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Corporate responsibility in the Automotive Industry

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Janil J.
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  1. Introduction.
  2. Problem statement.
  3. Industry overview.
  4. Discussion.
    1. Value creation and responsibility.
    2. Corporate social responsibility in the automobile industry and the need to be responsive.
    3. What makes an organization credible.
    4. The corporate sector - irresponsible and immoral.
  5. Conclusion.

Organizations work for the consumers and claim that they are the ones who make it possible for the generation of goods and social benefits. On the other hand consumers are of the opinion that organizations exist because of consumer endorsement. Organizations would not be possible had it not been for the selection and preference. These are two of the views that prevail in the corporate sector when arguing social responsibility. The proliferation of the issue over the years has increased due to the number of cases where organizations are considered to be socially irresponsible. For example the oil spill in Iraq, Nike's sweatshops in Thailand, Shell's political involvement in Nigeria and child labor in Pakistan. But that is not the only areas that raise issues regarding the corporate responsibility.

[...] What this suggest as Friedman says is that corporations are forced to become responsible; they are not interested in making sure the plants are safe or the products or equipments installed are safe. The reasons why they follow these safety procedures is that they want to ensure that the public does not rebuke and decrease their sales which ultimately reflect on their profitability. For this reason one see that automotive companies argue that they take all the measures that are required by law but very few would claim that they do it for the safety interest. [...]


[...] This is imperative as Wood (1991) views and define corporate social responsibility: business organization's configuration of principles of social responsibility, processes of social responsiveness, and policies, programs, and observable outcomes as they relate to the firm's societal relationships." Corporate social responsibility in the automobile industry need to be responsive for several reasons and there are more reasons for why automotive companies need to be observant in their programs and policies. The responsibility of the creation and production of vehicles is reflected in the vehicle's usability and effectiveness. [...]

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