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Running head: COMPARISON OF SOCIAL REPORTS AND SCRIPT Comparison of Social Reports and Script Name of the Student: Name of the University: Author Note:
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1COMPARISON OF SOCIAL REPORTS AND SCRIPT Company Description,Core business activities and Operating locations: Jaguar Cars Limited is a manufacturing company founded in 1922 that currently produces cars with some of the best designs(jaguar.com, 2017). It operates in the field of both designing and manufacturing luxury and sports cars. It was acquired by Ford in 1989 and has produced Formula 1 racing cars from 200 to 2004. Jaguar and Land rover were transferred toTata Motors in 2008 and they are headquartered in the same plant of Whitley, Coventry. The company mainly operates in the automotive industry with a lot of growing opportunities in the form of innovation, design and technology. Jaguar mostly operates in the countries of United Kingdom. VolkswagenGroupoperatesundertheparentcompanyofVolkswagenAG (volkswagenag.com, 2017). This company also operates in the automotive industry and instead of producing luxury and sports cars, the company manufactures and produces the vehicles which can be used as both passenger vehicles and also for commercial purposes. It is one of the leading multi-brand groups in the context of automotive industry and leads the industry from some angles. The commercial vehicles produced ranges from trucks to buses and the passenger vehicles include motorcycles, small cars and just a few luxury vehicles. Volkswagen primarily operates cross six countries of America, Asia and Africa. Differences of the Social Reports of Jaguar and Volkswagen: The social reports of both the companies talk about the various methods and ways in which the business objectives of the firms are reached with compliance to the ethical and corporate social responsibility issues (Kolk, 2016). However, the scope of the report published by Jaguar is larger than that produced by Volkswagen.
2COMPARISON OF SOCIAL REPORTS AND SCRIPT The major themes implied by the companies to evaluate the various aspects mentioned in the reports involve content analysis and quantitative analysis. Both the firms try to analyze both social environmental and financial aspects with respect to the journey they have undertaken, that is the path already covered and the path to be undertaken to reach goals in the upcoming years. The major types of information included in the social report of Jaguar include the strategiesused,thesustainableproductsdevelopedbythefirm,thesustainableservices developed and the operations developed sustainably to produce these products and services. The report also includes information about the people and the total value and amount of global corporate social responsibility that they have or are trying to cater to (jaguar.com, 2017). The most wide series of information included in the analysis of the social report of Volkswagen include the information about their management and strategies that help them to achieve their corporate social responsibility, their products and the processes involved in the production of those products and finally the people involved at various stages of manufacturing, development,managementand researchanddevelopment(volkswagenag.com,2017).For example, the firm mentions the program called “Think Blue” which has successfully helped in manufacturing products sustainably. Both the reports are presented in the first person and the tone and the major headings of the two reports are mostly similar. However, difference in the two reports lie in the areas of presentation and the range of information used in the two reports. Sustainable Development Goals: There are essentially seventeen development goals that needs to be followed by each firm operating in the automotive sector which are enlisted as follows:
3COMPARISON OF SOCIAL REPORTS AND SCRIPT Good health and well being of the community being served Increase in education of the community served Reduction of hunger Reduction of poverty Reduced inequalities in all fields Reduced gender inequality Sustainable cities and communities Availability of clean water Increased partnerships Economic Growth Infrastructure and Industry growth Taking care of the climate Taking of underwater life Clean energy and affordable energy Peace, justice and strong institutions Responsible consumption and production Improved quality of life on land Out of all these seventeen sustainable development goals most are tried to be adhered to by the both the firms (Hick et al., 2016). However, most of the goals are not addressed efficiently by both of the firms. Instead the existing systems and practices are effectively trying to make the firm more sustainable instead of taking greater care of the community and the environment in which it is operating. However, as both the firms operate in the automotive industry, it should also be noted that it is not possible for these firms to operate in a way that they cater to all of the
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4COMPARISON OF SOCIAL REPORTS AND SCRIPT objectives. Both firms are increasingly trying to cater to the sustainable goals in terms of bettering the lives of the community that they extend their products and services to. Both the firms mention the importance of partnerships and improved infrastructure in order to reach the goals of industry and economic growth. The report also portrays the activities and initiatives taken up by the firm to promote sustainable production in order to fulfill the development goals relatedtoreductionofhungerandpoverty.Moreover,boththefirmsfocusonthe implementation of principles of reduced inequalities especially in terms of gender inequality. For example, Volkswagen has used the revenue collections from the Environmental Mitigation Trust Fund to better the lives of children in different parts of the world where it operates. Social Accountability Approach: Zadek argues that the social accountability approach of every firm is in fact inclusive approaches that in which organizations and firms are required to identify and predict and successfully and also address the changes in terms of corporate social responsibility and also cater to the volatile nature of stakeholders’ views and demands (Zadek, 2017). The social accountability approach is utilized up to a huge extent in the report presented by Jaguar. There is a complete section in the report that talk about the engagement of the stakeholders and their view as to the extent to which the firm is catering to the various corporate social responsibilities. The report has essentially analyzed the reach of the firm in terms of reaching the goal of community’s welfare and increase in education by undertaking and increasing its partnerships with other firms operating in the same industry and under the same environment.For example, Jaguar and Land Rover are integrating the sustainability techniques together to reach better outcomes.It also mentions how the firm uses the help and aid of local
