CSR Strategy: BMW

The purpose of this essay is to research the notion of CSR and uncover its true framework and outline what social responsibility truly means to corporate organisations, and whether it should be seriously considered to be a legitimate addition to the corporate framework of an organisation.

Government support for environmental friendly products- this is an opportunity for Volkswagen to market and promote its clean energy cars in support of environment and to improve in its existing products to meet the environment

We will focus in our case study on the BMW long-term strategy up to year 2020 and specifically on the refinement and expansion of the concept “premium” stated in the mission statement. We will look toward the interface between strategy and the internal environment of BMW Group, more specifically, within the resources

Based on my interpretation of CSR, I see it as a voluntary obligation that companies have promised to their stakeholders to fulfill by improving, or at least not harm, the environmental and social wellbeing. When companies engage in CSR, they voluntarily promise to, for example, carry the responsibility to protect the environment and take actions against bribe or other corruptive activities related to their business. It certainly has some positive influences to specific areas based on my knowledge gained from other classes; nevertheless, when judge CSR in the context of total impacts on our society and environment, it is obvious that CSR has failed its mission to lessen the negative impacts of business based on the evidences that provided by the author. Also, since there is a strong positive relationship between CSR behaviors and consumers’ reactions to a firm’s products and services, it seems to me, now, that CSR for the most companies is just a fancy cover that helps them to create or promote a good image and reputation. The recent case that shows the failure of CSR of Volkswagen even make me believe that CSR programs may be just a marketing or public relation exercise for many

One of the largest car manufacturers in the world is located in Japan which is Toyota. Toyota’s employees believe in the high technology and innovation to provide their products to their customers. However, they should invest more money and their attention more to manufacturing more of the eco-friendly cars ("Business Overview", 2011).

Corporate Social Responsibility (CSR) is something that affects all companies and should be an active factor in the company’s decision making. It is something all corporations need to care about. CSR is when business’ or corporations take part in an initiative or campaign for a cause that will benefit society and/or in some way make the world a better place (Taylor, 2015). Initially, Corporate Social Responsibility started to take shape around the 1950’s, but some say that it dates all the way back to the 1800s, the idea of CSR was seen (Carroll, 2007). One may think that because it is dated so long ago, it doesn’t have an important impact today nevertheless, it is proven that Corporate Social Responsibility is a pathway for entities to self benefit as they are in the process of benefitting society.

The American automotive industry is a massive force, to say the least. The historical impacts of automotive technology and assembly line manufacturing has effected economies around the world and has also created world-wide ecological challenges. Governments, under pressure from environmentalists, have had to realize, create, implement, and constantly refine manufacturing and emission standards. Consumers, who foot the gas bill for vehicles, continue to express their desire for less expensive autos that require less fuel without sacrificing style, comfort, safety, or performance.

As a company Daimler, has four core objectives: technology leadership and innovation, delighted customers, best teams (regarding diversity of gender, nationality and age), and profitable growth. Additionally, Daimler has outlined four strategic areas of growth which are strengthening the core business, growing in new markets, leading in green technologies, safety and driving ahead with connectivity and mobility concepts (Daimler, 2014). These could be interpreted as goals and it is because of these goals that Daimler celebrates great success.

This need to create ecofriendly cars has meant that many American automobile companies have had to overhaul their processes; not only in investing money to find cleaner sources of energy and ways to fuel cars, but also because they have established protocol and procedures already that will also need to be overhauled. This is clearly a difficult demand for long established companies, many of which are American, because in order to keep up not only with the law but also with

Volkswagen goal is to become the ecological and economical leader in the automotive industry and to be the world’s leading automaker by 2018. Volkswagen has four main objectives through which they will achieve their goals.

The benefit to business of good Corporate Social Responsibility is difficult to quantify as it varies depending on the nature of the enterprise. Some scholars believe that there is a business justification for CSR. That is, what is good for the environment and society will be good for company profitability. And studies have shown a slightly positive correlation between CSR and financial gain (Steiner and Steiner, 2006). However, as Freidmanism claims, the first responsibility of business is to make enough profit to cover the costs for the future. If this social responsibility is not met, no other responsibilities can be (Hargreaves, 2006). Therefore it is critical that CSR activities are included in strategy formulation and that the level of resources devoted to CSR is determined like any other strategy – through cost/benefit analysis. Corporations will not throw money away…they need to see it

CSR lacks universal methods. The United Nations Industrial Development Organization (UNIDO) mentions that it is important to draw a distinction between CSR as part of strategic business management concept and charity, sponsorships or philanthropy. The latter applications make valuable social impacts that enhance the reputations of the companies, however, CSR is a continual effort instead of an instance. A few features that CSR should focus on are: eco-efficiency, employee and community relations, environmental management, gender balance, responsible souring, anti-corruption, stakeholder engagement and human rights. Utilizing some of these key features a company can bring competitive advantages into the market place. Increased sales and profits from operational cost savings as well as improved reputation and brand image and customer loyalty can result from a well-defined CSR strategy.

Bayerische Moteren Werke AG (Bavarian Motor Works), or BMW, is a German luxury vehicle, motorcycle, and engine manufacturing company founded in 1916. The company has its headquarter in Germany, but also has an American facility in Spartanburg, South Carolina. In addition, BMW is celebrating its 100-year anniversary this year. Being in the automotive industry, one would be surprised at how a company values sustainability, especially when it focuses on the interrelationship between the triple bottom line. However, the BMW Group has been named the world’s most sustainable automotive company again by the Dow Jones Sustainability Indexes (DJSI). The head of Sustainability and Environmental Protection, Ursula Mathar, stated, “For us, sustainability is an important part of our identity and our strategy. We have accomplished a great deal in recent years and continue to set ourselves concrete goals for the future … This shows that our activities continue to have an impact and we are on the right track” (The BMW Group). This company defines its sustainable operations by taking social and environmental responsibility for everything they do. The BMW Group has extensive initiatives that affect the planet by reducing its carbon footprint, their profits by effectively utilizing renewable resources, and their people by providing diverse opportunities and protecting self-wellbeing.

Going green is important in today’s society and many of us look to buy greener products. Part of today’s social responsibility in a company is going green. Volkswagen has improved their facilities and vehicles to be more environmentally friendly in recent years. Volkswagen was first out of the auto makers to apply ISO 14000 series during its drafting stage. The ISO 14000 series linked to Volkswagen’s revolutionary technology and advance capability through resource management (Yang, Colvin, and Wong). Volkswagen is investigating longstanding options for non-fossil fuels and to increase the effectiveness of its current fossil fuel engines (Nunes and Bennett). In the company’s report it cautions that enhanced effectiveness will not be adequate to relieve engine emissions as economic

This marketing report aims to examine and explain the marketing strategies of BMW , In this report I will be focusing on: