Report: Tesla CSR Approach, Sustainable Management, and Impact

This report provides a comprehensive analysis of Tesla's Corporate Social Responsibility (CSR) approach and its integration with sustainable management practices. It begins with an introduction to CSR and sustainable management, followed by an examination of Tesla's specific strategies, including its commitment to human, social, economic, and environmental sustainability. The report delves into Tesla's strategic planning, the challenges it faces in implementing CSR, and the impact of its sustainable and CSR strategies on its overall business performance. It discusses the Carroll CSR Pyramid, the triple bottom line framework, and the influence of social media on CSR. The report concludes by highlighting the positive effects of CSR on Tesla's brand image, customer loyalty, employee satisfaction, and financial performance, emphasizing the importance of ethical and responsible business practices in the modern era.

Tesla CSR Approach
And Sustainable
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Sustainable approach to business management, strategic planning and challenges of CSR..3
Impact of sustainable or CSR strategies to company’s performance.....................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Corporate social responsibility refers to the self-regulating based model of business that
supports a industry to be socially responsible, to itself, company’s stakeholders and society. By
practicing about corporate social responsibility is also called the corporate based citizenship,
industries can be cognisant of kind of affect they having on each aspects of the community,
considering a economic, environmental or social. The major purpose of the corporate social
responsibility (CSR) is to provide back to society, Involve in humanitarian causes or give
positive social based value. Companies are gradually more turning to the CSR activities to make
the difference as well as create a favourable brand around their industry. Sustainable
management was created to referred as application of practices based on sustainable in
businesses categories, society, agriculture, environment or personal life by handling them in the
way that will advantage for present generations or future based generations. The below report is
based on Tesla Inc, This is based on American electric vehicle or clean energy industry which is
based in Palo Alto in California (Bhatia, Gupta and Tripathy, 2020). Company founded in 2003
by Martin Eberhard and Marc Tarpening. Their current products are includes the battery energy
storage from the home to the grid scale, electric cars, solar panels as well as solar rood based
tiles. Industry serve their services and products in various countries and they want to expand
more in different countries This report includes the Sustainable or CSR approach to management
of business, strategic planning as well as challenges. Impact of sustainable a CSR strategy to
performance of company.
MAIN BODY
Sustainable approach to business management, strategic planning and challenges of CSR
Sustainability refers to the business approach that is creating the long-term based value
by a taking in concern how a provided company run in ecological, economic and social
environment. It is built on basis of assumption that is developing the such business strategies
fosters the industry’s durability. In this there are four pillars of sustainability approach to
business management such as;
Human sustainability, it have major aims is to manage or get better human capital in the
community. Investments in health or education, contact to services, knowledge, nutrition and
skills are each session under taken the human sustainability. The natural resources or spaces
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obtainable are limited as well as there is a requirement to balance the repeated success with
improvements in better way to the health or attaining the economic wellbeing for society. In
terms of Tesla, a company take vision itself as the society member or promote more business
values in market that are respect the human capital (Brin and Nehme, 2019). Human based
sustainability is focuses on significance of others directly as well indirectly which concerned in
the producing of various products and provision of company’s services as well broader
stakeholders.
Social sustainability, its aims is to preserve the social based capital by the investing or
making services that are comprise the structure of community. The overall concept
accommodates the huge vision of world in order to societies, globalisation and cultures. It
defines to the preserve further generations as well as to recognize that is what company perform
their roles can affect on societies or on world. It is focuses on managing or makes improvements
in quality of social with effective concepts like cohesion, honesty, reciprocity and significance of
relations amongst community members. It can be more confident or supported by the
government laws, data or shared thoughts of the equality or rights.
Economic sustainability, Its main aims is to manage capital together. If the social
sustainability is focuses on the getting better in social equality then the economic sustainability
focus on to improve more living standard. In terms of Tesla, it refers to well-organized adoption
of assets to manage firm’s profitability over the time.
Environmental sustainability, its aims is to make improvements in human welfare via
protection the natural capital such as land, water, air, minerals and many more. Initiatives or
sessions are explained the environmentally sustainable based when company is ensure that
requirements of society are met without any risk of the compromising requirements of further
generations.
The principle of main four pillars of the sustainability defines that the finish sustainability issues
to be the resolved in terms to each four elements of sustainability or then requirement to be
managed (Chomvilailuk and Butcher, 2018). Although in other terms these may partly cover, it
is significant to recognize particular kind of green based business to the focus on, as main four
components types are present exclusive features. Businesses requires to create a strategic based
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decision in company about it for effectively include the selected model into company’s policies
and process.
