THE ALL NEW 2015 CSR AUDIT
VICTOR MANCINI YOUSOF SIDDIQI CHRISTOPHER SNELL MARTIN LUU
TABLE OF CONTENTS
1. 3. 13. 17. 19. 21. 29. 31. 33. 39. 41. 43.
INTRODUCTION IMPACT THROUGH CSR TESLA AS A LEADER UNDERSTANDING THE MOVEMENT COMPANY TIMELINE PROGRESSIVE PERFORMANCE IMPACT MAP ELEVATING CSR CSR OPPORTUNITIES OPPORTUNITY MAP CONCLUSION RESEARCH SOURCES
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INTRODUCTION
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The following document aims to analyze a company that is exemplary in their corporate social responsibilities. Gathering insights on the company allows to expand on their current activities making them even better. Once the cataloging is deemed adequate our objective to present opportunities that will expand the company in a new direction allowing their vision to grow to a larger scale.
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IMPACT THROUGH CSR A company driven by a socially responsible agenda is capable of affecting multiple networks and settlements. We looked at the short term and long term affect that a company has on itself, the community, the industry, and the world. Doing so help devise a framework that is critical of a business’s cross-impact. A great corporation acknowledges and takes responsibility for all stakeholders, without one area of focus. This enterprise strives to elevate the industry and and integrate harmony of all aspects. SOURCE: http://www.slideshare.net/khanyasmin/csr-frameworks
4 COMPANY
COMMUNITY
INDUSTRY
WORLD
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COMPANY IMPACT
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“RUN A GOOD BUSINESS�
Running a good business is the foundation to any corporate social responsibility. Running a good business consist of a solid business plan or motive, analyzing the current market and knowing where you stand along with discovering opportunities to expand your business. Another important aspect to running a good business is knowing your financial projections, what your company does with their profits and having faith in your employees and ensuring their well being.
SOURCE: http://www.slideshare.net/khanyasmin/csr-frameworks
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COMMUNITY IMPACT
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“GIVE SOMETHING BACK�
An important factor to evaluating a company's corporate social responsibility is their involvement within and around the community. There are multiple ways a company can involve the community, one way is to give back to the community is through donation or community service. Where your company is located in relation to the community is important, what are the health impacts on the people living nearby and to the local environment. Creating jobs for the local community plays an essential role in being a good and trustworthy company.
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INDUSTRY IMPACT
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“BE A BEACON TO OTHERS�
Innovation is the key to progressive society. Pushing the boundary within your specific industry labels your company as the leader, the company to follow. When a company creates a new innovative product within the industry it affects everyone who is related to that industry.Influencing what the new standards should be, is crucial when evaluating a company's corporate social responsibility.
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WORLD IMPACT
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“TRANSFORM MULTIPLE INDUSTRIES�
When a company involve themselves about world impact they take full responsibility of their impact on every level; social, environmental and economic. They also beginning to influence adjacent industries and everyone who is a part of it, which influences the scale of their cross impact. As for the environment, a large scale corporation has a huge objective with environmental issues, how they manage that will influence their corporate social responsibility
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AS A LEADER IN CORPORATE SOCIAL RESPONSIBILITY
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“Our goal when we created Tesla a decade ago was the same as it is today: to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.”
Tesla Motors is an american company that develops and manufactures electric vehicles and the batteries that power them. The CEO’s intention is to use Tesla as a catalyst to allow humanity to leap towards a richly imagined future. This leap is embodied through the disruption of the automotive industry by introducing the first mass produced luxury electric vehicle. SOURCE: http://www.teslamotors.com/blog/mission-tesla
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“The main reason I'm here is the talk about electric vehicles and to do what I can to encourage other automakers to accelerate their electric vehicle programs. The need for sustainable transport is increasing incredibly high.� -Elon Musk (2015 Detroit auto show)
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A FOCUSED COMPANY In 1888 a Serbian/American engineer named Nikola Tesla developed an electrical power train running on AC induction technology, specifically designed for a racecar. Developing revolutionary technology, his idea was not seen “part of the American culture,” and his solution was not honored. This left Nikola with a number of lucrative patents, but nowhere for them to shine. Fast-forward years later with Nokia’s technology being founded; in 2003 by entrepreneur’s Martin Eberhard and Marc Tappening were interested in taking Nikola’s passion and developing it into reality. Being funded by a variety of distinguished companies and their most evident company PayPal, Founded by Elon Musk. With his enormous contribution of $30 million, he believed that he could help take the company onward to new ventures. In early 2004, he became CEO of the company. Collaborating new minds, talent and determination, these three individual’s gave birth to the company Tesla Motors, and introduced their first fully electric production car the Tesla roadster.
