Linamar needs to move towards sustainability and corporate social responsibility to ensure that its operations benefit the environment in which it operates and enhances competitiveness. The company works in the automobile parts industry that is highly lucrative and competitive. Players in the industry face the constant need to contribute towards environmental conservation through the use of sustainable production methods and waste management. Asides from this, their operations should benefit the immediate communities in which they operate (Werther & Chandler, 2010). The major trends in the sector are centered on the development of green technologies. Companies in the sector aim towards improved fuel economy for the vehicles they make products for, reduced emissions and light-weighting. Linamar needs to shift towards CSR as it is seen as a way of improving its reputation in the automobile industry (Linamar, 2019). Further, it is perceived to be the best strategy of maintaining a competitive edge over its rivals.
The company faces a high level of competition in the local and global scenes. Consequently, their operations should be driven by CSR. The leading competitors include MPG, Autoparts and Magna. These companies employ extensive CSR strategies such as supporting the local communities through charities and events that improve their lives. These companies have developed their community involvement over the years by supporting healthcare, education, arts, and athletics (Chandler, 2016). The competitors have moved towards sustainable and environmentally friendly production methods. Linamar should keep up with the latest technologies that are aimed towards environmental sustainability.
CSR issues to be addressed
Linamar’s CSR strategy is seen to be efficient and is based on internationally accepted standards. However, its CSR strategy faces a high level of competition from key competitors as previously mentioned. The SWOT analysis approach can be used to address the CSR issues facing the organization. To start with, the CSR strategy is effective and takes into account critical issues including employee treatment, community welfare, and environmental concerns. The weakness of the approach is that it is less advanced while compared to what the competitors use. The company should consider improving its CSR strategy to involve greater environmental concern and stakeholder involvement (Werther & Chandler, 2010). Finally, Linamar should be concerned about its performance and benefits in CSR while compared to other players in the automobile sector.
Analysis of Linamar’s CSR Strategy
Linamar’s strategy is based on improving communities and the environment in which it is found. One of the leading principles is to advance the green technologies to attain reduced emissions, light-weighting and better fuel economy. Linamar acknowledges that community involvement plays a crucial role in business operations. Consequently, giving back to the community in which the business operates has become a guiding principle. The community is considered to be a significant stakeholder, and the employees have been perceived to be a valuable resource (Werther & Chandler, 2010. Linamar has intensified community involvement over the years by supporting charitable organizations, healthcare, education, art, and athletics. The company also adheres to the set environmental laws and works towards sustainability with the aim of minimizing the effects of its activities on the surroundings.
Linamar adheres to the necessary working conditions code which is an internationally accepted standard that defines commitment to do away with practices that are against human rights (Linamar, 2019). The basic principles in the code are observed in the company. These include the establishment of an environment that fosters mutual respect and opportunity, ensure workplace safety, avoid the use of child labor in global operations and abide by all other business practices.
Chandler, D. (2016). Strategic corporate social responsibility: Sustainable value creation. Sage Publications.
Linamar. (2019). Social responsibility. Retrieved from http://www.linamar.com/social- responsibility?lms=section0#overview
Werther Jr, W. B., & Chandler, D. (2010). Strategic corporate social responsibility: Stakeholders in a global environment. Sage.
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