Corporate Social Responsibility in Automotive Industry

Topics: Automotive industry, General Motors, Ford Motor Company Pages: 5 (1509 words) Published: November 19, 2012
Aziz| Ford Motors|
Manyano| Daimler|
Magally| Toyota|
Anvesh| Tata Motors|

Executive Summary
Automotive Industry is one of the biggest economic sectors in the world and the impact they have to the communities in their best practices has a huge advantage promoting corporate social responsibility. We looked and discussed various issues of CSR in the report not limited but including: Investing in the Future, Technology Drives Change Electric cars, Materials and Workforce Implications.

Global Automotive Industry
The global automotive industry involves the manufacture and sales of automobiles and other retail activities, such as gas-station retail and the sale of car parts. The industry’s yearly growth rate is expected to exceed 5.5% from 2010 to 2015, reaching a value of more than $5,132 billion by 2015, according to research from MarketLine. The industry is a leading employer throughout the world, with 9 million people involved in making 60 million vehicles, or 5% of global manufacturing jobs. Indirect employment from automotive activity is fivefold, representing 50 million jobs connected indirectly to the auto industry. Regional Market Share

* US vehicles sales and production account for around 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 European automotive market is led by production in Germany, Italy and France. In the EU, the industry employs 2.3 million people directly and almost another 10.5 million indirectly, according to the European Automobile Manufacturers Association. The region produces more than 17 million vehicles a year, representing a quarter of overall global production.  * Overall, Japanese market share fell around 4% year-on-years to just under 35% in August 2011. Japan holds around a 45% share in both the compact car and compact crossover markets, and 48% in the mid-size car market, according to a Kelly Blue Book report

Human Rights| * Commitment to HR and the UNGC, respect human rights delineated in the International Bill of Human Rights * Ensuring that HR and WC are met throughout the supply chain * Vehicles have to meet high quality and safety standards before being available for the public * Companies have to be committed to educational and health programs and work close with governments and NGO’s in this direction| Labor Standards| * Rejection of forced labor and child labor * Rejection of discrimination in employment and occupation * Low-Cost Labor and bad working conditions in developing countries * The manufacturing of vehicles is concentrated in developing countries due to the cheap labor and unskilled workers * Respecting the freedom of associations and unions * The companies should consider the flexibility and stability of employee’s job security when they shift from well-trained, high-skilled work force to low skill and wages job| Environment| * Reducing greenhouse 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 objective of these projects is reducing car accidents * Trainings aimed at increasing usage of seat belt 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...

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