This study highlights the core business activities and social initiatives of Kia Motors Corporation and Tata Motors Limited for understanding core business values of the companies.
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Running head: MANAGEMENT Management Name of the student Name of the university Author note
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1MANAGEMENT Table of contents Introduction......................................................................................................................................2 Background of the companies and core business activities.............................................................2 Different issues faced by the companies.........................................................................................3 Sustainable development goals, which should be adopted by the companies to sustain in the market..............................................................................................................................................5 CSR report of the companies...........................................................................................................5 Quality of social accounting approach............................................................................................7 Social report that reflects through the values of the companies......................................................8 Conclusion.......................................................................................................................................9 Reference list and bibliography.....................................................................................................10
2MANAGEMENT Introduction Core business values are important for getting the direction of the organizations towards sustainability (Keller & Richey, 2017). The purpose of this study is to highlight the core business activities as well as social initiatives of the companies namely Kia motors Corporation and Tata motors Limited for understanding core business values of the companies. Background of the companies and core business activities Kia Motors Corporation In the year 1944. Kia Motors Corporation was founded, which has become the South Korean’s oldest motor vehicles manufacturer (Kia.com, 2019). In the year 2016, the business revenue of the company reached KRW 52.713 billion. Kia Motors Corporation has become the main subsidiary of Hyundai Motor Company (Kia.com, 2019). Within 74 years of establishment, the company has started operating in near about 172 countries. Near about 1.5 million products are being manufactured by the company in every year. Analyzing the vision of the company it has been identified that Kia Motors Corporation aims to blend the culture for becoming the best innovative automotive company in the world (Kia.com, 2019). By ensuring the mutual prosperity to the people, Kia Motors Corporation wants to grab the customers’ attention. Analyzing the core business strategy of the company, it has been identified that it strongly believes on customer delight services. Analyzing the business performance of Kia Motors, it can be said that the business revenue of the company is growing in the fastest manner. Tata Motors Limited Tata Motors Limited is a famous India based automobile manufacturing company, established in 1945. It is a subsidiary of Tata group (Tatamotors.com, 2019). In the year 2018,
3MANAGEMENT the business revenue of the company reached US$43.910 billion. In the initial stage, the commercial vehicles were being manufactured by the company (Tatamotors.com, 2019). The vision of the company is utilize thee materials and staffs in proper manner so that the industrial base in India can be strengthen up. Analyzing the core business activities in Tata motors, it has been identified that in order to grab the attention of large numbers of customers, Diversified range of products are being sold by the company. With the total numbers of $45 billion organizations, Tata has become the leading global manufacturing automobile manufacturing brand (Tatamotors.com, 2019). Analyzing the portfolio of the company, it has been identified sports cars, expensive ranges of cars, buses and defense vehicles are being produced by the company. The company focuses to connect the aspirations with the tech-enable products for sustaining in the fore front of the market. In order to bring the new spark in mobility solution, the company. With the total numbers of 81,090 employee strength, it has become the leading automobile manufacturing organization (Tatamotors.com, 2019). Analyzing the different themes of issues faced by both the companies, it can be clearly said that business sustainability is the major concern of the organizations in case of sustaining in the case of dealing with the current business challenges. Different issues faced by the companies Analyzing the sustainability report of Kia motors and Tata motors, it can be said that both theorganizationshavetriedtodevelopthesustainabilityreportbyfollowingboththe environmental and social criteria.Kia motors has started its sustainability report with world map, where the company has mentioned about its business expansion strategies. The company clams to provide the transparent and fair governance by developing the honest and open communication with the community (kia.com, 2019). Green project can be considered as the
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4MANAGEMENT popular sustainability initiative adopted by the company, in that case the company has introduced future expansion plan until 2030. The sustainability action plan of Kia motors has been highlighted through a clear chart. Analyzing the sustainability theme of the company it can be said that the company aims to solidify the market position for bringing the sustainable growth. Environmental friendly cars are the important sustainability initiatives adopted by the company, which is quite impressive. In order to improve the global production, the reinforcement has been introduced in the operational process of the company. With the CSR practices, the performance improvement and its numerical results have been mentioned in the report. In case of Tata motors, the company has develop the sustainability report starting with different messages send by the chairperson in the company (Tatamotors.com, 2019). Defining