Emerging CSR Issues in Automotive Industry: Lifecycle Approach Report

This report analyzes the emerging Corporate Social Responsibility (CSR) issues within the automotive industry, focusing on the production, use, and disposal phases. It emphasizes the importance of a lifecycle approach for automotive suppliers, incorporating CSR considerations throughout the supply chain. The report highlights alternative technologies and fuels, such as CNG, LPG, biofuels, and electric, hybrid, and fuel cell vehicles, discussing the ongoing debate regarding their emission reduction capabilities and market competitiveness. It examines the impact of the End-of-Life Vehicle (ELV) Directive on waste reduction, vehicle recovery, and environmental performance. Furthermore, the report explores the role of Green Supply Chain Management (GSCM) in integrating ecological concerns across the value chain, and the goals, drivers, and barriers associated with its implementation. The analysis also touches upon environmental management schemes and social standards within the automotive sector.

There are many emerging issues in automotive industry that happens during the
production, disposal and use phases in CSR. It is very important for automotive dealers to
adopt the lifestyle approach that can focus on the CSR issues in all the stages related to the
supply (Gonzalez et al., 2008; Beske et al., 2008; Kehbila et al., 2009). There are alternate
technologies and fuels that are considered as important matter in this area. Some alternative
fuels that can be used are CNG, LPG, bio-fuels and methanol. Many new technology vehicles
are available like hybrid, fuel cell and electric vehicles. There is still a confusion between
these two alternatives because those are equally important in order to low down the emissions
and they are able to give a strong competition to conventional technologies available in the
market. There are different technologies chosen by companies like Brazil has adopted bio-
fuels, hybrid car of Toyota, or the low spread of hydrogen fuel cell technology, as per the
available circumstances and the innovation methodology (Orsato, Wells, 2007a).
End- of- life (ELV) Directive was passed by The European Parliament and the council that
for keeping the life cycle of a vehicle in mind. The main motive of this directive was the
reduction of waste and increase the end-of-life vehicle recovery by putting improvements in
the environmental performance. There are many studies that have showed that there are many
positive results because of the ELV directive. It also resulted in increase in the rate of recycle,
increase hazardous substance removal as well as improvement in information dissemination.
“Dematerialization” is known as a radical approach that plays a very important role in
generating more ecological design solutions and radical solutions in the automotive industry
((Zapata, Nieuwenhuis, 2010).
There is a process undertaken by Green supply chain management (GSCM) and the main
motive is to incorporate different ecological concerns in the complete value chain. Most of
the organizations are well aware about the capability of GSCM and efforts taken to increase
the social, economic as well as environmental performance. Except this, every economic
entity fails to gey GSCM potential (Gerrard, Kandlikar, 2007; Smith, Crotty, 2008). There is
an analysis provided in green supply chain management of the Green automotive industry
that mainly includes goals, realization, drivers as well as the barriers of GSCM. There are
many goals that had been successfully achieved by GSCM like fulfilment of environmental
protection and legal regulations. On the other hand, waste creation, efficient resource usage
and cost reduction was not up to the mark. There is an awareness regarding the potential of
sustainable business, there are many companies that already tries to incorporate
environmentally friendly and social matter in their supply chain (Steinweg, 2010). Like

management of Volkswagen has set the requirements in the relationship with all the business
partners that includes try to find out risk related to supply, monitoring the supplier
development and operationally implementing the process of supply (Thun, Muller, 2010).
There are many environmental management schemes created and applied in automotive
industry but still some of the same social standards that helps in removing hard working
conditions are still not available. One of the most common activities are completely based on
the ILO code, HRI standards, Supply chain, environmental management systems and
individual code of conduct in the case of car manufacturers (Koplin et al., 2007).