Business and Society: Tesla's CSR and Financial Performance Analysis

This report provides a comprehensive analysis of Tesla's business operations and its impact on society. It begins by examining Tesla's organizational structure, highlighting its managerial approach and its role in supporting business expansion. The report then delves into an analysis of Tesla's stakeholders, exploring how they influence the company's financial performance, including customers, employees, investors, and the government, and how Tesla addresses their needs. Furthermore, it evaluates Tesla's corporate social responsibility (CSR) initiatives, discussing their effectiveness in addressing stakeholder concerns and suggesting areas for improvement, particularly regarding transparency and comprehensive sustainability reporting. The report concludes by acknowledging Tesla's contributions to sustainable energy while emphasizing the need for enhanced CSR practices to better meet the expectations of its diverse stakeholders.

Running head: BUSINESS AND SOCIETY
BUSINESS AND SOCIETY
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Author Note

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Question 1
A company’s organizational construction is the system and outline that describe the patterns
of connections amongst the workings of the company. Tesla has a managerial structure that
supports business expansion (Stringham, Miller & Clark, 2015). In case of business analysis
of Tesla, the managerial structure obtains a conventional form, allowing for the company’s
decision-making center and control, all along with restricted prepared development in the
worldwide market. Tesla is a manufacturer and producer of products such as electric vehicles,
batteries, astral panels, and connected transport and power solutions and therefore, uses its
business construction to smooth the development of widespread organization of the
association. The company tends to maximize its capability to put into practice new policies
and direct its operational actions and objectives via its managerial structure. Tesla’s
operations management is reliant on the efficiency of the industry construction in sustaining
tactical alterations and implementations. Tesla manufactures and produces not only electric
automobiles but as well considerably scalable spotless power invention and storage space
products. Tesla considers that the quicker the world stops and ends relying on fossil fuels and
shifts towards a more zero-emission in the future, the better it is. To achieve the objective of
having the safest plants in the earth, Tesla is captivating a practical move towards to safety,
needing manufacturing employees to contribute in a multi-day preparation agenda previous to
ever setting bottom on the plant floor (Hardman, Shiu & Steinberger-Wilckens, 2015). The
effect is that Tesla’s security speed continues to get better while Model 3 construction slopes.
The two factors of external environment are threat from new entrants is low as they have their
own niches. The threats from substitutes are also low because there are limited choices for
substitution of vehicles. People prefer bus, trains, and fights for long distance travelling and
usually prefer their own vehicle. These factors contribute in the success of the organization
and accelerate the transition of the world to sustainable energy.

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Question 2
The five ways in which the stakeholders of Tesla can influence the financial performance are:
 One of the main wellbeing of communities being primary stakeholders of Tesla is to
protect the environment. Tesla is trying to meet the needs of the community’s interest in
society custom of new and higher technologies. The CEO of the company, Elon Musk
announced that Tesla would permit other organizations to use the company’s patents so
that more and upgraded products can be produced with latest technology which will
increase the revenue of the company (Fleming, 2013).
 The customers influence the income of the company and are worried about the quality
and justified level of the price. To meet this requirement, the company is trying to reduce
the cost of the batteries for reducing the overall cost of the product and produces its own
batteries so that people come and buy from them.
 The employees are a crucial part of the business and they are responsible for the
productivity and performance of the company. Therefore, the management is driving new
policies and programs for the welfare of the employees so that they remain with the
company for long term and continue to meet new opportunities and challenges across the
globe.
 Investors are vital for the capitalization and cash flow of Tesla. Shareholders and the
investors are majorly concerned with the profitability and expansion of the business. The
corporate social responsibility of the company is trying to meet the needs by using long
term strategies. Tesla can develop more by letting other groups using its patents which
widen the brand numbers and products (Van Den Steen, 2014).

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 Tesla is also dependent on government activities. Government is only concerned but
the legal and compliance of the company and donation to the state financial growth.
Tactical plans of the worldwide expansion and an outstanding record of Tesla completely
satisfies the government interests, thus scaling up the revenue.
Question 3
Tesla’s corporate social responsibility (CSR) pains are acceptable in tackling the wellbeing of
the majority of its stakeholders. However, the business can develop its CSR programs to get
better its presentation in sustaining communities and investors or shareholders. For instance,
to improve CSR efficacy in pleasing communities, Tesla can put into practice new society
growth programs (Vasiľová & Drábik, 2013). Also, the business must add to its hard work in
global development to deal with the interests of shareholders or depositor in advantage from
the automotive industry. Tesla manufactures electric automobiles, power storage space
systems and astral panels. These goods are professed to encourage ecological sustainability
and this awareness is efficiently incorporated into company’s advertising announcement
message. Tesla’s lack of care towards issuing a yearly corporate sustainability account
recounting the company’s policies, plans, presentation, and development targets on material
ecological, communal, and authority (ESG) subjects is one of the numerous ways the
corporation varies from its competitors in the industry. The substitute fuel vehicles producer
reveals merely a little fraction of its CSR routine for promotional reasons. For example,
website of Tesla exemplifies real-time tailpipe emission decrease from past increasing miles
determined by the universal Tesla vehicle fleet. In contrast, approximately all community
vehicle companies counting BMW, Cooper Tire, Delphi Automotive, Ford, GM, Daimler,
Toyota, Volkswagen, BorgWarner, and Honda frequently connect in a complete
sustainability coverage as a normal business put into practice. As of rising force from
business stakeholders in broad and shareholders in exacting, usual Tesla CSR information are

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predictable to be available from 2019 (De Pin, 2015). Furthermore, Tesla’s CEO Elon Musk
believes patents just as label to proceedings and electric motor vehicle batteries urbanized by
Tesla are not original and the automobile designs are unlock foundation as well. On the
whole, CSR-related actions encouraged by the business are imperfect to possible release
reductions by means of using electric automobiles and categorizing a lot of technical growth
as open basis. The corporation proclaims no additional information about Tesla CSR agenda
and proposals.

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Stringham, E. P., Miller, J. K., & Clark, J. R. (2015). Overcoming barriers to entry in an
established industry: Tesla Motors. California Management Review, 57(4), 85-103.
Van Den Steen, E. (2014). Tesla Motors. Harvard Business School Case, 9-714, 413.
Vasiľová, M., & Drábik, P. (2013). Eco-innovation and Sustainable Business
Models. Current Challenges of Marketing and their Application in Practice:
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