Sustainable Development Model for the Automotive Industry

Abstract

The relationship between sustainability and business has become one of the central debates at the national and international level in both industrialized and emerging countries. A series of existing business models lack some critical aspects. The automotive industry strongly affects economic development, requiring rethinking business models in order to reduce their impact on the environment. An evaluation of the websites of the major automotive industry companies shows they have reported sustainability (through different methods) and present various practices in implementing organizational sustainability (OS). This paper aims to present a new business model for the automotive industry that takes into account the three dimensions of sustainability and emphasizes the importance of involving stakeholders in the OS approach. This model is developed based upon the literature review of three focus groups with a participation of 33 automotive industry members, of which three are highly-skilled experts of the industry. The proposed sustainable development model is scientifically relevant as it considers that all dimensions of sustainability exist and aims to increase organizational capacity for sustainable organizational development. It is also relevant from a practical point of view because it has been developed and validated by industry experts with automotive industry companies, taking into account the industrial, technical, and technological requirements for organizational sustainability assessment. The findings of this research will guide shareholders and managers in planning and developing organizational strategies.