Abstract
The report examines the impact of engaging on corporate social responsibilities by various
corporate entities listed in the stock exchange market. The analysis focused on one of the
most reputable organization called Tesla Inc., situated in Palo Alto in the US. The report uses
content analysis and financial report evaluation to ascertain the impact of CSR practices. It
examines sustainable programs undertaken by the company to enhance its performance as
well as strategies the company has put in place to strengthen its competitive edge in the
contemporary market environment. The analysis and findings of the performance of Tesla
Inc. show how the company has improved its operational effective since the introduction of
corporate social responsibilities. It was found that the company was the first corporation to
develop electric vehicles to eradicate emission of carbon dioxide in the atmosphere that has
affected general performance in the economy. Financial performance of the company has
also grown significantly due to increased sales and corporate image of the company for the
time it has been in the operations.
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Corporate social responsibilities by Tesla Inc. Corporation
Introduction
Tesla Inc. is an electric manufacturing car company situated in the US-based in Palo
Alto. Since its inception, the company has strived to produce eco-friendly automobiles to
minimize carbon emission in the environment. The analysis of the current performance of
Tesla indicates new numerous productions engineered towards eco-friendly such as Tesla
Model S, X and solar roof tiles (Dibble, 2018). The company was founded by Engineers
Eberhard and Marc Tarpenning in 2003. The company has engaged in corporate social
responsibilities as a strategy to meet the needs of stakeholders. According to CSR aims to
enhance corporate image and dimension of CSR in Tesla Inc. include fair operating practices,
governance, consumer sales, community involvement, human rights labour practices and the
environment in line with ISO26000 (Crowther & Seifi 2018). The analysis of corporate
social responsibilities aims to ensure that company develop policies during manufacturing
that allows disclosure of emission information. Tesla Inc. has developed a mechanism that
helps in reduction of carbon emission into the atmosphere, thus combat climate change,
acidic rainfall and global warming in the region.
Corporate social responsibilities are strategies and mechanism undertaken by Tesla
Inc. to serve customers to satisfaction as well as ensure there is a positive impact on the
environment or society at large. Many companies engage in CSR since it is an approach used
to attract customers attention in the market. According to Wang & Sarkis (2017), corporate
social responsibilities in the company plays a critical role to enhance the performance of the
company. Tesla Inc. corporation has achieved milestone due to increased application of CSR
policies in the economy. The analysis indicates that CSR helps to improve the brand
recognition of Tesla’s product in the market. The brand of the company stands out among its
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competitors’ due to numerous effort the company has strived to improve the corporate
relationship with customers in the market.
Moreover, it contributes immensely positive business reputations, thus enhancing
sales and customer loyalty to the company (Wang, Tong, Takeuchi & George 2016). The
report analyzes impact derived from increased corporate social responsibility of the company
in the market since inceptions as well as financial benefits on the performance of the
company. Besides, the report, examine financial disclosure for Tesla Inc. towards the
enhancement of corporate social practices in the economy.
Sustainable practices in Tesla Inc.
The company is committed to provide adequate services to national, local, and even
global community a conducive environment. It quite evident that Tesla, Inc. strives to
produce high-quality products as an auto-technological company that covers numerous
sections of the company in the economy. The company has policies that cover human right. It
ensures that employees are not exploited during product development as well as service
delivery to respective customers in the market. Tesla Inc. has undertaken noble activities to
advance the interest of the community in which it operates in, for instance, it runs charitable
giving, and promote volunteerism in community activities (Hoi, Wu & Zhang 2018). It has taken
stringent measures to reduce emission in the environment as part of combating global
greenhouse effect in the economy. Moreover, the company takes into consideration the needs
of the community through contributions to social philanthropy programs that uplift the
community to a greater height.
Diversity and labour rights are some of the sustainable practices undertaken by the company
in serving people. It is an approach that ensures the company operates under a harmonious
environment with non-discriminatory policies to employees in the organization. It creates a
conducive environment where employees explore their top talents, thus enhance the
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performance of the company as it competes with other companies in the same industry.
Labour-management relations plays a critical role in the organization since they ensure
employees welfare are taken into considerations. Since the company need to be considerate
on how it treats employees, local communities, suppliers, vendors, government,
subcontractors, stakeholders, customers and creditors in a unique manner that enhance its
reputations.
