BMW Financial Services Sustainability Analysis

This assignment requires an in-depth analysis of BMW Financial Services' sustainability efforts. Students are tasked with examining their sustainability reports, policies, and industry standing. The analysis should cover aspects like environmental impact, social responsibility, governance practices, and financial performance related to sustainability. The goal is to evaluate the company's commitment to sustainable business practices and its effectiveness in achieving ESG objectives.

Running head:BUSINESS VALUES AND SOCIAL REPORTS
BUSINESS VALUES AND SOCIAL REPORTS

1BUSINESS VALUES AND SOCIAL REPORTS
Executive Summary:
The purpose of the report is to assess the business values of the two organizations from the
same industry. A thorough research has been done of the latest sustainability report of the
two companies and accordingly a comparative and qualitative analysis of the reports have
been presented in the report. The result of the report shows numerous similarities as well as
differences between the social reports of the two companies.

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Table of Contents
Introduction:...............................................................................................................................3
Objective:...............................................................................................................................3
Company Profile:.......................................................................................................................3
ANZ Group of Bank:.............................................................................................................3
BMW Bank:...........................................................................................................................4
Comparing ANZ and BMW:......................................................................................................4
Social Report of ANZ:...........................................................................................................5
Environmental issues:............................................................................................................5
Social issues:..........................................................................................................................5
Social Report of BMW:.........................................................................................................6
Comparative Analysis of ANZ and BMW:................................................................................7
Reporting Quality:......................................................................................................................8
Zadek et al. Criteria (1997):...................................................................................................8
Company Values of ANZ and BMW:......................................................................................10
Group Discussion:....................................................................................................................10
Conclusion:..............................................................................................................................11
References:...............................................................................................................................12

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Introduction:
The social report of any organization presents the approaches and the business
activities of the organization that directly and indirectly help the society in which the same is
operating its business. The social report of the company shows core business activities and
the various issues of the reports. The social report makes it understand the business values of
the company and the presentation of the report in terms of clarity. The social report of the
company is often called as the sustainability report since its presents the information about
the company`s environmental, social and the economical performance. The chosen
companies for the report are the Australian ANZ bank and the German BMW bank from the
same industry. The following report is a comparative analysis of the sustainability report of
the two companies.
Objective:
1. Qualitative analysis of the sustainability reports between the two companies
2. Analysis of the social performance of both companies
3. Marking the corporate values of the two companies
Company Profile:
ANZ Group of Bank:
Australia and New Zealand Banking Group Limited (ANZ) is the fourth largest bank
in the capital market of Australia, which was established in 1951. The ANZ is not an
individual banking entity, but the group of banks that dominates the financial sectors of
Australia and New Zealand (www.anz.com., 2017).The organization dominates both the
retail and the commercial banking sectors in Australia as well as in New Zealand. In addition,
the company also operates 34 other nations.

4BUSINESS VALUES AND SOCIAL REPORTS
The general business activity of the company is to provide financial service to the
institutional and corporate clients, retail and small business (Finance’s, 2015). The business
activities of the bank are divided into two units – retail and commercial. The retails business
activities of the ban include offering housing loans, consumer business and financial cards
and banking (Brämer&Gischer, 2012). The commercial banking, providing financial services
to the regional and rural areas and the business banking to the small business companies are
included in the commercial business activities of the bank.
BMW Bank:
BMW bank is the subsidiary of the BMW Group and one of the major financial
service providers of in Germany. The company was founded in 1971. The BMW purchase
financing and finance vehicle storage and the spare parts of the vehicle
(www.bmwgroup.com. 2017). The brands that the company represents are the BMW, MINI
and Rolls-Royce motor vehicles. The company operates its business worldwide in 53
countries.
The business activities of the BMW bank mainly focus on the financing and leasing of
the automobile companies for commercial and retail customers (Kessler&Stephan, 2013).
The business activities of the bank operate under the alphabetcompany.In addition, the
financial service of the company offers the banking products and insurance facilities to the
customers of the bank (BMW Financial Services., 2017).
Comparing ANZ and BMW:
This section of the report presents the detail of social reports of both the companies.
The structure, nature and the ton of the sustainability report of the two companies are
presented in this section.