SOURCE: https://gigaom.com/2010/05/28/timeline-teslas-long-road-to-a-home-for-the-model-s/
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UNDERSTANDING THE MOVEMENT
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What makes Tesla a Leader in corporate social responsibility? The vision of radical and innovative CEO Elon Musk allows for continual progression to create a company that is unlike any other. Each moment connects to the ultimate goal of sustainability.
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Tesla Motors is founded in California by Martin Eberhard and Marc
Tesla Motors Receives Environmental Leadership Award from Global Green USA
Tesla gets $465 million (USD) loan approval from US Department of Energy + Tesla Model S unveiled!
COMPANY TIMELINE
2003
2004
2006
Elon Musk invests in Tesla and joins the board.
CROSS IMPACT LEVEL
2008
2009
Tesla Motors Begins Regular Production of 2008 Tesla Roadster
2010
Tesla Unveils Model X +Elon Musk awarded Environmental Media Corporate Responsibility Award
2012
Tesla Motors Opens Tesla Factory – Home of the Model S
SOURCE: http://my.teslamotors.com/forum/forums/tesla-timeline-0
Launches Revolutionary Supercharger Network for Long Distance Driving +2013 Motor Trend Car of the Year (the 1st unanimous vote in MT history)
Tesla Aims to Charge Electric Cars in Five Minutes +NHTSA Best Safety Rating of Any Car Ever Tested
Tesla Motors opens 100th Supercharger
Model 3 to be unveiled 2016, on sale 2017
+ Tesla Motors Becomes California’s #1 Automotive Employer
+ Tesla Motors announces 8 year/infinite miles drive unit warranty
+ Tesla reveals plans for revolutionary home/office battery
+ Elon Musk Named 2014 Top Disrupter by Vanity Fair
2013
2014
Tesla Repays Department of Energy Loan Nine Years Early!
Fast Company: Most Innovative Company Overall, #1 in Energy Sector
+ Business Efficiency Award for Waste Reduction
Consumers Report: Tesla #1 for service and repairs
+ Tesla Motors announces plan for battery Gigafactory
2015 To advance sustainable transport, Tesla Motors open sources its patents +Tesla Wins International Engine of the Year awards (1st EV)
Panasonic & Tesla Sign Agreement for Battery Gigafactory + Tesla Motors opens 300th Supercharger
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THE PROGRESSIVE PERFORMANCE
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REVOLUTIONIZING THE INDUSTRY
Tesla is on the front line when it comes to revolutionizing the automotive industry. With the growth of environmental concerns, people are looking for an alternative to fuel powered vehicles in order to reduce their personal carbon footprint. Tesla is the experimental company that CEO, Elon Musk, is using to execute his vision of a sustainable future. The biggest obstacle for electric car industry is converting skeptics to transfer from traditional combustion engine vehicles. However Tesla has designed a successful formula that’s value has been demonstrated on the market. Being a technologically driven product, a service as simple as a free software update can afford all Tesla owners the luxury of the latest advancements in order to consistently feel relevant. This initiative generates an opportunity for the reconceptualization of the owner's experience. An example of the system’s capacity is the Insane Mode option that was recently introduced. Offering Tesla Model S owners the opportunity to have their vehicle closely match the performance specifications of a Ferrari. Furthermore, Tesla has recognize and assessed the waste generated by the shipping of parts. An example of Tesla’s sustainable shipping system is seen with the windshield distribution. Tesla receives their windshields on reusable racks. After assembly, the racks are sent back to the manufacturer for reuse. All other brands are known to use cardboard and foam packaging which generate unnecessary amounts of waste. With this system in place, Tesla has avoided the use of 100 Tons of cardboard annually by windshield packaging alone. SOURCE: http://patch.com/california/fremont/tesla-wins-stopwaste-award http://my.teslamotors.com/it_IT/forum/forums/p85d-locking-insane-mode
23 SOURCE: http://www.usnews.com/ news/articles/2014/06/11 /elon-musk-talks-teslas-s upercharger-future
SOLAR SUPER CHARGER STATIONS "Superchargers are located at places you’ll actually want to stop, like roadside diners, cafes, and shopping centers. So pull in, plug in, and grab a bite to eat. Model S will be ready when you get back." - Elon Musk The free battery recharging stations are already implemented across North America and Europe, effectively set up for expansion. Tesla’s absorption of this cost incentivizes the ownership of a Tesla vehicle as they enables complementary accessibility. With the e-transportation industry on a slow rise, Tesla targets to use elements such as the Superchargers to add convenience, making e-vehicles appealing to all drivers. Furthermore, this bold move is certainly capable of influencing other automotive companies to move towards sustainable energy systems.
