessment results are influenced by clear and well-organized description of geographic positions, dimensions, scopes, sustainable development that includes the above indicators and how indicators are selected; three levels of sustainable development, and I therefore, sustainable development can be will use this explication in this thesis. defined on basis of how to measure it (Wilson et Sustainable development according to Strange al., 2007; Wallis et al., 2011; Kates et al, 2005). and Bayley (2008, p30) is that: For instance, the set of indicators in the UN  A conceptual framework: a way of Commission on Sustainable Development are changing the predominant world view applicable to country-specific conditions and to one that is more holistic and

balanced; corporations (Friedman, 1970; Lantos, 2001).  A process: a way of applying the Friedman (1970) argues a corporate executive principles of integration – across space has direct responsibility to his/her employers. If and time – to all decisions; and an executive do something employer may not  An end goal: identifying and fixing the interest, it means that the executive spend specific problems of resource depletion, customers’ or employees’ money to achieve health care, social exclusion, poverty, social responsibilities. Of course corporations unemployment, etc. may provide employees good working conditions and contribute to charities in practice; Aiming to achieve sustainability from processes however, these actions are to attract employees of explications shown above, a sustainable goal and long-term profits other than for ethics is identified at first, followed by choosing or reasons (Carr, 1968; Friedman, 1970). This point creating measuring indicators, and end with of arguments is more like a profit-making view identifying specific problems (Kates et al, 2005). that maximizes business profits (Branco & Considering sustainable development is an issue Rodrigues, 2007). related to various stakeholders, such as government officials, business leaders, scientists, However, corporations as one major actors in the environmentalists, economists, society, their tasks cannot merely be seen as non-governmental organizations (NGOs) as well provide goods and services. Carroll (1991) as individuals, each stakeholder plays a different asserts that companies should not have economic role to achieve sustainability. As demonstrated dimension, but also have other responsibilities, above, sustainable development can be deemed such as legal, ethical and philanthropic as a process of changing. In this thesis, I will dimensions. Good corporation citizens at first focus on understanding business CSR-level from should make their business profitable and these a sustainable development perspective. That is to acts should obey laws (Carroll, 1998). The say, I try to relate sustainable thinking to higher dimensions of good corporations include business practices. I will analyze companies’ being ethical and making corporate contributions business levels with questions in mind: if I look (Carroll, 1998). There are also an increasing at companies’ CSR practices from a sustainable number of social organizations appealing to point of view, what business performances and corporations to take social responsible actions, behaviors can be deemed as sustainable? Which such as protecting environment, doing well to companies can be seen as have higher CSR level? employees and etc. Consumers expect I will firstly interpret business CSR level from a companies to spend part of profits on improving sustainable development perspective and discuss the society as well (Uddin et al, 2008). Namely, in the subsection. companies are forced to have other social responsibilities other than single economic profitability. 2.2 Business CSR Level

Companies are required to be responsible at The proliferation of corporate social present, however, which performances and responsibility reports indicate that companies characters can be deemed as real good social now have conscious of taking social responsible are controversial. For the early stage, responsibilities. Many companies report their there are people regarding maximum profits to CSR report annually to present a transparent shareholders as the single responsibility for business performance to the public (CSRwire,

2012). Nevertheless, society requires companies the neoclassical economic theory that is often to be more social responsible that also reporting deemed as a profit-making view. It implies that their suppliers to date. A brand does not only business should maximize shareholders’ profits, equal to a product, but also contain how to make have lower ethics standards than the society and the product, the suppliers of the product and how do not have any other social responsibilities to transport the product (Mulani, 2009). except obeying mandatory laws (Lantos, 2001). Enterprises are encouraged to take total Classical business’s notions include free markets, responsibility management approach throughout economic efficiency and profit maximisations supply chain (Waddock & Bodwell, 2004). (Branco & Rodrigues, 2007). From this point of view, company’s exclusive responsibility is to On the account of sustainable development make profits for its shareholders (Friedman, concept and arguments described above, I decide 1970; Sundaram & Inkpen, 2004). Managers in to divide business CSR into three levels: CSR the company are required to make money as level 1, CSR level 2 and CSR level 3. much as possible for its shareholders and social Companies having a higher CSR level perform problems are governments’ responsibilities that better on society than their counterparties’ who are beyond mangers’ duties (Friedman, 1970; have a lower CSR level. To be more specific, Branco & Rodrigues, 2007).Interactions between corporations at level1 run a business that putting companies and stakeholders are considered to be emphasis on profitability. Companies in the factors hindering corporations’ profitability second level commit to be responsible to their (Coelho et al., 2003). related stakeholders. The third level not only requires companies themselves to undertake CSR level 1, in my opinion, does not match with corporate responsibilities, but also expands the sustainable development concept. For this kind requirements to companies’ suppliers. of business, entrepreneurs chase profits and ignore environment and social equities. As mentioned before, the thesis describes Companies which improving products’ qualities, sustainable development from three dimensions: inventing techniques and using resource conceptual framework, process and end goal efficiently are not for environmental or social (Strange and Bayley, 2008). The conceptual concerns, but mainly for lowing costs and framework of business is to evaluate companies’ increasing profits. In conclusion, companies that principles on conducting business. The process utilize classic view to run a business includes means how companies apply principles into characters shown below: business operations. The end goal is to know  A conceptual framework: Companies which specific problems companies have fixed. ignore sustainability and only obey Hence, I would like to present CSR levels from labour, environment related laws and the three dimensions. In that way, I can disclose regulations. Laws and regulations that corporations’ CSR level in a more clear way. I contributes to external society are can find out if a company is at a high CSR level regarded as obstacles and costs for for all three dimensions or it performs better in a companies (Lantos, 2001; Coelho et al., particular dimension. 2003);  A process: Shareholders as companies’ 2.2.1 CSR Level 1 owners utilizetraditional bottom line of The first level of CSR is conventional business. profitability to operate The classic viewpoint on business is based on business(Friedman, 1970); managers

take responsible for making money for UNEP/SETAC (2009) indicates that CSR is a shareholders and have no right to make responsibility that companies contribute to any other decisions or use companies’ sustainable development. Commission of the resources which cannot directly lead to European Communities (2001, p366) defines profits (Friedman, 1970; Branco & CSR as “a concept whereby enterprises Rodrigues, 2007); and integrate social and environmental concerns in  An end goal: Companies’ role is to their business operations and in their interaction produce wealth and not necessary to with their stakeholders on a voluntary basis”. take responsible for social problems This definition implies that CSR is a company’s they produce during business voluntary behaviours so as to achieve economic operations. Social problems should be growth, social development and environmental addressed by public governments consideration simultaneously. Commission of (Friedman, 1970; Branco & Rodrigues, the European Communities (2001) further 2007). distinguishes CSR into internal and external dimensions. Internal dimension of CSR are 2.2.2 CSR Level 2 responsible practices within a company, while The famous definition of corporate social external dimension are responsibilities that go responsibility (CSR) is demonstrated from beyond a company (Commission of the stakeholder theory. It implies that companies European Communities, 2001). Internal CSR should consider all stakeholders whose rights practice include: human resources management, benefit from or are harmed by corporate health and safety at work, adaption to change behaviours (Branco & Rodrigues, 2007; and management of environmental impacts and Freeman, 1998). Apart from shareholders, natural resources, whereas practices of local stakeholders also include creditors, employees, communities, business partners, suppliers and customers, suppliers, communities and consumers, human rights and global governments (Branco & Rodrigues, 2007). I environmental concerns belong to external select five elements listed by Buchholz (1991) to dimension (Commission of the European identify CSR: a) companies are not only Communities, 2001). responsible for making products and providing services with the express purpose of profits; b) According to Vogel (2005) and Johnson (2007), but also should help to solve significant social corporate social responsibility is more than an problems, especially which are created by ethics matter, but expands to a holistic companies themselves; c) companies should be understanding of business relating with ethics, responsible for their stakeholders rather than social and environmental concerns. However, in only focusing on shareholders; d) companies not the meantime, we could not expect companies to merely affect simple marketplace transactions; e) get involved in every aspect of social companies should not only serve economic improvement or sustainable development values, but also add other human values. (Hopkin, 2002). A transition from conventional business to taking corporate social However, the above explications of CSR fail to responsibilities never means that companies do include sustainable development values directly. not seek profits for their shareholders; in contrast, They also fail to notice companies’ voluntary enterprises embed economic, social and actions. When it comes to the interrelation environmental values into operations between CSR and sustainable development, simultaneously (Roome, 1998). Carroll (1991)

also noted that the fundamental requirement of a 2001), it fails to notice the importance of responsible enterprise is profit-making, and then integrations and collaborations among is to be legal, ethical and philanthropic. This is a corporations and supply chains. Companies business strategy shifting from traditional single report their CSR report on the basis of a series of bottom line of profitability to triple bottom line CSR ratings and rankings annually (Porter & of society, economy and environment. To sum Kramer, 2006). An enterprise’s CSR report up, characters integrating with sustainable might include information of health and safety at development concept for CSR level 2 in this work from its suppliers and subcontractors, but thesis include: the report would not disclose suppliers and  A conceptual framework: companies subcontractors’ working conditions in details. recognize sustainability and voluntarily Since consumers’ values are created through embed social and environmental values supply chain, companies are expected to extend into business operations (Commission their responsibilities from suppliers to customers of the European Communities, 2001); to date (Isaksson et al., 2010). Companies at  A process: managers take shareholders CSR level 3 take total responsibilities which as well as other stakeholders into including inspiration, integration and innovation account (Branco & Rodrigues, 2007; aspects (Leigh & Waddock, 2006). Enterprises Buchholz, 1991); companies take social are able to take total responsibility management responsibility that not just satisfy the (TRM) approach and organizational traditional bottom line of profitability, improvement to audit external suppliers and but also include two other bottoms of learn from past mistakes (Waddock &Bodwell, environmental quality and social justice 2004). (Elkington, 1997); a series of responsible practices are conducted in American Management Association (2007) lists internal as well as external dimensions seven qualities of a sustainable enterprise, (Commission of the European including top-management support, centrality to Communities, 2001); business strategy, values, metrics, stakeholder  An end goal:Companies seek profit for engagement, systems alignment and shareholders, but also are in favor of organizational integration. Companies at CSR society and its stakeholders level 3 should have these qualities. Top (Commission of the European management support means that chief managers Communities, 2001); enterprises solve recognize and support for sustainable problems they created voluntarily, such development (American Management as health care, human rights, social Association, 2007). In the meantime, exclusion and etc. (Buchholz; 1991). sustainability, which is regarded as a central business strategy, is integrated and measured in a 2.2.3 CSR Level 3 company level (American Management Admittedly, compared to the level 1, companies Association, 2007). Both external and internal at CSR level 2 are more sustainable. However, stakeholders of a company participate in even though EU commission declares that sustainable issues, whilst structures, systems and enterprises should be responsible for their processes are associated with sustainability suppliers’ and tractors’ performances in terms of within the enterprise as well (American human rights and environmental aspects Management Association, 2007). Since (Commission of the European Communities, sustainable development is a holistic concept,

organizations are required to integrate and boundary to include supply chains and collaborate to achieve sustainability (American customers as a whole (Benoît et al, 2010). Management Association, 2007). Distinguished from other social impact assessment methods, social life cycle assessment Based on illustrations shown above, several is an approach for evaluating the product or characters for sustainable enterprises are listed service’s social impacts throughout its entire life below: cycle and enables enterprises to make decisions  A conceptual framework: Sustainability (UNEP/SETAC, 2009). A social and is deemed as companies’ strategic goal socio-economic life cycle assessment (SLCA) is and integrated in enterprises’ vision defined as “is a social impact (and potential (American Management Association, impact) assessment technique that aims to assess 2007); the social and socio-economic aspects of  A process: Companies extend their products and their potential positive and responsibilities from their suppliers to negative impacts along their lifecycle their customers as a whole, and have a encompassing extraction and processing of raw total responsibility strategic decision materials; manufacturing; distribution; use; (Isaksson et al., 2010; Waddock & re-use; maintenance; recycling; and final Bodwell, 2004); Companies have disposal”(UNEP/SETAC, 2009) qualities of top-management support, centrality to business strategy, values, It is a complementary part of environmental life metrics, stakeholder engagement, cycle assessment in terms of social and systems alignment and organizational socio-economic aspects and can be followed integration (American Management with similar procedures as an environmental life Association, 2007); cycle assessment (ELCA), including stages of  An end goal: companies collaborate goal and scope, life cycle inventory, life cycle with stakeholders to achieve sustainable impact assessment and interpretation goals in multiply dimensions. (UNEP/SETAC, 2009). I will utilize SLCA as Stakeholders such as society, local the main method in this thesis; hence, specific community, suppliers, and employees procedures of carrying out an SLCA are benefit from business conducts at the explicated in each subsection below. same time (American Management Association, 2007). 2.3.1 Definition of Goal and Scope The first step to conduct a SLCA study is to state the purpose and define the scope, composing of 2.3 Social Life Cycle defining product’s utility and functional unit, collecting data and identifying stakeholders. Assessment

