Ethical and Social Responsibilities of a Peugeot Group - Essay Example

Peugeot, Ethical and Social Responsibilities Armand Peugeot set up Peugeot SA in 1896 in France. There was a merger between Citroen SA and Peugeot SAin the year 1976 and the company ‘PSA Peugeot Citroen’ was established (PSA Peugeot Citroen, n.d.). The group object of the company is divided into three parts: To extend practical modernisation that is resolute on defending the atmosphere, improving safety and enhancing comfort (PSA Peugeot Citroen, n.d.). Boost the sales in division through measure towards international development (PSA Peugeot Citroen, n.d.). Protect the profitable development to invest in resources from cash flow of the company and stay independent (PSA Peugeot Citroen, n.d.). The study will focus upon the Corporate Social Responsibility of PSA Peugeot Citroen. Not all responsibilities will be considered, certain important CSR are intended to be discussed. The CSR objective of the company is to “Respect and promote fundamental human rights in all Group subsidiaries and in regard to its business partners” (PSA Peugeot Citroen, n.d.). The company’s major stakeholders are Renault, Fiat, Tofas, BMW, Toyota and Mitsubishi. Other than these cooperation partners, the company has 186200 employees over 18000 sales points with 491 supplier groups of standard parts (PSA Peugeot Citroen, 2010). The cooperation partners have greater influencing power upon the company. The board of directors have the full legal authority and power to influence the interest of the business and coordinate with all the stakeholders. All groups of stakeholders have certain interest in the company. The equity shareholders derive greater interest from the company’s return on investment. There are external pressures like economical and financial changes in the French economy that tend to change the interest of the stakeholders in this automobile industry. The company’s CSR Group presents its shareholders with comprehensive and transparent information and precisely the records and events of its activities that are related to its accounts. The company along with the CSR Group maintain loyalty and transparency towards their customers and suppliers in order to develop and preserve long term confident relationships. PSA Peugeot Citroen has signed an international agreement on social responsibility. They have committed to respect fundamental human rights, sharing social needs with industrial partners, sales network team, sub-contractors and suppliers and impact of company’s activities upon the local boundaries (PSA Peugeot Citroen, n.d.). The commitment that was provided by the company towards the agreement of United Nations is also the part of the ethical group (International Metalworkers Federation, n.d.). PSA Peugeot Citroen is guided by certain set of values that are griped by its employees, executives and reaffirmed in the group’s objectives to promote conscientious progression. These aspirations are associated with the collective commitments towards the key stakeholders, consumers, partners, community and employees (PSA Peugeot Citroen, 2010). For the purpose of ethics the company has set of ethical rules that include respect for the law, people and environment, customers and company. The laws abided by the company include conformity with laws and regulations, non-admittance of inner information and genuineness of accounting statistics, information and indicator (PSA Peugeot Citroen, 2010). The aspects include respect for essential human civil rights, conformity with place of work related to health and safety rules, Admiration for the surroundings & prevention of prejudice, Nuisance and impolite behaviour, Reverence for private life (PSA Peugeot Citroen, 2010). The factors are conformity with product security and quality desires, genuineness of customer information & privacy of consumer data (PSA Peugeot Citroen, 2010). The factors considered under this aspect are the transparent affairs with consumers, vendors and competitors, restrictions on aids and provocations, utilization and security of corporate assets, esteem for secrecy, diplomat of the company, comprehensible parting between work and political activities (PSA Peugeot Citroen, 2010). With respect to the HRM and Ethics, the company has been successful in maintaining CSR. There is diverse employee in the company and with the social framework social cohesion policy was developed to ensure that the diverse employee receives equal treatment in their career progression (Syed, 2008). The company has policy in recruiting young people. This policy has made the young people grab a job opportunity. By providing a job opportunity the company has been positively affecting the labour force of the French economy. The company’s 60% employee comprises of the age group that are younger than 30. The company have also dedicated to work jointly with the EU EQUAL program at a national level that will generate anti-discrimination leaflets to all the employees. The CSR Group and the company do not contribute to invest in political parties. The employees might have political activities but they are at a private level and outside work place. The group and the company forbid such activities within the work place and working hours. The Code of Ethics of the company intends to formalise the collection of mutual crucial situation points with the aim that everyone within the group can consign to the situational points and conform to them in every instances (PSA Peugeot Citroen, 2003). The message towards the shareholders was related to the performance that varied sharply in different quarters of the year 2008. The commitment of improvement in numerous areas for the year was provided. The message contained the economic and the financial crises that affected the demand in the automobile industry. He talked about strengthening the group executive management (PSA Peugeot Citroen, 2008). He said, “PSA Peugeot Citroën can count on solid strengths to help it navigate the weak economy and deeply shaken automobile markets” (PSA Peugeot Citroen, 2008). Policy is to produce low emission motor vehicle. During 2007 to 2010, 2 million vehicles emitted less than 120 grams of CO2 / km (PSA Peugeot Citroen, 2008). The use of green materials was implemented in vehicles. 