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RESPOND TO SAMUEL NOMORE THAN 150 WORDS

Hello everyone,

The company I will be discussing this week is Tesla. When reading the prompt for this week the first thing I thought about is how here are so many environmental regulations that Tesla has to stay in compliance with, in regard to getting the materials for their batteries. Materials such has lithium. Lithium production is expensive and is at great cost to the environment. Lithium extraction requires a lot of water, land disturbance, pressure on ecosystems, the burning of fossil fuels, and long supply chains (lithium harvest, 2026). Challenges that Tesla faces with this is that to extract lithium as safely as possible for the environment, it is very expensive and takes a lot of time.

An example of Tesla being successful with integrating ethical principles into their strategic planning process is when Tesla filed a patent on their lithium extraction method. In 2021, Tesla filed a patent on the way that they extra lithium. The patent included a newer method of lithium extraction that used sodium chloride, and Tesla claimed it was much more environmentally friendly as compared to other forms of lithium extraction, one of those forms of lithium extraction is acid leaching which is terrible for the environment (Skidmore, 2021). Filing for this patent forced Tesla to have to balance profitability goals with social responsibility because the patent itself is expensive, and since their form of lithium extraction is more environmentally friendly it is more expensive for the company. But, Tesla invested into cleaner lithium extraction techniques because it was their social responsibility even if that social responsibility didn't align with their profitability goals.

RESPOND TO TAMARA NOMORE THAN 150 WORDS

Ethics plays an important role in strategic planning at pharmaceutical companies because these decisions can be life-altering for patients. By determining who can access which medications and at what price, pharma leaders have a responsibility to consider patients when weighing strategic decisions. Merck & Co. has tried to implement ethics into their strategic planning by linking its purpose of using science to save and improve lives to its business goals. Its Code of Conduct highlights that doing what’s right goes beyond legal requirements and sets expectations for accountability, integrity, and ethical decision-making for leaders and employees. In theory, this should help leaders consider patients when making decisions about research, product development, pricing, and expanding into new markets. One way Merck has implemented ethics in its strategy is through its access initiatives. On its website, Merck says access is about discovering new ways to meet patients’ needs, improving access to and affordability of Merck products, and addressing inequities. In 2024, Merck shipped its products to about 92% of countries worldwide. Over 247 million people benefited from access to Merck medicines and vaccines. Additionally, Merck's corporate governance and resource allocation show it has considered how sustainability fits into its strategy. In its 2026 proxy statement, Merck states that “Our approach to sustainability is aligned with our Company strategy and integrated across our operations” and highlights access to health, employees, environmental sustainability, and ethics and values as four pillars of its strategy. Merck has even started including sustainability metrics in their Company Scorecard, which holds leaders accountable for meeting certain objectives. These are just a few examples of how Merck has integrated its ethical responsibilities into its strategy rather than acting only for philanthropic purposes. Considering patients and stakeholders can often challenge profitability. 

This document was reviewed using Grammarly for grammar, punctuation, sentence structure, and clarity (Grammarly, 2026). The research, analysis, ideas, and conclusions are my own. I reviewed Grammarly’s suggestions and decided whether to accept or reject each one.