Sustainable Management Report: Comparing Honda and Hyundai

This report offers a comparative analysis of the sustainable management practices of Honda and Hyundai, two leading automobile brands. It begins by highlighting the differences and similarities in their social reporting, focusing on their approaches to sustainability, the scope of their reports, and their stakeholder orientation. The report identifies specific sustainable development goals pursued by each company, such as innovation, responsible production, and climate action, and assesses how explicitly these goals are addressed. Furthermore, it categorizes both companies within the sustainability change matrix, placing them in the efficiency stage. The report concludes by examining how each company's stated values are reflected in their sustainability efforts, emphasizing their customer-centric approaches and value creation processes. The report also includes an analysis of their strengths and weaknesses within the context of their sustainability reports.

Running head: SUSTAINABLE MANAGEMENT
Sustainable management
Name of the student
Name of the university
Author note

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Table of Contents
Introduction......................................................................................................................................2
Differences between the social reporting of Honda and Hyundai...................................................3
Similarities between the social reporting of Honda and Hyundai...................................................4
Determination of the sustainable development goals......................................................................5
Identification of the sustainability phases........................................................................................6
Reflection of the values...................................................................................................................7
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................9

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Introduction
The current automobile scenario in the global state is challenging as well as favorable for
business growth of the automobile brands. The major challenge for this industry is the long term
sustainability. This is due to the reason that pollution and carbon emission from the vehicles is
affecting the automobile market and it is getting more important for the automobile brands to
initiate the sustainable activities in order to gain competitive advantages (Salvado et al., 2015).
Different car brands are issuing dedicated sustainable reports to communicate about their
sustainable approach and how they are meeting the expectations of the market along with
reducing their environmental impact. However, each of the sustainable approach of the car
brands is different and following different intents.
In the current automobile industry, Honda and Hyundai are the leading brands operating
across the world. Honda is based in Japan and Hyundai is based in South Korea and both these
brands are having their manufacturing facilities in different countries. Hyundai is having their
major market presence in the Asian region, while Honda is leading in the American and
European market. It is reported that currently, Hyundai is trailing behind Honda in the American
market where the former is having 7.4 percent market share and the later is standing at little over
8 percent. On the other hand, China and India are the biggest market for Hyundai (Schöggl,
Baumgartner & Hofer, 2017). In terms of product diversity, both the brands are having diverse
products. Hyundai is having hatchbacks, sedans, saloons, SUVs, MUVs, trucks and buses while
product portfolio of Honda ranges from two wheelers to cars to electric equipment and jets.
However, there are no major issues related to social reporting identified for both the brands.

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This report will discuss about the differences between the social reporting of Honda and
Hyundai along with analysis of the major themes being followed by them. In addition, the
sustainable development goals being followed in each of the social reporting of Honda and
Hyundai will also be identified.
Differences between the social reporting of Honda and Hyundai
One of the major differences between the social reporting of the two brands is focus on
the sustainability aspects. It is identified that the focus over the sustainable activities is more
evident in the social reporting of Honda, while it is low in the case of Hyundai. It is identified
that the social report of Honda discussed about their approach to sustainability just after the
initial organizational introduction. On the other hand, the sustainability discussion for Hyundai
started after more extensive discussion about the organization. However, it is also identified that
even though the discussion of sustainability of Hyundai got started late but it covered all the
required and expected elements in the report (Hahn & Kuhnen, 2013). Another difference being
identified between the social reporting of the two companies is inclusion of larger aspects. For
example, the sustainable report of Honda is more inclusive of different approaches such as
economical sustainability, environmental sustainability and social sustainability. On the other
hand, in the case of Hyundai, it is identified that only the economic and environmental
sustainability is focused. This is due to the reason that sustainability that can be gained from the
stakeholder management is discussed in more details in the social reporting of Honda compared
to Hyundai (Magee et al., 2013).
Another major difference being identified between the two reports is the orientation. This
refers to the extent to which the holistic interests of the stakeholders are being considered. It is

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identified that in the case of Honda, social aspects are majorly considered and number of
activities discussed in the report, which are not having direct profitability impact on the business.
However, on the other hand, the social report of Hyundai is more business oriented and each of
the sustainable activities discussed in their social report is having direct business interests for
them. For example, it is stated that innovation is promoted in the society and there are different
activities being initiated by Hyundai in empowering the society but all these activities are
centered and towards the business interest of them (Amran, Lee & Devi, 2014). The innovative
ideas to be generated from the activities are to be leveraged by Hyundai. Thus, it can be
concluded that the basic motive of the sustainable practices is different that is evident in the
social reporting between Hyundai and Honda. However, in terms of the presentation, the social
report of Hyundai is much more detailed than that of the Honda. This is due to the reason that
evidence of facts and figures is more in the social reports of Hyundai than in Honda. This is
helping in better communicating their sustainable activities to the external stakeholders.
From the analysis of the social reports of both Honda and Hyundai, it is identified that the
major strengths of Honda are clear details about social, economic and environmental issues and
major concentration on the sustainable activities. On the other hand, the weaknesses for Honda
identified are lack of charts and creative visualization that may cause disinterested among the
audiences. In the case of the social reporting of Hyundai, their major strengths are the extensive
use of info graphics, which is helping in creating interests among the audiences. Moreover, the
social report of them is also provided more extensive data about the sustainable future mobility
solutions. On the other hand, their major weakness is the lack of information regarding social
issues, which is barring them to have holistic management of all the relevant factors.
Similarities between the social reporting of Honda and Hyundai

