Nissan’s Stakeholders, CSR & ESG Programs

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A Nissan car’s steering wheel. Nissan’s ESG and CSR programs address various stakeholders to achieve sustainability and corporate citizenship in the automotive industry. (Image adapted from photo by Yansi Keim)

Nissan’s corporate social responsibility (CSR) and environmental, social, and governance (ESG) programs are focused on the environmental and social concerns of stakeholders in the automotive business.

Considering Archie B. Carroll’s description of CSR, the mutual influence between the business and its stakeholders determines the achievement of strategic goals for the satisfaction of Nissan’s vision and mission, which aim for superior-value mobility products that benefit customers.

Nissan considers its CSR and ESG programs as contributors to the sustainability of the transportation sector. Through these programs, the company satisfies stakeholders and moves toward its long-term corporate citizenship goals in mobility, transportation, and beyond.

Nissan’s ESG and CSR programs and stakeholder management approach are akin to those of competing automakers, such as Tesla, Toyota, General Motors, Ford, and BMW, in terms of sustainability and green operations that strengthen corporate image and automotive branding.

In this regard, competitive rivalry includes direct competition with Nissan, as well as indirect competition through CSR and ESG programs that affect customers’ perception about business sustainability and the desirability of these firms’ automobiles.

Nissan’s CSR & ESG Programs

Nissan’s CSR and ESG programs prioritize stakeholders’ environmental and social interests. Through the environmental and social components of its corporate citizenship strategy, the automaker’s governance supports sustainability and related goals.

With such prioritization that extends beyond the core automotive business and includes various stakeholders, the following are Nissan’s CSR and ESG programs:

  1. Nissan Green Program 2030
  2. Nissan Social Program 2030
  3. Audit Committee and Internal Control

Nissan Green Program 2030. The focus points of this program are climate, resources, and pollution. Nissan’s carbon neutrality is the primary goal for addressing climate change. The electrification of vehicles is one of the objectives under this goal.

Nissan’s CSR and ESG strategy aims for a circular economy involving the company’s business operations and products. This approach maximizes the utility of resources in the automotive business and, thus, the company’s sustainability.

Regarding pollution, Nissan’s objective is to reduce the negative ecological impact of cars, trucks, and other automotive products on air quality and water quality.

The company considers pollution reduction an important step toward improving the quality of life for all stakeholders while the business and the automotive industry evolve toward higher sustainability.

The specifications included in this program for Nissan’s CSR and ESG goals account for social, technological, and ecological trends that influence stakeholders’ interests, such as customers’ preferences and governmental policies.

Based on these focus points and related ESG and CSR objectives prioritizing sustainable business practices, the Nissan Green Program 2030 satisfies the following stakeholders:

  • Governments
  • Interest groups with ecological concerns about the automotive industry
  • The natural environment

Nissan Social Program 2030. Nissan’s focus points in this program are product safety and quality, responsible sourcing, innovative intellectual property, community development, and work-life balance and support for employees.

The company’s approach to this social aspect indicates a multi-pronged CSR and ESG strategy that considers automotive products, business objectives, human resources, the supply chain, and communities.

Some components of this CSR/ESG program relate to Nissan’s company culture (organizational culture) and its influence on human resources and individual employees as stakeholders in the business.

For example, business ethics and the corresponding respect for society ingrained through this company culture motivate workers to support and contribute to the social component of the automaker’s sustainability and corporate citizenship.

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A Nissan car badge. Nissan’s corporate social responsibility (CSR) and ESG programs support stakeholders’ interests in sustainable and responsible business. (Image adapted from photo by NADIA)

The initiatives and objectives for ESG and CSR in the Nissan Social Program 2030 address the interests and concerns of the following stakeholders:

  • Communities
  • Automotive industry workers
  • Labor organizations and interest groups in the automotive industry
  • Governments

Audit Committee and Internal Control. Effectiveness in corporate management and governance is the focus of this aspect of Nissan’s CSR and ESG strategy, to ensure the integrity of the business.

To achieve this effectiveness, the automaker maintains an audit committee involving independent outside directors, as well as an internal control system for monitoring and supervision involving company executives and the board of directors.

The audit committee and internal control system influence the company’s strategies. For example, Nissan’s generic strategy and growth strategies reflect this aspect of the company’s CSR and ESG in terms of the effects of the internal control system on executive decisions.

The success of the audit committee and internal control system depends on support from different areas of the automotive business organization.

For example, Nissan’s operations management and its measures for high efficiency and productivity in job design and human resource management provide human-resource support for the objectives of this governance aspect of the company’s ESG and CSR strategy.

Moreover, the internal control system is designed to ensure that executives adhere to the company’s programs for automotive business sustainability and corporate citizenship via corporate governance.

The implementation of this program for corporate social responsibility and corporate governance is facilitated through the divisions, departments, and offices in Nissan’s company structure (organizational structure).

Through these CSR and ESG objectives and initiatives, Nissan’s audit committee and internal control satisfy the following stakeholders:

  • Governments
  • Investors/shareholders
  • Employees

Effects of Nissan’s CSR & ESG Programs on Stakeholders and Business Performance

Nissan’s CSR and ESG programs address stakeholders based on current trends and concerns. For example, the Green Program for vehicle electrification meets drivers’ interest in reducing their carbon footprint. Also, the emphasis on work-life balance relates to interest in workers’ wellness.

Considering the scope of its programs, Nissan’s ESG and CSR strategy satisfies stakeholders’ interests in labor relations, responsible sourcing, emission reduction, automobile quality and safety, and business sustainability and fiscal soundness.

The results of these ESG and CSR programs, especially the Green Program and the Social Program, are used in public relations and communications in Nissan’s marketing mix (4P).

Thus, improving these CSR and ESG programs can also improve the effectiveness of the automaker’s marketing to customers, who are stakeholders in the business.

As the company improves its CSR and ESG programs, business sustainability and related competencies are also improved. As a result, these programs enhance Nissan’s competitive advantages, in addition to satisfying stakeholders’ interests.

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