Companies are expected to take social Goal of the study responsibilities; therefore, to know companies’ The purpose of conducting a social life cycle impacts on society and stakeholders is ultimately assessment study is described in the first place. needed. Even though there are a large number of Various intended applications of a SLCA study social responsibility assessment tools for lead to different methodological possibilities and evaluating enterprises’ social impacts at limitations (Jørgensen et al, 2008). Several why company level, few of them have a broad and what questions are asked in the purpose of

identifying objectives of the study stakeholders. According to Dreyer et al. (2006), (UNEP/SETAC, 2009): there is not a direct correlation between social  Why is a SLCA being conducted? impacts and processes; instead, company’s  What is the intended use? performances are associated with social impacts  Who will use the results? and processes. Companies involve in the product  What do we want to assess? system and conduct the business, which affect social impacts indirectly. Scope of the study The scope of a SLCA study includes the depth As ISO 14040 (2006) indicated that product and breadth of a study and delimits an flows should not cross system boundaries. assessment, influencing the accuracy of a study System boundary is to delimit product system by result (Jørgensen et al, 2008). I will discuss asking ‘where is the product’s cradle and grave’ major parts of study scope below, which (Blom & Solmar, 2009). Applying this to SLCA includes functional unit, the product system, means to identify processes which company, system boundaries, social indicators and suppliers and distributors involve in for a inventory data. product system. Nevertheless, not all information on stakeholders involve in each It is an essential step to define functional unit in process needed to be reported in a system the scope of a SLCA study for the reason that it boundary. facilitates to building product system and conducting following phases. Descriptions of Generic and site specific data are two types of product’s functions, relevant market segments, data collected after defining the system product alternatives and reference flows are boundary (UNEP/SETAC, 2009). Generic data favourable to define an appropriate functional are data that not collected through conducted unit (Weidema et al., 2004). Product’s functions, stakeholders directly. The data may not present namely properties of product, encompass company’s performances and product’s impacts product’s main functions, qualities, additional for a given purpose. Conversely, site specific services, image, costs and special environmental data are gathered for a specific process and from and social properties. Nevertheless, different specialized company. It is able to represent a with ELCA to interpret results per functional product’s current impacts. Both generic and site unit, SLCA approach which intends to use specific data are gathered in a SLCA study as it qualitative and semi-quantitative data will is unable to collect all data on-site for the reason describe impacts result by companies’ of time-consuming and costly. Generic data are characteristics (UNEP/SETAC, 2009). used to evaluate impacts which are not affected by organizations’ actions and site specific data The product system contains a series of process are to assess organizations’ influence on the chains and operations throughout a product’s product (UNEP/SETAC, 2009). entire life cycle. In terms of ELCA, there is a natural link between physical flows and Social indicators environmental impacts. The environmental Inventory indicators are used to structure data impacts are evaluated by the input and output (Benoit et al., 2008). Social subcategories of inventory data for processes (Chen & Froukje, SLCA are those socially significant attributes or 2010). In contrast, SLCA is to evaluate product’s themes that justify which information should be social and socio-economic impacts on included in a study. Social subcategories can be

firstly classified by stakeholder categories with a (Weidema, 2006; Schmidt et al., 2004; Manhart purpose of gathering data and observing &Grießhammer, 2006). information through unit processes from organizations’ perspectives. Five main Life cycle inventory analysis phase includes stakeholder categories include workers, local processes of data collection for screening, main community, society, consumers and value chain data collection, characterization, relating data to actors (UNEP/SETAC, 2009). functional unit, refining system boundary and data aggregation (UNEP/SETAC, 2009). Data Social subcategories can also be classified into collection process starts with two questions: a) impact categories for further evaluations and where are the unit processes located and which interpretations. Impact categories of a SLCA organizations are involved? b) Which activities study are social results for stakeholders and are variable? These two questions help us to decision makers that grouped logically. They are know what site specific data should be gathered. divided into two types, the midpoint category Since data collection is developed from (Type 1) and endpoint category (Type 2). Type 1 subcategories, inventory indicators and data is to accumulate subcategories’ results to a gathering strategies can be determined in the stakeholder that is interested in this theme, while second phase. Desktop screening can be type 2 is to model results for subcategories to the achieved by literature review and web search, endpoint, e.g. autonomy (UNEP/SETAC, 2009). whiles site specific data is carried out by social Midpoint indicators are mainly for providing audit, interview, focus group, questionnaires and information to decision makers. surveys (UNEP/SETAC, 2009). The third step is collecting main data by gathering data to 2.3.2 Life Cycle Inventory Analysis illustrate social impacts through a product chain. Life cycle inventory phase intends to collect data The desktop screening goes first to collect on the basis of the goal and scope definitions organizations’ specific information, followed by (UNEP/SETAC, 2009). The system modelling interviewing and observing organizations’ social and life cycle assessment results are achieved in performances on site. Triangulating data is this step as well. However, the most difficult suggested by UNEP/SETAC (2009) to maintain problem is in the data collection process. a fair view of data, which means that data should Different from ELCA that has a direct link be collected from different sources and between physical flows and environmental stakeholder groups. Characterization means to impacts; social impacts of SLCA are evaluated match data for assessing impact. Relating data to by the conduct of company. As a result, social functional unit and unit process is required in an impacts are assessed according to enterprise’ ELCA study so as to present input and output actions on its stakeholders rather than based on results of product system by per functional unit. the industrial process (Spillemaeckers et al., Nevertheless, this step can be omitted in a SLCA 2004). Gathering site specific data from study study if the study utilizes qualitative data. companies will increase the accuracy of study Sensitivity analysis is performed to estimate if a results. However, many authors advocated using process affects the overall result in a SLCA study. generic data for the reason that it is very difficult The last step is data aggregation, which should to reach all site specific data through the whole be applied with location information of the unit supply chain. They also admitted that generic processes. data from national, regional and global databases could help to evaluate several social impacts

2.3.3 Life Cycle Impact Assessment endpoint category. However, there are no general Life cycle impact assessment is the place to practices for modelling subcategories to impact describe and transfer sLCI (social life cycle categories at present (UNEP/SETAC, 2009). inventory) results into social and socio-economic Classification is to link inventory results to impacts. It is to summarize and interpret social specific stakeholder category/ impact category. significance of data that was gathered in the As for characterization, it is to calculate inventory phase. As UNEP/SETAC (2009) states, subcategory results and aggregate results within the purpose of sLCI in SLCA study is to provide the same impact category. There is no need to a combination of: aggregating inventory data get quantitative results in SLCA study, but to within subcategories and categories; and making write a summary on the basis of descriptive use of additional information to help understand inventory information. the magnitude and the significance of the data collected in the Inventory phase. 2.3.4 Interpretation Life cycle interpretation is the last major phase Similar to eLCIA (environmental life cycle to complete a social life cycle assessment study. impact assessment) that utilizing cause-effect It has several goals, including results analysis, model to link inventory data to environmental conclusions, explicating limitations of a study, impacts, sLCIA (social life cycle impact recommendation and reporting (UNEP/SETAC, assessment) intends to stem social life cycle 2009). UNEP/SETAC (2009) defines four steps impact assessment results from inventory data to conduct an interpretation process: with the processes of methods and models identification of the significant issues; evaluation selection, classification, and characterization of the study; conclusion, recommendation and (Fig. 1). reporting; and level of engagement with

Impact categories

Aggregation/ characterization

Subcategories

Aggregation/ characterization

Inventory indicators

Life cycle inventory data Fig.1 Processes for sLCIA (UNEP/SETAC, 2009)

stakeholders. Life cycle impact assessment phase starts with selecting impact categories, subcategories and The first three steps are similar to environmental characterization models according to the goal life cycle assessment, while the fourth one is and scope of a study. As mentioned in 2.4.1, particular for a SLCA study. To be more specific, impact categories include midpoint category and identifying key concerns through generic

assessments, limitations and results from the 3.1.2 A Case Study Approach study is the first process for interpretation, A case study approach was used to explore followed by an estimation of the study with phenomena (Yin, 1981) and a description case considerations of completeness and consistency. study research was applicable for resolving how The third step is to draw a conclusion in questions (Woodside, 2010). Therefore, the case accordance with the goal and scope of the study. study approach was suitable for this thesis that As SLCA is evaluating social impacts by intends to understand and explore business as business conducts, it is essential to report the well as social life cycle assessment mechanisms. participations and involvement of stakeholders in the last step. The case study was found with the help of Wuhan and Borlänge. They helped me to contact companies, and finally, Boffin Company agreed me to do the case study. I told Boffin my 3. Methodology and research purpose and the manager in Boffin recommended me to study on the BOD online Research Design monitor product which was developed by Boffin itself. Since the thesis was to explore a product’s social impacts throughout the life cycle and there 3.1 Research Approaches was not only one company involved in BOD 3.1.1 Inductive Approach online monitor’s whole life, Boffin staffs helped The thesis aims to understand how business can me to contact its core business partner contribute to sustainable development and (Universtar Company) that was responsible for explores the mechanisms of social life cycle producing the product. assessment. It is more likely to explore undiscovered new information by analyzing data It contained two companies and one product. rather than hypothesizing about relations Boffin was a company situated in Wuhan and between sustainable development and social life Universtar was located at Shenzhen, China. cycle assessment. Since inductive approach is Boffin and Universtar companies were analyzed usually used to analyze qualitative data and to understand the first and second research explore unperceived phenomenon (David, 2006). questions, while the BOD online monitor The inductive approach was used in this thesis. product was researched to resolve the third Three general research questions, designed question. according to the main purpose of the master thesis, have been asked in the first chapter. After Observation, analyzing documents and that, the specific BOD online monitor case study interviews methods (Silverman, 2001) were used was employed to analyze results and answer in BOD online monitor case study. The study general research questions. At the end, the started with reading internal reports and other general aim will be achieved after resolving documents, observing Boffin and unstructured research questions. Nevertheless, as there is only interviews with aiming to understanding BOD one case in the whole thesis, the evidence cannot online monitor’s functional utilities as well as guarantee an absolutely accurate conclusion preparing for data collection. An inventory data (Klix, 2002). gathering list (see Appendix) and semi-structured interview questions were designed after that. The inventory data gathering

list was used for evaluating Boffin and Furthermore, scoring system was used to Universtar companies’ social performances as quantify the qualitative data and models were well as BOD online monitor’s social impacts. used to calculate indicators’ scores. There were The categories and subcategories were selected four levels of indicators in BOD online monitor from UNEP/SETAC guidelines (2009), while case study, which included categories level, inventory indicators and inventory data were subcategories level, inventory indicator level and selected from GRI indicators in accordance with inventory data level. Indicators belong to the BOD online monitor case. It was filled by category type are the first level, subcategories gathering companies’ data from internal are the second level, inventory indicators stand documents, websites and interviewing for the third level and inventory data are in the employees with structured questions. fourth level. All data, namely child nodes, Interviewing companies’ managers and staffs belongs to the same parent node are assumed to with semi-structured questions was to evaluate have same weights. Hence, the weight of each corporations’ CSR levels. level can be calculated as:

, where Since I stayed in Boffin and there were only eight employees in this company, I was able to indicates the value of weight in the i level, do face-to-face interview to staffs. Informants indicates the level, , from Universtar Company’s informants were indicates the number of all indicators belong contacted with Boffin’s help and I made to the ( ) level. telephone to these interviewees. This thesis was conducted without monetary compensation; All inventory data (see Appendix) was scored on therefore, Boffin and Universtar companies a scale of -1 to 1, where -1 means the inventory helped me voluntarily without getting any data has a negative effect; 0 means the inventory compensation as well. There was no respondent data does not have an effect or the data is not person and all informants answered my available; and 1 means the inventory data has a questions kindly. positive effect. All scores for inventory data of Boffin are shown in Appendix 2 and for 3.1.3 Qualitative and Quantitative Universtar are demonstrated in Appendix 3. Approach The thesis utilized both qualitative and Since scores of inventory data in the fourth level quantitative methods. Qualitative method was has been measured and weights can be guided by broad research questions on the basis calculated. The score of indicators in the third of theoretical framework (Trumbull, 2005) and level can be calculated by: was used to explore people’s behaviors and , where performances (Silverman & Marvasti, 2008). For indicates the value of the indicator in the this study, research questions were based on third level, sustainable development theory, corporate social indicates the value of the inventory data in responsibility theory as well as social life cycle the fourth level, assessment theory. In addition, it evaluated indicates the value of the weight in the companies’ CSR levels and interpreted forth level, enterprises’ social performances by utilizing indicates the number of inventory data in the qualitative descriptions. forth level that belong to the same parent node.

Similarly, scores of subcategories can be Company were interviewed by telephone, which calculated as: included one manager in Wuhan office (Mr. Li),

, where one administrative staff in Wuhan office (Ms.

indicates the value of the subcategory in the Zhou). In the meantime, two interviewees from second level, Universtar Company’s headquarter visited

indicates the value of the indicator in the Wuhan in May and I was able to have a third level, face-to-face interview with them.

indicates the value of the weight in the third level, Structured interview technique and secondary indicates the number of indicators in the third sources of websites and reports were used for level that belong to the same parent node. gathering inventory data by creating a table with a list of questions. I filled in the table with The score of categories can be calculated as: information which can be found through website

, where or other sources. After that, Boffin’s table was indicates the value of the category in the first filled by asking its staffs. They provided level, information by sending me internal documents

indicates the value of the subcategories in the or answering questions directly. Universtar’s second level, inventory data was collected through telephone.

indicates the value of the weight in the second level, 3.3 Trustworthiness indicates the number of indicators in the second level that belong to the same parent node. Seale (1999) states trustworthiness as a balance between confessions and self-consciousness. Confession is the description of fieldwork’s 3.2 Data collection experiences which has weak connections with The BOD online monitor case study was regrets, and self-consciousness affects a conducted from March, 2012 to June, 2012. The research’s result (Seale, 1999). For this thesis, formal data collection process started after the overall purpose is to understand how completing conceptual framework and designing business can contribute to sustainable inventory data list. development and explores the mechanisms of social life cycle assessment. It is a process of Semi-structured questions were used for observing, exploring and learning. It is a chance acquiring Boffin and Universtar companies’ for me to explore corporations’ level of business business values and general information. For from sustainable development concept and Boffin Company, I used face-to-face interview discover positive and negative impacts from the and took notes during this process. Five out of SLCA mechanism, which I think is more eight staffs were interviewed, including one important than the accuracy of a final result. I general manager (Ms. Li), two marketing staffs tried my best to work well for this study without (Mr. Zhao, Mr. Wen), one administrative officer regrets. (Ms. Sun) and one research specialist (Mr. Cai). Ms. Li was interviewed when she had time and The theoretical and conceptual framework stayed in the office. Informal workshops were affects a case’s descriptions if there are a large held and other four staffs were interviewed at number of data (Johnson, 2007). This thesis same time. Two informants from Universtar contains one product, two companies and a large

number of raw data sources. In order to make logically on the basis of the conceptual structure raw data visible in the thesis, a clear and analyze objectively. demonstration of conceptual framework is extremely important. However, for this thesis, corporations’ level of business is designed on my own illustration. If other people structure another 4. Empirical Findings and level of business based on their cognitions and experience, the case study findings and analysis Analysis will be different from mine. Namely, the conceptual framework considerably influences This chapter tries to answer three research on the case study’s final results. questions proposed in the beginning of the thesis. I conduct a BOD online monitor case study with A case study is strengthened by triangulating bearing three questions in mind. The chapter data sources, namely, collecting and comparing analyzes corporations’ CSR level and presents data from several ways (UNEP/SETAC, 2009). BOD online monitor finding. For the reason that However, if informants’ interpretations are all of inventory data have been shown in diverse, a risk of misunderstanding might Appendixes, in order to keep contents happen (Johnson, 2007). This study decreases consistently, I will not separate findings and possibilities of getting controversial and contrary analysis but to illustrate them at the same time. interpretations by designing questions with clear goals and applying semi-structured and As mentioned in project background, the porous structured interview methods to collect data. It ceramic biochemical oxygen demand online was difficult, costly and time-consuming to find monitor of the case study is developed by Boffin other several cases so as to generalize a Company and produced by Universtar Company conclusion; as a result, there is only one case in (Shenzhen). I utilize Boffin and Universtar this thesis. Although the finding of single case companies’ as a case to show how to evaluate fails to represent other general cases, it can be their CSR levels from sustainable development used for theoretical generalizability and then be perspective. Research question 2 and 3 are tested in other cases (Bryman & Bell, 2007). related to SLCA method. Hence, I assess the Hence, even though the thesis only utilizes a BOD online monitor and present explicit single case to draw a conclusion, the conclusion procedures on how to conduct a SLCA method. I was expected to be tested by other people. will disclose enterprise’ social performances and explore how to improve the BOD online Procedures and evidence’s transparency is monitor’s social impacts from the product’s beneficial for strengthening trustworthiness processes. The procedures and results of SLCA (Seale, 1999). Workshops and comparisons of can help to answer the second and third research informants’ versions contribute to a decrease of questions. misunderstandings and uncovering informants’ hidden statements (Johnson. 2007). For this case study, different informants were inquired about 4.1 Corporations’ CSR level same questions and reports were checked to How can a business’ CSR level be assessed? For establish truth. Nevertheless, self-consciousness this case study, the question is to identify Boffin of personal subjectivity might bias descriptions and Universtar companies’ CSR levels from (Seale, 1999). I tried to describe the case sustainable view.