There is no doubt according to the analysis on Tesla's Corporate social
responsibilities; the company has engaged in wide aspect to enhance its reputation as well as
enhance its management of strategies of affairs of the company. The company considers the
needs of automotive and energy stakeholders since the company has a plant for the
manufacture of energy and solar panels. The essence of the manufacture of solar energy is to
reduce reliance on the unstainable source of energy such as nuclear and coal. Moreover, solar
energy is clean and sustainable approach Tesla company as used to mitigate excessive carbon
emission in the environment. There are advance consequences, especially with continued
carbon emission to the environment which can lead to an advance condition of greenhouse
effects. Therefore, the manufacture of an electric car by Tesla Inc. was a calculated move to
ensure that there is the minimization of pollution and reduce operation cost on the part of the
consumers. It is quite evident that hybrid car eliminates cost that was associated with the
purchase of petroleum in the market, thus reducing emission in the atmosphere. The
excessive emission of carbon leads to acidic rainfall that hurts farming activities in the
economy. The management needs to develop mechanism and policies that guide appropriate
strategies on promoting CSR policies in the organization. Based on the analysis, it is quite
evident that Tesla Inc. capitalizes on the negative ecological impact of carbon emission to
maximize consumer benefits, thus creates a conducive environment where there is no
pollution for business operations. This organization has sold more than550,000 all-electric
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vehicles since its inception (Akakpo et al., 2019). Analysis of the information shows the
critical performance of Tesla as far as its operations are concerned in the economy.
The analysis of the CSR approach used in Tesla Inc. is based on three fundamental
principles propagated in the organization to enhance financial performance in the
organization. The fist principle applied in the organization is that Tesla Inc ensures that
engages in social entrepreneurs by having a clear environmental and social mission. The
mission statement guides operational plan in the organization. It can guide the organization
on policies and mechanism that can promote faster and effective service delivery aligned to
the protection of the environment and creating a conducive environment for both employees
and local communities.
The company has continued to promote policy, enhance the training of local people
on how to develop a conducive environment. Tesla Inc. has been at the forefront in disclosure
of emission in the atmosphere to ensure that the components they emit into the environment
have a lower impact on the farming and any other organism living in it (Baffour 2020). Safety
standards are critical since they provide a mechanism where business operations are done for
proper service delivery. The company has put in place ideal blueprint on job training,
capacity building, employee management policies. Workplace policies are required to help
the company to steer its affairs as well as taking into considerations effect on locals in the
region.
Tesla puts in place policies that ensure equal compensation and benefits in the
workplace that management needs to take into consideration to enhance faster and effective
service delivery. The company has put in place long term sustainable activities that enhance
its operations and guide the company to focus on the mechanism that gears the company to
higher competition in the economy.
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The company ensure that there is adherence to transparency when reporting activities
in the organization. The company needs to disclose all material facts on the product since it
will influence the outcome of environmental management.
Energy & climate change. The company strives to ensure that it minimizes
environmental pollution through developing environmentally-friendly electric vehicles. The
company has put in place policies to ensure that there is an adequate policy on the
environment as well as reporting on the same.
Financial Growth due to CSR in Tesla
The data in the table are taken from the Stock Exchange market for Tesla Company
from 2008 to 2019. The data helps to analyze the financial performance of the company,
coupled with analysis of the impact of corporate social responsibility in the economy.
Year Tesla Revenue
(millions)
Year-2008 $
14.74
Year-2009 $
111.94
Year-2010 $
116.74
Year-2011 $
204.24
Year-2012 $
413.26
Year-2013 $ 2,013.50
Year-2014 $ 3,198.36
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Year-2015 $ 4,046.03
Year-2016 $ 7,000.13
Year-2017 $ 11,758.75
Year-2018 $ 21,461.27
Year-2019 $ 24,578.00
The analysis on revenue is tabulated in graphs to show progressive growth rate noted
in the company during that time in the economy. The information helps gauge progress as
well as a benefit associated with the increased use of corporate social responsibility in
promoting policies and mechanism of business operations in the economy (Chen, et al., 2018).
The financial performance depends on corporate social responsibilities introduced by the
company in the economy based on what needs to be achieved in the economy.
Year-
2008
Year-
2009
Year-
2010
Year-
2011
Year-
2012
Year-
2013
Year-
2014
Year-
2015
Year-
2016
Year-
2017
Year-
2018
Year-
2019
Years
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
14.74
111.9
4
116.7
4
204.2
4
413.2
6
2,013.
50
3,198.
36
4,046.
03
7,000.
13
11,75
8.75
21,46
1.27
24,57
8.00
The analysis of graph illustrates sustainable financial Growth of Tesla Inc. from 2008
to 2019. Growth performance of the company is attributed to the following factors that the
company has strived to put in place. Tesla is one of the biggest battery suppliers. The
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company makes a battery that resonates with customers in the market, thus enjoys economies
of scale to enhance performance in service delivery.
