Corporate Social Responsibility Essay Example

CORPORATE SOCIAL RESPONSIBILITY

Introduction

Corporate social-responsibility (CSR) is basically a commitment to make an improvement in the well-being of a community though optional business-practices and the contributions of various corporate-resources. It is based on the knowledge that a (firm) business is a social-asset. CSR therefore, refers to all the activities that are undertaken by a company or a corporation (business) in order to promote positive relationships with all the shareholders (customers, owners, investors and the general public) within and outside of the organization with or without the objective of profit generation. Corporate social-responsibility comprises of social obligations, social reaction, social responsiveness, and ethical and legal behaviour. The principles of corporate social-responsibility remind the automobile industry of the right thing they are supposed to do in all their decision-making processes and actions. In whatever the automobile industry do they must be responsible enough to better improve the environment that has been greatly damaged by the consistent activities of this industry (Kotler and Lee, 2005).

This report makes a brief introduction of the ideas beside corporate social-responsibility and in particular it narrows down to the corporate social-responsibility that is undertaken by the automobile industry. The first section of the report deals with environment issues that need to be considered while undertaking CSR. The second section of the report deals with the safety measures that should be taken to ensure there is no conflict between the automobile industry and the environment. The third section deals with community welfare that the industry must be fully involved in promoting the well-being of the community. The report has shown that the automobile industry has to take part in CSR and avoid
doing more harm than good. It is true that the industry is in good business but still there are negative effects of its activities and it is thus socially obliged to reduce these harmful effects to the minimum. The report concludes by looking at how in specific the environment has been affected and the measures that have been put forward by the automobile industry to avert the situation.

Environment:

There exist a disagreement between automobile-industry and the “environment activists”. A lot of pollution is released to the environment which if not checked would lead to environmental degradation. The automobile industry should have a sense of social obligation whereby it is expected to operate in an honorable way even as it pursues its profit objective within the confines of law relating to environmental conservation. The industry is also required to be socially-reactive in that it is expected to improve the quality of environment in and outside its confines (Bacher, 2007). Furthermore, the automobile industry is ought to be socially-responsible in that the expectations are that the industry is a good steward of all the factors-of-production and especially protection of the environment. In this case, the industry is expected to have an anticipatory approach to ensure both safety and the welfare of the community. In addition, the automobile industry is expected to have a clear guideline as to the code of conduct of the different stakeholders thus reducing the conflict. This report discuses various aspects of environment and makes their comparison in relation to four automobile companies. These aspects include; emission of carbon dioxide gas, the pollution which is caused during the automobile production process, used material-recycling in the manufacture of the automobile.

Emission of carbon dioxide: reduction of carbon dioxide emission is critical to combating the problem of global warming. Toyota Company has come up with a new generation of Prius Hybrid car which improves energy-efficiency through the use of new technologies. GM Company has succeeded in the reduction of carbon dioxide emission from its factories for more than 39% which has been made possible due to its adoption of solar energy, the hydro and the land-fill gas (renewable resources). Audi Company uses an aerodynamic (a body technology and electronic assistance system) in the engine and drive systems to reduce the emission of carbon dioxide. The company has also joined hands with scientist to research on the type of trees that would better absorb carbon dioxide; absorption of carbon dioxide will definitely reduce the level of the gas in the environment. The Audi Company stands to archive the best results in the reduction of the carbon dioxide gas since its participation in tree planting will also help in purifying the environment and majority of public will associate with such a company.

Pollution caused when production is in progress: Holden Company is in process of availing alternative energy-resources. E10 ethanol which is compatible with Holden vehicles is a renewable resource and can be used as a perfect substitute for petrol and thus reduce over reliance on fossil fuels which contribute significantly to environmental pollution (William et.al, (2010). Recycling: this enhances effective utilization of “raw and processed materials” in the making of automobile leading to a noticeable decline in energy-consumption. Toyota Company operates car-recycling in the design, production, and use of disposed Toyota cars.

It is important for automobile-industry to use the “renewable energy-sources” that can help decline over-reliance on fossil-fuels. The industry should recycle some of the raw materials and also the used car parts (Hawkins, 2006).

REFERENCES

Bacher, C. (2007) “Corporate Social Responsibility” New Delhi: Grin Verlag.

Hawkins, D. E. (2006) “Corporate social responsibility: balancing tomorrow’s sustainability and today’s profitability” Palgrave: Palgrave Macmillan

Kotler, P. and Lee, N. (2005) “Corporate social responsibility: doing the most good for your company and your cause” New York: John Wiley and Sons.

William, B. et.al (2010) “Strategic Corporate Social Responsibility: Stakeholders in a Global Environment” California: Sage.