The project will consist of various part; first part will be reflection and after that relevant literature is required to be reviewed on the operations of chosen company. Sustainability and annual report will also be considered for this project.
- Write a self-reflection by considering examples of sustainability issues.
- Discuss offerings of Tesla by considering environmental sustainability.
- Identify stakeholders of Tesla and analyse their interests in CSR activities of company.
- Discuss sustainability benchmark and provide recommendations to the managers of Tesla.
Sustainability is defined to be one of the most talked about aspects in the current business environment. The sustainability approach emphasises on producing products and services which are better than their previous offering and at the same time considers well-being of the community and society which revolves around business (Schaltegger and Wagner, 2011). I have seen that it is not an easy task for an organisation to put sustainability into practice. I believe that the most important factor which makes it difficult to carry out sustainability practices is that they are not included in the internal mechanism of an organisation. The practices of sustainability is considered as a additional burden upon organisation which therefore are not easy to be implemented. The another reason which I thinks stands crucial is that there is a misalignment between sustainability goals of an organisation and financial decision undertaken. They are to be brought in the project later which tend to disrupt the budget and financial planning which are carried out by an organisation.
I think that reason which stands behind not undertaking any practices which relates to benefits of the environment is that it is an expensive approach and organisation operating in the market are bound to achieve profitability for their survival therefore under such circumstances, sustainability practices are kept as secondary which makes it difficult for their implementation. I can say that the business organisation irrespective of their size must attempt to incorporate sustainability practices in their business strategy so that better environmental practices could be carried out. But there is an increase in the awareness amongst the organisation and persuasion of business is encouraging them to carry out sustainability practices as a part of their responsibility towards the society. I believe that there is an hindrance on the part of consumers as well which makes it difficult for organisation to carry out sustainability practices. Consumers are in a habit of purchasing products and services which are priced competitively irrespective of identifying the manner through which they are procured and manufactured.
The preferences and trends which are being set by the consumers makes it very difficult to take risk and provides products and services which are environmentally sustainable (Tukker and et. al., 2017). The consequences of repetition of such practices have made sure that huge losses are incurred by the grounds of social and economic. There is an need for active participation of everyone if looking to achieve certain grounds on sustainability and environmental welfare. I believe that poor sections of society are to considered and there should be an attempt with which their needs and expectations are to be fulfilled. The redefinition of the patterns of consumption have emerged to be an exclusive approach through which sustainability practices could be implemented in the society. I can say that attention of all the concerned is required so that a environment can be protected and preserved.
Section 2- Company's approach in making profit out of sustainability
Tesla is an American organisation which is known to produce electric vehicle, solar panels and energy storage devices. The company is emphasizing on producing products through giving due consideration to numerous elements on the environmental grounds. This organisation have been reported profits in the first quarter of the 2017 which helped this organisation into raising funds for this business (Surprise: Tesla turns a profit for the first time in three years, 2016). The approach to consider profitability is that their shift to produce products which are focused on the mass market rather than their previous strategy of serving niche consumers. The another approach which leads to making profits for the organisation is innovation. According to given case study it is identified that number of institution was established for preventing environment from exploitative activities such as; world economic forum (2013), various statistical reports and so on. Their main objective is to create a nation free from harmful effects and global warming by taking several initiatives. Basically Global competitiveness report 2013-2014 highlights the economies of around 148 nation as their main motive is to encourage society towards development. It is tend to be a risky approach but once successful in the market it can lead an institution in making profits. For instance: the software of self-driving cars which has been launched by organisation have emerged to be profitability and impacted their credibility in the market for raising money from market for future endeavours.
This organisation have recently adopted a strategy which was focused on attaining operational efficiency for an organisation and identification of approaches through which costs can be cut down. The rise in the operational cost can be successfully countered with the cost cutting strategies which enhances chances of an organisation in attaining profits. Therefore it can be said that even after producing goods and services which are sustainable on the ecological grounds this organisation is making profits. The credit for profitability attained by the business can be innovative and operational efficiency which are undertaken by senior management (Ceschin, 2013). It has been identified that senior management have been confident that they does not require additional capital for purpose of launching their upcoming electric cars named as 'Model 3'. the report which has been released by the company for the year 2016, portrayed GAAP profits and have been forecasted that there will be an increase in the profits of the company by 25%. the efforts of this organisation are carried out in transition of world towards sustainable strategy as it has been crucial in uplifting stature of the environment.
