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Corporate Social Responsibility in Automotive Companies 2
The automotive industry has seen a shift in how it approaches corporate social
responsibility (CSR) in recent years. This is due to several factors, including increasing pressure
from consumers and regulators to address environmental and social issues and the need to
improve its image in the wake of a series of high-profile scandals (Cetindamar, 2007). As a
result, CSR has become an essential part of the automotive industry’s strategy, with many
companies now incorporating it into their business models. This has led to several initiatives,
programs to reduce emissions from manufacturing plants, and creating recycling and reuse
programs for end-of-life vehicles (Cetindamar, 2007). While the automotive industry has made
progress in its CSR efforts, there is still room for improvement. In particular, the industry needs
to do more to address the issue of emissions from its manufacturing processes and the
The automotive industry is facing several challenges when it comes to corporate social
responsibility. First and foremost, the industry is grappling with the issue of climate change and
its environmental impact (Cetindamar, 2007). The automotive industry is one of the most
significant contributors to greenhouse gas emissions and, as such, is under pressure to find ways
to reduce its environmental impact. Additionally, the automotive industry is also facing
challenges related to safety, both in terms of vehicle safety and employee safety (Cetindamar,
2007). With the rise of autonomous vehicles, the industry is also facing challenges related to the
ethical implications of this technology. Volkswagen is facing CSR challenges related to its
emissions scandal, while General Motors is facing challenges related to its ignition switch recall.
Corporate Social Responsibility in Automotive Companies 3
Tesla Company has been expanding and looking more at ways to be a better company
over time. Tesla's CEO Elon Musk feels that it is important for companies to invest into their
future- in this case, the coming generations (Baffour-Awuah, 2020). Many other corporations
have also taken up corporate social responsibility to make sure that future generations may have
better lives than the ones before them. Corporate social responsibility is a "moral obligation in
often implemented by many companies for many reasons. One of these reasons is to have
influence in politics and public affairs (Baffour-Awuah, 2020). In the case of Tesla, it was
influenced by its founder Elon Musk's beliefs on climate change and other environmental issues
that require immediate action. Tesla also implements environmental initiatives such as recycling
parts from their old cars for future use and donating old car batteries to energy storage
companies. Tesla has been looking for ways to help the environment and society as a whole. As
a result of these initiatives, Tesla ended up creating its own car recycling program (Baffour-
Awuah, 2020). The Tesla Fun Company also comes into play by making this program more fun
in exchange for used cars. They even make it a game amongst its employees to see how many
Volkswagen company has a long history of being socially responsible. The company has
a Code of Conduct that outlines the company’s commitment to social responsibility. The Code of
Conduct is reviewed and updated regularly to ensure that it reflects the latest thinking on social
responsibility (Mačaitytė & Virbašiūtė, 2018). The company has developed a comprehensive
social responsibility program that includes environmental, safety, health, and community
Corporate Social Responsibility in Automotive Companies 4
initiatives. The program is designed to address the social and environmental impact of the
company’s operations (Mačaitytė & Virbašiūtė, 2018). Volkswagen Company has established a
Social Responsibility Fund to support social and environmental initiatives. The Fund is used to
finance projects that improve the social and environmental performance of the company.
General Motors Company (GM) has long been committed to corporate social
responsibility (CSR). The company has a history of taking action to address social and
environmental issues, and it continues to do so today (Mahmud, Ding & Hasan, 2021). GM’s
approach to CSR is based on the belief that business can and should be a force for good in
society. The company strives to positively impact the communities where it operates and to
create value for all its stakeholders: employees, customers, suppliers, dealers, investors, and
society at large. GM’s CSR initiatives are focused on three key areas: environment, safety, and
General Motors Company should increase its investment in renewable energy and electric
vehicles (Mahmud, Ding & Hasan, 2021). This would help reduce its environmental impact and
support the move towards a low-carbon economy. It can also increase its charitable giving,
particularly to organizations that support environmental causes or are working to reduce social
inequality. General Motors Company could increase transparency and communication around its
social and environmental initiatives. This helps build trust with stakeholders and shows that the
company is committed to making positive changes. The company should adopt more sustainable
business practices across its operations (Mahmud, Ding & Hasan, 2021). This could include
reducing waste, increasing recycling, and using more environmentally-friendly materials. The
Corporate Social Responsibility in Automotive Companies 5
company should work with other businesses, NGOs, and governments to promote sustainable
development and social responsibility. This could involve collaborating on initiatives, sharing
A few potential solutions exist to help Volkswagen improve its corporate social
responsibility. They should Improve communication and transparency with stakeholders: One
communication and transparency around the company’s social and environmental initiatives.
