Hyundai Motor in Environmental Protection and Labour Standards Performance - Case Study Example

Unit Title: Assessment: Critical Essay Company: Toyota Essay Title: Hyundai Motor in Environmental Protection And labour Standards Performance Student Name: Student Number: Semester: Campus: Tutor’s Name: Tutorial Day and Time: (Word count: 1729 words) Hyundai Motor in Environmental Protection and labour Standards Performance Introduction Hyundai Motor is a major automotive company ranked fifth as of December 2009, so this was a great improvement since the company was ranked eighth largest auto making company, exclusive of including Kia (Southerton 2012, 3). Therefore, Hyundai Motor is the fastest growing automaker in the world as compared to other automakers such as Toyota and General Motors. With its head office in Seoul, Hyundai runs the largest integrated facility for motor manufacturing in Ulsan, which according to Southerton (2012) can produce over 1.5 million units yearly (Jung and Clark 2007, 104). Besides that, Hyundai Motor has employed almost 75,000 individuals across the globe, and through a number of its 6,000 showrooms as well as dealerships Hyundai sells its products to more than 193 countries worldwide. Hyundai according to Southerton (2012, 4) is operating with a fast business economic development by seizing the opportunities within the environment. Furthermore, the rise in Korea’s currency value against the US dollar is as well contributing to the rise of the business revenue from the international business activities. Undoubtedly, labour in Korea is expensive, but the improvement in the capacity of production, especially in the countries whose wage rate is lower has reduced the total operation cost of Hyundai Motor. Its international presence has helped the company to offer most favourable solutions to the consumer based on their needs. Furthermore, the global presence has been useful in improving Hyundai’s financial ability in the automotive industry. In this essay, we examine Hyundai Motor with regard to environmental protection and labour standards performance. Environmental protection Global warming, diminishing resources, changes in climate as well as other environmental-related issues are slowly becoming more and more pressing on a global extent. What’s more, environmental issues no longer distress bionetworks only, but growingly they directly impact on life of the people as well as workplace. As an automobile maker, Hyundai Motor understands the need to produce and develop vehicles that will not result in further exacerbating of situation that is already serious. For this reason, Hyundai have taken steps such as low carbon manufacturing bearing in mind that emission of greenhouse gas (GHG) take place during every phase of the automobile’s lifecycle, from the process of manufacturing to recycling of waste products. The company supports low carbon manufacturing, and for that reason ii is endeavouring to set up a GHG inventory in the United States for its production processes. In observance with requirements stipulated by Environmental Protection Agency, Hyundai’s Alabama plant is completely compliant with the new rules concerning GHG reporting. What’s more, the company introduced the Blue Drive Initiative, which according to Vijayenthiran (2008) is a new brand for the company intended for manifesting vehicles that are environmentally friendly, and are furnished with novel green technologies so as to reduce greenhouse gas emissions. Therefore, with Blue Drive technologies as well as products, Hyundai hopes by 2015 to get a fleet average of 15 kilometres per litre. What’s more, Blue Drive automobiles are manufactured in plants that are ISO 14001 certified, and this indicates that the environmental facets as well as effects of the manufacturing process are officially supervised to meet the environmental policies as well as of objective of the company. Besides that, Blue Drive includes Hyundai’s strategy for technology development, which for the time being concentrates on ameliorating the fuel efficiency of ICE motorized automobiles, with the eventual objective of producing cars with zilch carbon dioxide emissions. So as to reduce loss of energy, Hyundai is progressively using aerodynamics enhancements in production of the vehicles, which include technologies for weight-reduction as well as low rolling resistance tires. The company’s Research and Development (R&D) teams are at present creating several novel technologies for energy recovery, like Regenerative braking, which helps in slowing the vehicle and allow for the utilisation of solar cells and exhaust heat. Besides improving the vehicle’s energy efficiency, Hyundai is as well trying to develop an Eco Telematics that will make it possible for drivers to drive through the route that are energy efficient, resulting in fuel savings and reduction of GHG emissions. Without doubt, Hyundai leads in fuel economy, and still is the only automaker that reports its fleet fuel economy data every month and also is devoted to accomplish 21 kilometres per litre by 2025. In 2002, the company initiated the Hyundai Green Zone China project, whose goal was to improve the Kunsantak Desert environment, given that the project was corresponding to company’s efforts to decrease the generated dust storms in Kunsantak Desert. According to Koo (2013), this was principally pertinent to the company for the reason that the generated dust storms in Kunsantak Desert regularly move over to other countries in Northeast Asia. The company also promotes its green technologies throughout China in an attempt to advance vocational as well as professional training for individuals aspiring to be auto engineers. In 2011, more than 300 Hyundai workers, Chinese student volunteers, and international volunteers built a wall that extended more than 100km, cordoning the sand. As a consequence of such efforts, more than 30 million square meters of the region’s desert was turned into a green prairie. Labour Standards Performance Owing to the company’s shared achievement, the manufacturing operations of Hyundai, specifically US have for no reason laid off any member of maintenance or production, and importantly the company offer extremely competitive benefits in addition to wages. Including incentives and overtime, each Hyundai’s production worker in 2012 got an average annual benefits as well as wage of $73,299, two times