Leadership for Sustainability: An Analysis of Tesla's Business Report

This report provides an in-depth analysis of Tesla's approach to sustainability and its implementation of circular economy principles within its business model. It examines how Tesla, as a leading electric vehicle manufacturer, integrates sustainable practices to meet consumer needs while minimizing environmental impact. The report delves into specific examples, such as Tesla's Powerwall and solar panel initiatives, highlighting how these products promote energy efficiency and resource reuse. It further explores relevant literature, stakeholder interests, and sustainability benchmarks, including comparisons with competitors and an analysis of key performance indicators related to greenhouse gas emissions and market trends. The report also discusses the company's corporate social responsibilities and its impact on brand value and consumer perception. Overall, the analysis demonstrates Tesla's commitment to long-term sustainability and its leadership in driving the electric vehicle revolution.

LEADERSHIP FOR
SUSTAINABILITY

TABLE OF CONTENT
PART-A...........................................................................................................................................3
Section-1......................................................................................................................................3
PART B............................................................................................................................................4
Section-2......................................................................................................................................4
Section 3.......................................................................................................................................5
Section 4.......................................................................................................................................6
Section 5.......................................................................................................................................6
Section-6......................................................................................................................................8
Section 7.......................................................................................................................................9
REFERENCES..............................................................................................................................10

PART-A
Section-1
Implementation of sustainability and circular economy among the consumer society
Sustainability:
The term sustainability means meeting the own present needs by the available resources
in terms of natural resources or social and other resources with due considerations of future
generations that their needs will also be satisfied. It should also be considered that the resources
will never reach the stage of depletion which means that resources will always be available.
Circular economy:
The term circular economy means utilizing the resources in such a manner that the
wastage of resources will never happen which means that the resources will be reused whenever
required. This, concept also revolve around the same thing that there will be no shortage of
resources for the future generation which means the current generation will use the available
resources in such an efficient manner that the wastage of the resources will never happen and the
adequate resources will be available for meeting the future needs (Korhonen, Honkasalo and
Seppälä, 2018). This concept focuses on reuse or recycle of the resources so that stage of
shortage never come.
Consumer society:
The term consumer means the person who buys the products or who consumes the
services and the term consumer society means that society which encourage the consumer to
develop the habit of buying. People in the consumer society want to live a good life which
includes the use of available resources and make their life more comfortable by the consumption
of those resources.
The concept of sustainability and circular economy is very essential to put or implement in the
consumer society which not only safeguard the environment from the carbon dioxide emission
and the harm which was caused due to carbon dioxide emission but also meet the needs or
requirement of consumer society. Also, the concept of circular economy is very essential to
protect the environment by using the or producing the reusable or recyclable products
(Morseletto, 2020). There are various tax advantageous investment legislation persist in the UK
whereby companies by using or adopting sustainability practice can reduce the amount of tax. By
adopting this practice the companies can minimize the amount of levied taxes which saves the

money of the companies and also help the companies to grow and achieve their objective
(Dyllick and Rost, 2017). The role of sustainability in the consumer society is very essential in
terms of providing the healthy environment or clean air, availability of adequate natural
resources to the local people apart from keeping the resources for future use. Since the people in
the consumer society want to live a comfortable life by utilizing the available resources at the
maximum possible level, which may result in the shortage of resources for future after some time
but adopting the practice of sustainability and circular economy the wastage can be reduced
because of the development of the habit of reusing or sustainable using of resources among the
people in addition to the creation of awareness regarding the efficient and effective utilization of
resources.
PART B
Section-2
Tesla which is one of the famous producer of electric vehicles company of US. The company
mainly produces those products or items which will not only meet the needs of the customers but
also save the environment in terms of protecting the environment from any harm. Tesla works on
the concept of sustainability and circular economy and produce only those items by the depletion
of current resources will never happen. Power wall is one of the best product of Tesla which
clearly explain the concept along with its practical implication.
Power wall or solar panels and roofs are that useful product of Tesla which clearly fulfils the
concept of sustainability and circular economy which means this product not only provide the
services to the customers but also save the energy and reuse the solar energy and benefits the
environment without affecting it or harming it. Also, with the adoption of eco-friendly
technology, Tesla is able to save the environment and helps in increasing the environmental
sustainability apart from satisfying the needs of customers (Ives, 2018). Tesla clearly offers
sustainability to the environment by the production of those products which meet the current
needs of the customers as well as keep the availability of resources for future.
Since due to the use of solar energy as a means of resource for working its product or item Tesla
is not only fulfilling the requirement of the customer but also saving the environment and other
mode of non recyclable resources. Also, due to using of those natural resources like sunlight to