monitoring services; in the other term, it is As demonstrated in conceptual framework responsible for developing products, chapter, corporations’ business can be divided manufacturing and assembling key components. into three CSR levels. For each CSR level, and Boffin Company is responsible for the phase of then, is evaluated from the conceptual developing and designing BOD online monitor. framework, process and an end goal. Due to organizations’ complex behaviours and Conceptual framework performances, corporations’ CSR level might not Boffin Biotechnology Company is deemed itself be definitely identified as level 1, level 2 or level as a socially responsible company that provides 3. Instead, an enterprise might be at level 1 in pollution monitoring and food safety inspections. terms of conceptual framework while be at level The general manager, Ms. Li, said that this 2 in the process stage. As mentioned previously, company was not set up for making money, but level 3 has a higher standard than level 1. If a for providing the newest innovations to the company fail to meet the standard of level 1, it is public and governments so as to protecting the definitely not at level 3. Therefore, I will identify environment (personal communication, May, corporation’s CSR level from level 1 to level 3. 2012). Acknowledging that water pollution is If the corporation does not perform better than increasingly deteriorative and the public are low level’s standards, it means the corporation’s facing serious food security challenges, Boffin CSR level is below that level. Thus, I will not Biotechnology Company was established to continue to analyse a higher CSR level.I will address these problems. analyze sustainable Boffin and Universtar Companies’ business CSR levels respectively in Sustainable development is one of Chinese basic subsections. state polices and it is extremely important to conduct Boffin’s business on the basis of this 4.1.1 Boffin Company principle, as Ms. Li committed (personal Boffin, a full name of Hubei Boffin Biological communication, May, 2012). The BOD online technology Co. Ltd, is situated at the monitor, a product developed by Boffin, is International Enterprise Center, Wuhan, China. It environmental friendly and is used to prevent is a company belonging to environmental sewage discharging. The product monitors BOD protection industry that was founded in March, value in water and use less electricity than its 2011. counterparties. The food safety quick detection reagent kit, which is planned to develop after This company provides products and services in completing BOD online monitor, is used in food bio-sensing, environmental protection and inspection field. If all individuals would be able nano-materials fields. It is devoted to promoting to detect food and vegetables themselves in advanced biotechnology and nanometer China, food poisoning incidences are expected to materials in fields of environmental protection, decrease dramatically, Ms. Li said, and Boffin’s biomedicine and food safety. mission is to provide such a technique to Chinese citizens (personal communication, May, Boffin is not a purely technology company only 2012). developing innovative environmental protection products. It is also in a role of assembling major According to CSR levels, I established in accessories. In one term, Boffin involves in conceptual framework chapter, Boffin Company competing bids and providing environmental does not focus on maximization of shareholder’s

profits with a lower standard of ethics than conferences and workshops which can improve society or striving for monetary goal (Friedman, their capacities. 1970; Branco & Rodrigues, 2007). It does not deem environmental law as obstacles (Lantos, Boffin conducts business with bearing green and 2001); in contrast, environmental protection is energy efficiency in mind. Materials chosen for Boffin’s major business target. Boffin recognizes BOD online monitor should have good qualities environmental protection and embeds it into with the cheapest prices. Universtar Company is business operations on a voluntary basis (Roome, selected as the manufacturer to make BOD 1998).Companies at CSR level 3 integrate and online monitor for the reason that Universtar has measure sustainability into its business experience in designing and producing online operations (American management association, monitors. It can address practical manufacturing 2007). However, there is no evidence showing problems and optimizes BOD online monitor. that Boffin embeds social aspect into operations. The other reason for their cooperation is because Hence, based on the analysis, Boffin Company is their common values. Both Boffin and at level 2 from conceptual framework Universtar companies are confident for the perspective. product that the product will be profitable in the coming future. In general, Boffin selects its Process business partners on account of companies’ For Boffin Company, it not only intends to reputations and reliabilities. It is also reliable to provide a comfortable workplace, but also tries its business partners. Reputations and to offer a warm ‘family’ to its employees. It is reliabilities are evaluated by enterprises’ platform to reach employees’ dreams and it is a experiences. Whether enterprises have child family where staffs can share their emotions and labours or other problems will not be taken into affections. Since the BOD online monitor is still consideration if these social problems do not in test, there are not any plant workers in the affect selling products. As not all small and company at present. The number of current medium-sized enterprises publish annual reports employees is eight, including two research or CSR reports, it is difficult to know companies’ fellows, three marketing staffs and social performances. That is another explanation administrators. All employees including why Boffin does not evaluate corporations’ managers gather together every Friday for social behaviours when choosing business summarizing what they have done within one partners. week and making targets for the next week. If employees meet difficulties or come up with In conclusion, managers in Boffin Company are suggestions, they are all encouraged to speak out not only responsible for making profits for in the meeting. The communication sharing shareholders by choosing materials in good platform is an online chatting group. All qualities with the cheapest prices (Branco & employees join the group and new information Rodrigues, 2007), but also have duty to provide related to Boffin Company is put out through a decent working place for employees (Buchholz, this group. Employees have problems can also 1991; Commission of the European propose their questions there. Excursions and Communities, 2001). Boffin tries to embed parties are held within Boffin Company with the economic, social and environmental values into purpose of enhancing members’ team work operations simultaneously (Roome, 1998). spirits and cooperation. Furthermore, Boffin Employees enjoy internal CSR practice of health Company encourages its staffs to attend and safety at work and education trainings and

Boffin intends to produce green and energy 4.1.2 Universtar Science & efficient products to protect environment Technology (Shenzhen) (Commission of the European Communities, Co.LTD 2001). For external stakeholders, however, no Universtar Science &Technology Company was conference has been held for local communities. set up in March 2002 with registration capital of In terms of suppliers, Boffin does not take CNY four hundred million. It has 18 branch suppliers’ child labours or other social problems offices and 35 operation centers all over China. into account if these social problems do not The headquarter of Universtar is located in the affect selling products. These indicate that Tsinghua Information Port, High-tech industrial Boffin fails to be responsible for part of its park, Nanshan district, Shenzhen, China. external stakeholders (Commission of the European Communities, 2001). Thus, the Universtar offers products and services mainly in company cannot meet all qualities of CSR level three areas: monitoring, treatment and operation 2 and I will not continue to analyse Boffin from services. It develops environmental monitoring level 3. products and platforms, environmental pollution treatment technologies, water ecological End goal restoration techniques, operates services for The end goal for Boffin Company can be environmental pollution treatment facilities, as represented by its products. The company make well as invents energy and emission reduction profits for its shareholders by selling products. technologies. Meanwhile, since its products’ functions are beneficial for protecting environment, Boffin In the meantime, Universtar is also a Company contributes to ameliorating pollutions manufacturer for water quality monitoring indirectly. Boffin has not created any social and system, ammonia nitrogen online analyzer, environmental problems until now, but it chemical oxygen demand (COD) monitoring, commits to take responsible for external societal heavy metal water quality monitoring, ultrasonic problems made by Boffin itself. sewage flow of open channel, water geometric proportion sampler, environmental air quality Hence, Boffin’s role is not only to produce monitoring system, fixed pollution resource oil wealth (Friedman, 1970; Branco & Rodrigues, fume continuous monitoring system and 2007), but also ameliorating the environment backscatter fume analyzer at present. The porous (Carroll, 1991; Carroll, 1998). Since there is not ceramic BOD online monitor developed by local community and other external stakeholder Boffin is produced and assembled in Universtar. participating in negotiating Boffin’s business decisions, sustainable goals cannot be achieved Conceptual framework in multiply dimensions and stakeholders do not Universtar Science and Technology (Shenzhen) benefit from business at the same time company is deemed as a high technology and (Waddock &Bodwell, 2004). As a result, Boffin environmental protection company. It develops is at the second CSR level in terms of end goal high techniques, manufactures environmental dimension. protection products as well as provides after-sale services. It is responsible for preserving and providing clean water and air to the public.

For Universtar Company, the sustainable

development can be achieved by being creditable to the public, providing environmental Process friendly products and services, and innovating There are more than one thousand employees in green techniques. It provides environmental Universtar Company, and some of them are protection products in various fields, such as working in branches offices. Even though it is water quality monitoring system, ammonia impossible for employees to know all news nitrogen online analyser, air quality monitoring happened in the company, Universtar posts big system, backscatter fume analyser and etc. To events in its website. In the meantime, provide products with good qualities is one of employees are able to acquire information Universtar’s major missions. In terms of green related to their working portions by email alerts. techniques, Universtar develops products with Employees also have training opportunities high technologies so as to prevent environmental every month. One informant in Wuhan Branch disasters and address environmental problems by Company tells me that Universtar chooses the early warnings. It researches and develops topic, invites lecturer and prepares handouts. products on the basis of market’s demands as Handouts are examined and verified by well as customers’ requirements. As for services, headquarter before training employees. If Universtar Company not only provides after-sale employees meet difficulties, they can ask their services, but also offers operating services. In superiors for help by sending emails or using China, manufacturer who produces environment phone calls. Universtar Company does not have related products provides after-sale services for any excursions and parties that holding for the one year and after that, those products are whole company, but branches offices and maintained and repaired by other companies that departments organize activities for staffs. have operating certificates. Universtar Company provides services with faithfulness, good As a manufacturer and operator, Universtar qualities and considers customers’ specific contacts with many suppliers and companies. requirements. The same as Boffin Company, Universtar also deems companies’ reputations and reliabilities as As a whole, Universtar does not merely purse for the most important criteria for selecting business maximum profits (Friedman, 1970; Branco & partners. Reputations and reliabilities are judged Rodrigues, 2007), but devotes to being by enterprises’ experiences. Other social issues creditable to the public, providing environmental will not be taken into consideration if they do friendly products and services, and innovating not affect selling products. The main mission for green techniques (Roome, 1991; Roome, 1998). mangers in Universtar is to make profits. If one Similar to Boffin Company, Universtar’s is in decision can make profits, the manager is able to environmental protection industry. Its goal is to implement it without others managers’ admits. preserve and provide clean water and air to the public. Itobeys Chinese laws. Furthermore, it In terms of process dimension, main mission for does not deem environmental law as an obstacle mangers in Universtar is to make profits but as an opportunity (Lantos, 2001). (Friedman, 1970; Branco & Rodrigues, 2007). Nevertheless, Universtar mainly puts emphasis Nevertheless, Universtar Company also provides on environment and does not embed social training opportunities and social activities to its values into its business operations (American employees (Buchholz, 1991; Commission of the management association, 2007). For this reason, European Communities, 2001). It tries to embed Universtar is at CSR level at present. economic, social and environmental values into

operations simultaneously (Roome, 1998). Boffin and Universtar companies’ CSR levels. However, it has never held any conferences for Two companies are both at CSR level 2 in local communities. It does not take suppliers’ dimensions of conceptual framework and end child labours or other social problems into goal, but below CSR level 2 in process account if these social problems do not affect perspective. selling products (Commission of the European Communities, 2001). As a result, Universtar fails Boffin Universtar to meet all qualities of CSR level 2 and I will not Conceptual CSR level 2 CSR level 2 continue to analyse level 3. framework

