Company and the Environment
Overview
Since the first instance of environmental issues in the early 60s, the most fundamental problem has been global changes that will allow us to manage ecology better (Weinberg, 1999). With that came technological change, which has equally harmed the environment. The debate is whether there is a possibility we could in some way reconcile economic development to the protection of natural resources.
On the one hand, it may seem evident that technology is critical in industrial systems and businesses.Thus further technology innovation is a variable that is considered directly or indirectly responsible for most of today’s environmental problems (Weinberg, 1999). Environmental degradation on a global scale, such as the depletion of the ozone layer, the greenhouse effect, eutrophication of water, and acid rain. All seems to have stemmed from the waterways and of large-scale diffusion of modern technological solutions.
For years now, the industrial world has been aware of its responsibilities concerning the environment and the business world. There have been social, regulatory, and even competitive pressures that have made the ecological factor a very strategic variable offering competitive opportunities, especially for those that can correctly interpret what is currently going on (Patrick & Kumar, 2012). In this way, a company’s ability to create an organizational culture to deal with environmental issues and manage business makes it competent, despite the natural environment such as water, vegetation, and air.
A company could also face a hostile political environment that could mean consumers rejecting the product as the business is in negative territory. Thus, an excellent organizational culture will prove to be essential. For most companies, a perfect corporate structure means diversity, good communication within the company, and employee growth (Patrick & Kumar, 2012).
The company must interpret regulatory trends, market demands, public opinion and transform them into elements that create value. From this information, this essay aims to detail an example of a company that is determined to change its organizational culture and hence be of benefit to its environment and foster growth of its employees.
Background
The United States automotive industry is composed of three major manufacturers based in the country: Ford, Chrysler, and General Motors. There are also several non-US-based affiliates in various places globally, such as the vehicle assemblers` vast network of parts and component suppliers (Mufson, 2021). Collectively the industry produces and sells approximately 15 million cars and light trucks every year. This text will look into General Motors Company and its current regulatory measures and intended shift from fossil fuels to electric vehicles (Mufson, 2021). The text will also mention a past challenge that the company faced and recommend some changes as well.
Brief History Products and Services Offered
General Motors is a company that was formerly known as General Motors Cooperation. It was one of the largest corporations in America when it began all through to most of the 20th and 21st centuries (Mufson, 2021). It mainly deals with auto parts, automobiles, and trucks; it is also engaged in financial services and making engines. It carries out its operations in Canada, the United States, and other countries. However, its headquarters are in Detroit.
The company has an organizational culture of agility. It is a culture that mainly focuses on speed in addressing problems and any other underlying business issues. The same agility is also applied when it comes to opportunities for the business. For example, the cooperate culture enables GM to develop a competitive advantage over the rest based on rapid innovation (McGregor, 2014). This, in turn, leads to positive relations with stakeholders whose interests determine the programs and initiatives of General Motors.The company’s cultural characteristics align with the goals and objectives to optimize the success of strategic implementation in the automobile market.
Besides, the organizational culture of a company, especially one that is renowned globally, must have a form of diversity. Diversity management is how we intend to create and maintain a positive work environment where the company’s differences and similarities are valued (Patrick & Kumar, 2012). This assists in ensuring that they all reach strategic goals set in the company. The major strategies adopted by an organization to allow for inclusivity may include employee incentives such as training.
Employees are offered training programs in which they are taught how to be more compassionate towards each other’s differences. Some companies go as far as giving gifts or bonuses to employees that agree to work in overseas engagements offering them foreign language training. That being said, diversity is a part of the organizational culture. However, it has only been adopted recently in the past decade as the company was struggling to make sales (Weinberg, 1999).
One of the main issues with automotive companies is fossil fuels that have primarily contributed to global warming. Researchers at both the automakers found substantial evidence in the ’60s and 70’s that human activity may have been harming the earth (Mufson, 2012). The use of fossil fuels in large quantities of heat-trapping gases such as carbon dioxide triggers the melting of polar ice sheets and has other dire consequences.
A scientist at the GM presented this finding to three high-level executives, including a former CEO (Mufson, 2012). However, manufacturers focused their energy on producing these goods in the following decades, knowing their effect. Instead of shifting their business ideal from fossil fuels, the companies heavily invested in gas-guzzling trucks and SUVs. At the same time, they also went ahead to donate money to groups that cast doubt on the scientific evidence of global warming(Mufson, 2021).
Like the rest of the automotive makers, GM remains heavily reliant on the revenue that it gets from SUV and truck sales (Mufson, 2012). The imbalance between SUVs and truck sales has been so vast in the recent past that the company decided to scale back on the sedan’s production. The money to be made in the car industry still resides in the sale of trucks and SUVs. To that end, GM is at a confusing crossroads.
