Nissan’s corporate social responsibility (CSR) and environmental, social, and governance (ESG) programs are focused on the environmental and social concerns of stakeholders. Considering Archie B. Carroll’s model, the company affects these stakeholders, who also influence the automotive business. This mutual influence 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. The company considers its CSR and ESG efforts 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.
Nissan’s ESG and CSR programs and stakeholder management approach are akin to those of competing firms, such as Tesla, Toyota, General Motors, Ford, and BMW. These automakers aim to outdo each other in terms of sustainability and green operations that they can use to promote their products. In this regard, the degree of rivalry with Nissan represents direct competition as well as indirect competition involving CSR and ESG programs that affect customers’ perception of the sustainability and desirability of these companies’ automobiles.
Nissan’s CSR & ESG Programs
Nissan’s CSR and ESG efforts prioritize stakeholders’ environmental and social interests. However, the automaker also has governance measures that support the environmental and social components of its sustainability and corporate citizenship strategy. The following are Nissan’s CSR and ESG programs:
- Nissan Green Program 2030
- Nissan Social Program 2030
- 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. Electrification of vehicles is one of the objectives for this goal. On the other hand, Nissan’s CSR and ESG strategy aims for a circular economy involving its business operations and products. This approach maximizes the utility of resources in the automotive industry and, thus, the company’s sustainability. Regarding pollution, Nissan’s objective is to reduce the ecological impact of cars and trucks on air and water quality. The company considers this an important step toward improving the quality of life while the business and automotive industry evolve. Social, technological, and ecological trends influence customers’ preferences and governmental policies that determine the specifications included in this program for the automaker’s CSR and ESG goals. Based on these considerations, this program for ESG and CSR satisfy the following Nissan stakeholders:
- Governments
- Interest groups for ecological concerns
- The natural environment
Nissan Social Program 2030. Nissan’s focus points in this program are product safety and quality, responsible sourcing, and innovative intellectual property, as well as 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, the supply chain, and human resources. Some components of this CSR/ESG program relate to Nissan’s company culture (organizational culture) and its influence on human resources. For example, ethics and respect for society ingrained through this culture motivates workers to support and contribute to the automaker’s sustainability and corporate citizenship. These initiatives for Nissan’s ESG and CSR address the concerns of the following stakeholders:
- Communities
- Employees
- Labor organizations and interest groups
- Governments
Audit Committee and Internal Control. Effective governance is the focus of this aspect of Nissan’s CSR and ESG strategy. 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 executives and the board of directors. These efforts help ensure the integrity of Nissan’s business. The audit committee and internal control system influence the company’s strategies. For example, Nissan’s competitive strategy and growth strategies reflect efforts in this aspect of the company’s CSR and ESG. Another consideration is that the success of the audit committee and internal control system depends on support from different areas of the automotive business organization. Measures for high efficiency and productivity through Nissan’s operations management provide support for the objectives of this governance aspect of the company’s ESG and CSR strategy. Moreover, the automotive business organization is designed to facilitate support for the company’s programs for sustainability and corporate citizenship via corporate governance. The divisions, departments, and offices in Nissan’s company structure (organizational structure) are effective in this facilitation for corporate social responsibility and corporate governance. Through these initiatives, Nissan’s CSR and ESG strategy satisfies the following stakeholders:
- Governments
- Investors/shareholders
- Employees
Do Nissan’s CSR & ESG Programs Address Stakeholders?
Nissan’s CSR and ESG programs address stakeholders based on current trends and concerns. For example, the company’s program for electrification addresses drivers’ interest in reducing their carbon footprint. Also, emphasis on work-life balance relates to current interest in workers’ welfare. Considering the scope of these programs, Nissan’s ESG and CSR strategy satisfy stakeholders’ interests in labor relations, responsible sourcing, emissions reduction, automobile quality and safety, and business sustainability and fiscal soundness.
These ESG and CSR programs, especially the Green Program and the Social Program, relate to public relations and communications involved in Nissan’s marketing mix (4P). Thus, improving these programs can also improve the effectiveness of the automaker’s marketing to customers, who are stakeholders in the business. Moreover, as the company improves its CSR and ESG programs over time, business capabilities and competencies improve. In this regard, Nissan’s competitive advantages and business opportunities are enhanced through these programs while stakeholder interests are addressed.
References
- Beinabadi, H. Z., Baradaran, V., & Komijan, A. R. (2024). Sustainable supply chain decision-making in the automotive industry: A data-driven approach. Socio-Economic Planning Sciences, 95, 101908.
- Nissan Motor Corporation – Environmental Initiatives.
- Nissan Motor Corporation – Sustainability – Social.
- Nissan Motor Corporation – Corporate Governance.
- Nissan Motor Corporation – Integrated Report.
- Nugroho, D. P., Hsu, Y., Hartauer, C., & Hartauer, A. (2024). Investigating the interconnection between environmental, social, and governance (ESG), and corporate social responsibility (CSR) strategies: An examination of the influence on consumer behavior. Sustainability, 16(2), 614.