Ch. 3 - Ethics & Social Responsibility

There is much debate in recent years over the impact of our consumption needs on the environment. Everything from waste disposal, pollution, and use of natural resources is on the plate in such discussions, where is becomes exceedingly clear that there is no one solution, and not one side responsible for damages or answers- but that an effort must be made on all accounts if we are to bring balance to our world again. One thing is certain- many people look at corporations as the culprits since environmental pollution is widely product based in one way or another, and finger pointing is as part of humanity as driving a car.

In examination of Tesla Motors Corporate Social Responsibility (CSR) we may look fist at the definition of sustainability as it relates to their business model and practices. Sustainability is "the idea that the socially responsible companies will outperform their peers by focusing on the worlds social and environmental problems and viewing them as opportunities to build profits and help the world at the same time."

To begin with, urban pollution in many of the worlds large cities due to exhaust fumes emitted by cars is one of the top on the list of environmental and health concerns. Electric car companies have come and gone over the last few years (Fisker, A Better Place, etc.) trying to give an alternative to the fossil fuel domination of the auto industry, all of which have collapsed due to financial or other factors. Companies producing electric cars face opposition from the natural habit and distrust of the consumer, and the heavy lobbying of oil companies and other auto producers, making it an exceedingly risky endeavor to pursue. Although large car manufacturers produce single models of electric cars, they have no whole-hearted transition in that direction as of yet.

Despite all risks involved Tesla is committed to this long term battle over market share and environment resolution. As mentioned earlier, Tesla is investing millions in the nation wide infrastructure development of the free-to-use Supercharger stations, an expensive move in a risky, virtually non existent market of electric cars (<1% of auto market share 2012). So why invest so much in such an uncertain future? The business side of that argument would say that Tesla is building the foundations for a market to emerge into, allowing them to create the market they would eventually lead in. This of course goes hand in hand with the green ideology that the more people use zero emission vehicles the better- should Teslas market share pick up, the boon to the environment would rise alongside their stock value, and everybody wins.