the business statistics and history of the company, the values of the company have been discussed. In order to discuss the sustainability management initiatives, the entire economic, social and environmental situations of the company have been discussed. Total numbers of 12 sustainable policies have been discussed in the report (Tatamotors.com, 2019). In case of defining the management system, three types of management programs have been discussed. In the report, Tata motors has focused on important policies introduced buy the company and the WP29 UNECE activities, which are important for increasing people engagement. In the sustainability report different achievements of the company have been mentioned, which have clarified the theme of the sustainability initiatives clearly. Through the recycling of the products, Tata aims to bring the environmental sustainability to the society. Analyzing the globalized challenges of Kia motors in the sustainability report, it has been identified that Kia has faced several challenges in case of entering in the European market. Due to the increasing pricing issue in different countries, the selling cost of the products has
5MANAGEMENT increased (M.kia.com, 2019). Due to the increasing pricing issues, global economic competition of the company can be analyzed. Kia aims to launch the SUV with auto policy kicks (M.kia.com, 2019) for increasing its business sustainability. ThesemiPSU cultureof Tata motors has impacted on the leadership strategy adopted by the company. In order to deal with the potential customers have the company aims to develop the new management structure, the lack of accountability issue can be solved by the company. Therefore, the major similarity in both the report here the community engagement and human rights have been preferred. However, in the sustainability report of Tata motors ample amount of information regarding the consequences after adopting CSR initiatives have been presented, which were not available in case4 of Kia motors. Sustainable development goals, which should be adopted by the companies to sustain in the market Kia motors Corporation ï‚·To end the poverty from the world by maintaining the sustainable availability of resources ï‚·To end hunger and promote the sustainable agriculture by promoting the food security and nutrition (Unglobalcompact.org 2019). ï‚·To ensure the healthy life by maintaining the sustainable availability of energy and environmental resources (Unglobalcompact.org 2019). Tata motors Limited ï‚·To ensure healthier environment to the people by introducing the nutrition initiatives
6MANAGEMENT To increase community engagement for appreciating the employment statistics in the global market To contribute in reinforcing education, environment and employability for achieving the business values (Thecsrjournal.in 2019). CSR report of the companies Kia motors Corporation Examining the social accounting approaches of the company, it has been identified that in the year 2008, the social initiatives have been adopted by the company. In order to stabilizing the social system, in between the year 2008 to 2012, the CSR initiatives have been adopted in the global level. In order to integrate the corporate social responsibility in the global level, from the year 2016, the road maps have been prepared. ‘Green travel’ is being considered as one of the popular CSR initiatives adopted by the company, which will end in 2020 (M.kia.com, 2019). In the year 2012, the Kia motors corporation introduced the ‘Green light project’ for sharing its core business values through the domestic programs (M.kia.com, 2019). In the year 2014, in the ‘SafetyandEnvironmentalManagementDeclarationCeremony’,KiamotorsCorporation introduced environmental friendly vehicles for contributing in reducing the environmental pollution. Different trust based management initiatives have also been adopted by the Kia motors Corporation. Hence, it can be said that Kia motors Corporation has successfully achieved the sustainable development goals through such CSR initiatives in both direct and indirect manner. Tata motors Limited Within the year 2017 to 2018, near about 6 lacks CSR project have been introduced by Tata motors (Thecsrjournal.in 2019). In the corporate social responsibility report of Tata motors,
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7MANAGEMENT it has been identified that the company has already addressed total numbers of fifteen United Nations Sustainable development goals that demonstrated remarkable progress through the nutrition initiatives through different industrial campaigns. In order to involve the ST/ SC community,thecompanypromoted‘Aadhar’(Thecsrjournal.in2019).Thecompanyhas involved itself in different sustainable projects through the company websites. In case of Tata motors Limited, sustainability report has clearly shown that the goals, which have been adopted by the company for increasing the sustainability, have been achieved. However, it is also true that if the community engagement can be increased, it will be beneficial for the company for sustaining in the market for long time period. Quality of social accounting approach The social accounting approaches determine the social performance of the organizations that can help to influence the business performance of the company. Social performance of the organizations can help to increase the profit motivation as well as reputation of the company in global market. Hence, it can be said that social accounting is an approach that helps to deal with the environmental and social effects on the organizational process. Different guidelines of social reporting such as Inclusivity, Comparability, completeness, evaluation, management policies and system, external verification and continuous improvement (Gray et al., 1997). Analyzing the ethical guidelines of the social reporting, both the companies has tried to following all the social reporting guidelines (Ingentaconnect.com, 2019). However, analyzing the situation of both the organizations, it has been identified that the company Kia Motors Corporation needs to focus on external verification process. Analyzing the business issues of the company, it has been identified that for sustaining in the market, it has mainly focused on introducing products for premium customers. In that case, the community engagement has become the major concern.