20% use of green materials was increased in the production (PSA Peugeot Citroen, 2008). In 2010, vehicles were manufactured that reduces the average energy consumed. It was 2.1 MWh/car (PSA Peugeot Citroen, 2008). For improving the road safety, telematics services were employed. By 2011, they are planning to implement this service in 1 million vehicles in 10 European countries (PSA Peugeot Citroen, 2008). The company has been financing innovative mobility solutions. The solution will help the urban mobility according to the convenience of the consumers in the urban areas (PSA Peugeot Citroen, 2008). For the purpose of customer respect and satisfaction, the company has put into practice the ‘PSA Peugeot Citroen Responsible Communications Charter’. This program enhances the customer satisfaction level with full attention and respect towards them (PSA Peugeot Citroen, 2008). The company’s guiding principle for social and environmental responsibility makes the suppliers comply with the guidance. This involves 500 suppliers that are in process till date (PSA Peugeot Citroen, 2008). For social investing, responsibility measures are taken to ensure that the company is incorporated in the foremost SRI indices that consist of three major international indices (PSA Peugeot Citroen, 2008). The company is functioning to reduce regulated contaminants elements such as HC, NOx and other harmful particles from the emission of vehicle. The company plans to introduce zero emission vehicles (PSA Peugeot Citroen, 2008). The company uses different logistics and transportation that emits less CO2 and has less affect upon green house gas emission. To decrease energy utilization and greenhouse gas release, company is improving site efficiency and dipping the amount of energy consumed for a comparable stage of service (PSA Peugeot Citroen, 2010). In the year 2008, the company had launched many initiatives with local partners regarding road safety, environment and aid to the victims of natural disasters. The company contributed a RMB 3 million towards the local resident of China. For the purpose of road safety the company had launched three major campaigns to raise the awareness among the general public. A fun-filled road safety exhibition program was conducted for several months to educate the school students (PSA Peugeot Citroen, 2008). Hyundai Motor’s CSR covers three conceptual areas, environmental, economical and social responsibility (Hyundai Motors Company, 2009). They focus upon Environment management, Trust based management and Social contribution management. All the three management are coordinated and controlled by the Hyundai Corporate Social Responsibility Group. Both the companies have the CSR policy to reduce the gas emission. Use of green products and implementing them in the manufacturing of the vehicles are applied by both Hyundai and PSA Peugeot Citroen. Towards the stakeholders and the consumers, the automobile industry has almost similar policies in satisfying them and building a positive relationship. Hyundai Motors have a policy of recyclability program that is not present in PSA Peugeot Citroen. PSA Peugeot Citroen have program of recruiting young people from the education institutes that is not present in Hyundai Motors. The actions of PSA Peugeot Citroen Group are towards the implementation of polices and programs, intended to the improvement of its industrial facilities that encourages the protection of the environment. The company is concerned in delivering standard vehicles in the market that meet the standard of environment. It does not emit dangerous gases. The company comply with the code of ethics and the different policies and programs that have been developed towards environment protecting, stakeholders, customers, suppliers and government. Work Cited Hyundai Motors Company, 2009. Hyundai Responsibility. Overview. [Online] Available at: http://worldwide.hyundai.com/company-overview/responsibility/philosophy.html [Accessed December 09, 2010]. International Metalworkers Federation, No Date. International Framework Agreement on PSA Peugeot Citroëns Social Responsibility. A Social and Sustainable Commitment without Borders. [Online] Available at: http://www.imfmetal.org/files/10052511431579/PSAIFAEnglish_revisedJune2010.pdf [Accessed December 09, 2010]. PSA Peugeot Citroen, No Date. Company Profile. CSR. [Online] Available at: http://www.csrglobe.com/login/companies/psa_peugeot_citroen.html [Accessed December 09, 2010]. PSA Peugeot Citroen, No Date. The Social Responsibility of the Group. Human Rights & Ethics. [Online] Available at: http://www.sustainability.psa-peugeot-citroen.com/employees/human-rights/actions-achievements/top_priority.htm?id=3302 [Accessed December 09, 2010]. PSA Peugeot Citroen, 2010. Sustainable Development Profile. Vision. [Online] Available at: http://www.sustainability.psa-peugeot-citroen.com/vision/profile/key-fact.htm [Accessed December 09, 2010]. PSA Peugeot Citroen, No Date. Corporate Social responsibility. Analysis. [Online] Available at: http://www.sustainability.psa-peugeot-citroen.com/ressources/search_guide/corporate-social-responsibility.html [Accessed December 09, 2010]. PSA Peugeot Citroen, 2010. Code of Ethics. Rules. [Online] Available at: http://www.psa-peugeot-citroen.com/document/publication/Charte%20Ethique%20GB1277902198.pdf [Accessed December 09, 2010]. PSA Peugeot Citroen, 2003. Code of Ethics. Standards. [Online] Available at: http://www.sustainability.psa-peugeot-citroen.com/upload/files/charte_ethique_en.pdf [Accessed December 09, 2010]. PSA Peugeot Citroen, 2010. Green House Effect. Environment. [Online] Available at: http://www.sustainability.psa-peugeot-citroen.com/environment/greenhouse-effect/impacts.htm?id=2 [Accessed December 09, 2010]. PSA Peugeot Citroen, 2008. Sustainable Development and Annual Report. Report. [Online] Available at: http://www.psa-peugeot-citroen.com/document/publication/RADD_PSA_GB_Complet%2012%20061245161092.pdf [Accessed December 09, 2010]. Syed, J., 2008. Integration of CSR With HRM: What Can We Learn From Best Practice Organisations In The European Union. Core Conference III. [Online] Available at: http://www.core-conferences.net/attach/Syed%20%20Kramar%20Integration%20of%20CSR%20with%20HRM.pdf [Accessed December 09, 2010]. Read More