5COMPARISON OF SOCIAL REPORTS AND SCRIPT governments to cater to the requirements of the environment and the people both directly and indirectly involved in the success of the firm (jaguar.com, 2017). The report states how the company uses a set of experienced and highly esteemed policy makers at the UK and the European level. It mentions how delegates of the firm regularly meet and hold conferences with ministers and parliamentarians in order to regulate its impact on the environment.One of the most assessed and discussed topic of such conferences is the analysis of Life Cycle Assessment of the various products produced.It also asserts that the firm analyses how the various sustainable strategies impact their sector and the firm and hence the stakeholders of the firm. The report also measures its contribution to various non-governmental organizations. The social accountability approach is also used in the report published by Volkswagen. This section of the firm describes the mobility approach that the firm has undertaken to cater to the changing terms of sustainability in terms of reaching out to a larger target community base and catering to the demands of the stakeholders at the same time. It also portrays how the company has taken up activities based on a roadmap in order to achieve the self imposed goals. Most importantly, the report of Volkswagen carries out self evaluation and claims that due to certain series of misconduct and improper judgmental issues the company lagged behind in fulfilling some of the aspects of sustainability. The report claims that it will be investing a total sum of €34 billion in the upcoming years to bring about greater sustainable innovation by introducing features like e-mobility, digitalization, a wider variety and range of e-mobility and concepts of autonomous driving features (volkswagenag.com, 2017). Extent to which the social reports reflect their stated values:
6COMPARISON OF SOCIAL REPORTS AND SCRIPT The report published by Jaguar claims how sustainability is an integral value associated with Jaguar and how the business plan of the firm aims at achieving a sustainable future altogether. The paper reports that it tries to produce with minimum of carbon emissions and also maximum fuel efficiency(jaguar.com 2017). The firm also tries to produce goods that are sustainable in the sense that there are better and higher facilities along with better and more innovative product creation. The report portrays how it uses a combination of innovation and electric technology to produce products that are of world class quality.For example, Jaguar has recently launched the I-Pace concept car which is the first electric sports car launched.The report also talks about the various sustainable mobility solutions business models prepared in order to cater to the sustainable development goals. One of the most important information conveyed by the report is the process in which the products are moved from the manufacturing units to the markets and customers.For example, the program called the Customer Experience Insight is used by the firm to develop the process of distribution on the basis of their own feedbacks.The report claims that the firm has switched from the method of road related transfers and switched to sea and water as a medium of transport(jaguar.com, 2017). The report published by Volkswagen takes up measures to validate their claims about the reaching and fulfilling of sustainable goals by describing the process and the various steps of value chain associated with the process. The paper in effect brings to light the step of research and development undertaken to develop and produce smart products that help in collecting and analyzing information based on the use of devices which provide greater mobility and also bring about better digitalization and networking which in turn helps the firm to adhere to goals related to higher economic and infrastructural returns as well as the educational goals. The firm also describes the process of procurement in which the firm spends millions to ensure sustainable
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7COMPARISON OF SOCIAL REPORTS AND SCRIPT supply chain relationships and transport of their goods(volkswagenag.com, 2017).For example, the firm won the Green Car of the Year Award for producing some of the most sustainable cars. Next the process of production is described in which the safety and security of the workers is looked at and catered to as one of the sustainable goals apart from ensuring the environmental safety with respect to reduced pollution. Perspectives: The only and most widely acclaimed perspective of mine that matches with the majority of the ideas that have been formed by the fellow members of my group is that being two of the best car companies in the automotive sector, both Jaguar and Volkswagen tries to adhere to their set of corporate social responsibility and maintain their social accounting in such a way that they rankhigh inthemarketnotonlyin termsof revenuegenerationbutalsointermsof sustainability. My major perspective about firms was that the top firms in the automotive market will never be able to apply the concepts of business sustainability and reduce pollution as these firms are responsible for manufacturing products that are most prone to causing pollution. However, on reading the report each of us realized how the use of newer forms of technology, electronic devices and the features of e-mobility and use of diverse modes off communication and transport in these sectors are helping these firms to adhere the terms and conditions of sustainability while maintaining high end and long term stakeholder relations at the same time. We also learnt how important the social report of companies is in the analysis of its roadmap as to how far it has reached in terms of reaching its sustainability goals and how far it has to go in terms of reaching higher goals. The reports are also important in terms of highlighting the various activities and initiatives that the firms could take up or invest in as a result of having revenue generation and high ranks in the market.
