Tesla, Inc.: Ethical Business Practices

Introduction

Tesla, Inc. strives to improve lives by introducing electric-powered automobiles. The corporation seeks to develop its ecosystem through its vision and mission. Its vision states that it is to create the most compelling car company of the 21st century by driving the world’s transition to electric cars (Li, et al., 2021). The main sector that Tesla focuses on is transport and energy. The mission is to accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible (Li, et al., 2021). The company has succeeded in meeting its objectives through increased production of various car models used today.

Ethical Business Practices and Social Responsibility

Tesla’s supplier code of conduct is the core foundation on which the company was built. It is essential to ensure corporate growth while maintaining social standards and being environmentally friendly (Sypko, 2022). All the suppliers are mandated to propel the company through meeting their duties, such as keeping an up-to-date record. All workers are guaranteed a safe work environment in which their health is not endangered. Tesla, Inc. has laid guidelines that are to be followed diligently by all suppliers with no exceptions. The company treats its suppliers as a family and strives to ensure that they all uphold their ethical conduct (Sypko, 2022). The company’s primary goal is to meet all its objectives while maintaining a social and environmental environment.

Empowering Workers

Suppliers endeavored to respect all workers, their rights, and their dignity. Tesla, Inc. has always treated its workers with high regard, striving to empower them to grow in their careers. The company also organizes routine seminars and conferences through which its workforce is trained on new skills and knowledge (Ahmad & Khan, 2019). This enables them to develop themselves at personal levels, competence, and careers. Additionally, Tesla, Inc. provides opportunities for talent exhibitions through which employees with specific skills are empowered to grow and make them productive. The company has internal and external promotions and rewards for best performance.

Labor and Human Rights

The company has upheld the labor rights of the US Constitution, and it only hires qualified staff and those within the appropriate age limit. Any person under 18 is prohibited from serving at any level. All workers are set to work only with the legal hours of 60 per week (Ahmad & Khan, 2019). The company alternates them in shifts to ensure there are no burnouts. Overtime work is voluntary, and it is well compensated for with allowances. The corporate pays its workers high wages above the country’s minimum wage rates. The payments are made on a timely basis to enable them to work comfortably. Further, all employees in the company receive humane treatment regardless of gender, race, or social background (Ahmad & Khan, 2019). Discrimination and harassment within the company facilities are also prohibited, and each person has the freedom of association and expression. In case of any harm sustained while at work, the corporation takes full responsibility for providing medical care and compensation.

Health and Safety

Health and safety are an obligation that every corporation should strive to meet. Tesla, Inc. has made it essential for its supplies to meet safety standards. They should promote a safe environment for every personnel. Waste management guidelines are also outlined to ensure that segregation occurs to prevent any dangers that may hinder the health and safety of people. Tesla, Inc.’s partners are to adopt all government laws and regulations applicable in maintaining a free and clean environment. All health hazards, such as chemicals, and electrical appliances, are handled by experts, and necessary precautions are taken to ensure it is safe (Hastig & Sodhi, 2020). Reasonable measures, such as preventing vulnerable persons like pregnant women and nursing mothers, are also taken to minimize the risk. The units have qualified medical practitioners who are always ready for any emergency. They serve to protect and treat any injury or illness. Hygiene standards are also maintained to ensure no disease develops.

The Environment and Accountability

The United States government has formulated the laws and policies governing each business. Each supplier associated with Tesla, Inc. has to follow them precisely for them to do business with the company. Suppliers must acknowledge their role in protecting the environment per the country’s code. They should all obtain environmental permits, approvals, and licensing from regulatory bodies (Hastig & Sodhi, 2020). The suppliers must maintain pollution prevention by minimizing emissions and discharges that endanger the environment. No company can modify the products one produces or substitute any material. Any harmful product should be identified and labeled. Solid waste that could cause problems should be disposed of carefully. Each supplier must also adhere to all customer needs on the product. To promote responsibility, the supplier is to be held accountable. for any misconduct within their company. Any danger posed to the environment, and the workforce directly or indirectly should be resolved promptly.

Changes in the Last Years

Over the years, Tesla, Inc. has sought to improve itself and its services by adopting new operation methodologies. The main changes include restructuring the supplier code of conduct and introducing new laws, such as prohibiting child labor (Ahmad & Khan, 2019). This resulted from the rise in child labor trends, especially in developing nations. Another change is the formulation of safety policies in China following the issues of the dumping of waste. Poor waste segregation has made it difficult to guarantee safety. Car battery manufacturing has also been improved to enhance efficiency.

How the Code Promotes Social Responsibility

Tesla’s supplier code of conduct is vital in maintaining the corporation’s social responsibility. The company seeks to uphold safety and a conducive environment per the CSR strategy. The suppliers’ code of conduct has promoted the product’s safety and met the social role of satisfying the customer’s requirement (Ahmad & Khan, 2019). The code has also enhanced the preservation of the environment and ensured all rights of each stakeholder are upheld.

Conclusion

Developing a supplier code of conduct is a comprehensive action that should include all stakeholders of the business. They include representatives of the company’s administration, government policymakers, employees, suppliers, and consumers. The management team will communicate the mission and vision of the company and how the code should be streamlined to meet the objectives (Ahmad & Khan, 2019). An official from the government will ensure that the code is established as per the country’s laws. The concerns of the workforce both at Tesla and from the supplier companies will hire the concerns of their members to ensure that they are well protected under the code. The customers are the final consumers of the product and their interests and requirements are essential to business success. They will play a role in ensuring that they are served well and protected against any form of harm.

References

Ahmad, S., & Khan, M. (2019). Tesla: Disruptor or sustaining innovator. Journal of Case Research, 10(1). Web.

Hastig, G. M., & Sodhi, M. S. (2020). Blockchain for supply chain traceability: Business requirements and critical success factors. Production and Operations Management, 29(4), 935-954. Web.

Li, Y., Lin, J., & Xu, S. (2021). Analysis of Tesla’s business model: A comparison with toyota. In 2021 International Conference on Financial Management and Economic Transition (FMET 2021) (pp. 30-39). Atlantis Press. Web.

Sypko, D. (2022). Time-based competition in Tesla´ s supply chain in the era of industry 4.0. pp. 8-36. Web.

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BusinessEssay. 2023. "Tesla, Inc.: Ethical Business Practices." December 19, 2023. https://business-essay.com/tesla-inc-ethical-business-practices/.

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