Question: Critically evaluate the below text, explain it mention the main points, and strengths and weakness: Tesla, Inc. and its subsidiaries, including Tesla Motors Limited, have
Critically evaluate the below text, explain it mention the main points, and strengths and weakness:
Tesla, Inc. and its subsidiaries, including Tesla Motors Limited, have pledged to uphold antislavery practices and values in their business operations and supply chain for the fiscal year ending on December The company is committed to treating all individuals with dignity and respect, preventing slave or child labor or human trafficking from its suppliers. This commitment is reflected in the Tesla Supplier Code of Conduct and Human Rights and Conflict Minerals Policy, which are publicly available on Tesla's website. Tesla also seeks to improve its processes through continuous feedback from stakeholders and the OECD Due Diligence Guidelines.
Organisational structure and business operations and supply chain:
Tesla, founded in is a leading player in the clean energy market, focusing on designing, developing, manufacturing, selling, leasing, and leasing highperformance electric vehicles and energy generation systems. With fulltime employees worldwide, Tesla Motors Limited sells its vehicles and energy products. The company's global supply chain combines traditional automotive and hightech industry suppliers, with Tier suppliers obtaining raw materials from upstream and subsuppliers. Tesla maintains a Supplier Code of Conduct and Human Rights and Conflict Minerals Policy.
Employees:
Tesla, a global leader in the electric vehicle industry, is committed to hiring top talent and promoting diversity, equity, and inclusion DEI for its employees. The company's recruitment procedures comply with local regulations, and wages are compliant with local laws. Tesla also advocates for freedom of employment, ensuring voluntary work without forced labor. The company's Human Rights and Conflict Minerals Policy and Code of Business Conduct and Ethics guide its approach, and Tesla expects its suppliers to follow similar codes.
Supply chain:
Tesla, a global tech giant, sources thousands of parts from hundreds of suppliers worldwide. Its supply chain combines traditional automotive and hightech industries, with Tier suppliers often obtaining raw materials from upstream and subsuppliers. All suppliers must adhere to Tesla's Human Rights and Conflict Minerals Policy and Supplier Code of Conduct, which address social issues. Tesla files a Conflict Minerals Report annually with the SEC, detailing its due diligence efforts and broader efforts to work with global suppliers. If a supplier violates these policies, Tesla will transition away from the relationship.
Assessing risks of modern slavery and actions taken:
Tesla is working to prevent modern slavery, child labor, and human trafficking in its supply chain through its Supplier Code of Conduct, Human Rights and Conflict Minerals Policy, employee training, and supplier audits. The company acknowledges potential exposure to modern slavery risks due to its global supply chain. To mitigate these risks, Tesla conducts continuous supply chain evaluations, reviews suppliers' practices, requires Tier suppliers to certify materials, disciplines contractors, raises employee awareness, investigates suppliers suspected of engaging in these issues, and transitions away from uncorrected suppliers.
Tesla Employee Training:
Tesla prioritizes employee awareness of modern slavery and human trafficking issues, particularly in its supply chain. Employees working with suppliers are trained on these issues, and disciplinary action may be taken if suppliers don't comply with the company's Human Rights and Conflict Minerals Policy. Tesla's onboarding process includes a focus on DEI and human rights.
Assessing the effectiveness of actions:
Tesla has expanded its responsible sourcing team in to better understand potential risks in material sourcing decisions. This will centralize identification and response to supply chain issues, allowing continuous improvement tracking. Tesla will continue participating in crossindustry groups, auditing suppliers on environmental, social, and governance issues, requiring specialized audits on facility labor practices, encouraging responsible sourcing, reducing modern slavery risks, and educating suppliers on product content and due diligence.
Process of consultation amongst Tesla entities:
Tesla has a specialized team in its global supply chain organization responsible for due diligence on conflict minerals and modern slavery. This includes all Tesla subsidiaries worldwide, including those in the UK An internal crossfunctional Tesla Responsible Sourcing Steering Committee oversees these efforts. They approved these efforts and sent a letter of authorization to global suppliers. The Tesla Board of Directors reviews policies and human rights programs.
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