Another issue noted in the General Motors Company was the lack of proper safety reporting channels. Employees in lower levels do not get their voices heard. In early 2014 the GM CEO Mary Barra apologized for 12 deaths and 31 accidents linked to a delay in recalling 1.6 million cars (Kedmey, 2014). The small cars were said to have had a defect in their ignition system. The company took too long to address the issue or address the owners of the vehicles to bring them in for repairs. If weighed down by a heavy key ring or bumped set of the engine power and disabled the airbag, the switches. It is believed that a safety run was carried out on them, and reports of the defect were reported to immediate line managers’ (Kedmey, 2014). However, the information did not get to the CEO until it was too late, and several people have lost their lives while others were severely injured.
This shows that the internal organizational culture was faulty in some stages company, firing some of its executives and reprimanding others. In a company where safety is so important, there is a need for a strong safety culture. Where leaders understand that there are risks that come with unbridled toughness, a dismissal for punitive response to an employee working under their supervision could only create more significant trouble for the company in the future (McGregor, 2014).
Hence, the culture of shooting the messenger should change. An employee from whatever rank should have the ability to voice their valid concerns and have them considered and heard in the organization. This will improve the ability of the company to detect and solve any problems in the future.
Recommendations
General Motors, Ford, and Chrysler have the most significant carbon footprint per vehicle due to car sales (Mufson, 2021). As much as we try to move to an eco-friendly position globally, the market is still not as diverse, and consumers do not have any option but to accept and continue using fossil fuels. General Motors has in the recent past been partnering with other innovative companies such as one star to ensure that they achieve their vision of zero-emissions (Carlisle, 2020). The company is trying to chart a path that can only be quite ambitious with multi-billion dollar investments, market-making new technologies, and unprecedented joint ventures (Carlisle, 2020).
Achieving a zero-emission future will require a team of external and internal relationships. Internal groups such as one star and the global connection to the vehicle team advance vehicle connectivity (Carlisle, 2020). In an interview with one of the executive officers, it was determined that the company is planning on collaborating with other companies such as LG for battery systems, EVgo to expand the electric charging infrastructure, and another notable player in techs such as Honda Nikola and analog devices (Carlisle, 2020).
Additionally, the executive stated that the company is looking at making a revolutionary change in the future of the automobile industry. There is no doubt that there have been many added safety features in automobiles over the years. But they have remained all the same in terms of propulsion. The innovation is quite enchanting to think about in general. Still, its production does not mean that the company will immediately shift from fossil fuel with their other makes that will still be in the market and still be produced (Mufson, 2012). The most ethical and realistic way to approach the issue of reducing their carbon footprint may be evolutionary change after all. This is because, though not fast, it will be consistent and include the whole conglomerate of cars that the company manufactures. (Carlisle, 2020).
Well, the main issue established in the company is that they do not reward the detection of problems in their culture. For instance, as soon as the first scientists had informed the executives on the carbon footprint issue. The company could have fueled money to being innovative and coming up with other forms of vehicle propulsion. Similarly, in the case of the bad starters, the company lacked a comprehensive ability to detect problems, and hence some people’s lives were lost in the process (Kedmey, 2014).
It is essential to expose the failure of any kind in the earliest stages detected as then they become a learning opportunity for the company and are cost-effectively managed. For instance, if an employee decides that the production of a vehicle should stop, there shouldn’t be bashing and condemnation. If there is a sense of purpose across the entire organization, and you have nurtured an environment in which people want to help each other succeed, the problem will be fixed quickly. So, it is important to create a safe environment for people to have an honest dialogue with their perceived superiors.
From the evaluation of organizational culture and how it affects the rest of the organization internally and externally. One learns that the lack of a comprehensive culture in the organization may prove to be fatal to the business (Patrick & Kumar, 2012). Besides, companies should also encourage their employees to be innovative. For instance, from the above case, General motors company, although diverse, does not encourage creativity among its employees. The company does not push for employees to think outside the box like apple.
It is a key to become successful in today’s market as the consumer wants something different from the rest. (McGregor, 2014). It will greatly benefit the company in creating a competitive advantage in its products and services. General motor’s support for employee innovation should be added to their culture. One also learns that all employee opinions are relevant and should be considered or at least looked into. This way, the employees become more motivated to assist in safety checks and even feel safe if they report a defect. In this way, the company can then work together to achieve its objectives intrinsically.
References
Carlisle, S. (2020).Executive Interview: GM Envisions a Future with Zero Crashes, Zero Emissions and Zero Congestion. Act Virtual. Retrieved 17 June 2021, from .
Kedmey, D. (2014).Congress to Investigate GM’s Recall of 1.6 Million Vehicles. The Time. Retrieved 17 June 2021, from
McGregor, J. (2014). What GM could do to change its culture.Washington Post. Retrieved 17 June 2021, from .
Mufson, S. (2021). General Motors to eliminate gasoline and diesel light-duty cars and SUVs by 2035.Climate and Environment. Retrieved 17 June 2021, from .
Patrick, H., & Kumar, V. (2012). Managing Workplace Diversity.SAGE Open,2(2), 215824401244461.
Weinberg, L. (1999). 4 The Automotive Industry.Industrial Environmental Performance Metrics: Challenges and Opportunities,2(4). Retrieved 17 June 2021, from .
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