End goal Process Below CSR Below CSR level As a company engaging in environmental level 2 2 protection industry for ten years, Universtar is proud of its achievements. It is assessed as End goal CSR level 2 CSR level 2 China’s potential company rank one by Forbes Table 1 Finding in Summary 2010, and Technology fast 500 in Asia-Pacific by Deloitte 2009. It also obtained many other Both Boffin Company and Universtar Company awards, such as Guangdong Province Creditable are at CSR level 2 for the conceptual framework Company, Guangdong Province Branded dimension. Namely, they have sustainable Product, Guangdong Province Famous business senses and commit to do business in a Trademark, Shenzhen Independent Innovation sustainable way. Specifically, two companies Industry Leading Enterprises and etc. emphasize on and aim to develop high technology products for environmental As for the end goal, it can be reflected from protection. They do not recognize all policies as Universtar’s taxes, achievements and products’. obstacles; in contrast, regulations of protecting Universtar is a profitable and responsible environment are beneficial for making profits for enterprise that provides decent working them. Nevertheless, companies’ strategy is conditions to its employees, develops green mainly in environmental area and companies do products to society and pays taxes to the not embed social values into their business government (Carroll, 1991; Carroll, 1998). operations. Sustainable goals cannot be achieved in multiply dimensions and stakeholders do not benefit from Two companies’ business CSR levels in terms of business at the same time for the reason that process aspect are below level 2. The two external stakeholders are not able to participate companies incline to find their business partners in Universtar’s business decision making process which have high reputations and provide the at present (Waddock & Bodwell, 2004). lowest price. Moreover, managers deem Universtar’s CSR level is 2 in terms of end goal profitability as their main task and ignore social perspective. impacts when making business decisions. External stakeholders such as communities, local 4.1.3 Discussion residents and NGOs are unable to involve in I have identified Boffin and Universtar Boffin and Universtar companies’ decision companies’CSR levels from conceptual making process. framework, process and end goal perspectives in the above two subsections. Table1 exhibits In terms of end goal, Boffin and Universtar are

all at the second level. It might because they are study’s intended applications (Jørgensen et al, both in environmental protection industry that 2008; UNEP/SETAC, 2009). The general goal of promotes environmental protecting products. conducting this social life cycle assessment Hence, their value for sustainability is stronger study is to explore BOD online monitor than other organizations which have no relations enterprises’ social performances and impacts; with the environment. therefore, no other comparative products will be presented. This study attempts to demonstrate In general, the result illustrates that two companies’ social performances at a product corporations are weak in process aspect and can level and pick out major social impacts of the put more emphasis on improving their CSR BOD online monitor throughout its life cycle. performances in this part. Nevertheless, The detailed description of goal and scope of companies’ positive and negative social this study is illustrated below, followed by performances and impacts are not analyzed definitions of functional unit and system explicitly. In the next subsection, I will answer boundary. the next two research questions. I will utilize SLCA method to disclose Boffin and Universtar Goal of the study companies’ social performances and discover The purpose of conducting this study is to factors that hindering sustainable development further understand corporations’ sustainable achievements. I will also identify how to business levels by exploring enterprises’ improve BOD online monitor’s social impacts negative and positive social impacts on by exploring the product’s negative social stakeholders and disclosing significant issues impacts. throughout BOD online monitor’s life cycle. The result is able to provide product’s social information to its stakeholders and the public 4.2 SLCA on BOD online who have an interest in this area, and it is in a position to explicate corporations and product’s monitor potential improvements. Social and economic How can the social life cycle assessment method impacts are evaluated from five categories, be used to disclose enterprise’ social comprising of human rights, working conditions, performances and factors that hinders health and safety, governance and sustainable development? How can social life socio-economic repercussions. UNEP/SETAC cycle assessment be used to improve product’s (2009) listed five main stakeholder categories social impacts? In order to tackle these two and this thesis include four out of five types of questions, I will use social life cycle assessment stakeholders (employee, consumer, society and method to analyse BOD online monitor. I will go local community) that have direct or indirect through the whole SLCA method from the impacts on BOD online monitor. beginning of defining goal and scope of a BOD online monitor study to the end of interpreting Scope of the study SLCA results. The scope of a SLCA study affects study result’s accuracies. It includes the depth and breadth of a 4.2.1 Definition of Goal and Scope study and delimits an assessment (Jørgensen et General al, 2008). Fig.2 draws a BOD online monitor’s The first step of a SLCA study is to state the whole life cycle from extraction of raw materials purpose and define the scope so as to limit to disposal and recycling. Scope of this BOD

online monitor’s social life cycle assessment subcategories are rearranged in accordance with study is constrained in design, manufacturing social categories. and assembling stages. Extraction of raw materials, packaging and distribution, use and Functional unit maintenance, disposal and recycling phases are Functional unit can be defined according to excluded from the study. Information about product’s functions, qualities, alternatives and companies’ social performances in design, etc. (Weidema et al., 2004; UNEP/SETAC, manufacturing and assembling stage will be 2009). The product studied in this research is gathered for better understanding sustainable biochemical oxygen demand (BOD) online development. monitor. It is used to evaluate BOD value in water. As long as design and manufacturing Disposal Extraction stages are evaluated, the functional unit is and of raw defined as making a complete well-functional recycling materials online monitor.

System boundaries Use and Design maintenance The product system contains a series of process chains and operations throughout a product’s entire life cycle. It can be identified by asking ‘where is the product’s cradle and grave’ (Blom Packaging Manufacturing and and & Solmar, 2009).Since there is not a direct assembling distribution relation between social impacts and processes themselves, companies affect the social impacts Fig.2The BOD online monitor’s life cycle indirectly by involving in the product system and conducting the business. Companies’ Five main stakeholder categories performance acts as the medium between (workers/employees, local community, society, product’s social impacts and processes (Dreyer consumers and value chain actors) are suggested et al., 2006). Hence, this case study focuses on in UNEP/SETAC (2009). Four stakeholder related enterprises rather than the BOD online categories exclude the category of value chain monitor product itself. The system boundary of actor are contained in this thesis. Data collection this study is delimited from designing stage to is based on the stakeholder categories and manufacturing phase. The objective is gathered in the company level. Social and corporations and is to understand corporations’ socio-economic subcategories in this study are social performances. Thus, since use and from UNEP/SETAC guidelines (2009). In terms maintenance stage’s objective is customers of social impact categories, midpoint type is rather than companies, this stage is not included used for providing information to decision in this thesis. Considering customers are in makers. Midpoint social categories include different cities, it is difficult to know which health and safety, human rights, working plants customers will choose for recycling and conditions, socio-economic repercussions, disposing. This SLCA study excludes recycling cultural heritage and governance (UNEP, 2009). and disposal stages as well. In addition, packing Since UNEP/SETAC only offers social and distribution process is also excluded to categories without a specific table for social simplify the study. subcategories and indicators, stakeholder

A simplified diagram for illustrating main monitor is shown in Fig 3. procedures for manufacturing BOD online

Boffin Develop and Design Boffin provides technique documents and design diagrams to Universtar Universtar Raw material procurement

Parts production

Quality control inspection

Components assembling Boffin sends technical staffs to Universtar for guarantying product’s quality Boffin Quality control inspection

Debug BOD product

Factory inspection

Fig.3Corporations and procedures directly related to BOD online monitor in the study

From the diagram, it can also be found that there is extensive amount of raw material Boffin and Universtar are two main actors in information related to BOD online monitor and making this product. Boffin Company offers corporations, we identify several social technical documents, such as construction subcategoriesand indicators to justify valid data drawings, machining drawings, arrangement which need to be collected (Benoit et al., 2008). diagrams, electrical principle diagrams, bills of materials and reports for process testing, to Worker/employee category Universtar Company for producing components It implies to people who work in Universtar and and assembling BOD online monitor. Boffin is Boffin companies, and those who contribute to responsible for inspecting and debugging BOD making BOD online monitor. For Boffin online monitor in the final stage. Company, this category includes both employees and employers. For Universtar Company, Social indicators workers in plants and staffs in offices are Already mentioned before, there are four belonged to this category. Freedom of stakeholder categories which related to BOD association and collective bargaining is a solid online monitor, including worker/employee, human right that all workers and employers consumer, society and local community. Since establish and join organizations without

interferences (SETAC, 2009). This subcategory employees with non-monetary awards, such as tests if employees in Boffin and Universtar are insurances, paid maternity and paternity leaves, access to join trade union and take activities paid sick leaves, educations and trainings etc. freely. Child labor in this study is deemed as a child who works while his/her age is below the Consumer category Chinese minimum age for employment. I will Consumer here refers to people and count the number of child and young, investigate organizations that use Boffin and Universtar children’s working conditions and report companies’ products and services. It can be an incidents related to child labor workers in Boffin individual, a group of people, and organizations. and Universtar. Fair salary is the wage that Health and safety for consumers indicates that it commensurate with a given service or work. I is safe for customers to use Boffin and will compare Boffin and Universtar’s lowest Universtar’s BOD online monitors and other wages and entry level wages to a minimum fair services satisfactorily. The inventory indicators wage for the local prevailing wages. Short-term for health and safety include the number of employee, post-employment and other long-term consumer complaints, quality of labels of health employee benefits are also parts of fair salary. and safety requirements and etc. Feedback Working hours refer to the hours that workers mechanism fiercely links with consumer require to work. Average number of working satisfactions. It is to know if Boffin and hours and overtime arrangements of Boffin and Universtar companies provide efficient and Universtar belong to this subcategory. Forced sufficient grievance mechanisms for consumers. labor is the work or service that is done The total number of resolved grievances is also compulsorily by individuals without considering an indicator in this subcategory. Consumer their willingness. Several questions are asked to privacy includes respecting and protecting know if two companies have forced labor. For consumers’ private data and personal instance, I will ask if employees have rights to information, restricting use of data to its original leave as they wish. Do workers need to keep purpose. It is to be assessed by reporting Boffin their identity cards or other documents by Boffin and Universtar companies’ internal management and Universtar companies? Are workers free to system to protect consumer privacy and number terminate their employment within the prevailing of consumer complaints related to breach of limits? Equal opportunities/discrimination in privacy or loss of data within the last year. this case is that both female and male have the Transparency is that organizations make clear right to access to opportunities equally. Equal information of their products and social opportunities and anti-discriminations responsibilities in a transparent way. I can know regulations are reported. I will compare salary if companies do well in this part by investigating and parent leaves by gender. Health and safety the number of complaints regarding transparency. includes security personnel and occupational Boffin or Universtar is deemed as have good safety and health parts. I will examine if Boffin consumer transparency practices if there are not and Universtar companies have security any complaints regarding transparency. If personnel to protect workers and if their organizations have certification standards and workplacesare to provide a health and safety labels to provide their performances, they have occupational place and prevent workers from better transparency than enterprises which do not risks that result in adverse health problems. have certificates. End of life responsibility is to Social benefit/social security is to investigate if provide products’ end of life disposal options to Boffin and Universtar companies compensate customers. Companies can provide information

on how to disposal their products in a more environmental and sustainable way. This Local community category subcategory is to explore if Boffin and Local community refers to local residents and Universtar have internal management systems communities that can be affected by Boffin and ensure that clear information is provided to Universtar enterprises. Safe and healthy living consumers on end-of-life options and if there is conditions subcategory refers to organization’s any complaints on this issue. impacts on community in terms of safety and health aspect. It is to identify if there are any Society category health and safety effects caused by companies’ This category is illustrated as a whole operations and if the local community near environment that consists of economic, social, operations. Community engagement encourages political and all issues influencing our human relevant community stakeholders to participate world. This category is to understand Boffin and in organization’s decision making processes. It Universtar companies’ impacts on the society. also contains how Boffin and Universtar Public commitment to sustainability issues is a organizations involve in local communities from commitment made by organization to its community stakeholder, meeting and stakeholders and the public related to sustainable organizational support aspects. Local development from organization’s activities. It is employment is to evaluate Boffin and to know if Boffin and Universtar companies Universtar’s direct and indirect impacts on local recognize sustainability and willing to promote employments. It can be done by providing job sustainability. The commitment can be found positions, especially senior management from Boffin and Universtar’s website, positions to local people. Priority to choose local promotional materials and other documents. suppliers is another way for contributing local Contribution to economic development evaluates employments. Respect of indigenous rights Boffin and Universtar organization’s comprises the right to territories, properties, contributions on the economic development resources, cultural integrity and etc. This aspects, composing of generating revenues, subcategory is to know if there exist indigenous creating jobs, educating and training, investing people in Boffin and Universtar’s operation and etc. Prevention and mitigation of armed areas and how operations affect indigenous conflicts exams the possibility that Boffin and people. Universtar organizations lead to or mitigate armed conflicts through their business operations. In conclusion, subcategories are selected from Inventory indicators for this subcategory include: UNEP/SETAC (2009) and are matched in is the organization doing business in a region accordance with the BOD online monitor study with ongoing conflicts? Is the organization doing (Table 2). Inventory indicators and data are business in a sector that features linkage to shown in Appendix 1. conflicts? Technology development is to assess if an organization promotes for efficient and environmental sound technologies. If the answer is yes, I will further explore how Boffin and Universtar promote technology development. Stakeholder Subcategories Corruption subcategory is mainly to understand categories if how Boffin and Universtar have policies or Worker/ Freedom of Association and programs to prevent corruption. Employee Collective Bargaining

Child Labor city respectively (Spillemaeckers et al., 2004). Fair Salary Working Hours Inventory indicators that are utilized to provide Forced Labor information for BOD online monitor’s social Equal Opportunities/ impacts and companies’ performances are Discrimination chosen based on the goal and scope of the study. Health and Safety Inventory data is then guided by subcategories Social Benefits/Social and inventory indicators. Detailed inventory Security indicators and inventory data for enterprises are Consumer Health & Safety shown in Appendix 1. Feedback Mechanism Both generic and site specific data are gathered Consumer Privacy through web searching, enterprise Transparency documentations, questionnaires and interviews. End of life responsibility Only if site specific data cannot be collected, the Society Public commitments to generic data will be utilized instead. Primary sustainability issues data that is collected during the study rather than Contribution to economic getting from published reports, is more often development used in evaluating the product’s direct impacts. Prevention & mitigation of

armed conflicts 4.2.3 Life Cycle Impact Assessment Technology development Life cycle impact assessment phase includes Corruption selecting impact categories, characterization Local Safe & healthy living methods and models; linking inventory data to Community conditions impact subcategories and calculating Community engagement subcategory indicator results present Local employment (UNEP/SETAC, 2009). This study selects Respect of indigenous midpoint impact categories that contain human rights rights, working conditions, health and safety, Table 2 Stakeholder categories and subcategories governance, and socio-economic repercussions. (Adapted from UNEP/SETAC, 2009) Results of these impact categories demonstrate companies’ social impacts and performances, 4.2.2 Life Cycle Inventory which can be presented to interest stakeholders. A main purpose of life cycle inventory analysis On the basis of the understanding of stakeholder is to collect data on the account of a study’s goal categories and subcategories, I aggregated and scope (UNEP/SETAC, 2009). This thesis stakeholder subcategories into impact intends to collect site specific data for BOD subcategories (Table 3). product in designing and manufacturing phases, which means that the data is specifically for BOD online monitor made by Universtar and Boffin enterprises. Since social impacts are Impact assessed according to enterprise’ behaviours Subcategories categories towards its stakeholders, organizations involve Human rights Freedom of Association in this SLCA study are Boffin and Universtar and Collective Bargaining Companies, located at Wuhan city and Shenzhen