the average household earnings for most of American citizens. What’s more, for Saturdays the company pays its workers 150% of their weekly rate pay and for Sundays and weekends it is twice their weekly rate of pay. Unlike other workers, the maintenance team is highly remunerated; for instance, in Alabama plant (2012), including rewards and incentives the maintenance team earned an average monthly pay of $ 8,003, which is almost thrice the average household earnings for Alabama citizens. Apart from that, all Hyundai’s workers have a health insurance, with the company paying almost 90% of their premiums save for other benefits. Hyundai provides a work setting that promotes collective respect, upholds dignity of fellow workmate, supports mutual correlations in the midst of workers, and makes sure all employees are free work-related inequity, retribution, persecution and workplace aggression. Based on workplace physical surroundings, Hyundai plats are temperature-controlled constantly, appropriately aerated, and always clean. Furthermore, the company offers far-reaching training for its workers, which includes orientation for new hire. The orientation involves a concentration on the various initiatives within the plan, automobile-related services, quality assurance as well as quality control, emergency reaction and management of the environment, in addition to the company’s core values and leadership. Furthermore, the company intends to bring in a mentoring program, and this is aimed at recognizing employees that are highly talented, nurturing their leadership potential. Hyundai’s health and safety record is outstanding, and the company use highly developed manufacturing technologies, like automatically changing the vehicles’ height during the process of assembly, so as to reduce the bodily strain level on the production employees. What’s more, the company runs a robust safety program, which includes video monitoring, personal protective equipment, safety wear equipment, special authorization permits, and training. The company as well has functioning committees for safety, which offers employees with the chance to take part in improving the safety of their workplaces. Hyundai’s safety practices as well as policies make the company to be amongst the safest facilities for automotive manufacturing across the globe. Some of the standards that the company is bragging about include ISO 14001 standards, which certifies Hyundai’s environmental management systems. Prior to being awarded ISO 14001 standards, the Company’s plant in US had recycled over 39,840 tons of waste material, which included glass, line-side plastics, car bodies, electronics, as well as batteries. Moreover, the Company’s safety program was approved under the international OHSAS 18001 Standard. The standards help Hyundai to introduce or retain sound OH&S performance by regulating workplace-related risks as well as safety of the workers. At Hyundai diversity is a main concern and so the employees’ diversity depicts the worldwide diversity wherein the company operates. According to Hyundai America (2013), diversity at Hyundai is recognized not as program, but as progressive process. Every rights is entitled to his/her rights, and for that reason Hyundai strictly respect the rights of its workers and all its labour rules are in line with the National Labour Relations Act, which highlights the rights of employers as well as employees. And which purposely defends the right of workers to join labour unions, as well as the comparable right for workers not to be forced to join the unions. Sarcastically, some of employees in Hyundai’s plants like that in Alabama have certainly not made known the interest for being represented in Trade Unions. Apart from that, the Company is a party to the UN Global Compact, and therefore the Company is guided by the principles of UN Global Compact for labour standards as well as human rights, which includes supporting freedom of association, doing away with workplace favouritism, and defending globally declared human rights, Conclusion Conclusively, the essay has affirmed that in reaction to the mounting crisis of GHG emissions, Hyundai has begun manufacturing lighter vehicles to cut down the emissions of exhaust gases and is also using materials that are environmentally friendly and also secure. Given that the exhaust emissions and fuel consumption of the vehicle are proportional to the vehicle’s weight, Hyundai is seeking ways to make vehicles lighter. Considering that when the vehicle’s weight is lighter it result in improved power performance as well as steering stability. What’s, more, the Company understands that the environment as a fundamental aspect of any company and generate business values trough supporting green management. For that reason, Hyundai support distribution and manufacturing of green products, and also is working hard to reduce pollution as well as to care for sustainable resources all through the whole product life cycle. With regard to labour standards Hyundai offers its workers with rewards and incentives to improve their performance, and also offers diverse communication channels, which can be used by workers to express work-related issues, or even complain about benefits and salaries or even working conditions. The espoused standards enable the Company employees to speak out about discriminatory treatment or illegal harassment. Bibliography Hyundaiamerica.us. Great Place to Work. 2013. http://hyundaiamerica.us/social-responsibility/great-place-to-work/ (accessed August 1, 2014). Jung, Changhoon, and Cal Clark. "The Impact Of Globalization Upon The U.S. Auto Industry: The Case Of Hyundai Motor Company's Investment In Alabama." International Journal of Contemporary Sociology 44, no. 1 (2007): 103-113. Koo, Mee-Hyoe. Greening Inner Mongolia: Hyundai's CSR Strategy To Improve The Environment. June 21, 2013. http://www.forbes.com/sites/meehyoekoo/2013/06/21/hyundai-motor-group-greening-inner-mongolia-with-csr/ (accessed August 1, 2014). Southerton, Donald G. Hyundai and Kia Motors: the Early Years and Product Development. Washington DC: Don Southerton, 2012. Vijayenthiran, Viknesh. Hyundai launches Blue Drive initiative with unveiling of Sonata Hybrid study. November 19, 2008. http://www.motorauthority.com/news/1030896_hyundai-launches-blue-drive-initiative-with-unveiling-of-sonata-hybrid-study (accessed August 1, 2014). Read More