It has an efficient electric vehicle design that helps in minimization of the size of the
battery to the ideal size. The company has strived to produce a top-notch product that
promotes faster and effective service delivery in the economy. EV batteries have high
demand in the market since most companies are moving away from petroleum in the market.
The essence of EV batteries has contributed to its significant growth for the time it has been
in place for a longer time in the market. The company is sophisticated in making great EV,
thus attract more customers hence more demand. The price of the product is based on ideal
specifications that meet customers' expectations.
Tesla is developing vehicles that take into consideration changing technologies such
as full self-driving vehicles. It is one of the features that is incorporated in the production
process that has enhanced the performance of the company, thus contributes to an increase in
the level of revenue.
Safety policies. Tesla is the company that takes into exceptional safety approach.
CSR policies in the organization envision to observe safety measures on customers and
employees in the organization. The approach ensures that the company operates in the
environment that minimum safety requirement thus does not compromise with the
operational level of business operations in the economy. All business operations need to be
aligned to certain policies and mechanism for the safety of employees and stakeholders.
They are developing supercharger for durable EV batteries. Consumers in the market
develop brand loyalty in the market if you produce a product that meets their expectations.
The products should be devised to solve the needs of consumers. In the case where the
consumers encounter specific issues that compromise service delivery, then management of
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the company needs to improve the situation for them to avoid escalation of problems to other
people in the market.
Corporate sustainable reporting disclosure in Tesla Corporation
The report released recently on environmental impact from Tesla indicates critical
aspect undertaken by the company towards sustainability. The company has engaged in the
production of electric vehicles to minimize environmental pollution. The information
indicates how the company is concerned to ensure that global warming affecting millions of
people around the globe is minimized. It is an approach that is applauded by many
individuals around the world. Since its inception, the company has managed to make more
than 550,000 electric vehicles to be used by consumers in the market (Sharma 2016). The
company has focused on developing sustainable energy such as battery storage and solar
energy systems to replace coal and nuclear energy. The analysis of strategies and policies
adopted by Tesla shows how the company is committed to changing the auto industry and
eradicate rampant gas emission in the environment. So far, the company has managed to
develop vehicles that can use renewable energy, thus setting the pace for other companies
towards enhancing performance.
The electric vehicle is one of the greatest milestones in the economy which the
company has strived to develop thus promote the value of the organization for better service
delivery.
Based on the financial performance of Tesla, it is quite evident that the company's revenue
and income are increasing due to increased demand for the product from the company (Marina,
Maria & Martina 2018). It enjoys huge companies across the globe, thus enabling management to
make decisive decision on it to enhance service delivery to stakeholders and customers as
well as the community at large.
Corporate sustainability risks and opportunities
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Most companies fear to engage in corporate social responsibilities since it is very
costly to maintain for a longer period. A lot of funds is required to facilitate CSR programs in
the organization. Some CSR programs do not contribute directly to the revenue performance
of the company in the economy. Some CSR aimed at tricking clients in the market can create
market fraud, thus affect the corporate governance of the organization. According to Kang &
Cho (2019), CSR can lead to negative reactions from some customers, thus do not achieve
intended purposes. Moreover, there are huge resources the company can spend on the CSR,
thus affect the profitability of the business. There are incidents where the firm can appear
apologetic due to inappropriate use of CSR stunt that does not earn its reputation from target
customers in the market. Some companies are not conversant with modern CSR programs
and approaches thus affects results in diminishing marginal returns to common methods used
to lure customers into purchasing from them.
However, CSR aims to enhance the goodwill of the company, thus making it ideal for
the attraction of more customers hence increase customer base.
Conclusion
Corporate social responsibility is activities undertaken by the company or an
organization impact positively on the environment. The results of CSR are quite many since
it helps to improve reputations of the company, leads to a reduction in operation costs, ability
to attract and get skilled employees due to positive attribute about the company. It leads to
organizational Growth; for instance, it has led to growth revenue growth for Tesla Inc. from
$14.74 million in 2008 to $24,578 million in 2019. The information indicates a great
milestone which the company has undertaken based on better financial performance noted in
business operations. The company ride on a positive reputation thus enhances the corporate
image in environmental awareness in business operations. The analysis of business operations
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ensures that all business operations are done according to policies laid out in ISO26000.
However, there are some risks such as incurring on non-profitable ventures to gain corporate
image and goodwill of business operations. The company need to ensure that they need to
develop policies that promote values for environmental protections and engaging in the
activities that will put the company in the right roadmap for prosperity.
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