8COMPARISON OF SOCIAL REPORTS AND SCRIPT Conclusion: From the above discussions of the themes and formats and subjects covered in the report along with information on the sustainability goals and the extent to which the firms are trying to reach these goals. The reports show how with time the sustainability issue has become very important for firms working in the automotive sector as this manufacturing industry is highly prone to a lot of risk and pollution generation. The reports also establish the various levels at which different sections of the workforce work and collaborate to provide better means of sustainability, that is, making sure of the fact that the benefits accrued to the present generation is not at the cost of the benefits of the future generation. References: (jaguar.com,2017)Availableonlineat: https://www.jaguar.com/about-jaguar/sustainability/sustainability_report.html (volkswagenag.com,2017)Availableonlineat: http://sustainabilityreport2016.volkswagenag.com/home.html Hicks, C. C., Levine, A., Agrawal, A., Basurto, X., Breslow, S. J., Carothers, C., ... & Garcia- Quijano, C. (2016). Engage key social concepts for sustainability.Science,352(6281), 38-40. Kolk, A. (2016). The social responsibility of international business: From ethics and the environment to CSR and sustainable development.Journal of World Business,51(1), 23- 34.
9COMPARISON OF SOCIAL REPORTS AND SCRIPT Zadek,S. (2017). Civilgovernanceandaccountability:from fear andloathingto social innovation. InTomorrow’s History(pp. 85-91). Routledge.
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10COMPARISON OF SOCIAL REPORTS AND SCRIPT Scenario: The scenario presented in this section revolves around the concept of ethical dilemma and brings to light the different characters within the organization that try to deal with the problem of pollution involved in the production of a particular good “Volksfox”, a daily usage car and also suggest some viable solutions that help to provide effective results. In the following play the major characters are Sales Manager (Bill), Technical Head (Smith), Production Head (Liam), the Analytics manager (Jeremy) and the panel consisting of the Board of Directors and the Chief Executive Officer. The script moves forward in a way that will unveil the various ethical issues involved with the process of production and help in showing how one cause the other and so the removal of one will lead to the prevention of the other. The setting involves a meeting where the abovementionedcharactershavegatheredtolookintotheissueandmakeappropriate resolutions. Thus, the scenario is one where there is a difference in the opinions of the managers, and the workers who form the bridge of connection in between the higher authorities and the customers. On the one hand, the higher authorities are concerned about the effect of the decisions and impact on the stakeholders and on the other hand, the managers and the other workers are concerned about the impact of the production process on the customers that is in turn adversely affecting the rank of the firm in the target market. The script brings to light the difference in the opinions and the juxtaposition of the concerns of the employees and the higher authorities and how the gap in the process is reduced with the help of informed decision making. This meeting is being held to bring to the notice of the respected Board of Directors and the CEO of Volkswagen that since the past three months widespread amounts of pollution has been caused by the production involved with the production of “VolksFox”, the highest sold car for this quarter. The production units have caused the dumping of several tones of fluid waste into the drainage
11COMPARISON OF SOCIAL REPORTS AND SCRIPT systems that has been washed off into the nearby agricultural lands and rivers causing a rise in the amount of sea life death and widespread diseases in the inhabitants of those areas. If not catered to right away will lead to even smaller generation of sales which will affect the revenue generation to the extent that the firm might even have to consider the scenario of shutting down completely. Theproduction process has also been inefficient in terms of producing better quality products, that is, the consumers have recently been unhappy with the tenacity and fuel efficiency of the car they have received from the company and the sales have been reported to go down for this last month. In fact, the customer ratings collected from the retail stores in different parts of the state show that the clients have rated this car in the range of “Very Bad to Moderate” where the earlier ratings were majorly those of “Excellent”.This itself brings to light that the production process needs to be replaced immediately as otherwise the firm will be exposed to long run risks and losses. The effect on the financial growth of the firm shall also be analyzed most importantly before any major decision is made. The costs including the installation and maintenance costs of the whole producing system has caused the total cost incurred by the company in the last financial year to increase by almost 50% and in this financial year by almost 20%. Further, before the implementation of the new production process and infrastructure, the firm used to have a growth rate of 8.2% every quarter which has reduced to a rate of only 3.8% after the installation of the new process. In fact, the rank of the company has drastically reduced in the market from being one of the top ten firms to one of the lowest ranking firms in terms of customer servicing and growth and it also now ranks fifteenth in the total ranking ofautomobile producing companies.In fact according to widespread analysis and data obtained by the research and analytical team, the long term relationship building is already at stake and is being hampered by the implications on the environment and its rank in the market. This is in turn making it easier