CSR Approach
Corporate social responsibility defines to the firm’s commitment to maintain social,
environmental as well as economic impact of business operations sensibly or in line with the
society expectations.
Carrol CSR Pyramid
Carroll is made a particular concept for method that is business relate with its nearby
society or entire world, this model is also known in current scenario as the Carroll’s Pyramid of
the CSR. This theory is collected of the main four elements that are make a base or infrastructure
for Tesla’s responsibilities toward community.
Economic responsibility. It’s responsibility of industry to make capital. Carroll model is
placed economic requirement in support of Pyramid because it is critical for company continued
existence. In corporation, requires assets in terms to better succeed or sustain (Conway, 2018).
As per to the Carroll, the first phase in execution CSR for enrol in company’s operations or
generate more revenue. This theory added that revenue is essential to recompense investors or
owners. Moreover, revenue must be the reinvested back to manage business success. Economic
responsibility based is represented by the business via investments, strategies, marketing
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company’s operations as well as long-run financial based strategies with the alternative
stakeholders. In terms of Tesla company they effective contribute their efforts in society on the
basis of Economic responsibilities.
Legal responsibility. Business must respect the all laws or regulations. As per to this
Carroll’s Pyramid model, It is placed in the second phase of CSR Pyramid concept. A
responsible business is a company that is accepts all rules of the fair game of business. A
responsible business adheres to the law the reason is it trust that clear business is reflects
absolutely on the entire economy or community. If a business makes the tax avoidance
procedures, deals with the capital laundering based activities, or even the goods a toxic based
product, it is irrational to believe it is a sharing in the CSR values.
Ethical responsibility. Companies must be behave as a best member in its community.
Such responsibility permits to business to make the what is best for community even if law
didn’t need it. Carroll model mentioned that business must be receptive to strength of law, not
just to memo of law. In another words, the ethical responsibility hold fair based activities
perform by the firm as well as expected by community (Hussain, Rigoni and Orij, 2018). In
terms of Tesla company they are effectively full fill the ethical responsibility which are under the
legal process and managed with law.
Philanthropic responsibility. This is the controlled activity based guided by firm’s wish
to take part in social based activities which are not mandate, not needed by the law and not
mostly accepted in company as the ethical intelligence. So the philanthropic responsibility is the
unadulterated offering for community, it’s the activity and project make by the business or
simply devoted to society needs. At philanthropic phase, the company might gratify what is
wanted by their community. To fulfil in the philanthropic based responsibility, business engage
in different providing forms, as the sponsoring activities such as campaigns and some other
programs.
Triple Bottom Line
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The triple bottom line defines to the secretarial structure with the three elements: social,
financial and environmental. Some companies have used TBL model to measure their
performance of business in a broader viewpoint to make best business value. Profit: This is
traditional based measure of business profit or loss as well as (P&L) account (Kim and Woo,
2019). People: This is the process how communally accountable a company has been all through
its history. Planet: This is evaluating how environmentally is responsible in the company has
been.
A major challenge of TBL, is complexity of the measuring social or environmental based
bottom lines. Company’s Profitability is the intrinsically quantitative, so it is the easy to
evaluate. What constitute social or environmental based responsibility, however, this is the
somewhat biased.
Strategic planning of CSR
Strategic in CSR refers to incorporation of the holistic CSR viewpoint within the
company’s strategic based planning or centre operations so that industry is handled in interest of
a huge set of the stakeholders to attain higher economic or social value over medium to the long
run”. There is some strategic planning of CSR;
 Promoting strong or Inclusive company Cultures.
 Designing business Goals with the quantifiable Impact.
 Aligning society Impact based Goals with the industry Practices.
 Socially Responsible firm influence their foundation of Capabilities.
Challenges of CSR
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There are some challenges of CSR that;
 The Demand for more Transparency as well as Disclosure.
 Pressure from other Investors.
 Corporate or business Culture or Differing the Priorities.
 Connecting the CSR to Chain of Value or Profitability.
Impact of sustainable or CSR strategies to company’s performance
In context to Tesla Company, while it was extensively held in the preceding decades that
industry should only the focus on company’s bottom lines, past decade has been seen the change
in this thinking of society and company’s owners. In fact, 77 percent of the consumers are said
they would make payment more for goods and services from tesla if they are socially or
environmentally is more responsible. Tesla have positive impact of CSR activities on their
business performance. Company focus on society and their welfare in more effective manner and
they perform some activities on regular basis for improve their brand image and values as well
they want to do something for social welfare.
