MKTING1102 Final Project: Tesla's CSR and Sustainability Practices

This report provides a detailed analysis of Tesla's Corporate Social Responsibility (CSR) and sustainability practices, focusing on its alignment with Wayne Visser's CSR 2.0 principles. It examines Tesla's initiatives in renewable energy, electric vehicles, and waste management, highlighting the company's use of creativity, glocality, scalability, and circularity. The report also addresses challenges, such as the lack of transparency in climate impact reporting, and offers recommendations for improvement, including the implementation of the responsiveness principle. Ultimately, the report aims to assess Tesla's sustainability efforts and suggest ways to enhance its CSR performance for a more positive environmental and social impact, contributing to a more sustainable future. This report is contributed by a student to be published on the website Desklib.

Running Head: TESLA 0
Corporate Social Responsibility
(CSR)
Sustainability in the Age of Responsibility
Student Details:

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Introduction
In today’s competitive business world, every company is using the approach of
sustainability for attaining a competitive edge in the market. Sustainability is the form of
development in terms of environmental aspects and awareness majorly where companies are
requires to compromise their future generation ability for their fulfilment of needs in terms of
profitability. Sustainable development consists of achieving social and economic aims along
with environment by making improvement and taking initiatives in relation to natural
resources and environment protection and also contributing in social equity and equality
through performing sustainability practices within a company (Katsos, 2018). The purpose of
this report is to focus on the sustainability practices initiated by the company chosen as an
example ‘Tesla’ based on the perception of development of principles in practices of Age of
Responsibility developed by Wayne Visser. In this report, recommendations will be provided
for the company to create more sustainability through utilizing CSR 2.0 Principles.
Tesla and its Sustainability Practices
Tesla is one of the largest electric vehicle American-based manufacturing companies
in the automobile industry headquartered in Palo Alto, California. The products company
offers is electric vehicles “Tesla Energy” with its mission of accelerating the transition to
sustainable energy globally. Tesla makes sure to focus on not relying on fossil fuels and keep
moving towards making future better through zero-emission. In terms of sustainability, Tesla
also introduced Roadster in 2008 with its unique feature of cutting-edge battery technology
and electric powertrain (Baer, 2014). The company decided to create energy ecosystem
entirely sustainable with its unique energy solutions set such as Powerpack, Powerwall and
Solar Roof for managing the generation of renewable energy along with its consumption and
storage as well across the globe. Furthermore, considering sustainability practices, Tesla also
designed facility named “Gigafactory 1” while supporting the company energy and
automotive products for reducing batter cell costs overall (Tesla, 2020).
Tesla believes in creation of higher values in terms of customers and the society by
incorporating sustainability concept as its business strategy. The company focused on
addressing essential sustainability approach considering transition into carbon neutral
economy and the need of new business model in the industry based on transportation on zero

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emissions (Danigelis, 2019). As per the policies of governments for automobile industry
across the globe, they requested to companies such as Tesla for reducing environmental
footprint due to the reason of engines and increasing the energy efficiency while producing
vehicles without making any pollution and consumption of low amount of energy resources.
Here, Tesla used its “minimalistic” approach while following these policies which helps in
reducing environmental problems (Szekely, 2017). Even after focusing on achieving
sustainability, Tesla faced challenges where this approach of the company helped in making
its stability in the marketplace and achieving long-term profits through plant resources
conservation and making contribution towards building a sustainable society.
CSR 2.0
Based on 21st century, Wayne Visser reinvented CSR named CSR 2.0 while looking
towards the failure of CSR 1.0 in some or the other ways in companies adopting
sustainability practices for success and profitability. Previously, CSR involved profit, people,
and planet which failed at some extends with increasing challenges due to its scale and speed
(Visser, 2012). Other than this, CSR 1.0 was approached being more interactive and
stakeholder-driven but still led to some implications where CSR 2.0 was introduced to
embrace the future of companies while showing the Age of Responsibility (Visser W. ,
2010). This considered principles delivering transformation in businesses which are
creativity, responsiveness, scalability, circularity and glocality. Furthermore, CSR 2.0 is
performance-driven, collaborative, integrated, reward-based, diversified, global and scalable.
This made companies to shift towards performance standards, social networks and others in
terms of initiating sustainability practices within companies (Visser W. , 2012). However,
Tesla moved with this model of CSR 2.0 in terms of its journey while facing challenges and
resolving them by taking actions and corrective measures through investing in positive
environmental impact, contributing in the society, creating value in terms of the company’s
products and working under policies and programs initiated by governments across the globe
for achieving sustainability by pushing and building future as well.
Sustainability initiatives in terms of CSR 2.0
Tesla used the principle of ‘glocality’ where the company performed sustainability
practices overall across the globe along with benefiting its own situated country altogether.
Tesla keeps on making positive changes towards sustainability by using appropriate facilities

