Introduction
Tesla, Inc. is one of the pioneers that has continued to evolve in producing electric vehicles that promote the clean energy industry. The company is recognized for its innovative products and continued commitment to sustainability efforts. The company thrives under a constant wave of improvements in its products.
However, Tesla, Inc. faces some minor ethical challenges, just like the rest of the other companies. These challenges demand immediate intervention to ensure that the company continues to thrive and have a competitive advantage. Hence, the paper explores some of the internal ethical issues that affect Tesla, Inc., considering its impact on the organization’s culture, employees, and policies. The research also examines the external factors that influence the company by evaluating the current situation and challenges faced with future decisions and choices.
Ethical Issues
Workplace Safety Concerns
Most companies face a similar problem concerning ethical concerns about the safety of the workplace environment. A top priority must always be put on the employees’ lives to avoid harm. The working conditions must be comfortable and conducive for the employees since it will aid in improving their morale, thus increasing their output. As a concern, Tesla, Inc. is facing the ethical challenge of workplace safety concerns. Safety standards continue to be a problem, with much priority given to the product rather than the well-being of the employees (Minchin, 2021).
In this manner, the self-drive of the employees is constantly reduced, which could be detrimental to the company’s progress. One of the Tesla investors filed a suit against Elon Musk concerning discriminatory complaints against the workers after firing several employees (Halpert, 2022). The consequences of the lawsuit filed by the investor and California’s Department of Fair Employment and Housing led to an overall loss of 8.5% of Tesla’s assets and wealth (Halpert, 2022). A series of employee accidents within the company and long working hours have become significant issues that must be addressed. There is also the need for proper safety protocols and procedures to be followed in an emergency.
Employee Treatment
Another primary ethical concern for Tesla, Inc. relates to employee treatment. One of the significant factors that will drive a company to tremendous success is considered to correlate with how the company treats its workers. The presence of harmony within the working environment and ensuring that they are treated well will drive the company to many milestone achievements.
According to specific sources, these workers are subjected to suspected unfair labor practices at Tesla, Inc. (Halpert, 2022). These concerns include long working hours that strain them and overall inadequate compensation. The lack of limited rights subjects the workers to long work hours with little compensation (Minchin, 2021). The drive for the workers to perform decreases substantially, continuously impacting their morale. Hence, these attributes create a negative organizational culture that will ultimately affect Tesla, Inc.’s productivity.
Communication and Transparency
The two aspects that determine the relationship the company will make with the customers and society relate to how well the company is transparent. The essence of practicing transparency will be determined by the company’s communication level with the people. Disseminating proper advertisements and other information without falsifying anything will lead to good relations with the people. However, Tesla, Inc. continues to face criticisms concerning the approach that it has taken towards communication and transparency.
The ethical concerns that have continued to raise questions relate to how the stakeholders have chosen to relay the company’s decisions. Customers and investors of Tesla, Inc. are dissatisfied with how the firm presents its financial statements and performance (Halpert, 2022). The production challenges can also not be disseminated to the rest of the public, which raises issues regarding the level of trust that Tesla, Inc. has toward other people and stakeholders. The factors that incorporate honest and open communication, essential for maintaining trust, have proven difficult for the company to keep.
Internal and External Factors Impacting Tesla, Inc.
Internal Prospects
Various internal factors affect Tesla, Inc. and its operations, influencing production levels. The story of integrating the internal factors and how the company handles these situations will determine the company’s progress level. One of the internal aspects considered is the organizational culture, characterized by a fast-paced and demanding working environment (Minchin, 2021).
These problems contribute to the development of ethical challenges. The organizational culture must be assessed and reshaped to address internal issues and create a transparent working environment. Another crucial internal factor is the concept of leadership style. Elon Mask’s leadership criteria are pivotal in shaping the ethical framework defining the company’s activities.
External Factors
The company also experienced some shifts in the paradigm of external factors outside of the walls of Tesla, Inc. One of the external factors relates to the regulatory environment that controls the company’s operations. Tesla is among the companies that must constantly be subjected to stringent regulatory procedures (Babazhanov et al., 2023). These ensure the client’s safety while using the final products. Ensuring that the essence of the regulatory environment does not impact the organization’s ethical considerations becomes essential. The strict regulations also ensure compliance within the business and that responsible practices are practiced.
Another external factor that is key to affecting the company’s ethics is market competition. There is a competitive landscape that involves Tesla, Inc. since there are also other electric vehicle companies. The competitive edge that Tesla, Inc. faces will influence how the company makes strategic decisions (Babazhanov et al., 2023). Ethical challenges arise regarding how the company navigates the competition. There needs to be a healthy balance that does not undermine the integrity of the other companies. Tesla, Inc. must incorporate innovation and responsible business practices to do so.
Current Situation, Challenges, and Future Choices
Current Situation
Tesla, Inc. continuously keeps up with the marketing edge to sustain its growth. The current situation involves balancing rapid growth and meeting ethical considerations. The company must keep its customers and add others while ensuring healthy business competition without undermining others. The company’s success depends on addressing internal challenges. These require a proper commitment to sustainability and innovation (Minchin, 2021). An attempt to improve the company’s profit rates and the number of new customers has constantly become Tesla, Inc.’s top priority.
Challenges
Tesla, Inc. also continues to face challenges in its development initiative. These challenges must be addressed in order to address the problems that exist in good time and generate adequate solutions. One of the challenges includes realigning policies to meet the demands of the business. The company’s internal procedures must be realigned to address workplace safety issues (Babazhanov et al., 2023).
The employees must also be treated with utmost decorum and provided with an appropriate working environment. To satisfy this need, the company has to keep changing its policies to fit the well-being of its employees. It is also necessary to thoroughly review and revise the existing policies to ensure ethical practices.
The other challenge Tesla faces is the need to enhance transparency. To maintain a good relationship with the customers, investors, and other stakeholders, transparency and good communication are needed in all business practices (Minchin, 2021). Meeting these needs becomes essential for addressing the external ethical concerns that the company faces. Tesla must ensure that it develops adequate strategies that will keep the stakeholders informed on the critical decisions that have been made together with the existing challenges.
Future Choices
The Tesla industry must formulate some business practices and innovations for future operations. The options the company decides to take will illuminate the business projection in terms of profits and customer base in the future due to the shifting market opportunities. One of the future choices entails implementing the ethical framework to ensure the company operates within the guidelines while resolving challenges such as employee burnout (Babazhanov et al., 2023).
The company can establish various comprehensive measures that guide the decision-making process. There must also be clear policies to operate within the workplace to ensure safety and good employee treatment with transparent communication. Additionally, stakeholder engagement will create a proactive interaction that fosters trust while addressing the ethical challenges.
Conclusion
Tesla Corporation faces various internal ethical challenges that other companies also experience, which would require intermediate interventions. Conducting a thorough analysis of the issues would highlight some of the company’s internal and external factors, helping to navigate the current situation. Some ways the problem can be resolved include practices that involve realigning policies while enhancing transparency. These would ensure Tesla upholds ethical business practices by formulating informed business decisions.
References
Babazhanov, Z., Suleyeva, M., Zhumatov, M., Kenenbay, A., & Syrbayeva, D. (2023). Tesla’s financial performance and stock price success in 2020 (Doctoral dissertation, International School of Economics Kazguu). Web.
Halpert, M. (2022). Musk Sued over Tesla’s Alleged “Toxic Workplace”: Just the Latest in a Rough Week. Forbes. Web.
Minchin, T. J. (2021). ‘The factory of the future ‘Historicalcontinuity and labor rights at Tesla. Labor History, 62(4), 434-453. Web.