5BUSINESS VALUES AND SOCIAL REPORTS
Both the companies’ sustainability reports present the financial service of the
companies and the business activities of the same. Theapproaches of the reporting depict the
internal and external pressure on the business activities of the companies and Corporate
Social Responsibilities (CSR) performance of the same under the pressures. While comparing
the two reports the study presents clarity of the report, whichenables understanding of the
reports in terms of the companies’ ethics, codes of values and conduct, business principles for
the stakeholders’ management and overall business activities.
Social Report of ANZ:
Environmental issues:
The major social issue that is prevalent in the social report of the company is its
reluctant nature in performing the moral and social policies. In one of the annual general
meeting, the chairman of the company has stated that the company responsibilities and goal is
not to serve the moral policies, but to ensure the business sustainability in order to achieve
the business values (Guziana&Dobers, 2013). About the carbon emission from the power
generation sector that the company is lending to, the company tries to be transparent on the
issue. However, the social report of the organization shows the evidence that the carbon
emission of the companies financed by the bank is 20 percent lower than other companies in
Australia (news.iguana2.com, 2017).
Social issues:
Apart from the environmental issues and performance of the company, the report on
the sustainability also presents its CSR activities. However, the company does not emphasis
on the focusing of the CSR activities, but more to the sustainability framework and the
business strategies, which can add values to the business (Sharma & Brimble, 2012). The
massage from the chairman of ANZ also focuses on the sustainability framework of the

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business. The structure of the entire report is based on the written and detail description of the
section and sub-sections, which makes the report elaborative.
Social Report of BMW:
One of the relevant issues of the sustainable report of BMW is the risk assessment of
the factors determining the climate change. The report highlights on this particular issues in
terms of delivering its social and environmental responsibilities. The social report of the
BMW group is limited within the motor vehicle industry. The sustainability of the
companyencompasses the long-term value chain of the company. Since BMW primarily
works with the motor vehicles companies, it focuses on the carbon emission in terms of
serving the environmental sustainability. The strategic approach of the company focuses on
the urban mobility more and less on the community in terms of serving the CSR activities.
However, the company presents in its annual sustainability report the welfare and upliftment
program of the employees and the society. The sustainability report of them also includes
their proposed and future initiatives that will be implemented in the following years to
enhance their sustainability activities. Moreover, the reporting structure of them is flexible
enough to be amended according to the current need and requirement of the organization.
The annual report on the sustainability of the company sheds light on the service,
products and the strategies of the company. It is evident from the chairman’s message in the
report the approach if the report is on the business strategies of the company. The company
has used numerous graphs and images in the report, which presents a precise and clear picture
of every section of the report as well as the whole. In addition, several charts are included
presented in the report for the clear understanding of certain data and comparison the
esteemed section of the report is delivering.

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Comparative Analysis of ANZ and BMW:
While explaining the differences between ANZ and BMW, the first comparison
comes with the services of the two companies. The social report of the two companies clearly
presents the differences of the service provide by the companies. Despite belonging to the
same industry and the providing the basic financial service, the difference lies in the range of
service offered by the companies. ANZ bank is one of the major and biggest capitalized bank
in Australia and New Zealand, which provides general banking service as well as the
commercial banking service Unlike ANZ, BMW provides financial service to the motor
vehicle companies representing the organization (BMW Financial Services., 2017). Again,
ANZ provides the retail and commercial banking facilities to the consumers. In addition, it
also provides financial service to the regional and rural areas in Australia, which is a part of
the CSR activities of the company. It is found from the annual report on sustainability that the
company is much public about their CSR activities and has presented several case studies in
this regard accordingly (MarkotaVukic, 2015).
The prime focus of the BMW is on business strategies and the commercial service as
presented in the sustainability report of the company. Moreover, the CSR activities of the
company covers only one-third of the annual social report published by the company. The
business objectivities and the activities of BMW focusmajorly on the business production and
the profitable financial service of the organization. The primary and major goal of the
company is to advance the mobility of the automotive products and the supporting the
representing automotive companies for doing the same. This group of projects less focuses on
the social and social upliftment. However, the sustainability report of the organization depicts
the limited CSR activities of the company. The report majorly presents the numerical data
and the information about the company’s success on certain business fields.

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Reporting Quality:
Eight key criteria of quality is proposed by Zadek et al. (1997), which is used in
assessing the quality of the reports presented by the two companies. These criteria are applied
to measure the social accounting procedures of the reports. These eight key standards help
evaluating issues with the report and the transparency of the same. It is found from the both
report that the organizations are working towards the accountability that is socially
acceptable. The comparison and similarities using the Zadek standards presents the difference
in the business activities and strategies in terms of the CSR initiatives by the companies. The
following table is presents the comparison.
Zadek et al. Criteria (1997):
ANZ BMW
Inclusivity The company has identified list
of stakeholders as the
fundamental for the business
success: customers, employees,
shareholders, government and
regulations, industry
associations and non-
government organizations
(NGOs) (P: 78)
The company has identified list
of stakeholders as the
fundamental for the business
success: capital market,
suppliers, network and
associations, policymakers,
research, media, business
partners, local stakeholders,
civil society and NGOs,
employees and customers (P:
112).
Comparability Both the banks have givena elaborative presentation of their code
of ethics and conduct in the sustainability report, though under
different names.
Completeness As the public organization, BMW chiefly focuses on the

