The Position of the US Car Industry in Relation to the Concept of Corporate Social Responsibilities

Résumé du document

Corporate social responsibility can be divided in two different approaches. At first, we will study the wider perspectives and then we will see the narrow perspectives with Friedman's thesis. In the wider perspective, the Corporate Social Responsibility (CSR) is a concept wherein company integrates social, environmental and economic preoccupations. In this perspective, the corporations rely on the contribution of stakeholders rather than just their shareholders. This concept of CSR started in the US half a century ago. Nowadays, this concept is widely adopted because it is advantageous for corporations to act in a socially responsible manner. One consumer in five claims they would pay more for products that are socially and environmentally responsible, according to MORI research carried out in 2000 for the business network CSR Europe. Seven in ten European consumers say that a company's commitment to social responsibility is important when buying a product or service, found the poll of 12,000 consumers across 12 European countries. In other words, the companies which are socially responsible can improve financial performances more easily and rapidly than others.

Extraits

[...] Before using its SUV, the owners must take in consideration the high potential rollover risk in driving is cars for him and his passengers. One other issues rose by the New York Times, was the headlight blinding issues that can be cause by a SUV if a car is in front of them. Once again this problem can be mortal for the other cars, and the SUV drivers need to be aware of that. Nevertheless, the studies aren't always negative for the SUVs. [...]

[...] BAT said it operated to high standards in Uzbekistan, and retained its belief that judgement over how countries should be governed was not a matter for business. Rumours have spread that the company will, however, take action on the government's urging over Burma. BAT is the last UK Company to remain there. US: Top companies failing to address climate risk Most of America's biggest corporate contributers to greenhouse gas emissions, including ChevronTexaco, ExxonMobil and General Electric, are not adequately disclosing the financial risks posed by climate change and are failing to deal with the issues, according to a new study of 20 of the largest companies. [...]

[...] We can also evaluate the US car industry with two main normative theoretical approaches: the ethical egoism and the utilitarianism. According to the case, we can say that there was an evolution of thinking from US car industry. At first, they were in an ethical egoism way of thinking. In fact, US car industry was only based on self-interest with the key goal to maximise long-term benefits. As we already know, they try to develop SUV market share because it is the best market segment to generate profit (Around $10,000 profit per vehicle). [...]

[...] Then, Friedman thesis doesn't extend to “corporate governance”. As an example, in the USA, Europe and Asia many scandal stand out because of management wrongdoings which don't protect their shareholders investment. We can notice that it can appear some conflicts between Executive Directors and Non-Executive Directors in the way to doing business which result in the non-satisfied shareholders objectives. To conclude on this part, we can say that the narrow perspectives just take in account the shareholders whereas in the wider perspectives the stakeholders (employees, customers, the three bottom lines are considered entirely. [...]

[...] Unfortunately, the business was called Enron, and collapsed in 2001 with debts of $ 31.8 bn after it was revealed that its boss had orchestrated a giant fraud. The boss in question, chief executive Jeffrey Skilling, was recently jailed for 24 years for the crime. Critics of CSR argue that Enron is a case in point - that CSR is irrelevant if the essential business practice of a firm is dishonest. [...]