Microsoft Practices in Corporate America

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Table of Contents

Introduction
Environment
Community Relations
Employee Relations
Diversity
Customer Relations
Summary
Works Cited

Introduction

With its Windows operating system, Microsoft has managed to monopolize the software industry in a way that few would have envisioned. Bear in mind that the inception of windows came at a time when the average guy on the street could not easily operate a personal computer or navigate the internet. With its easy graphical user interface, even your grandma could use it. However its monopoly in the market especially in the sale of computers with pre-installed windows operating system and its software copyright enforcement policy has raised a few eyebrows (Bjorn 2).

A look at the company’s practices in corporate America might give an insight into what has set them poles apart from its competitors or whether the complaints and law suits they have received over the years justify the criticism they get when looking at their products and business practices. (Kotler et al.22)

Environment

With the climatic changes taking place in the world being linked to human behavior especially the large multi-national companies; innovative ways are being pursued to reduce energy consumption and emission of greenhouse gases to the atmosphere. Microsoft through its partnership with US Building Council tries to adapt policies such as energy efficiency, recycling of products and use of non-toxic materials when constructing new buildings or renovating the old ones. Even though Microsoft is not a construction company, it still aspires to attain at least a Silver certification level in the LEED Green Building Rating System whenever it’s constructing new premises. This is evident in its new buildings at Bellevue, Washington and Hyderabad, India which consume 10-15 percent less energy than previously constructed companies.

With its recycling and conservation program at Microsoft Digital Campus, they have eliminated departmental and individual printers and gone for a public print program which hopes to sustain a high employee to printer ratio and minimize energy consumption. Furthermore, the program at Puget Sound facilities recycles (refills) its toner cartridges instead of replacing them. Adding to this, the printers at this facility are set to print double- sided to minimize the use of paper. Microsoft has put recycling bins at print stations inside the buildings in order to collect unused paper.

Community Relations

With its massive expansion program, Microsoft has partnered with various colleges and learning institutions around the world to familiarize people with the various products available. Even though the company has received extensive coverage for its products, it has also created employment in these countries (Davies 99) from the various colleges that spring up to teach the latest versions of windows and offer scholarships to needy students.

Through its partnership with community and non-profit organizations, Microsoft has offered learning Community Grants to various organizations. It offered Hayes Valley Computer Learning Center, San Francisco $15,000 to purchase ten multimedia computers for the newly constructed Computer Learning Center. It also offered Scottdale Child Development and Family Resource Center $15,000 to increase the number of computers in its Family Technology Resource Center. (www.microsoft.com/presspass/features/1999/02-03grantlist.mspx ) The above two examples are just a fraction of the total number of grants it has offered through its Community affairs initiative.

Employee Relations

Founder, Bill Gates, has been accredited for turning Microsoft from a nondescript company to a market force that has earned both respect and contempt amongst his peers like Apple. Employees who invested in the company during the market rally of the late 90s became overnight millionaires. However various lawsuits by former employees against the company has shown that things aren’t so rosy at Microsoft. Its labor policy of employing people on a temporary basis for years hence saving costs on medical benefits has been widely criticized. Also, lawsuits against departing employees have been brought forward by the company and this prevents them from leaving.

Former and current employees have complained of being overworked to the point that it has created dire health consequences. Further cutting of medical benefits hasn’t helped the situation either. The company came under stern criticism for developing software that was able to analyze the output of worker by using various parameters like the number of words they type per minute or even monitoring the emails they send or receive while they are working (Enderle. 48).

Diversity

Most companies try as much as possible to employ across all sexes and races in order to get public appeal (and boost the sale of their products) or win favor just in case they are ever sued. Even though Microsoft supports the Universal Declaration of Human Rights, which advocates for fair employment practices and a discrimination-free workplace, lawsuits brought up against the company beg to differ. Microsoft was sued by seven African Americans who alleged racism and a “plantation mentality” at their workplace. Furthermore, former and current employees also sued the company a record $5 Billion complained that they were more than once passed over for promotions and their salaries were less than their equivalent white workmates. Further complaints were met with “harassments and retaliations” by the company. Statistics also showed that only 2.6% of the company’s 21429 strong staff and 1.6% of the company’s 5155 managers were black. The existence of such cases is quite common in corporate America. To avoid bad publicity, most companies prefer to settle such cases outside the courtroom (Brenkert 29).

Customer Relations

Microsoft has introduced a string of awards to reward its partners for their sterling performance. This includes Microsoft Worldwide Partner of the Year and Most valuable Microsoft Certified Partner for Learning Solutions, just to name a few.Through huge contribution to various think tanks like the Heritage Foundation, Microsoft has been accused by its competitors of having an edge over what information makes it to the public domain. It could be such campaigns that have enabled windows to be the number one operating system for most users. However, some of their unfair business practices haven’t gone unnoticed. In February 1999, Microsoft was ordered to pay $1.1Billion by a California judge to settle a class action suite after overcharging its customers who purchased Windows 95 and 98 operating systems. There have been further payments by the company in consumer class action suits to various states because of overcharging its customers. The price discrepancy in the sale of its products could be attributed to the monopoly they have in which over 95% of the world’s computers run on windows; a trend that will take quite a while to reverse.

There have been allegations that Microsoft does provide technical support to the Chinese Government in implementing a system of internet restriction. The communist Government tries to restrict as much as possible the flow of information from the western media which is very critical of its human rights record. Together with companies like Cisco, Microsoft has sold censorship software to the Chinese enabling them to have a stranglehold on almost every charter in the Chinese network. Its premier gaming console, Xbox Live, inability to recognize the string “gay” has earned the company unwanted publicity.

Summary

The profits and revenues generated by today’s multinational companies has become such an integral part of any country’s financial stability (Wärneryd et al.24). This has made it quite difficult for the various state institutions to assert their influence on the unethical practices that some of these companies engage in. (Rickmond.139) Even though the rulings in some court cases might suggest otherwise, the power sway of these companies hold is so great as it was demonstrated by the current financial crisis. Hoping that principle rather legislation will guide some of their practices (Houck et al. 32) is too much an ask as was demonstrated by Microsoft’s huge fine imposed by the European Union due to abuse of its Monopoly power.

Works Cited

Anderson Bjorn: Bringing Business Ethics to life: Achieving Corporate Social Responsibility: 2004.1-6.

Bennett Arnold: “The Price of Justice is Eternal Publicity” Brenkert George B: Corporate Integrity and Accountability: Sage, 2004.29-31.

Davies Peter F. W: Business and Ecocnomics: Routledge, 1997.99-101.

Enderle Georges: Business Ethics: Concepts and Cases:Pearson Prentice Hall, 2005.

Houck John W and Williams Oliver F: Is The Good Corporation Dead? Social Responsibility in Global Economy: Rowman and Littlefield, 1996. 32-33. Web.

Kotler Philip and Lee Nancy: Corporate Social Responsibility: John Wiley and Sons, 2005. 18 24.

Multimillion Dollar Fines and Settlements Paid by Corporations” Web.

Richmond Andrews Kenneth: Ethics in Practice: Managing the moral Corporation: Harvard Business Press, 1989. 138-142.

Wärneryd Karl Erik and Lewis Alan: Ethics and Economic Affairs: Routledge 1994. 24-28.

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