Child Labor companies’ performances acts as the medium Forced Labor between a product’s social impacts and Equal processes (Dreyer et al., 2006), BOD online opportunities/Discriminati monitor’s social impacts are represented by on enterprises’ social performances. Since the major Respect of indigenous actors in designing and manufacturing stages are rights Boffin and Universtar companies, two Working Fair Salary enterprises’ performances on human rights, conditions Working Hours working conditions, health and safety, Health and Safety governance and socio-economic repercussions Social Benefits/Social are demonstrated. Security Human rights Health and Health & Safety Human rights category in this thesis contain five safety Consumer Privacy aspects, including freedom of association and Safe & healthy living collective bargaining, child labour, forced labour, conditions equal opportunities/discrimination, and respect Governance Feedback Mechanism of indigenous rights. Two companies work well Transparency in the last four aspects and are weak in the End of life responsibility freedom of association and collective bargaining Corruption perspective. The Chinese law identified and Socio-economic Public commitments to intensively regulated Freedom of association, repercussions sustainability issues but neither specifically protected nor prohibited Contribution to economic collective bargaining (ITUC, 2012). There is development only one organization, namely All China Prevention & mitigation Federation of Trade Unions (ACFTU), is of armed conflicts recognized by the Chinese law (ITUC, 2012). Technology development According to trade union law of the People’s Community engagement Republic of China (2001), a basic-level trade Local employment union committee should be established if an Table 3 Social Impact Categories enterprise/ pubic institution/government agency has more than 25 employees. If the number of Characterization employees is less than 25, the enterprise could The social impact assessment methodology is set up committee itself or jointly establish with still under development and there are not unite two members of the unit. For both Boffin and characterization models for connecting Universtar companies, they admit workers to subcategories and impact categories establish and join organizations and permit (UNEP/SETAC, 2009; Chen & Froukje, 2010). collective bargaining which fiercely obey the There are two major types of characterization Chinese law. However, since the number of models, of which one is to summarize and employees in Boffin is less than 25, there does describe inventory data within one category, not have a trade union in Boffin Company. As while the other is more complex with additional for Universtar, even though a trade union is set information used(UNEP/SETAC, 2009). For this up and all employees are required to join, few study, impact categories are presented by activities have been held. There neither have any descriptive summaries. For the reason that

child labour nor forced labour in both Boffin and is any emergency situation that is dangerous for Universtar Company. At present, the youngest staffs’ safety, employees are encouraged to employee in Boffin is 28 years old and in protect them and evacuate from the workplace. Universtar is 22 years old, of which are older As workers are in the environmental protection than national requirement of 18 years old. Both sector, there are not occupational diseases in Boffin and Universtar commit to provide equal these two companies. Employees have risk opportunities to females and males. The basic prevention trainings before participating in salary is the same for men and women. working, but no formal agreements on health Nevertheless, Universtar does not offer parental and safety are signed by two organizations at leaves to its male workers, while all employees present. In terms of social benefit and security, are entitled to have ninety-day parental leave in companies provide social insurance, basic Boffin Company. Since operations are not built endowment insurance, unemployment insurance, near indigenous people, two enterprises do not paid maternity leave and other social insurances. have impact on respecting indigenous rights. There are training programs or opportunities for further study abroad. Nevertheless, counseling Working conditions programs and treatment programs to support Fair salary, working hours, health and safety of workers and their families have not been employees, and social benefits/social security launched yet. are included in working condition category. In general, these four aspects are mannered well by Health and safety Boffin and Universtar Companies. From This impact category consists of health& safety December 1st, 2011, the minimum wage in of consumers, consumer privacy and safety and Wuhan city is 1100RMB/month (鄂政发 69 号, healthy living conditions. Except consumer 2011). The average wage in Boffin Company is privacy that is relatively weak in two companies, 3000RMB/month and the new entries’ wage in Boffin and Universtar are committed to Wuhan office of Universtar is between 1500 and providing health and safety products to their 2000 RMB/month, which are all higher than the consumers and good living conditions to local minimum wage in Wuhan. The Chinese labour communities. Health& safety of consumers is a law mandates a 40-hour standard workweek with critical important value for corporations. Boffin one day rest per week. Premium is paid for and Universtar Companies evaluate overtime work and excessive working hours improvements of health and safety impacts of should be less than 36 hours per month in China products and services throughout products and (U.S Department of State, 2012). The average services’ whole life cycle, of which from product number of working hours for two companies is concepts to products’ reuse and recycling. The eight hours per day and forty hours per week. total number of incidents of non-compliance Overtime working is not permitted in both with health and safety is zero. Even though two enterprises; therefore, there does not provide companies do not get any complaints related to premium pay for overtime work in Boffin and consumer privacy, the internal management of Universtar companies. For the reason that protecting consumer privacy fail to be explicated companies are situated at industrial park with in two companies. Asenvironmental protection professional security personnel, Boffin and enterprises, Boffin and Universtar never use Universtar do not recruit security staffs hazardous substances. Products of two themselves. But they commit to provide safe and companies instead of having negative impacts on healthy occupations to their employees. If there local communities, they are beneficial for the

environment. Shenzhen governments to incent their sustainable actions. For instance, Boffin Governance Company is able to use its office for free for two The subcategories of governance comprise years. The economic impacts can be presented feedback mechanism, transparency, end of life by the number of direct jobs the company responsibility and corruption. There exist created and some other indicators. For Boffin feedback mechanism in two companies, but the Company, it offers eight job positions at present. end of life responsibility and corruption are The total investment of Boffin is 3 million RMB almost ignored by these two actors. Customers at present and since the BOD online monitor is in Boffin Company can make complaints still in test, there are few impacts on through phone calls, while Universtar not only communities and local economic. However, accepts grievances made by telephones, but also according to Boffin’s internal report, 200 job sends engineers to inspect and fix products on a positions will be offered when the product is regular basis. Two companies have not received produced. The total investment of Universtar is any consumer complaints regarding transparency 400,000,000 RMB and it provides 1500 job due to their business operations types. They sell positions in China. There does not exist armed products and provide environmental protection conflicts in the region; in the meantime, products services, which have few associations with and companies do not contribute or mitigate any consumer privacies. Both organizations fail to conflicts. As high-technology companies, Boffin build internal management systems that and Universtar enterprises put more emphasis on providing clear information on end-of-life developing products. For example, the BOD options to customers. They are responsible for online monitor is one of the newest inventions in selling and inspecting products and only environmental industry. The community customers have the rights to dispose products. stakeholder groups, such as: employees, Neither Boffin nor Universtar recalls and customers, suppliers and governments, connect recovers their products. Corruption is not a key with companies by different means. Nevertheless, theme for two enterprises and there is not Boffin and Universtar neither hold any meetings formalized commitment on preventing with community stakeholders, nor supporting for corruption, nor employees being trained in community initiatives. There are no common anti-corruption policies and procedures. practices for hiring senior managers from the local communities and Boffin and Universtar Socio-economic repercussions select suppliers by costs and suppliers’ Social-economic repercussions impact category reputations. contains public commitments to sustainability issues, contribution to economic development, 4.2.4 Interpretation prevention& mitigation of armed conflicts, Significant social issues technology development, community Scoring system is utilized for interpreting engagement and local employment. Universtar positive and negative impacts. By ranking and and Boffin fail to present public commitments to calculating the data, significant issues might be sustainability issues, but they are committed to discovered. Significant social issues are key protecting and improving the environment. Since findings and concerns from a study, such as the the Chinese government’s substantive supports most beneficial social impacts or unexpected to environmental protection industry, research negative effects (UNEP/SETAC, 2009). By development fund is provided by Wuhan and finding out significant issues, we can know

hinder factors for sustainable development and monitor has positive effects on the category; if know how to optimize BOD online monitor’s the score is between -0.5 and 0, it means that processes and improve social performances at BOD online monitor has negative effects on the company level. category; if the score is smaller than -0.5, it means that BOD online monitor has very The positive and negative effects can be negative effects on the category; and if the score evaluated by categories and subcategories’ equals to 0, it means that BOD online monitor scores. Specifically, means that a product does not have positive and negative effects on or a company has positive effects on the the category. All impact categories in designing category; means that a product or a and manufacturing processes are evaluated with company has negative effects on the category, colours. and means that a product or a company Designing Manufactur

does not have positive and negative effects on categories Impact Impact the category.

ing

Significant issues of Impact Categories

Impact categories reflect a BOD online Human rights 0.4 0.325 monitor’s social impacts on human rights, Working conditions 0.47 0.49 working conditions, health and safety, Health and safety 0.67 0.67 governance, and socio-economic repercussions. Governance -0.125 0.0625 This thesis evaluates BOD online monitor’s Socio-economic 0.36 0.25 designing and manufacturing processes. Hence, repercussions BOD online monitor’s social impacts on human Table 4 Scores of Impact categories rights, working conditions, health and safety, Note: governance and socio-economic repercussions are evaluated from designing and manufacturing very positive effect processes respectively. In this way, I can positive effect compare two processes’ results. If the BOD indifferent effect online monitor has high scores in one category, it negative effect means that BOD online monitor has positive very negative effect effects on that social aspect. If the product has a minus score in a process, it shows where to Impact categories’ results show that the optimize the BOD online monitor and to maximum value of impact categories is 0.67 improve the product’s positive social impacts. I while the minimum score is -0.125. There is not also use colours to present different scores. very negative effect in designing and Results of impact categories and subcategories manufacturing stages. But the value of are demonstrated in Appendix 4. governance impact category in designing stage is -0.125< 0, which indicates that BOD online Table 4 presents BOD online monitor’s impact monitor having negative impacts on the categories’ scores. It indicates the product’s governance aspect in designing process. BOD impacts on the five aspects. If the score is larger online monitor in both stages have high positive than 0.5, it means that BOD online monitor has impact on health and safety conditions, and have very positive effects on the category; if the score positive effects in categories of human rights and is between 0 and 0.5, it means that BOD online working conditions and socio-economic repercussions. The significant issues are

governance impact category in the designing monitor is needed for improving so as to process and health and safety impact category in promote sustainability for product’s life cycle. both processes. Designing stage of BOD online

0,4

0,3

0,2

0,1 Designing

0 … … … … … … … … …

Manufacturing -0,1 Fair Salary Fair Corruption Child LaborChild Technology -0,2 of Freedom Forced Labor Prevention &Prevention Transparency Working HoursWorking Contributionto Health& Safety Health andSafety Health Consumer Privacy Consumer -0,3 employment Local Safe &Safe healthyliving Equal opportunities/Equal Social Benefits/Social Benefits/Social Social Feedback Mechanism Respect Respect indigenousof Public commitments commitments Public to End of life life of responsibility End Community engagement

Fig. 4 Positive and negative effect in designing and manufacturing stages Fig.4 demonstrates BOD online monitor’s community engagement and local employment positive and negative effects on impact are issues needed for improvements as they have subcategories in designing and manufacturing all negative effects at present. They are the stages. Scores in designing and manufacturing hindering factors for sustainable development. processes are shown as blue and red color respectively. It is drawn according to 22 According to both Table 4 and Fig.4, we can subcategories’ scores and aims to offer clear observe that BOD online monitor has very comparisons between designing and positive impact on health and safety due to the manufacturing process. Based on five impact high scores of health &safety and safe & healthy categories, four vertical lines divide 22 living conditions. The value of governance subcategories into five portions in proper order. impact is very low as a negative effect of Subcategories in the first section belongs to corruption. human rights category, the rest four respectively belongs to category of working condition, health Significant issues of Stakeholder Categories and safety, governance, and socio-economic Boffin and Universtar are two companies repercussions. Subcategories with high scores evaluated in this case study. They have impacts mean positive effects. Subcategories with low on their stakeholders of worker/employee, scores are hindering factors for sustainable consumer, society and local community. development. In general, two stages have similar Stakeholder categories’ scores can be used for impacts on most part of subcategories, while assessing companies’ social performances. designing process works better in terms of equal Significant issues are discovered for improving opportunities/discrimination and social Boffin and Universtar’s social performances. If a benefits/social security aspects. Freedom of company has a high score in one stakeholder association and collective bargaining, health and category, it means that the company has positive safety of working conditions, corruption, effects on that stakeholder and has good social

performances in that aspect. If a company has a Boffin Universtar Stakeholder Stakeholder minus score or low score in one stakeholder categories

category, it is the part where a company should

improve and lays factors which hinder sustainable development achievements. The Worker/Employee 0.132 0.112 results of stakeholder categories and stakeholder Consumer 0.05 0.075 subcategories are demonstrated in Appendix 5. 0.129 Society 0.116 Table 5 presents Boffin and Universtar Local Community 0.021 -0.021 companies’ stakeholder categories’ scores. It Table 5 Scores of Stakeholder categories indicates Boffin and Universtar companies’ Note: social performances on four stakeholder very positive effect categories. If a score is larger than 0.5, it means positive effect that Boffin or Universtar has very positive indifferent effect effects on the category and has very good social negative effect performances; if the score is between 0 and 0.5, very negative effect it means that Boffin or Universtar has positive effects on the category and has good social By analysing stakeholder categories’ results, we performances; if the score is between -0.5 and 0, can find that stakeholder categories’ results it means that Boffin or Universtar has negative range from -0.021 to 0.132. Universtar has better effects on the category and has bad social social performances than Boffin in general. Both performances; if the score is smaller than -0.5, it companies have positive effects on means that Boffin or Universtar has very worker/employee, consumer and society negative effects on the category and has very bad stakeholders, but Universtar Company has social performances; and if the score equals to 0, negative impacts on local community. It means it means that Boffin or Universtar does not have that Universtar should improve its performances positive and negative effects on the category. All on local community. The significant issue in here stakeholder categories are evaluated with is local community. colours.

