Corporate Social Responsibility in Automotive Industry

TEAM 1 COMPANY Aziz Ford Motors Manyano Daimler Magally Toyota Anvesh Tata Motors executive Summary Automotive Industry is bingle of the biggest economic sectors in the earth and the invasion they have to the communities in their best practices has a huge usefulness promoting corporate social responsibility. We looked and discussed various coming backs of CSR in the report not especial(a) but including Investing in the future day, Technology Drives Change Electric elevator cars, Materials and men Implications. Global Automotive IndustryThe spheric automotive industry involves the manufacture and gross gross sales of automobiles and other retail activities, such as gas-station retail and the sale of car parts. The industrys yearly growth rate is expected to croak 5. 5% from 2010 to 2015, reaching a cherish of more than $5,132 gazillion by 2015, accord to research from MarketLine. The industry is a leading employer throughout the world, with 9 one million million pack refer in making 60 million fomites, or 5% of orbiculate manufacturing stocks. Indirect craft from automotive drill is fivefold, representing 50 million jobs connected in right off to the auto industry.Regional Market dispense * US vehicles sales and production account for almost 40% of the global automotive industry, according to Global Automakers, whose members have contributed close to $45 billion to US automotive activity. The investment represents 300 facilities and employment for around 80,000 people with a combined yearly payroll of $6 billion. Leading US manufacturers include Ford, General Motors and Chrysler Group. * The europiuman automotive market is led by production in Germany, Italy and France. In the EU, the industry employs 2. million people directly and almost another 10. 5 million indirectly, according to the European machine Manufacturers Association. The region produces more than 17 million vehicles a year, representing a crap of overall global product ion. * Overall, lacquerese market share fell around 4% year-on-years to just under 35% in August 2011. Japan holds around a 45% share in both the shove car and compact crossover markets, and 48% in the mid-size car market, according to a Kelly Blue Book report AUTOMOTIVE INDUSTRY CSR ISSUES valet Rights * Commitment to HR and the UNGC, honor human rights delineated in the planetary Bill of serviceman Rights * Ensuring that HR and WC are met throughout the put out mountain chain * Vehicles have to meet high quality and safety standards before existence available for the public * Companies have to be committed to educational and health programs and work close with governing bodys and NGOs in this direction crusade Standards * Rejection of forced labor and child labor * Rejection of discrimination in employment and occupation * Low-Cost Labor and bad workings conditions in growth countries * The manufacturing of vehicles is concentrated in developing countries due to the c heap labor and hopeless thespians * Respecting the freedom of associations and unions * The companies should consider the flexibility and stability of employees job guarantor when they shift from well-trained, high-skilled work force to low skill and wages job Environment * cut ballparkhouse gas emissions (GHS) * Developing advanced vehicle technologies * Hybrid vehicles and advanced diesel * Reducing the environmental impact of the plants * Reducing the impact of waste by recycling the products * Commitment to decrease global water use * Providing road safety in developing countries * The intention of these projects is reducing car accidents * Trainings aimed at increasing usage of seat bang and helmet * Ensuring that Green Supply Chain Management incorporating ecological aspects into the whole value chain Anti-Corruption * Expanding of automotive industry in BRIC countries, as well as Indonesia, Mexico and other developing countries * Auto companies may be vulnerable to graf ting demands by custom clearance, government officials and third party agents * Transparency * Introducing mandate online training courses for employees with focus on ethics, conflicts of interests, gifts and favorsCOMPANY RANKINGS BY CSR ISSUES(10 is the highest rank) FORD DAIMLER TATA TOYOTA Human Rights * Commitment to the UNGS * Product safety * Educational and health programs 8 10 3 5 Labour Standards * Low-cost labor and bad working conditions * Respecting the freedom of switch over unions * Rejection of forced labor 8 9 2 7 Environment * Reducing putting surfacehouse gas emissions (GHS) * Reducing the impact of waste by recycling * Developing advanced vehicle technologies 6 8 3 7 Anti-Corruption * Transparency * Vulnerability to bribery demands by custom clearance * Providing training on ethics and gifts 7 6 2 6 TOTAL 29 33 10 25 Rankings explanation TOYOTA Toyota deserves a medium be within their labor in Human Rights for two main reasons. First, two years ago Toyota