12COMPARISON OF SOCIAL REPORTS AND SCRIPT for the competitors to gain higher impetus in terms of investor relations and government relations as they are better achieving and reaching sustainability goals unlike “Volkswagen”. In fact, a greater amount of investment in the use of smart products which will trigger and automate the use of disruptive business models will help the firm in gaining back the fastened amount of production along with the increase in revenue generation and customer satisfaction of the old level. Further, involving the investors in the campaign and providing them the entire roadmap to bring about the change will help in solving the problem from all aspects and in building a better rank for the company. Also, it is to be noted that a lot will be at stake and the investors shall also be informed about this change and a conference should be developed based on the roadmap which should be prepared within a span of the next one month with the combined efforts. The human resources team and manager will also be informed about the need of training and development which will come with implementation of the new process. Script: Liam (in a polite yet influential tone):I hope you are all aware of the current situation facing the firm regarding production. Bill(inaconfirmativegesture):Yes,theissuebeingbroughttolightandthe consequences of the same are completely valid and are now taking a seriously detrimental shape and needs immediate action.In the past one month my team and in fact most members of the team have brought up the issue of consumer discontent wherein whenever called or contacted through any of the feasible sources consumers have always brought to light complaints about the product specially with regard to the thickness, crispiness and the taste that have degraded in the past few months.
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13COMPARISON OF SOCIAL REPORTS AND SCRIPT Liam:Immediate action is needed on the same and the need of the hour will further be will be explained by Bill. The panel(in an assertive tone):Before you make further discussions we want you to know thatwe were aware of the situation and it is true that these consequences are major and need to be addressed. However, we do not have an in depth analysis done yet and will need to look at the scenario both implicitly and explicitly and also check if at all changes can be applied immediately or after some prolonged period as we have to take care of other variables leading to this situation and the fact that our investors will also have to be answered because of this scenario. Any change shall also cause a lot of changes in the people’s roles who are responsible for this change. Bill:We completely understand your concern but it should also be noticed that customers areclaiming that the earlier variety was way more efficient in terms of mileage and fuel efficiencyas compared to the quality of product they are being served with now. The panel(In an angry tone): As mentioned before the extent of the consequences need to be checked in depth and then major decisions need to be framed to tackle the situation. We cannot implement decisions that you have taken based on the information available at this moment. Do you have any data or any presentation that will help us gain insight into the financial aspect of this problem? Jeremy:Yes Sir, we have analyzed the economical and financial aspect of this problem also in greater detail.It has been found in most of the data that the firm was progressing at a very fast pace before the onset of this problem. The company ranking in the target market had reached
14COMPARISON OF SOCIAL REPORTS AND SCRIPT thetop ten car manufacturing and producing firmsbefore the new production process was implied for faster production. The panel(in a dominating manner): We can try taking a look into the matter but it will obviously need time and a lot of changes which cannot be implemented in a matter of a quarter and there are a lot of issues surrounding the topic. For example, if not this production process, which method should be used and applied and how will we ensure that the situation is not repeated in the future? Jeremy(in a very disturbed tone): But Sir, you are not understanding the fact thatif any immediate changes are not made then the growth of the firm will reduce further and this will cause wider reduction of revenue generation and lesser projects in the field of obtaining investments from major investment firms as well as the already existing investors. I hope you will take a deeper look at the problem and try to address it with immediate changes and fastened outcomes. The panel (interrupting Jeremy):Also, with respect to the fact that our investor relations will be affected, how should that aspect of the issue be dealt with? Do you have in mind any new software that can help us get information as to how the new technology can be designed? Smith (in a polite and calm tone): Yes, of course all the technical matters have been looked into and the only solution is to use technologies that are being used by the same type of firms in other countries so that the quality can be made better without the compromise of the environment and the customer satisfaction. Jeremy (trying to gain back the tranquility yet reinforcing his point): Yes, I agree with him and yes in the beginning the growth will slow down but to fasten the pace up and promote
15COMPARISON OF SOCIAL REPORTS AND SCRIPT the goals of sustainability the firm should improve and improvise its marketing and launch events and carry out a wide range of events to cater to the changed demands of the people. We also need to involve the government and check if the hiring of an environmentalist is needed to cater to the environmental needs and check if the new production infrastructure is in sync with the environmental sustainability goals. The Panel: Okay, we understand that a change in the entire process of production, manufacturing and marketing and our joint efforts will only help bring about a change in the current issue and help in reimbursing the loss the company is currently incurring.Hope all of you are ready to bear the consequences of the change being undertaken to address the existing challenge.