0,3

0,2

0,1

Boffin

0 … … … … … … … …

Universtar

-0,1 Fair Salary Fair Corruption Child LaborChild Forced Labor Transparency WorkingHours Health &Health Safety

-0,2 Safety and Health Consumer Privacy Consumer Local employment Local Safe &Safe healthyliving Equal Opportunities/Equal Social Benefits/Social Benefits/Social Social Feedback Mechanism Respect Respect indigenousof Public commitments commitments Public to Freedom of Freedom Association Endof life responsibility Prevention &Prevention mitigation Community engagement Technology development -0,3 Contributionto economic Fig. 5 Positive and negative effect in Boffin and Universtar companies

Fig. 5 demonstrates stakeholder subcategories’ and local employment aspects. positive and negative effects in Boffin and Universtar companies. Boffin and Universtar According to both Table 5 and Fig.5, Boffin has companies’ scores are shown as blue and red better social performances regarding to color respectively. The figure is drawn according worker/employee, consumer and local to 22 subcategories’ scores and aims to discover community. Universtar is better in the society factors that hindering sustainable development aspect for the reason that it has less negative achievements as well as offer clear comparisons impacts on corruption. The value of local between Boffin and Universtar. Three vertical community is very low in Universtar Company lines divide 22 subcategories into four portions due to its negative impact on local engagement. in proper order. Subcategories in the first section belongs to worker/employee category, the rest Evaluation respectively belongs to category of consumer, The completeness is to check if all important society and local community. Subcategories with issues and data are included in a study high scores help to explain why their father node (UNEP/SETAC, 2009). For this case, we category has positive effects. Subcategories with contained five out of six impact categories and low scores are hindering factors for sustainable four out of five stakeholder categories as the development. Fig.5 indicates that two companies UNEP/SETAC (2009) guideline suggests. have positive impacts on stakeholders in most Important issues such as human rights and aspects, but are weak in freedom of association working conditions were well covered in this and collective bargaining, health and safety of case study. Since it is a case study at site-specific working conditions, corruption, community and company level, 40 inventory indicators and engagement and local employment fields. In 90 inventory data were designed for the general, two enterprises have similar impacts on assessment. Indicators and inventory data were most of the subcategories. Among five hindering selected from SETAC (2009) and GRI indicators factors, Boffin is weak in corruption part, while for accuracy and reliability concerns. Some Universtar needs to improve its performances inventory data was not available at Boffin and from health and safety of working conditions Universtar Company for the reason that

34 companies did not know about those practices or factors that lead to negative impacts on have different management systems. The governance should be improved. Boffin and available data were able to present companies’ Universtar companies’ social performances have social performances in details and to discover positive impacts on workers, employees and significant issues in this case study. society, but it is necessary to provide better services on consumers and local communities The consistency is to prove if models and for more sustainable business. methods are suitable on account of goal and scope of a case study (UNEP/SETAC, 2009). Involvement of stakeholders This study’s goal is to understand corporations’ Stakeholders involved in this study include sustainable business levels by exploring workers/employees, managers in companies, enterprises’ negative and positive social impacts BOD online monitor’s potential users and on stakeholders along BOD online monitor’s life government officers. Nevertheless, data cycle. The scope constrains in BOD online collected from potential users is not needed to be monitor’s design and manufacturing stages. used at last. Models and methods were appropriated in this case study since the goal was achieved. Social impacts were well explored and enterprises’ negative and positive social impacts were 5. Conclusion disclosed. The scoring system was used to explore significant issues for the case study. This thesis assumed that all indicators at the same 5.1 Corporations’ CSR level level had equal weights, and all inventory were Business CSR levels in chapter two and measured by a scale of -1 to 1. Significant issues corporations’ CSR levels in chapter four and social effects were shown visually by answered the first research question: How can a coloring. If weight measuring, scoring and business’ CSR level be assessed? coloring methods were changed, the result would be different. Nevertheless, the goal of this study I first identified business CSR levels according was to explore significant issues rather than to sustainable development concepts. CSR levels comparing various assessment methods’ would be evaluated from three dimensions: accuracies; therefore, methods I used were able conceptual framework, process and end goal. to achieve their missions. The conceptual framework of business is to evaluate companies’ principles on conducting Conclusion business. The process means that how By utilizing social life cycle assessment method companies apply principles into their business to evaluate BOD online monitor’s social impacts operations. The end goal is to know what at designing and manufacturing stages, we can specific problems companies have fixed. conclude that the product’s significant issues are governance at designing process and I sequenced CSR levels from 1 to 3. CSR level 1 Universtar’s social performances in local was to run a business only for profitability. CSR community aspect. Human rights, working level 2 required companies are responsible to conditions and health and safety which are weak their stakeholders. CSR level 3 not only required parts for Foxconn Company, are not significant companies themselves to undertake corporate issues in BOD online monitor’s designing and responsibilities, but also expanded requirements manufacturing stages. In order to make BOD to companies’ suppliers. CSR level 1 has the online monitor’s life cycle more sustainable, lowest standard and CSR level 3 has the highest

35 standard. I did not continue to analyse a higher sustainable development? CSR level if a company failed to qualify with the By conducting a BOD online monitor empirical low level’s standards. The result cannot present case study, I found that enterprise’s social corporations’ positive and negative CSR performances were able to be interpreted in the performances in details, but it is able to show social life cycle assessment’s third stage. In the that in which dimension a company performs first stage of the SLCA procedures, I identified best and in which aspects are weak. In this way, social categories, subcategories and indicators a company finds general directions to improve according to the study’s goal and product’s scope. its CSR performances. Then, I collected data based on indicators. The third stage, namely life cycle impact assessment Further, I evaluated Boffin and Universtar stage, was the place where demonstrating companies according to this idea. I found that corporations’ social performances. Boffin and Universtar companies were at level 2 in both conceptual framework and process However, factors that hindering sustainable dimensions. Their CSR performances were development achievements could not be below level 2 from process perspective. That is discovered at the third phase. Instead, they were to say, two corporations had cognitions of found in the interpretation part. Interpretation pursuing sustainable business; however, they was the last step for a SLCA study, which were weak in implementing goals. They could contained scoring and calculating indicators. put more emphasis on improving their CSR Stakeholder categories’ scores presented performances from process perspective. companies’ impacts on stakeholder categories and demonstrated stakeholder subcategories’ positive and negative effects. Stakeholder 5.2 SLCA on BOD online subcategories’ low scores, namely negative effects, were corporations’ hindering factors. monitor

Social life cycle assessment in chapter two and The empirical result in life cycle assessment SLCA on online monitor in chapter four stage disclosed Boffin and Universtar companies’ addressed the second and third research social performances from human rights, working questions. According to UNDP/SETAC (2009), conditions, health and safety, governance, and SLCA result is able to present enterprise’s socio-economic repercussions aspects. improvements of social performances and According to the result from interpretation stage, evaluate a product’s potential positive and both companies had positive effects on negative impacts along its life cycle. Hence, in stakeholders of worker/employee, consumer and order to show how to utilize social life cycle society, but Universtar Company had negative assessment tool to disclose corporations’ social impacts on local community. The result also performances and product’s social impacts, I indicated that factors hindering Boffin and described SLCA’s scope and procedures Universtar companies to be sustained included explicitly in the conceptual framework chapter. freedom of association and collective bargaining, After that, I evaluated BOD online monitor health and safety of working conditions, product and corporations on the basis of this corruption, community engagement and local method. employment. To be more specific, Boffin was weaker in corruption part, while Universtar How can the social life cycle assessment method needed to improve its performances from health be used to disclose enterprise’ social and safety of working conditions and local performances and factors that hinders employment aspects.

products and providing services. However, two How can social life cycle assessment be used to companies were relatively weak in applying their improve product’s social impacts? statements. Results in interpretation stage tackled this question. The product’s scores of impact The second research question implied that SLCA categories and subcategoriescould demonstrated method was able to discover corporations’ social a product’s high scores and low scores in performances according to impact categories at a different phases. If a product has a minus score product’s life cycle impact assessment stage and or low score in a process, we can improve a disclose factors which hindering sustainable product’s social impacts by optimizing this development achievements at interpretation process. stage. Corporations were able to be connected by a product and SLCA method was able to disclose As for the case study, BOD online monitor had and compare several corporations’ social negative impacts on the governance aspect in performances at the same time. For the case designing process. The negative effect of study, Boffin and Universtar companies were corruption value was the reason that made BOD connected by BOD online monitor product. online monitor has negative impact on Their social performances were simultaneously governance. In order to improve BOD online demonstrated from human rights, working monitor’s social impacts, factors that lead to conditions, health and safety, governance, and negative impacts on governance at process stage socio-economic repercussions aspects. Factors should be ameliorated. that hindering Boffin and Universtar companies to be sustainable included freedom of association and collective bargaining, health and 5.3 Overall Purpose safety of working conditions, corruption, The study was conducted at a situation that community engagement and local employment. sustainable business was urgently needed in China and social life cycle assessment method The third questions indicated that the product’s was encouraged to test case studies. The purpose scores of impact categories and subcategories in of this thesis was to understand how business SLCA’s last stage could disclose improvements can contribute to sustainable development and of product’s social impacts. The empirical study explore mechanisms of social life cycle showed that corporations should optimize BOD assessment. The thesis designed three research online monitor product’s manufacturing process questions according to the overall purpose and by improving corruption aspect so as to decrease the purpose was reached after addressing these BOD online monitor’s negative social impacts questions. and increase positive impacts.

The first research question embedded sustainable In a whole, by evaluating CSR level from three development concept in identifying business dimensions, companies are able to find their CSR levels. According to Strange and Bayley’s weak parts and perform better in a specific (2008) descriptions of sustainable development, dimension towards sustainability. SLCA method the thesis evaluated corporations’ performances was able to disclose enterprises’ social from three dimensions: conceptual framework, performances, discover underlying factors that process and end goal. The empirical case study might hinder corporations’ ability to contribute showed that Boffin and Universtar companies to sustainable development and improve a committed to take social responsibilities and product’s social at the same time. It enables achieved sustainable goals by producing corporations to improve their social

37 performances as well as ameliorate a product’s supports. You leaded me in this wonderful social impacts. project and helped me to contact the nice supervisor and officers in Wuhan city. You gave me the chance to start my thesis successfully. 5.4 Future research

This research contributes to enriching social life Hubei Boffin Biological technology, a company cycle assessment case study in site-specific and provides me a place for my thesis. I would like company level. The study’s contribution is also to thank Ms Li Qiong in Boffin Company. You to explore social significant issues by utilizing not only helped me with my thesis, but gave the social life cycle assessment and improve knowledge that can be used for my whole life. It corporations’ social performances. is a wonderful memory to stay three months with all staffs in Boffin Company. And thanks staffs In this study, I divided business CSR into three in Boffin and Universtar companies who helped levels and limited BOD online monitor’s scope. me for answering my interviews, teaching me Only designing and manufacturing stages of knowledge of BOD online monitor and sending BOD online monitor and two corporations were me valuable reports and materials. Thanks for evaluated. Future researches may broaden scopes your supports and help. and contain multiply scales of corporations in aiming to have more comprehensive analysis. Mr Li Pu, Ms Wang Shaohua, Mr Chen Changfan, Ms Doris Jinwen Li, thanks for encouraging me doing thesis in China and helping me to contact Boffin Company. 6. Acknowledgements Andrea Diaz Osorio, Chen Yuliu, Feng Fen, Lin This master thesis is part of the degree as Master Huayi, Guo Haichao, Zhang Hengduan, Zhang of Science at Uppsala University. It covers 30 Wenquan, Zhang Yueting, my dear friends. academic credits. This master thesis is written Thanks for your valuable suggestions with my for Borlänge Business Unit. thesis.

Many people helped me to complete this mater Mr Wan Jun, Ms Wu Min, my father and my thesis, and I would like to take this opportunity mother. Thanks for bringing me up and to express my sincere gratitude to all who supporting all my decisions. Thanks for your contributed to this study. A special thanks to: kindness. I love you.

Dr Mikael Johnson , my supervisor at Karlstads 7. Reference University, who assists my thesis and encouragement throughout the work. You are always there to give me valuable advices when I 鄂政发〔2011〕69 号,2011. 关于调整湖北省最 was confused and to help me address my 低工资标准的通知. Available at: problems when I was in trouble. Thanks for [20120619]

Borlänge Business Unit, for giving me the American Management Association, 2007. opportunity to participate in this interesting Creating a sustainable future: A global study of project and carry out my thesis in China. I would current trends and possibilities 2007-2017. New like to thank Ms Anna Hagberg for your great York: AMA. Available at:

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Appendix 1— Inventory data

Employee/Worker

Subcategories Inventory indicator Inventory data

Does there have legislation for the freedom of association in Country Freedom of Association country? and Collective Bargaining Do the employees have the right to exercise freedom of Type of operations association and collective bargaining? No. of child workers Working conditions for young workers Child Labor Child and young workers Is the operation identified as having significant risk for incidents of child labor? Reported incidents of child labor Staff salary Minimum wage Contributions to defined contribution pension plans Entry level wage breakdown by gender Wages/salaries Short-term compensated absences (such as paid annual leave and paid sick leave) Short-term employee Profit-sharing and bonuses payable within twelve months after benefits the end of the period in which the employees render the related Fair Salary service Non-monetary benefits (such as medical care, housing, cars and free or subsidized goods or services) for current employees Retirement benefits (pensions) Post-employment Post-employment life insurance benefits Post-employment medical care Life insurance; Health care; Disability/invalidity coverage; Other long-term Parental leave; Retirement provision; Stock ownership; and employee benefits Others. Total hours devoted to training personnel within each employee Training and Education category Total hours devoted to training personnel per gender Average no. of working Working Hours Average no. of working hours hours Respect of contractual agreements concerning overtime Arrangements Clear communication of working hours and overtime arrangements Is the operation identified as having significant risk for incidents of forced or compulsory labor? Do workers voluntarily agree upon employment terms? Is birth certificate, passport, identity card, work permit or other original documents belonging to the worker retained or kept for Forced Labor Forced Labor safety reasons by the organization neither upon hiring nor during employment? Are workers bonded by debts exceeding legal limits to the employer? Are workers free to terminate their employment within the prevailing limits? Does organization have presence of formal policies on equal Equal opportunities opportunities? Ratio of basic salary of men to women by employee category. Incidents of discrimination on grounds of race, color, sex, religion, political opinion, national extraction, or social origin Equal Opportunities/ Discrimination Total number of incidents of discrimination during the reporting period Anti-discrimination The number of employees by gender that were entitled to parental leave. The number of employees by gender that took parental leave and the number of employees who returned to work after parental leave ended, by gender. The total number of security personnel The percentage of security personnel who have received formal Health and Safety Security personnel training in the organization’s policies on, or specific procedures for, human rights issues and their application to security.

Whether training requirements also apply to third party organizations providing security personnel Rates of injury in plant and rates of injuries in industry sector Risks of occupational diseases Total number of work-related fatalities Does the plant have sanitations? Formal agreements (either local or global) with trade unions Occupational safety and cover health and safety. (Yes/No) If yes, report the extent to health which various health and safety topics are covered by local and global agreements signed by the organization. Are adequate general occupational safety measures taken? Does the organization have education, training, counseling, prevention and risk control programs in place to assist workforce members, their families, or community members regarding serious diseases? List and provide short description of social benefits provided to the workers (eg. Health insurance, pension fund, child care, education, accommodation etc.) Does the organization have education/training program(s) to assist work force members, their families or community members? Social Benefit Does the organization have counseling program(s) to assist work Social Benefit/Social force members, their families or community members? Security Does the organization have prevention/risk control program(s) to assist work force members, their families or community members? Does the organization have treatment program(s) to assist work force members, their families or community members? Does the organization violate obligations to workers under labor Social Security or social security laws and employment regulations?