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to convert energy to power and accomplished through storing battery and using solar energy
systems. Across the globe, the company is still making initiatives at the time of producing its
products for progressing towards using 100 per cent renewable energy within the automobile
industry. While using such sustainable practices, Other than this, Tesla showed the use of
‘creativity’ principle by thinking and directing to solve environmental and social problems.
Tesla is looking for making its production lines greener by spreading the change from
gasoline to electricity for leading in sustainable future with positive environmental impact
(Suresh, 2019). These sustainability practices led the company towards great outcomes till
now where Tesla’s management aimed at increasing the possibilities of reuse the waste along
with decreasing the disposal costs. Hence, this shows the company’s focus on the principle of
‘circularity’ as well where Tesla looked out for the increasing possibilities of reusing the
waste and generate a positive environmental impact.
Tesla is putting its efforts towards doing some for the environment by switching
making products from gasoline-guzzling car to an electric model for maintaining its
sustainability (Field, 2015). The processes and operations of the company in relation to
sustainability efforts showed its zero score in 2018 for its corporate climate governance
assessment. The management of the company achieved the leading position in terms of
climate impact overall but the challenge Tesla faced was not disclosing the CSR and
sustainability efforts management information. This challenge led to the company facing
continuous doubt and scrutiny in relation to its electric cars true environment impact while
also reducing the greenhouse gas footprint overall. The reasons of such allegations and critics
was due to the doubts of energy sources not being carbon neutral, chances of mining of high-
performing metals in manufacturing, presence of difficulty is recycling of batteries, and its
hazardous waste (Britt, 2020). However, Tesla still maintained its position in the marketplace
of manufacturing electric cars better for the environment along with addressing challenges
related to sustainability aspects to work on for future success through driving collaboration
and support from new technology.
One of the Tesla’s sustainability initiatives was its “Master Plan, Part Deux” as a
strategy to get acquired with SolarCity, which is one of the most renowned solar panel
makers. In terms of sustainability, Tesla is one of the automakers that pushed towards battery
power to achieve sustainable energy economy for better future (Eisenstein, 2016). Moreover,
when it comes to thinking about profitability, Elon Musk, CEO of Tesla always choose to
accelerate the use of sustainable transport through electric cars in the marketplace which

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shows the ‘scalability’ principle in terms of CSR. The company’s mission statement focuses
on profitability by bringing sustainable transportation and creating a solar electric economy
(Patel, 2016). In automobile industry, Tesla is making its position through making
innovations in electric cars while earning zero score for positive climate as per the assessment
by the Transition Pathway Initiative (TPI). The company has achieved success in terms of
sustainability with eliminating carbon emissions. However, the issue of Tesla is of not yet
reserved for TPI’s zero score due to its no disclosure of any management information in
terms of spreading awareness related to change in climate.
Recommendations
As per the above sustainability practices initiated by Tesla, there were challenges as
well faced by the company for further growth. The recommendations are made for Tesla’s
positive impact on climate without any unawareness of disclosures based on the ESG
(environmental, social and governance) factors. The company should report every detailing
of management information other than health and safety which includes managing ESG
through making policies and programs (Tesla's Impact, 2018). It is essential for Tesla to use
the principle of ‘responsiveness’ in terms of CSR to maintain awareness across the globe
about its sustainability practices and initiatives taken along with evaluating risks and
opportunities management (McMahon, 2018). It is essential for the company to implement
more CSR practices for aligning with better performance and getting reserved after earning
zero score officially in TPI which is awarded as the highest management score across the
globe in automobile industry. Based on the Principles of CSR 2.0, Tesla should implement
strategies, policies, target improvisation, and performance in terms of ESG practices. Also,
the company should implement strategies for becoming 100 per cent greener by improving its
sustainability overall while retaining its edge (Britt, 2020).
Conclusion
In conclusion, Tesla is one of the best companies in terms of sustainability by
manufacturing electric cars in terms of using renewable energy, reusing waste, creating zero
score in terms of eliminating carbon emissions, positive climate and others ESG impacts. The
company faced issues as well due to criticism of no management information in relation to
climate impact awareness in the automobile industry. Moreover, Tesla followed four
principles of CSR 2.0 which are creativity, glocality, scalability and circularity. Further, it is

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recommended for the company to follow one last principle of responsiveness for profitability
and maintaining leading sustainable position in the marketplace across the globe.

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References
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The Roadster. Retrieved from Business Insider:
https://www.businessinsider.in/tech/the-making-of-tesla-invention-betrayal-and-the-
birth-of-the-roadster/articleshow/45114983.cms
Britt, H. (2020, February 12). Expectation vs. Reality: How Sustainable Is Tesla? Retrieved
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Mary Jo Press. Retrieved from Environmenta Leader:
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from The Rising: https://therising.co/2019/04/23/tesla-sustainability-impact-report/

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Szekely, F. (2017). TESLA becomes a model for sustainable leadership: David and Goliath
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https://www.imd.org/research-knowledge/articles/tesla-becomes-a-model-for-
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