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The first major similarity between the two social reports of Honda and Hyundai is the
detailed information about their sustainable activities. In both the social reports, details are being
provided with data, charts and numerical, which are offering the clear view of the sustainable
practices of both the brands. In addition, another major similarity being identified between the
two brands is the concentration over the electric mobility. Both these brands have given the
detailed information about their development of electric mobility and how it is contributing
towards the reduction in carbon emission. This similarity is denoting the fact that electric
mobility is the sector where the car brands are concentrating to gain sustainability (Gunther,
Kannegiesser & Autenrieb, 2015). Furthermore, it is also identified that the advanced
technologies being developed by both the brands are also focused in the social reports. In both
the cases, it is identified that they are focused towards developing sustainable technologies for
their cars in dealing with the sustainability issues.
Determination of the sustainable development goals
In the case of both Honda and Hyundai along with the entire automobile industry, the
major and suitable sustainable development goals will be innovation and infrastructure, gender
equality, responsible production, climate action and partnerships for the goals. All these goals are
not only applicable for the automobile industry but also for the countries where there are
operating. This is due to the reason that the countries should have proper infrastructure and
access to innovation and should have proper mechanism and regulations for climate change
(Siew, 2015). These goals are important due to the reason that innovation generation by the car
brands will ensure their effectiveness and efficiency in dealing with the sustainable issues. In
addition, they can also initiate responsible production by reducing the impact and exploitation on
the environment and nature resources. Honda and Hyundai both are having their manufacturing

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facilities in the developing countries such as India and China, which are already dealing the
issues such as pollution and population explosion. Thus, initiation of the responsible production
by the car brands will also ensure the sustainable development of these countries. Lastly, the
partnership for goals between the authorities of the host country and the car brands will also
reflect as positive outcome for all the involved entities.
From the analysis of the sustainability reports of both Hyundai and Honda, it is identified
that some of sustainable development goals are explicitly managed by them while some are not.
For example, it is identified that both Hyundai and Honda are following the responsible
production concept in reducing the impact on the environment. In the social reports of both the
brands, the focus on having sustainable manufacturing facilities is evident and is explicitly
stated. The concept of innovation is also explicitly stated in the social reports of both Hyundai
and Honda especially in the case of Hyundai, the innovation generating activities being initiated
by them and how they are contributing in development of the society and the company.
However, on the other hand, it is also identified that the provision for gender equality is
implicitly stated in the social reports of both Hyundai and Honda (Fernandez‐Feijoo, Romero &
Ruiz‐Blanco, 2014). It is only stated about the objectives of number of women to be inducted in
the workplace and no other details are being stated. Thus, it can be concluded that environment
related goals are majorly being explicitly stated in the social reports of Hyundai and Honda over
other sustainable factors.
Identification of the sustainability phases
Based on the analysis of the sustainable approach of both Honda and Hyundai, it is
identified that both the entities are in the efficiency stage. This is due to the reason that both

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these companies are known for effective man management mechanism, following proper
reporting standards and increasing efficiency and engagement with the external stakeholders.
The inclusion of the employee management in the social reports along with the information
about the advantages to be gained from the employees is stated in the social reports. In addition,
both the companies are following all the standards for reporting and it is evident in their
sustainability reports (Penzenstadler & Femmer, 2013). The information regarding the increasing
efficiency in the future is also stated in the report. On the other hand, some of the elements in the
stage of pro-activity are also fulfilled by both the brands. However, there are no evidences of
structural redesign and flexibility is being identified. Thus, they cannot be considered as
proactive. The social engagement activities states explicitly in the social reports of both Hyundai
and Honda are also matching with the stage of efficiency.
Reflection of the values
The value stated by Honda discussed about offering best value for money products to the
customers with maximum utility along with meeting the expectations of the all the involved
stakeholder groups. On the basis of this state value, the social report of Honda discussed about
the different products of them that are designed in meeting different expectations for the
customers. In addition, Honda is also offering products for varying utilities and for different
customer segments, which is also meeting the added value for the customers. This includes their
service process and quality also, which is also meeting the expectations of the customers. In their
social report, the entire value creating process of Honda is stated in explicit manner. Thus, it can
be concluded that the information shared in the social report of Honda is meeting their stated
values.

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On the other hand, the stated value for Hyundai is also customer centric including the
product development process and after sales service targeted towards the preferences of the
customers. In comparison to this, the social report of Hyundai states about the different
sustainable measures that are enhancing the transparency in dealing with the customers and
enhancing the quality of the entire service process. Introduction of the new products and service
approaches are all targeted towards the customer satisfaction. Thus, it can be concluded that the
shared value is also explicitly stated in the social report of Hyundai.
Conclusion
This report concludes that both Honda and Hyundai are following effective mechanism in
terms of their social reporting. In the group discussion, the extensive focus on social
sustainability of Honda over Hyundai is confirmed by the group members. All the members
agreed that discussion in relation to the social development is more evident in the social report of
Honda over Hyundai. Moreover, all the members agreed that responsible production process is
the key sustainable area for Honda and Hyundai as it will determine their effectiveness towards
reducing the exploitation of the natural resources along with utilizing the maximum from the
available resources. It helped in identifying the sustainable development goals for the car brands.

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Reference
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