Consumer

Subcategories Inventory indicator Inventory data

For development of product concept, whether the health and safety impacts of products and services are assessed for improvement. For R&D, whether the health and safety impacts of products and services are assessed for improvement. For certification, whether the health and safety impacts of products and services are assessed for improvement. For manufacturing and production, whether the health and safety Quality of labels of impacts of products and services are assessed for improvement. health and safety For marketing and promotion, whether the health and safety Health & Safety requirements impacts of products and services are assessed for improvement. For storage distribution and supply, whether the health and safety impacts of products and services are assessed for improvement. For use and service, whether the health and safety impacts of products and services are assessed for improvement. For disposal, reuse or recycling, whether the health and safety impacts of products and services are assessed for improvement. Number of consumer The total number of incidents of non-compliance with the health complaints and safety of products and services Existing formal organizational grievance mechanisms. Feedback Mechanism Grievance mechanisms The total number of resolved grievances Strength of internal management system to protect consumer Internal management privacy, in general Number of consumer complaints related to breach of privacy or Consumer Privacy loss of data within the last year Complaints Number of complaints by regulatory bodies related to breach of consumer privacy or loss of data within the last year Product and service Consumer complaints regarding transparency labeling Transparency Did the organization obtain any certification/label for the Certification product or site? Do internal management systems ensure that clear information is End of life responsibility End of life responsibility provided to consumers on end-of-life options (if applicable)?

Annual incidents of non-compliance with regulatory labeling requirements.

Society

Subcategories Inventory indicator Inventory data

Presence of publicly available documents as promises or Public commitments to agreements on sustainability issues Sustainability sustainability issues Actions taken to support a sustainable development. Does it existence of governmental incentives? No. of direct Jobs Contribution to economic Employment creation Explanation of the current or expected impacts (positive or development negative) on communities and local economies. Conflicts in region Do armed conflicts exist in the region? Prevention & mitigation of Do the product and/or company contribute or mitigate them? If armed conflicts Mitigation yes, how does the product act to mitigate? What kind of preventing and mitigating actions are realized? Does the product contribute to technology development? If yes, Technology development Technology development how? Formalized commitment of the organization to prevent corruption, referring to recognized standards. Total number of incidents in which employees were dismissed or Corruption Corruption disciplined for corruption Are employees trained in organization's anti-corruption policies and procedures? Actions taken in response to incidents of corruption.

Local Community

Subcategories Inventory indicator Inventory data

Identify the exposure of Health and safety effects caused by operation the local community to operations due to higher Safe & healthy and secure Use of hazardous substances that impact on the environment and than average use human health in general, and specifically reproductive health living conditions of/impact on shared resources Proximity to operations Does the local community near operations? Is it easily to access? Diversity of community stakeholder groups that engage with the Community stakeholder organization. Community engagement Community meeting Number and quality of meetings with community stakeholders. Organizational support (volunteer-hours or financial) for Organizational support community initiatives. Report whether the organization has a global policy or common Senior management practices for granting preference to local residents when hiring hired from the local in significant locations of operation. If so, report the proportion community at significant of senior management in significant locations of operation from locations of operation. the local community. Use data on full-time employees to calculate this percentage. Local employment Report whether the organization has a global policy or common Employees/Workers practices for granting preference to local residents. If so, report hired from the local the proportion of employees/workers from the local community. community Use data on full-time employees to calculate this percentage. Indicate the factors that influence supplier selection (e.g., costs, Supplier selection from environmental and social performances) in addition to their the local community geographic location. Respect of indigenous Respect of indigenous Are there existing indigenous people in the operation area? rights rights If yes, does the operation impact indigenous rights?

Appendix 2— Inventory result of Boffin Company

Employee/Worker Subcategories Inventory indicator Inventory data Result Score

Chinese labor laws fall short of international standards. There is no real freedom of association, as only one “workers” organization is recognized in law, the All China Federation of Trade Unions (ACFTU). There are no comprehensive national Does there have legislation for the freedom of association level regulations on collective bargaining procedures, but only Country -1 Freedom of Association and in country? on collective contracts. However, a collective contract Collective Bargaining established in line with the regulations is legally binding. There have also been considerable efforts to set up a dispute resolution system in the last decade. Resource: http://survey.ituc-csi.org/China.html# Do the employees have the right to exercise freedom of Employees have rights to exercise freedom of association and Type of operations -1 association and collective bargaining? collective bargaining on the basis of Chinese law. No. of child workers 0 1 The minimum age of employee in Boffin is 28. Right now Working conditions for young workers there does not have young workers in Boffin, but Boffin 1 Child and young workers admits to provide same working condition to all its employees. Child Labor Is the operation identified as having significant risk for No. 1 incidents of child labor? Boffin does not and will not hire child labor at present and in Reported incidents of child labor 1 the future. The average of staff salary in Boffin is 3000RMB per month. Staff salary 1 Higher than the minimum wage in Wuhan city. The pension plan of Boffin is based on the Law of the People’s Minimum wage Republic of social insurance. Contributions to defined contribution pension plans 1 Resource: http://www.gov.cn/flfg/2010-10/28/content_1732964.htm Fair Salary Entry level wage breakdown by gender 3000RMB for both female and male 1 Wages/salaries N/A. There does not have short-term employees in Boffin. 0 Short-term compensated absences (such as paid annual N/A 0 leave and paid sick leave) Short-term employee benefits Profit-sharing and bonuses payable within twelve months N/A after the end of the period in which the employees render 0 the related service

Non-monetary benefits (such as medical care, housing, cars N/A and free or subsidized goods or services) for current 0 employees As Boffin and its employees pay for the social insurance every Retirement benefits (pensions) 1 month, government will responsible for retirees. As Boffin and its employees pay for the social insurance every Post-employment benefits Post-employment life insurance 1 month, government will responsible for retirees. As Boffin and its employees pay for the social insurance every Post-employment medical care 1 month, government will responsible for retirees. Life insurance; Health care; Disability/invalidity Based on Chinese law. Other long-term employee coverage; Parental leave; Retirement provision; Stock 1 benefits ownership; and Others. Total hours devoted to training personnel within each All workers have the training courses once per month. 1 Training and Education employee category Total hours devoted to training personnel per gender 8 hours/month 1 Average no. of working hours Average no. of working hours 8 hours per day and 40 hours per week. 1 Working Hours The working time is from 08:30-17:30, with one-hour break at Respect of contractual agreements concerning overtime noon from Monday to Friday. Employees are required to work 1 Arrangements no more than 44 hours per week. Clear communication of working hours and overtime Overtime working is not permitted in Boffin Company. 1 arrangements Is the operation identified as having significant risk for No. 1 incidents of forced or compulsory labor? Do workers voluntarily agree upon employment terms? Yes 1 Is birth certificate, passport, identity card, work permit or No other original documents belonging to the worker retained 1 Forced Labor Forced Labor or kept for safety reasons by the organization neither upon hiring nor during employment? Are workers bonded by debts exceeding legal limits to the No 1 employer? Are workers free to terminate their employment within the Yes 1 prevailing limits? Does organization have presence of formal policies on Yes 1 equal opportunities? Equal opportunities Ratio of basic salary of men to women by employee 1 1 category. Equal Opportunities/ Incidents of discrimination on grounds of race, color, sex, 0 Discrimination religion, political opinion, national extraction, or social 1

origin Anti-discrimination Total number of incidents of discrimination during the 0 1 reporting period The number of employees by gender that were entitled to All employees are entitled to have parental leave in Boffin. 1

parental leave. Employees have 90 days’ parental leave (30 days’ antenatal leave and 60 days’ postpartum leave). The number of employees by gender that took parental 0. leave and the number of employees who returned to work 1. after parental leave ended, by gender. The total number of security personnel 0 -1 The percentage of security personnel who have received 0 formal training in the organization’s policies on, or specific -1 Security personnel procedures for, human rights issues and their application to security. Whether training requirements also apply to third party N/A 0 organizations providing security personnel Rates of injury in plant and rates of injuries in industry N/A 0 sector Risks of occupational diseases 0 1 Health and Safety Total number of work-related fatalities 0 1 Does the plant have sanitations? No 0 Formal agreements (either local or global) with trade No unions cover health and safety. (Yes/No) If yes, report the Occupational safety and health -1 extent to which various health and safety topics are covered by local and global agreements signed by the organization. Are adequate general occupational safety measures taken? Yes. 1 Does the organization have education, training, counseling, Yes prevention and risk control programs in place to assist 1 workforce members, their families, or community members regarding serious diseases? Employees have 29 days’s tatutory holidays every year. Formal staffs enjoy basic endowment insurance, unemployment insurance and other social insurance according List and provide short description of social benefits to relevant regulations of the state. Staffs live up to their provided to the workers (eg. Health insurance, pension 1 personal evaluations can obtain a thirteenth salary as the bonus fund, child care, education, accommodation etc.) in the end of year. Employees are given 7 days of marriage leave, 90 days of paid maternity leave and 5 days of paid paternity leave. Social Benefit/Social Security Social Benefit Does the organization have education/training program(s) Yes, outstanding employees have opportunities to get funding to assist work force members, their families or community for training abroad. 1 members? Does the organization have counseling program(s) to assist No. work force members, their families or community -1 members? Does the organization have prevention/risk control Employees have training before starting work in Boffin 1 program(s) to assist work force members, their families or Company.

community members? Does the organization have treatment program(s) to assist No work force members, their families or community -1 members? Does the organization violate obligations to workers under No Social Security 1 labor or social security laws and employment regulations?

Consumer

Subcategories Inventory indicator Inventory data Result Score

For development of product concept, whether the health Yes and safety impacts of products and services are assessed for 1 improvement. For R&D, whether the health and safety impacts of Yes 1 products and services are assessed for improvement. For certification, whether the health and safety impacts of Yes 1 products and services are assessed for improvement. For manufacturing and production, whether the health and Yes safety impacts of products and services are assessed for 1 improvement. Quality of labels of health and For marketing and promotion, whether the health and safety Yes safety requirements Health & Safety impacts of products and services are assessed for 1 improvement. For storage distribution and supply, whether the health and Yes safety impacts of products and services are assessed for 1 improvement. For use and service, whether the health and safety impacts Yes 1 of products and services are assessed for improvement. For disposal, reuse or recycling, whether the health and Yes safety impacts of products and services are assessed for 1 improvement. Number of consumer The total number of incidents of non-compliance with the 0 1 complaints health and safety of products and services Existing formal organizational grievance mechanisms. Yes. Customers can make complains through phone calls. 1 Feedback Mechanism Grievance mechanisms The total number of resolved grievances No -1 Strength of internal management system to protect No Internal management -1 consumer privacy, in general Consumer Privacy Number of consumer complaints related to breach of 0 Complaints 1 privacy or loss of data within the last year

Number of complaints by regulatory bodies related to 0 breach of consumer privacy or loss of data within the last 1 year Product and service labeling Consumer complaints regarding transparency 0 1 Transparency Did the organization obtain any certification/label for the No Certification -1 product or site? Does the organization have internal management systems No ensure that clear information is provided to consumers on -1 End of life responsibility End of life responsibility end-of-life options (if applicable)? Annual incidents of non-compliance with regulatory 0 1 labeling requirements.

Society

Subcategories Inventory indicator Inventory data Result Score

Presence of publicly available documents as promises or No. -1 agreements on sustainability issues Public commitments to Actions taken to support a sustainable development. Environmental protection area. 1 Sustainability sustainability issues Yes. Boffin gets many supports from local government, such Does it existence of governmental incentives? as free offices for two years, funding from the government and 1 etc. No. of direct Jobs 8 1 The total investment of Boffin is 3 million RMB at present and since the BOD online monitor is still in test, there are few Contribution to economic Employment creation Explanation of the current or expected impacts (positive or impacts on communities and local economic. However, development 1 negative) on communities and local economies. according to Boffin’s internal report, 200 job positions will be offered when the product is produced. In the meantime, as the BOD online monitor uses less electricity than its counterparts. Conflicts in region Do armed conflicts exist in the region? No 1 Do the product and/or company contribute or mitigate No Prevention & mitigation of 0 them? If yes, how does the product act to mitigate? armed conflicts Mitigation What kind of preventing and mitigating actions are No. 0 realized? Yes. Boffin is a high technology company and self-develops Does the product contribute to technology development? If Technology development Technology development the BOD online monitor, which is one of the newest 1 yes, how? inventions in environmental industry. Formalized commitment of the organization to prevent No -1 Corruption Corruption corruption, referring to recognized standards. Total number of incidents in which employees were 0 1

dismissed or disciplined for corruption Are employees trained in organization's anti-corruption No -1 policies and procedures? Actions taken in response to incidents of corruption. No -1

Local Community

Subcategories Inventory indicator Inventory data Result Score

No negative impacts, on the contrary, products of Boffin are Identify the exposure of the Health and safety effects caused by operation 1 beneficial for environment monitoring. local community to operations Use of hazardous substances that impact on the As an environment enterprise, Boffin never uses hazardous Safe & healthy and secure living due to higher than average use environment and human health in general, and specifically substances. 1 conditions of/impact on shared resources reproductive health Does the local community near operations? Is it easily to Yes. It is easy to access. Proximity to operations 1 access? The community stakeholder groups of Boffin includes: Diversity of community stakeholder groups that engage Community stakeholder employees, customers, suppliers and governments. These 1 with the organization. groups connect with Boffin by different means. Community engagement Number and quality of meetings with community Never. Community meeting -1 stakeholders. Organizational support (volunteer-hours or financial) for Never. Organizational support -1 community initiatives. Report whether the organization has a global policy or No. Senior management hired from common practices for granting preference to local residents the local community at when hiring in significant locations of operation. If so, -1 significant locations of report the proportion of senior management in significant operation. locations of operation from the local community. Use data on full-time employees to calculate this percentage. Report whether the organization has a global policy or Yes. Except research staffs are from research institutions and Local employment common practices for granting preference to local residents. universities, most of other employees will be hired in the local Employees/Workers hired from If so, report the proportion of employees/workers from the area. 100%. 1 the local community local community. Use data on full-time employees to calculate this percentage. Indicate the factors that influence supplier selection (e.g., Costs and suppliers’ reputations. Suppliers’ reputations can be Supplier selection from the costs, environmental and social performances) in addition judged by other companies’ acknowledges within the industry. -1 local community to their geographic location. Are there existing indigenous people in the operation area? There is not exist indigenous people in the operation area. Respect of indigenous rights Respect of indigenous rights 0 If yes, does the operation impact indigenous rights?

