Corporate Social Responsibility

This report discusses the corporate social responsibility (CSR) activities undertaken by Tesla, focusing on sustainable development and environmental sustainability. It highlights the benefits of Tesla's CSR efforts and their impact on stakeholders. The report also explores how Tesla addresses the interests of customers, employees, investors/shareholders, and governments through its CSR strategy.

RUNNING HEAD: Management 0
Corporate Social Responsibility

Management 1
Corporate Social Responsibility (CSR) is the integration of socially valuable programs and
practices into the business model and culture of an organization. It helps an organization to be
socially accountable to itself, public and stakeholders. This report comprises the CSR
activities undertaken by Tesla. The company is making consistent efforts for sustainable
development. The efforts undertaken by Tesla for sustainable development have been defined
along with the benefits.
Tesla is an American electronic automobile manufacturer. It was established in 2003 by two
engineers Martin Eberhard and Marc Tarpenning. The company was established to design an
electric sports car. The first car was released by Tesla in 2008 which is completely electric
Roadster. The nature of the organization is slap drop in the middle of CSR. Tesla safeguards
stakeholder’s interest and shared values by gearing its CSR towards sustainability and
ecologically friendly energy automotive production. The accountability of Tesla has moved
afar just the motorized industry and focuses on the eco-friendly clean energy environment on
the universal scale. The company has augmented its CSR to the global level of sustainability
(Carter, 2018). Tesla’s release of the corporate technology patents to the public is one of the
remarkable contributions for the advancement of global enhancement. It is the highest
responsibility of Tesla on its list is CSR through comprehensive enrichment and
environmental sustainability. The company wishes to make sure that the natural environment
is preserved and secured which is addressed through clean energy production. The
stakeholders are also the priority of Tesla and their interest in the quality products at rational
prices. It is attained by discovering reasonable ways in which to produce materials (Yang,
Basile & Letourneau, 2018).
The principles of CSR 2.0 are used by Tesla like creativity, scalability, responsiveness,
glocality, and circularity. Tesla is creative on a regular basis and responds to the innovation
taking place in the environment regarding CSR. As per the Archie B. Caroll’s model,
stakeholders and business affect each other. The relationship highlights the significance of
CSR and stakeholder engagement. The sustainable practices of the company benefit to the
business in the form of the stakeholders. The CSR practices affect directly and indirectly to
the apprehensive stakeholders. For instance, the stakeholders are affected by the nature and
scheme of the electric vehicles, batteries and solar panels. All of these address the ecological
distresses of the stakeholders. It is necessary for Tesla to sustain a suitable CSR strategy in
order to certify the minimal negative impact on and optimal advantage to the stakeholders.
The significant CSR opportunities are used by the company to content the interest of the

Management 2
stakeholders and to subsidize worldwide community (Loureiro, Sarmento & Le Bellego,
2017). The CSR efforts are used by the company in improving position compared to
competitors like Toyota, Honda, Nissan, BMW, and General Motors. The corporate citizen
activities are incorporated into the products of Tesla along with the management practices
(Chen, et al. 2018). The CSR approach benefits to the stakeholders along with boosting
corporate and brand image of Tesla.
The CSR strategy of Tesla emphases on the nature of the business and products. For instance,
the electric automobiles of Tesla are extensively identified as a response to the negative
impacts of the car which makes use of the internal combustion engines. The corporate citizen
is also requisite in the organization. It facilitates the company’s attainment of social
responsibilities (Hoi, Wu, & Zhang, 2018). The steps taken by Tesla for the stakeholders are:
Customers: The revenues of Tesla are affected by the customers. They are also affected by
product quality and reasonable pricing. The customers are given the highest priority in the
CSR of Tesla. The company seeks innovative ways of minimizing costs in order to minimize
such interests. For instance, instead of buying battery cells from Panasonic, the company has
shifted to production in association with Panasonic to create electric automobiles more
reasonable. The company has even expanded its system of charging stations in order to
advance accessibility for the customers. It enhnces customer experience and satisfaction
(Zhang, et al. 2018).
Employees: The employees have an important role in designing the CSR of the company.
They even influence to business productivity and performance. The CSR activities on behalf
of the employees comprise high compensation and important career opportunities. The
company satisfies to the employees through the competitive compensation strategy along
with the HR programs for the skills expansion and leadership development (Grayson &
Hodges, 2017). The CSR practices also offer learning experience by the combined programs
with the partner companies. The interest of the employees is satisfied as a part of the
stakeholders. For instance, the organizational culture assists to expand employee morale and
curtail issues in the personnel.
Investors/ Shareholders: The initial years of Tesla relied on the subsidy made by investors.
These stakeholders are significant in prompting the capitalization of the company. Both
investors and shareholders have interests in the productivity and growth of the organization.
The CSR approach addresses the interest of the stakeholders through the long term strategies

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which intends to renovate the conveyance and energy market. For instance, Tesla’s decision
to permit other companies and member to practice technology patent is anticipated to
enhance the market demand for electric vehicles and concerned products. The upsurge in the
demand is anticipated to form business evolution perspectives for the company. The
corporate citizenship approach is used along with the current sociocultural trends. The CSR
supports business growth and its generic competitive strategy and intensive growth strategies
targets to enhance profit and subsidize fully towards the CSR. If the profitability of Tesla is
considered in recent years, the CSR strategy is consistent to improve in satisfying the interest
of the stakeholders (Crane, Matten & Spence, 2019).
Governments: The effects of government action are experienced by Tesla. The government
demonstrates limits, requirements, and prospects to the company. This stakeholder group
comprises authorised compliance and business contributions to economic growth. The CSR
strategy of the company satisfies to the stakeholders through the plans for the strategic
universal expansion and sustainability record. The government also executes requirements
which stimulate to the operational strategies. For instance, the supply chain management of
Tesla for the automobile production conforms to the government regulations on the material
sourcing.

Management 4
References
Carter, K. (2018). Do Shareholders Prefer Political Connectedness or Corporate Social
Responsibility? Evidence from Letting Trump Be Trump.
Chen, C. J., Guo, R. S., Hsiao, Y. C., & Chen, K. L. (2018). How business strategy in non-
financial firms moderates the curvilinear effects of corporate social responsibility and
irresponsibility on corporate financial performance. Journal of Business Research, 92,
154-167.
Crane, A., Matten, D., & Spence, L. (Eds.). (2019). Corporate social responsibility: Readings
and cases in a global context. Routledge.
Grayson, D., & Hodges, A. (2017). Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Hoi, C. K., Wu, Q., & Zhang, H. (2018). Community social capital and corporate social
responsibility. Journal of Business Ethics, 152(3), 647-665.
Loureiro, S. M. C., Sarmento, E. M., & Le Bellego, G. (2017). The effect of corporate brand
reputation on brand attachment and brand loyalty: Automobile sector. Cogent
Business & Management, 4(1), 1360031.
Yang, J., Basile, K., & Letourneau, O. (2018). The impact of social media platform selection
on effectively communicating about corporate social responsibility. Journal of
Marketing Communications, 1-23.
Zhang, X., Zhang, L., Fung, K. Y., Rangaiah, G. P., & Ng, K. M. (2018). Product design:
Impact of government policy and consumer preference on company profit and
corporate social responsibility. Computers & Chemical Engineering, 118, 118-131.