This could involve regularly publishing reports on progress made, as well as holding open
forums or meetings where stakeholders can voice their concerns and ask questions (Mačaitytė &
Virbašiūtė, 2018). Volkswagen Company has to Increase focus on sustainable and responsible
business practices: Another way to help Volkswagen improve its corporate social responsibility
would be to increase its focus on sustainable and responsible business practices. This could
involve setting goals for reducing greenhouse gas emissions, increasing the use of renewable
energy, and sourcing materials from more sustainable suppliers. They should have to increase
funding for social and environmental initiatives: Volkswagen could also increase funding for
supporting programs that promote sustainable transportation (Mačaitytė & Virbašiūtė, 2018).
Volkswagen could also implement a corporate social responsibility program, which would
formalize the company’s commitment to social and environmental responsibility. This could
involve setting goals and reporting progress regularly, as well as implementing policies and
Corporate Social Responsibility in Automotive Companies 6
procedures to ensure that social and environmental considerations are considered in all
businesses.
After much deliberation, the Volkswagen Company has to decide that the most optimal
solution to its Corporate Social Responsibility challenges is to make changes in its operation
(Mačaitytė & Virbašiūtė, 2018). In particular, the company will focus on improving its
environmental and social practices. To start, Volkswagen will improve its environmental
practices by reducing its emissions of greenhouse gases and other pollutants (Mačaitytė &
Virbašiūtė, 2018). The company will also work to increase its renewable energy use and develop
creating programs to support employees, customers, and local communities. The company will
also work to improve its communication with stakeholders and to increase its transparency.
After analyzing the different options, it is clear that the most optimal solution for General
Motors is to change its operations to address better its Corporate Social Responsibility
challenges (Mahmud, Ding & Hasan, 2021). Specifically, the company should focus on
and communication, General Motors can build trust with stakeholders and show that it is
committed to addressing its social and environmental impact (Mahmud, Ding & Hasan, 2021).
Furthermore, by improving working conditions and environmental standards, the company can
demonstrate its dedication to protecting the rights of workers and the environment. Finally, by
investing in community initiatives, General Motors can show that it cares about the well-being of
the communities in which it operates (Mahmud, Ding & Hasan, 2021). Implementing these
Corporate Social Responsibility in Automotive Companies 7
changes will be challenging, but they are necessary to address the challenges of Corporate Social
Responsibility. General Motors has a responsibility to its stakeholders, employees, and the
communities in which it operates, and it must take action to ensure that it meets these
responsibilities.
There are a few key things that Tesla can do in order to improve its corporate social
responsibility:
1. Increase transparency and communication with all stakeholders - This includes being clear and
concise about its environmental and social impact and what the company is doing to mitigate any
adverse effects. Tesla should also be proactive in sharing any positive impacts it is having, such
as through its innovation of sustainable energy products (Mahmud, Ding & Hasan, 2021).
2. Make sure that sustainability is embedded into all business decisions. This means that Tesla
should consider the environmental and social impact of every decision made, from the
3. Set ambitious targets for reducing its environmental and social impact - By setting goals and
working towards them, Tesla can show its commitment to making a positive difference. These
targets should be realistic and achievable so the company can be held accountable for meeting
them.
4. Engage with stakeholders to get their feedback and input - Tesla should seek out the opinions
of those affected by its business, whether they are shareholders, employees, customers, or
community members. This will help the company identify areas where it can improve its social
responsibility.
Corporate Social Responsibility in Automotive Companies 8
5. Continuously review and improve its social responsibility policies and practices - Tesla should
focus on something other than its laurels regarding corporate social responsibility. It should
always look for ways to improve its environmental and social performance.
Conclusion
In conclusion, the auto industry has come under increased scrutiny in recent years for its
environmental and social practices. As a result, many automakers have committed to improving
their corporate social responsibility (CSR) to address these concerns. There are a number of
ways that automotive companies can improve their CSR, such as reducing emissions, using more
sustainable materials, improving working conditions, and supporting communities. While some
progress has been made, there is still much room for improvement. Automakers that can
successfully implement these CSR initiatives will be well-positioned to win over consumers and
References
Ethics, 76(2), 163-176.
Mačaitytė, I., & Virbašiūtė, G. (2018). Volkswagen emission scandal and corporate social
Mahmud, A., Ding, D., & Hasan, M. M. (2021). Corporate social responsibility: Business
2158244020988710.