Appendix 3— Inventory result of Universtar Company

Employee/Worker

Subcategories Inventory indicator Inventory data Result Score

Chinese labor laws fall short of international standards. There is no real freedom of association, as only one “workers” organization is recognized in law, the All China Federation of Trade Unions (ACFTU). There are no comprehensive national Does there have legislation for the freedom of association level regulations on collective bargaining procedures, but only Country -1 in country? on collective contracts. However, a collective contract established in line with the regulations is legally binding. Freedom of Association and There have also been considerable efforts to set up a dispute Collective Bargaining resolution system in the last decade. Resource: http://survey.ituc-csi.org/China.html# Employees have rights to exercise freedom of association and collective bargaining on the basis of Chinese law. There has Do the employees have the right to exercise freedom of Type of operations the trade union in Universtar Company and all employees are -1 association and collective bargaining? required to join the union without paying any fees, however, no activities are held by the trade union at present. No. of child workers 0 1 The minimum age of employee in Universtar is 22. Right now there does not have young workers in Universtar, but Working conditions for young workers 1 Universtar admits to provide same working condition to all its Child Labor Child and young workers employees. Is the operation identified as having significant risk for No. 1 incidents of child labor? Universtar does not and will not hire child labor at present and Reported incidents of child labor 1 in the future. The average of staff salary in Universtar is 1500-2000RMB Staff salary 1 per month for the new entry. The pension plan of Universtar is based on the Law of the Minimum wage People’s Republic of social insurance. Contributions to defined contribution pension plans 1 Resource: Fair Salary http://www.gov.cn/flfg/2010-10/28/content_1732964.htm Entry level wage breakdown by gender The same for male and female. 1 Wages/salaries 1500-2000RMB/month for entry level. 1 Short-term compensated absences (such as paid annual The same as long-term employees. Short-term employee benefits 1 leave and paid sick leave) Profit-sharing and bonuses payable within twelve months The same as long-term employees. 1

after the end of the period in which the employees render the related service Non-monetary benefits (such as medical care, housing, cars The same as long-term employees. and free or subsidized goods or services) for current 1 employees Since Universtar and its employees pay for the social Retirement benefits (pensions) insurance every month, government will responsible for 1 retirees. Since Universtar and its employees pay for the social Post-employment benefits Post-employment life insurance insurance every month, government will responsible for 1 retirees. Since Universtar and its employees pay for the social Post-employment medical care insurance every month, government will responsible for 1 retirees. Life insurance; Health care; Disability/invalidity Based on Chinese law. Other long-term employee coverage; Parental leave; Retirement provision; Stock 1 benefits ownership; and Others. Total hours devoted to training personnel within each One time per month or per three weeks. 1 Training and Education employee category Total hours devoted to training personnel per gender One time per month or per three weeks. 1 Average no. of working hours Average no. of working hours 8 hours per day and 40 hours per week. 1 Working Hours The working time is from 08:30-17:30, with one-hour break at Respect of contractual agreements concerning overtime noon from Monday to Friday. Employees are required to work 1 Arrangements no more than 44 hours per week. Clear communication of working hours and overtime Overtime working is not permitted in Universtar Company. 1 arrangements Is the operation identified as having significant risk for No. 1 incidents of forced or compulsory labor? Do workers voluntarily agree upon employment terms? Yes 1 Is birth certificate, passport, identity card, work permit or No other original documents belonging to the worker retained 1 Forced Labor Forced Labor or kept for safety reasons by the organization neither upon hiring nor during employment? Are workers bonded by debts exceeding legal limits to the No 1 employer? Are workers free to terminate their employment within the Yes 1 prevailing limits? Does organization have presence of formal policies on Yes 1 Equal Opportunities/ equal opportunities? Equal opportunities Discrimination Ratio of basic salary of men to women by employee 1 1 category. Anti-discrimination Incidents of discrimination on grounds of race, color, sex, 0 1

religion, political opinion, national extraction, or social origin Total number of incidents of discrimination during the 0 1 reporting period Accounting to one staff in Univestar Company, females have The number of employees by gender that were entitled to the rights to have parental leave, but males do not have -1 parental leave. parental leave. The number of employees by gender that took parental N/A. leave and the number of employees who returned to work 0 after parental leave ended, by gender. The total number of security personnel 0 -1 The percentage of security personnel who have received 0 formal training in the organization’s policies on, or specific -1 Security personnel procedures for, human rights issues and their application to security. Whether training requirements also apply to third party 0 -1 organizations providing security personnel Rates of injury in plant and rates of injuries in industry N/A 0 sector Risks of occupational diseases No. 1 Health and Safety Total number of work-related fatalities N/A 0 Does the plant have sanitations? No. -1 Formal agreements (either local or global) with trade No. unions cover health and safety. (Yes/No) If yes, report the Occupational safety and health -1 extent to which various health and safety topics are covered by local and global agreements signed by the organization. Are adequate general occupational safety measures taken? Yes 1 Does the organization have education, training, counseling, Yes prevention and risk control programs in place to assist 1 workforce members, their families, or community members regarding serious diseases? Employees have 29 days’ statutory holidays every year. Formal staffs enjoy basic endowment insurance, List and provide short description of social benefits unemployment insurance and other social insurance according provided to the workers (eg. Health insurance, pension 1 to relevant regulations of the state. Staffs live up to their fund, child care, education, accommodation etc.) personal evaluations can obtain a thirteenth salary as the bonus in the end of year. Social Benefit/Social Security Social Benefit Does the organization have education/training program(s) Yes. There are trainings every month for educating corporate to assist work force members, their families or community culture, management, marketing and etc. 1 members? Does the organization have counseling program(s) to assist No. work force members, their families or community -1 members?

Does the organization have prevention/risk control No. program(s) to assist work force members, their families or -1 community members? Does the organization have treatment program(s) to assist No work force members, their families or community -1 members? Does the organization violate obligations to workers under No Social Security 1 labor or social security laws and employment regulations?

Consumer

Subcategories Inventory indicator Inventory data Result Score

For development of product concept, whether the health Yes and safety impacts of products and services are assessed for 1 improvement. For R&D, whether the health and safety impacts of Yes 1 products and services are assessed for improvement. For certification, whether the health and safety impacts of Yes 1 products and services are assessed for improvement. For manufacturing and production, whether the health and Yes safety impacts of products and services are assessed for 1 improvement. Quality of labels of health and For marketing and promotion, whether the health and safety Yes safety requirements Health & Safety impacts of products and services are assessed for 1 improvement. For storage distribution and supply, whether the health and Yes safety impacts of products and services are assessed for 1 improvement. For use and service, whether the health and safety impacts Yes 1 of products and services are assessed for improvement. For disposal, reuse or recycling, whether the health and Yes safety impacts of products and services are assessed for 1 improvement. Number of consumer The total number of incidents of non-compliance with the 0 1 complaints health and safety of products and services Yes. Customers can complain through phone calls. Universtar Existing formal organizational grievance mechanisms. have nice after-service mechanisms that engineers are sent to 1 Feedback Mechanism Grievance mechanisms inspect and fix products regularly. The total number of resolved grievances N/A 0

Strength of internal management system to protect No Internal management -1 consumer privacy, in general Number of consumer complaints related to breach of No 1 Consumer Privacy privacy or loss of data within the last year Complaints Number of complaints by regulatory bodies related to No breach of consumer privacy or loss of data within the last 1 year Product and service labeling Consumer complaints regarding transparency No -1 Transparency Did the organization obtain any certification/label for the Yes. Certification 1 product or site? Does the organization have internal management systems No ensure that clear information is provided to consumers on -1 End of life responsibility End of life responsibility end-of-life options (if applicable)? Annual incidents of non-compliance with regulatory 0 1 labeling requirements.

Society

Subcategories Inventory indicator Inventory data Result Score

Presence of publicly available documents as promises or No -1 Public commitments to agreements on sustainability issues Sustainability sustainability issues Actions taken to support a sustainable development. Environmental protection area. 1 Does it existence of governmental incentives? Research development fund. 1 No. of direct Jobs 1500 1 Contribution to economic Employment creation Explanation of the current or expected impacts (positive or Universtar is the creditable company in Guangdong province. development 1 negative) on communities and local economies. The total investment of Universtar is 400,000,000 RMB. Conflicts in region Do armed conflicts exist in the region? No 1 Do the product and/or company contribute or mitigate No Prevention & mitigation of 0 them? If yes, how does the product act to mitigate? armed conflicts Mitigation What kind of preventing and mitigating actions are No. 0 realized? Yes. Universtar establish three research and development centers in Shenzhen, Zhejiang and Anhui. It is the technical support unit of Guangdong Research and Development Center Does the product contribute to technology development? If of Environmental Monitoring and Treatment, Shenzhen Technology development Technology development 1 yes, how? Research and Development Center of Environmental Monitoring Engineering Technology, and Exemplary Research and Development Base of Production, Education and Research of Environmental Monitoring and Treatment of Education

Department of Guangdong Province. Formalized commitment of the organization to prevent No -1 corruption, referring to recognized standards. Total number of incidents in which employees were 0 1 Corruption Corruption dismissed or disciplined for corruption Are employees trained in organization's anti-corruption No -1 policies and procedures? Actions taken in response to incidents of corruption. N/A 0

Local Community

Subcategories Inventory indicator Inventory data Result Score

No negative impacts, on the contrary, products of Universtar Identify the exposure of the Health and safety effects caused by operation 1 are beneficial for environment monitoring. local community to operations Use ofhazardoussubstances that impacton the environment As an environment enterprise, Universtar never uses Safe & healthy and secure living due to higher than average use and human health in general, and specifically reproductive hazardous substances. 1 conditions of/impact on shared resources health Does the local community near operations? Is it easily to Yes. It is easy to access. Proximity to operations 1 access? The community stakeholder groups of Universtar includes: Diversity of community stakeholder groups that engage Community stakeholder employees, customers, suppliers and governments. These 1 with the organization. groups connect with Universtar by different means. Community engagement Number and quality of meetings with community Never. Community meeting -1 stakeholders. Organizational support (volunteer-hours or financial) for Never. Organizational support -1 community initiatives. Report whether the organization has a global policy or No. Senior management hired from common practices for granting preference to local residents the local community at when hiring in significant locations of operation. If so, -1 significant locations of report the proportion of senior management in significant operation. locations of operation from the local community. Use data on full-time employees to calculate this percentage. Local employment Report whether the organization has a global policy or No. common practices for granting preference to local Employees/Workers hired from residents.If so, report the proportion of employees/workers -1 the local community from the local community. Use data on full-time employees to calculate this percentage. Supplier selection from the Indicatethe factors that influence supplier selection (e.g., Costs and suppliers’ reputations. Suppliers’ reputations can be -1 local community costs, environmental and social performances) in addition judged by other companies’ acknowledges within the industry.

to their geographic location.

Are there existing indigenous people in the operation area? There is not exist indigenous people in the operation area. Respect of indigenous rights Respect of indigenous rights 0 If yes, does the operation impact indigenous rights?

Appendix 4— Results of Impact Categories Impact categories Subcategories Designing Human rights Freedom of Association and Collective Bargaining -0.2 (0.4) Child Labor 0.2 Forced Labor 0.2 Equal opportunities/Discrimination 0.2 Respect of indigenous rights 0 Working conditions Fair Salary 0.104 (0.47) Working Hours 0.25 Health and Safety -0.03 Social Benefits/Social Security 0.15 Health and safety Health & Safety 0.33 (0.67) Consumer Privacy 0 Safe & healthy living conditions 0.33 Governance Feedback Mechanism 0 (-0.125) Transparency 0 End of life responsibility 0 Corruption -0.125 Socio-economic Public commitments to sustainability issues 0.056 repercussions Contribution to economic development 0.17 (0.36) Prevention & mitigation of armed conflicts 0.08 Technology development 0.17 Community engagement -0.056 Local employment -0.056

Impact categories Subcategories Manufacturer Human rights Freedom of Association and Collective Bargaining -0.2 (0.325) Child Labor 0.2 Forced Labor 0.2 Equal opportunities/Discrimination 0.125 Respect of indigenous rights 0 Working conditions Fair Salary 0.25 (0.49) Working Hours 0.25 Health and Safety -0.107 Social Benefits/Social Security 0.1 Health and safety Health & Safety 0.33 (0.67) Consumer Privacy 0 Safe & healthy living conditions 0.33 Governance Feedback Mechanism 0.125 (0.0625) Transparency 0 End of life responsibility 0 Corruption -0.0625 Socio-economic Public commitments to sustainability issues 0.056 repercussions Contribution to economic development 0.17 (0.25) Prevention & mitigation of armed conflicts 0.08 Technology development 0.17 Community engagement -0.056 Local employment -0.17

Appendix 5— Results of Stakeholder Categories Stakeholder Subcategories Boffin categories Worker/ Freedom of Association and Collective Bargaining -0.125 Employee Child Labor 0.125 (0.132) Fair Salary 0.094 Working Hours 0.125 Forced Labor 0.125 Equal Opportunities/Discrimination 0.125 Health and Safety -0.015 Social Benefits/Social Security 0.075 Consumer Health & Safety 0.2 (0.05) Feedback Mechanism 0 Consumer Privacy 0 Transparency 0 End of life responsibility 0 Society Public commitments to sustainability issues 0.067 (0.116) Contribution to economic development 0.2 Prevention & mitigation of armed conflicts 0.1 Technology development 0.2 Corruption -0.1 Local Safe & healthy living conditions 0.25 Community Community engagement -0.083 (0.021) Local employment -0.083 Respect of indigenous rights 0

Stakeholder Subcategories Universtar categories Worker/ Freedom of Association and Collective Bargaining -0.125 Employee Child Labor 0.125 (0.112) Fair Salary 0.125 Working Hours 0.125 Forced Labor 0.125 Equal Opportunities/Discrimination 0.078 Health and Safety -0.054 Social Benefits/Social Security 0.05 Consumer Health & Safety 0.2 (0.075) Feedback Mechanism 0.1 Consumer Privacy 0 Transparency 0 End of life responsibility 0 Society Public commitments to sustainability issues 0.067 (0.129) Contribution to economic development 0.2 Prevention & mitigation of armed conflicts 0.1 Technology development 0.2 Corruption -0.05 Local Safe & healthy living conditions 0.25 Community Community engagement -0.083 (-0.021) Local employment -0.25 Respect of indigenous rights 0