24 SOURCE: http://ir.teslamotors.com/releasedetail.cfm?r eleaseid=526928 http://www.forbes.com/sites/joannmuller/2 013/06/01/what-do-toyota-and-mercedes-s ee-in-tesla-a-bit-of-themselves/
COLLABORATION FOR PROGRESSION Panasonic is a world renowned company leading in the manufacturing of battery cells, the development of electrical components and products, as well as dabbling in the automotive industry. With Tesla motors using lithium ion battery systems to power their vehicles, an opportunity for collaboration with Panasonic was recognized. The japanese electronics producer has invested $30 million in Tesla Motors in order to build a multi-year partnership. The outcome of the alliance is expected to excel the electrical automotive market to great heights by exploring the true potential of automotive technology and sustainable mobility. Tesla’s know-how regarding the development of powertrains, motors and electrical components for EVs hasn’t only created bonds with Panasonic. Automotive industry giants such as Toyota and Mercedes have both successfully reached out to Tesla, searching for EV system designs that they can use under their own brand identity. Mercedes and Toyota both recognize that Tesla’s existence is essentially driven by human benevolence, making them open to worthwhile collaborations. In effect, Tesla is eager to work together as long as it strengthens the automotive industry’s leap towards a more sustainable future.
25 SOURCE: HTTP://WWW.GREENTECHME DIA.COM/ARTICLES/READ/TH E-LOCAL-AND-GLOBAL-IMPAC T-OF-TESLAS-GIGA-FACTORY
GIGAFACTORY DEVELOPMENT When scouting out areas to build their high-tech battery manufacturing facility, Tesla and Panasonic were approached by the city of Reno Nevada who ultimately offered $1.3 billion in order to have their factory built within the city limits. Tesla accepted the offer as it would put Reno on the map by assisting in the generation of a community and economic growth. Apart from Reno’s investment, when a company has a firm financial foundation, they can make bold investments such as the Gigafactory. Having this massive manufacturing plant constructed before even having heavy demand for their product demonstrates Tesla’s forward thinking abilities. Tesla views the building of the Gigafactory as an alternative to continuously building new factories to accommodate their growing market. In the meantime, the collaboration with Panasonic has increased battery output to a potential 500,000 units per year, allowing for the growth of Tesla’s market in an array of directions - or, essentially, new applications for their batteries
26 SOURCE: HTTP://MASHABLE.COM/2015/02/ 12/TESLA-BATTERIES-HOMES/
INNOVATING HOME & OFFICE BATTERY Due to the praise they’ve received in the transportation industry as well as valuable collaborations, Tesla is already experimenting with the idea of broadening the applications for their batteries. In alliance with SolarCity (another endeavor Musk is a part of), a company that installs solar panels to replace fuel-based energy, Tesla will offer power storage for residential and commercial use. This project is already being tested in big box stores such as Walmart (deducting 30% off of existing electrical bills), and as a pilot program across 500 California homes. Tesla’s shift from transportation to the home gives them the opportunity to be all encompassing and become more of a lifestyle brand. Being part of everyday interactions will, promote their philosophy, and enhance the trust towards Tesla by lower the barriers for the adoption of E-Products. The applications for home batteries can also apply to areas or populations that do not have readily available energy.