8MANAGEMENT However,itisalsotruethatthroughCSRinitiatives,thesocialeffectivenesshasbeen appreciated by the company. In case of Tata motors Limited, it is true that by engaging community and sustainability mobility initiatives, all the social expectations have been full filled by the company. However, it cannot be denied that lack of understanding of the stakeholder engagement as well as internal cultural issues are the major barrier for the business growth of the company. Social report that reflects through the values of the companies Analyzingthesustainabilityreportof Kiamotors,ithasbeenidentifiedthatthe sustainability effort of the companies, it can be said that it aims to bring the positive changes in automobileindustrybycommittingtheadvancedsuitabilitymanagementinitiatives.By introducing the environmental friendly initiatives in the market, the company aims to represent the combination of technology and environment friendly products through its cars. In case of increasing the awareness regarding energy consumption, green projects are the important initiatives adopted by the company (Kia.com, 2019). Analyzing the values of Kia motors Corporation, it has been identified that the company aims to develop positive corporate culture by engaging its stakeholders in its business processes. Hence, it can be said that through the sustainability initiatives Kia has successfully tried to implement its business values through engaging the communities for such social causes. In the sustainability report of Tata motors, it is clearly mentioned that through the sustainablemobility,thecompanyaimstointroducesmartcity(Tatamotors.com,2019). Innovation as well as industrialization is the main motive of Tata motors. Analyzing the sustainability report of Tata motors, it has been identified that Tata business is committed towards delivering the sustainable mobility solutions. The company also aims to bring the
9MANAGEMENT improvement in quality of life so that the healthy wellbeing can be maintained. Tata motors has developed its values depending on integrity, accountability, excellence, teamwork, speed and customer focus. It this case it can be said that through the project called Aadhar, the company has successes in engaging communities in social wellbeing and improved their living standards. Conclusion In the conclusion it can be said that analyzing the social report of both the organizations it can be said that both the organization have given full effort for achieving the business values by contributing in the sustainability initiatives. As per my understanding both the organizations have focused on community engagement as well as environmental sustainability. Analyzing the different perspectives of both the organizations it can be said that Kia motors corporation focuses on community engagement bringing economic opportunities, however Tata motors aims, to bring thee industrialization in the country rather than running after the huge profitability.
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10MANAGEMENT Reference list and bibliography Burns, P. (2016).Entrepreneurship and small business. Palgrave Macmillan Limited. Dillard, J., & Brown, J. (2015). Broadening out and opening up: an agonistic attitude toward progressivesocialaccounting.SustainabilityAccounting,ManagementandPolicy Journal,6(2), 243-266. Gray, R., Dey, C., Owen, D., Evans, R., & Zadek, S. (1997). Struggling with the praxis of social accounting: Stakeholders, accountability, audits and procedures.Accounting, Auditing & Accountability Journal,10(3), 325-364. Grayson,D.,&Hodges,A.(2017).Corporatesocialopportunity!:Sevenstepstomake corporate social responsibility work for your business. Routledge. Ingentaconnect.com(2019).Retrievedfrom: https://www.ingentaconnect.com/content/glbj/jcc/2007/00002007/00000027/art00008? crawler=true[Accessed on 11th Jan, 2019] Irene, B., Marika, A., Giovanni, A., & Mario, C. (2016). Indicators and metrics for social business: a review of current approaches.Journal of Social Entrepreneurship,7(1), 1-24. Keller, K. L., & Richey, K. (2017). The Importance of Corporate Brand Personality Traits to a Successful 21st Century Business. InAdvances in Corporate Branding(pp. 47-58). Palgrave Macmillan, London. Kia.com (2019). Retrieved from:https://www.kia.com/kw/experience/local-company/mission- vision.html[Accessed on 11th Jan, 2019]
11MANAGEMENT M.kia.com(2019).Retrievedfrom:http://m.kia.com/worldwide/about_kia/csr/about_csr.do [Accessed on 11th Jan, 2019] M.kia.com(2019).Retrievedfrom: http://m.kia.com/worldwide/about_kia/investor_relations/company_information.do [Accessed on 11th Jan, 2019] Ni, A., & Van Wart, M. (2015). Corporate Social Responsibility: Doing Well and Doing Good. InBuilding Business-Government Relations(pp. 175-196). Routledge. Schaltegger, S. & Burritt, R., (2017).Contemporary environmental accounting: issues, concepts and practice. Routledge. Schwartz, M. S. (2017).Corporate social responsibility. Routledge. Tatamotors.com (2019). Retrieved from:https://www.tatamotors.com/about-us/company-profile/ [Accessed on 11th Jan, 2019] Tatamotors.com (2019). Retrieved from:https://www.tatamotors.com/about-us/[Accessed on 11th Jan, 2019] Thecsrjournal.in(2019).Retrievedfrom:https://thecsrjournal.in/tata-motors-addressed-15- sustainable-development-goals/[Accessed on 11th Jan, 2019] Unglobalcompact.org(2019).Retrievedfrom: https://www.unglobalcompact.org/participation/report/cop/create-and-submit/advanced/ 417728[Accessed on 11th Jan, 2019]