operate the item the Tesla not only creating sustainability but also able to provide the best quality
services to its customers along with safeguarding the resources for future.
Sustainable use of natural resources in respect of the product by Tesla helps the company to
grow its sale and profits which means that by using the natural resources and reusing or recycling
the available resource the cost of the company is reduced in terms of operating the business
which will directly help the company to raise the profit proportions (Stahel, 2017). Also, due to
increasing the awareness among the people regarding the efficient use of natural resources so
that they will not deplete and due to consideration of this thinking and production of
environmental friendly product by Tesla in the form of power wall boost the sale of Tesla and
help it in achieving its objective in terms of raising its profits.
Section 3
Relevant literature
As per the view of (Obal, Morgan and Joseph, 2020), Tesla has been already taken care
of sustainability in the market from a long run which can be maintained by the organization in
the market. Stakeholders and management of the company have made decisions around this
factor so that there would be higher performance of the organization. In accordingly to (Rios and
et.al., 2018), Tesla is a very creative and competitive organization present in the market therefore
getting in changes according to sustainability is not going to be difficult for the organization. The
company will have to make sure that they are using the right measures and methods to be able to
operate in the market effectively so that there is going to be higher growth for the company.
Demands and expectations of the customers are increasing which have to be well maintained
therefore it is essential for the company to make sure that there is going to be higher operations.
In the view of (Grossmann and Brienza, 2018), Services of the company like the
packaging and methods which are being used by Tesla for services are also going improved with
time so that there are going to be higher sales. Tesla is making a lot of profits already and have a
good brand value which is present making the company be able to operate effectively and
efficiently in the market. In opinion of (Vila-Vázquez and et.al., 2018), Corporate social
responsibilities which Tesla has taken in the market are also making the recognition of the
organization increase in the market which is going to be a great factor. Competition in the market
is increasing therefore it is important for the company to make sure that there are right measures

and risks are higher in the company with new products but due to high experience the
organization is being able to make a strong portfolio for themselves in the market.
According to (Kensler and Uline, 2016), the decisions in Tesla are always made around
future growth of the company which is why the organization has got in solar roofing and battery
storage pack so that the organization will be able to operate effectively in the market. As per the
view of (Armstrong and Gough, 2018), there are still changes which are taking place in tesla so
that the company will be able to develop for the future and loyalty of the customers is going to
be present. The company has further plans to make the company be able to gain an advantage in
the market which is by getting in more sustainability in the organization for the future which is
good for the brand value.
Section 4
Company's sustainability stakeholders
The interest of stakeholders of Tesla are very much interested in the organizational
decision and corporate social responsibilities so that there is going to be higher operations which
are going to be present. There are a lot of changes which are taking place in the company already
therefore it is important for the company to make sure that there is going to be higher operations.
The competition in the market is also increasing therefore the company will have to make sure
that they are taking the right measures and steps to be able to do that and also keep the customers
be interested in the organization for a long run (Mangundjaya, 2018). The products and services
have to be done effectively in the market so that there is going to be higher brand value and
reputation which is going to be present and this will make the brand image be higher.
Section 5
Sustainability benchmark

According to the above graph there is a lot of improvement in the coal which is being
used in the organization. Sustainability has to be higher in the company so that the organization
will be able to have higher reputation and the company is going to be able to operate effectively
in the market as well. This is going to make the climate be improved of the country and make the
transportation of the end products and raw material requirements of the company be higher
matching the demands and improvement which is going to be present in the company. The
competitors of Tesla have not been able to come down to this factor which is going to be helpful
for the organization to have so that there is going to be higher operations and brand value which
would be present (Schein, 2017). Competitors like BMW, Mercedes, Audi, etc. are not making
such improvement as of now since Tesla has always made decisions according to the future
which is making the company have a better operation and functioning in the market.
Illustration 1:
A Tesla is greener than you think and getting greener
(Source: Berndt, 2017)

The life cycle of Tesla's GHG emission is varying from country to country according to
the government laws and policies which the company is following. The company has been able
to make a higher competitive advantage and strong portfolio in the market since they have a
better understanding of the market which is a very essential factor. Materials which Tesla is
using have been changed over time which has made the operations and functioning of the
company higher and that is a great factor and advantage for the company to have. There is a lot
of green house gases which this industry is letting out but to balance that out the company has
taken a lot of sustainable operations and also measures for making sure that the company is not
being influenced due to this reason (Jang, Zheng and Bosselman, 2017). Electrical improvement
is going to make the overall functioning of the company be higher and that is going to make
performance of the company be higher which is good for the overall development.
Illustration 2: Lifecycle GHG Emissions comparison
(Source: Berndt, 2017)

There is a lot of changes in the working which have come in Tesla so that there can be
effective working and sustainable efficiency as well. Electrical implementation is going to be
helpful for a long run.
Illustration 3: Leading EV revolution
(Source: DoctoRx, 2020)

From the above graph it can be analysed that Tesla has got about a lot of change in the
market which is visible and that is going to make the performance of the competitors and market
shift to sustainability to be able to operate effectively.
Section-6
Recommendations to manager:
Adopting the concept of sustainability and circular economy in the business of Tesla helps the
company to achieve the growth in the long term apart from serving the needs of the customers.
Sustainability and circular economy concept will play an important role in achievement of the
objective of the company but without harming or affecting the environment. Since, the
environment and the resources are continuously depleting in addition of growing need among
customer regarding the use of eco-friendly techniques or items and during such time adopting the
sustainability concept by Tesla will help the company to raise the profits in terms of raising sales
and helps in achieving the success.
Illustration 4: Electric vehicle market
(Source: Hertzke, P and et.al., 2019)

Section 7
Conclusion
There are a lot of improvements which can be done by Tesla for having sustainability in
the market which is going to make the organization have higher functioning and operations.
Purpose of the company is to make sure that they sustain the loyalty and trust of the customers in
the company therefore they make such decisions which is going to make the brand value be
higher.

REFERENCES
Books and Journals
Armstrong, P. and Gough, A., 2018. A Developmental Framework For Adolescent Leaders For
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Dyllick, T. and Rost, Z., 2017. Towards true product sustainability. Journal of Cleaner
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Grossmann, I. and Brienza, J.P., 2018. The strengths of wisdom provide unique contributions to
improved leadership, sustainability, inequality, gross national happiness, and civic
discourse in the face of contemporary world problems. Journal of Intelligence. 6(2). p.22.
Ives, and et.al., 2018. Reconnecting with nature for sustainability. Sustainability science.13(5).
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Jang, Y.J., Zheng, T. and Bosselman, R., 2017. Top managers’ environmental values, leadership,
and stakeholder engagement in promoting environmental sustainability in the restaurant
industry. International Journal of Hospitality Management. 63. pp.101-111.
Kensler, L.A. and Uline, C.L., 2016. Leadership for green schools: Sustainability for our
children, our communities, and our planet. Taylor & Francis.
Korhonen, J., Honkasalo, A. and Seppälä, J., 2018. Circular economy: the concept and its
limitations. Ecological economics.143. pp.37-46.
Mangundjaya, W.L., 2018. Transformational Leadership and Turn Over Intention on
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Letters. 24(1). pp.500-502.
Morseletto, P., 2020. Targets for a circular economy. Resources, Conservation and
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university internships. International Journal of Sustainability in Higher Education.
Schein, S., 2017. A new psychology for sustainability leadership: The hidden power of
ecological worldviews. Routledge.
Stahel, W.R., 2017. Sustainability and services. In Sustainable solutions (pp. 151-164).
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Vila-Vázquez, G and et.al., 2018. Promoting the sustainability of organizations: Contribution of
transformational leadership to job engagement. Sustainability. 10(11). p.4109.
Online
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getting-greener-look-manufacturing/>.
DoctoRx, 2020. [Online]. Available Through: <https://seekingalpha.com/article/4370534-tesla-
how-still-may-deliver-sustainable-alpha>.
Hertzke, P and et.al., 2019. [Online]. Available Through:
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expanding-electric-vehicle-adoption-despite-early-growing-pains#>.