27 SOURCE: HTTP://WWW.TESLAMOTO RS.COM/BLOG/ALL-OUR-P ATENT-ARE-BELONG-YOU
OPEN SOURCE PATENTS Along with their state of the art EV, Tesla has also released the design patents. By releasing their patents, Tesla is demonstrating that having a considerable monopoly over the EV industry and reaping that financial benefits is not what they’re after. Tesla’s aim is to create a clear path for automotive companies to follow when stepping into the field of sustainable transportation. With no charge or any lawsuits against anyone who uses it with good faith, companies now have this invaluable information to start their own journey and innovate industry. Essentially, Tesla wants to transform the automotive industry from a competitive market to a collaborative market. Tesla’s open sourced patents testify that they’d be thrilled if another brand or even a startup was to surpass them. By introducing an open-spirited movement, the future development for EV technology can become endless.
28 SOURCE: HTTP://WWW.TESLAMOTOR S.COM/BLOG/CREATING-W ORLD’S-BEST-SERVICE-AND -WARRANTY-PROGRAM-0
GOING BEYOND SERVICE Tesla believes the best way to experience service is to not experience service at all. They believe in seamless approach to customer service. An example of Tesla’s outstanding service is demonstrated in their vehicle maintenance system. When a Tesla owner’s vehicle is in the shop being repaired, they are given a top-of-the-line fully loaded Tesla vehicle for temporary use. By doing so, the owner is in no way downgrading because of a vehicle malfunction, an issue that is usually not the drivers fault. This initiative honestly disguises the frustration of a vehicle mishap as a little treat. In addition, Tesla offers pickup and drop off at the owners house in order to make the swap effortless. As EVs are generally low maintenance, a free annual cautionary check up on the vehicle is recommended.
High Scale Infastructure
Gigafactory
COMPANY INDUSTRY
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In-house Waste Reduction
Resusable Component Packaging
Battery Production
Industry Innovations New EV R&D
300th Supercharger Station
Growing EV Market
Hiring The Un-employed Increase of Jobs
New Service Centers
Rejuvinating States Tesla #1 Service
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COMMUNITY WORLD
Home & Office Battery Release of All Patents
Information Accessibility Company Collaborations Inspiring Sustainable Behavior
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ELEVATING CSR
32 TESLA
DISCOVER
UNDERSTAND
INNOVATE
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CSR OPPORTUNITIES
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DISTANCE DISCOUNT With Tesla being a zero emission car it allows for a significant reduction in a car owner's carbon footprint. There is an opportunity for Tesla to target individuals who consistently run the odometer and give them a reduce price as a reward for switching their car over to a Tesla EV. Taxi/ Uber drivers who do a lot of mileage in a day can also benefit from this price reduction, in addition, the customers who are new to riding in an electric car get a first hand experience of what a Tesla can do. Having more electric cars visible on the road will encourage the idea of super charging station around the city making driving an electric car more normalized.
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OPEN SOURCE EDUCATION Open source is a development model that grants access to anybody who desires company information. With Tesla patents being released in June 2014, it allowed people access to fully developed ideas that they can then use in alternative applications. Using patented information isn’t the easiest to understand and immediately apply, however it brings opportunity for Tesla to exploit this obstacle and generate even more open-mindedness and positivity. Tesla’s open source education program run by their own employees will help in accelerating sustainable lifestyle across the world. Being accessible to anyone with internet connection, makes this learning style extremely accessible and opportunistic for the world. Expanding this education program over multiple languages would increase Tesla’s vision and reputation exponentially.
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DISRUPTION RESPONSE The automotive industry is one of the largest in the world and is considered a by product of the massive oil industry. Tesla, being the driver of disruption on all fronts regarding the automotive industry, generates considerable questioning regarding jobs in the field. Tesla has the opportunity to acknowledge and take responsibility for their potential job-market impact. In addition to open-sourcing their patents and helping other automotive companies transition their production line to manufacture electric cars, Tesla can devise a system that allows employees to be trained and reappointed into new positions that fit an EV-based company.
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THE INNOVATION INCUBATOR Tesla’s vision to change the automotive industry is what drives the company and other electric car supporters. Tesla is a realization of Elon Musk’s vision of a sustainable vehicle which was made possible by his hefty financial contribution to the company. For many inventors, designers, and engineers, funding is what hinders the completion of a dream project. The Tesla Innovation Incubator platform allows for a cross disciplinary service for people who share the same vision or who are interested in collaborating. The Tesla platform allows some of the worlds greatest minds to collaborate and produce revolutionary products that will be disruptive in their own industry. The Tesla platform will be open to accelerating the creation of both low impact products and more intensive technological innovations.
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38 Out of all the corporate social responsibility criteria, Tesla shows the most room for improvement with their community involvement. The innovation incubator platform allows for Tesla to give back to the community by targeting large problems found in underprivileged communities and populations through the collaboration of like-minded individuals. There are two main phases to the social innovation projects. One is to design the optimal solution and the other is to implement the solution in the community. The two phases involve a wide range of people, conceptualizers for problem solving, implementers, and then social workers in order to realize the project within the local community.
High Scale Infastructure
Gigafactory
COMPANY INDUSTRY
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In-house Waste Reduction
Resusable Component Packaging
Battery Production
Industry Innovations New EV R&D
300th Supercharger Station
Growing EV Market
Open Source Eduction
Hiring The Un-employed Disruption Response
Increase of Jobs
New Service Centers
Rejuvinating States Tesla #1 Service
Innovation Incubator
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COMMUNITY WORLD
Home & Office Battery Distance Discount
Release of All Patents
Information Accessibility Company Collaborations Inspiring Sustainable Behavior
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CONCLUSION
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After our analysis of Tesla Motors we see the company as one of the most influential of our time. Every aspect of Tesla is done with good intention for a sustainable future. Elon Musk is equally important when talking about Tesla because it’s thanks to his leadership that the company is able to have such a positive impact. We believe that Tesla’s best years are still to come, since the company is only in it’s early phase of development. The opportunities presented in this document are intended to expand on Tesla’s initiatives.
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RESEARCH SOURCES
1.
HTTP://WWW.SLIDESHARE.NET/KHANYASMIN/CSR-FRAMEWORKS
2.
HTTP://WWW.SLATE.COM/ARTICLES/TECHNOLOGY/TECHNOLOGY/2013/09/HOW_GREEN_IS_A_TESLA
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HTTP://WWW.GREENTECHMEDIA.COM/ARTICLES/READ/THE-LOCAL-AND-GLOBAL-IMPACT-OF-TESLAS-GIGA-FACTORY
4.
HTTP://WWW.BUSINESSINSIDER.COM/THE-APPLE-CAR-IS-GOING-TO-BE-GREAT-FOR-TESLA-2015-2
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HTTP://WWW.BUSINESSINSIDER.COM/GM-COULD-PUT-TESLA-OUT-OF-BUSINESS-TOMORROW-IF-IT-WANTED-2015-1
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HTTP://THINKINGCSR.COM/TAG/TESLA-MOTOR/
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HTTP://WWW.FOOL.COM/INVESTING/GENERAL/2014/11/01/INVESTING-IN-SOCIALLY-RESPONSIBLE-COMPANIES-TESL-2.ASPX
8.
HTTP://WWW.SLIDESHARE.NET/JOSEANGELDF/DARDEN-SCHOOL-OF-BUSINESS-TESLA-STRATEGIC-ANALYSIS
9.
HTTP://WWW.TESLAMOTORS.COM/BLOG/ALL-OUR-PATENT-ARE-BELONG-YOU
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HTTP://MASHABLE.COM/2015/01/08/ELECTRIC-VEHICLE-SALES-2014/
11.
HTTP://MASHABLE.COM/2015/02/12/TESLA-BATTERIES-HOMES/
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HTTP://MASHABLE.COM/2015/01/14/TESLA-MODEL-3-PRICE/
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HTTP://WWW.TESLAMOTORS.COM/BLOG/PANASONIC-AND-TESLA-SIGN-AGREEMENT-GIGAFACTORY
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HTTP://WWW.TESLAMOTORS.COM/BLOG/CREATING-WORLD’S-BEST-SERVICE-AND-WARRANTY-PROGRAM-0
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HTTP://PATCH.COM/CALIFORNIA/FREMONT/TESLA-WINS-STOPWASTE-AWARD
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HTTP://WWW.BLOOMBERG.COM/NEWS/ARTICLES/2014-05-16/TESLA-EDGES-OUT-TOYOTA-AS-CALIFORNIA-S-TOP-AUTO-EMPLOYER
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VICTOR MANCINI YOUSOF SIDDIQI CHRISTOPHER SNELL MARTIN LUU