ha d a big issue with product safety.Consumers complained about situation but Toyota did not take responsibilities. After investigations were done, Toyota understood the big mistaken they have make and finally apologize to its consumers. Second, Toyota as s group has not sign-language(a) the 10 principles of the UNGC. Particularly in China, Toyota has not respected workers in variant factories. At the same time, there has been different complains in regards to the wish of respect towards labor unions. As mentioned previously, Toyota is one of the leaders for the discipline of friendly environmental innovative technology TATA Tata in general has poor performance regarding CSR issues discussed. thither are many problems in all areas.Though environment sustainability drive is in the core business plan of Tata motors and CSR is incorporated in their article and memorandum, it is strongly recommended that monthly reports to be shared with public and also the focal points how they eva luate GHG and other gases emission and what steps they are taking in next to reduce water and air pollution. Finally though Tata is transparent friendship in her act and its a visionary company, but in few instances employees of Tata found involved in some unethical trade practices just to get benefit out of it, i. e. in singur land erudition case it is claimed that Tata motors are involved in bribery to west Bengal government machinery. Also in big government tenders or military purchases Tata motors involved in bribery to get that order. Tata is signatory to UNGC but there is no means to control and check anti-corruption reputation of Tata. DAIMLER Daimler gets a high be in human rights and CSR pillars implementation.Promote Daimlers sustainability and corporate social responsibility (CSR) agendum in every country they have operations is by overhaul as liaison to UN Global Compact organize Daimlers annual Sustainability Dialogue to increase visibility as a leader in CSR and exchange ideas on innovation and environmental stewardship, strategies for community engagement, and CSR in the supply chain.? Support EAPP sponsorships and events by ensuring compliance with corporate regulations, i. e. draft sponsorship agreements, oversee communications initiatives, monitor progress, and ensure contract provisions have been carried out as agreed upon Daimler, the owner of Mercedes-Benz, admitted to paying tens of millions of dollars of bribes to foreign government officials in at least 22 countries. The company said it had now reformed the way it did business. FORD Low ranking on environment and high ranking on human rights.Working with industry companies, governments to establish effective frameworks for reducing GHG emissions In Europe since 1995, Ford has reduced CO2 emissions from passenger cars by 31 percent Ford-Firestone issue happened in 2000 when Firestone recalled 6. 5 million tires, mostly pilot equipment on Ford Explorer, the worlds top-selling spor t utility vehicle. The lack of safety in supply chain a report by the Institute for Global Labor and Human Rights said that a 21-year-old worker lost three fingers in a stamping machine at one of Fords suppliers in China and was inadequately compensated. Ford continues making and marketing its SUV line vehicles which are fuel-thirsty. Conclusion Investing in the Future Automakers have announced billions in green investment in the US, Europe and BRICs industries.But despite that huge investment a rebound in sales management appears to concerned management hence the slow pace of green about the rebounds permanence. Technology Drives Change The pace of vehicle technology change is accelerating. Vehicles are changing in response to consumer savvy and expectations, higher safety standards, and the drive toward a low-carbon future. Greening of automotive cargo ships should focus the three sectors Hybrid and electric cars, materials and electronics. Electric cars The most noteworthy ch ange is the re-emergence of the electric vehicle. The development of alternative forms of energy storage (primarily batteries) is cursorily progressing as is the case with the reinvigorated Mercedes Benz E-class electric car.Materials The focus on green supply chain management will make vehicles lighter for amend fuel economy is a major driver in the development of automotive materials and forming. Workforce Implications Todays auto industry workers pauperization systems thinking. That means that individuals must possess the soft skills that enable cross-cultural communication, collaboration and teamwork. Production and skilled-trades workers must adapt to an increasingly fast cadence of new product, process and technology introductions. Many of the workers displaced? from the auto sector will? pick out to transition to alternate occupations and we recommended that companies be flexible and provide stability to this issue particularly where there is a high practice of contract w orkers. Bibliography