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Section 3- Literature section
There can be numerous ways through which sustainability practices can be carried out in respect to an organisation. An organisation can opt for greener technology, prefer for energy conservation and use solar energy in fulfilment of its objectives and targets relating to sustainability. The organisation in this sector is persuaded to stick with their principles of sustainability so that right product could be delivered and not compromising the ability of future generations (Pot, 2011). Mentioning some of the common approaches of which could be undertaken by a business in fostering sustainability in an organisation are as follows:
Mission: This can be referred to an one of the crucial ways through which sustainability can be embedded into the organisational practices and operations. The Mission of the company is to replace with combustion engines with the electric one and to incorporate sustainability practices in the operations which are carried out within an organisation. Considering the mission of the company, major partnership, decisions and supply chain are formed so that target would be fulfilled.
Stakeholder Engagement: It is extremely important to gather participation of all the stakeholders so that maximum impact on the sustainability practices could be created. The another benefit which can be availed is that there will be right execution of the practices and undertaking of the organisation. Communities, employees and customers are also encouraged in undertaking of practices which are more responsible and ethical so that welfare of environment and vulnerable groups can be considered (Jorna, 2017).
Waste Reduction: Operational efficiency is referred to as sustainability concept which has been undertaken by an organisation. This approach persuades employees to use resources in an efficient manner so that there are minimum wastages. In this approach an organisation can employ various tactics which relates to use of automation and lean production approaches so that demands could be fulfilled in the right manner (Gopalakrishnan and et. al., 2012). The waste reduction approaches can be successfully carried out with the help of right allocation of resources so that objectives of the company could be fulfilled.
Measurement and Certification: Measurement and control are referred to crucial approaches when practising sustainability in an organisation. The features of transparency and accountability should be practised by an organisation which assure that the operations which are undertaken are visible to customers and communities involved. The establishment of clear goals and objectives assure that they are measurable after regular intervals and employees are committed in accomplishment of assigned targets (Anttonen and et. al., 2013). The organisation is making initiatives which leads to attainment of bottom line approach and ultimately fulfilling duty of being sustainable in operations of a business.
As per the next case study Beef scandal is determined that foods are containing meat of horses and beef are advertising as high range of meat content in few scenario. Basically, this sparking issues was identified in around 15 January 2013. Apart from this out of 27 nearly 23 samples of beef burgers are consuming DNA of pig also. As a result it create number of problem for environment because it influence the overall surrounding and societal members by harming others in several manner. For example; health issues, destroying of individual norms and so on. Thus, governing bodies are coming with numerous of ideas and initiatives to overcome several issues and problems which is incurred at marketplace. Their main agenda is to prevent society from damages and issues.
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Section 4- Identification of stakeholders
The stakeholders of a this business organisation stands crucial as it attempts to fulfil their views and opinions in the right manner. The electric cars which has been constructed by this organisation can be identified as a major approach through which negatives of combustion engines could be countered. The major stakeholders of Tesla are as follows:
Community: The community for this organisation stands as a highest priority. The organisation have been making numerous attempt in order to resolve ecological issues which are persistent in the society. The offering of this organisation are ensured that there is minimum negative impact upon the community and ecological environment (Laukkanen and Patala, 2014).
Customers: Customers are crucial as they provide a business with revenue which can be further employed by a business in fulfilling their strategy. The company attempts to fulfil demands of the consumers and assure that there is minimum negative impact upon the environment as well.
Employees: The company while constructing its corporate social responsibilities consider employees working for the organisation as well. Employee are one of the most important segment of an organisation as they contribute in making business a success. The company have been taking assistance from the competitive compensation strategy so that they can be retained with the organisation.