Transformation Through Social Impact at Whirlpool Corporation

Abstract

Within the cost-pressured, competitive environment of American manufacturing, Corporate Social Responsibility is often thought of in terms of an additional set of reporting requirements for environmental impact, philanthropy, and volunteering. But corporate social responsibility and a commitment to positive social impact are not just check box items, or add-ons to the work at Whirlpool Corporation, the world’s largest major home appliance manufacturer, headquartered in Benton Harbor, Michigan. Since 2000, Whirlpool’s work as a catalyst for economic development in its hometown, and as a consumer-focused partner to organizations like Habitat for Humanity, has become core to its business strategy. Whirlpool engaged in a strategic innovation effort to understand genuine customer needs in order to create breakthrough products that would cultivate long-term customer loyalty. Simultaneously, Whirlpool Corporation engaged with community partners, state and local government, and employees to understand and improve the economic conditions of Benton Harbor, Michigan. This chapter analyzes how an intensive focus on helping families has played an integral role in how Whirlpool designs products, models innovation, and recruits new talent. With customers as the focus and innovation as the method, Whirlpool undertook to transform its business for long-term success. In the process, it discovered the power of purpose-driven engagement with employees, customers, and its community.