Besides possible loss of the socially conscious customers, CSR affects a business’
aptitude to the attract top level talent or impact staff’s satisfaction of job levels or retention
levels. The future generation of staff currently entering employees seek out the employers with
the clear or effectual CSR strategy (Munro, 2020). Many customers of Tesla company have huge
involvement in their company’s CSR activities and they are support to industry in well manner
for their better growth and for development of community. Additionally, businesses that the
practice CSR have happier or more satisfied staff. This is because workforce feel working for the
socially conscious employer provides them the sense of purpose. Also, company practicing the
corporate social responsibility to invest extra in their staff or work harder to make a company
that staff enjoy returning regular day. Provided that current average in country for staff tenure is
the 4.2 years, execution an the expansive or effective CSR strategy can support employers to
retain their present staff for longer time.
The rise of the social media has also affected importance of the corporate social
responsibility. In current scenario, industry with the unethical company practices are exposed the
harshly on a social media or can have their better reputation injured greatly in the matter of few
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hours. Otherwise, social media also the works as tool to the highlight firms implementing CSR
and those with the ethical company’s practices, which are can lead more sales, a maximum
customers reach as well free the positive publicity.
Corporate social responsibility impact business performance rate in various way. It support
to raise financial performance of firm so that business will boost quickly or increase huge profit
in market. If a Tesla will perform the CSR or try to assure company’s stakeholders then it will
the certainly able to beat the competitors. From last few the decades there is quick success in
corporate social responsibilities problems or activities (Roszkowska-Menkes, 2018). “Due to the
more awareness in shareholders or society company about requirments of CSR, there is the long
argue arises among them which who get remuneration or who will bear the rate of executing
CSR actions”. Overall the CSR activity has positive impact on business through this company
sustains for longer period of time and they have good brand image in different marketplace and
countries. They provide best quality to customers and people also attracted towards this brand
because of their values and good will in market.
CONCLUSION
It is concluded the above report, CSR activities are play huge role in better growth of
company and increase brand image as well as values in marketplace. Corporate social
responsibility every company adopt now days for their better business values. To understand in
well manner in above report there are two approaches are discussed in terms of company. Both
approaches are helps in understand the concept of CSR and its benefits to the business
management. There are some strategic planning are explained through company can perform
their CSR activities in right direction. While performing the CSR there are lots of challenges
which may faced by company and those are affect the business growth to overcome from those
company need to take some effective steps which are favorable for business. CSR always have
favorable impact on performance of business and helps to company for achieving the goodwill
and more success.
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REFERENCES
Books and Journals
Bhatia, S., Gupta, G. and Tripathy, A., 2020. The strategic corporate social responsibility (CSR)
quandary: an instructional case. Emerald Emerging Markets Case Studies.
Brin, P.V. and Nehme, M.N., 2019. Corporate social responsibility: analysis of theories and
models.
Chomvilailuk, R. and Butcher, K., 2018. The impact of strategic CSR marketing
communications on customer engagement. Marketing Intelligence & Planning.
Conway, E., 2018. Sustainability, the Triple Bottom Line and Corporate Social Responsibility.
In Contemporary Issues in Accounting (pp. 15-35). Palgrave Macmillan, Cham.
Hussain, N., Rigoni, U. and Orij, R.P., 2018. Corporate governance and sustainability
performance: Analysis of triple bottom line performance. Journal of Business
Ethics, 149(2), pp.411-432.
Kim, Y. and Woo, C.W., 2019. The buffering effects of CSR reputation in times of product-harm
crisis. Corporate Communications: An International Journal.
Munro, V., 2020. CSR for Purpose, Shared Value and Deep Transformation: The New
Responsibility. Emerald Group Publishing.
Nicoara, C.A., Palihawadana, D. and Robson, M.J., 2019. Strategic CSR and the CSR strategy-
making process of international business. In Socially responsible international business.
Edward Elgar Publishing.
Pan, X., Sinha, P. and Chen, X., 2021. Corporate social responsibility and eco‐innovation: The
triple bottom line perspective. Corporate Social Responsibility and Environmental
Management, 28(1), pp.214-228.
Roszkowska-Menkes, M.T., 2018. Integrating strategic CSR and open innovation. Towards a
conceptual framework. Social Responsibility Journal.
Sayyadi, R. and Awasthi, A., 2018. A simulation-based optimisation approach for identifying
key determinants for sustainable transportation planning. International Journal of
Systems Science: Operations & Logistics, 5(2), pp.161-174.
Soucy, C., 2018. The Changing Tide of Corporate Social Responsibility.
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