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ANZ has successfully presented
the CSR activities in the report
with ignorable obligations.
business strategies and
commercial services than CSR
activities (PozoCardenal&Carrió
Garcia, 2013)
Evolution Both the companies has successfully achieved the targets and
commitments regarding the community issues and public relations
such as human rights issues, health and safety, education, child
labor and overall community development.
Management Policy and
Systems
ANZ maintains and follows the
management policies such as
employment policy, risk
assessment, capital
management policy, health,
safety policy, and many others.
The management system is also
transparent and responsible
towards the social
responsibilities (P: 146).
BMW focuses on the trade and
stakeholders’ policy more and
less on the other policy like
employment policy (P: 96).
Disclosure The information and data is disclosed in the annual report and the
sustainability report of the company.
External Verification ANZ is audited by the Board
Audit Committee of the
company.
BMW is audited independently
by the company itself.
Continuous Improvement Despite meeting commitments and targets of business objectives
and the CSR activities, both the companies acknowledge their
future commitments towards the society in the reports and the
elimination of the sustainability issues.

10BUSINESS VALUES AND SOCIAL REPORTS
Company Values of ANZ and BMW:
The company values of ANZ are outlined in the company Code of Conduct and
Ethics. ANZ values include responsibility and respect, loyalty and trust, risk management,
sustainability and governance (Shamsuddin& Xiang, 2012).The research on the sustainability
report of ANZ shows that the company balances the ethical values and the CSR activities
with the business values (www.shareholder.anz.com, 2016).
BMW values are stated in the company sustainability report outlined as the set of
principles human rights and the working condition of the company (Holst & Kirsch, 2016).
BMW is engaged more to the economical activities of the company and less to the CSR
activities (www.bmwgroup.com, 2016). However, the company has focused on the human
rights of the employees working in the organization and presented an illustration of the same
in the social report.
Group Discussion:
On our initial meeting, we discussed the product and the service provided by the two
companies and compared the same. We managed to find out the apparent and basic
differences between the services of the two companies. One month after our first meeting,
we met and discussed the sustainability report of the two companies in term of the CSR
activities and the overall format of the report.We found out the similarities and the
differences of the sustainability report, the business, and the social activities between ANZ
and BMW.
However, in the group discussion there are few differences being emerged in the
discussion. One of the differences is the opinion of my group,which is contradictory to my
personal opinion. This is due to the fact that, I was of the opinion that, BMW is having more
effective and extensive sustainability policy compared to ANZ bank. This is due to the reason

11BUSINESS VALUES AND SOCIAL REPORTS
that, according to me, in reporting the sustainability report, BMW covered all the relevant
areas related to their business activities. On the other hand, our group came of the opinion
that, ANZ bank is having more effective reporting structure than that of BMW. According to
them, ANZ bank has more effectively disclosed their proposed ideas than BMW.
Conclusion:
This can be concluded from the above discussion that ANZ Bank and BMW Bank
serve their CSR activities and have mentioned that in their annual sustainability report. The
sustainability report of two companies reflects the business activities as well as the social
activities of them. The essay analyzes the social report of both the companies in terms of the
structure, tone, nature, differences and similarities and the overall presentation of the report.
It is evident from the comparative and quality analysis of the two reports that there are mush
differences between ANZ and BMW, but few similarities can also be seen. The presentation
of the report of BMW uses the numerical data more, whereas the report of the ANZ presents
more case studies. However, both the report states their future and present business and the
sustainability framework in the report.

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References:
About us | ANZ. (2017). Anz.com. Retrieved 5 September 2017, from
http://www.anz.com/about-us/
BMW Financial Services. (2017). Bmw.in. Retrieved 5 September 2017, from
https://www.bmw.in/en/fastlane/bmw-financial-services.html
Brämer, P., &Gischer, H. (2012). Domestic systemically important banks: An indicator-based
measurement approach for the australian banking system. Univ., Faculty of
Economics and Management.
Finance’s, G. (2015). Global Finance names the world’s 50 safest banks 2015.
Guziana, B., &Dobers, P. (2013). How sustainability leaders communicate corporate
activities of sustainable development. Corporate Social Responsibility and
Environmental Management, 20(4), 193-204.
Holst, E., & Kirsch, A. (2016). Financial sector: share of women on corporate boards
increases slightly but men still call the shots. DIW Economic Bulletin, 6(3), 27-38.
Kessler, T., & Stephan, M. (2013). Service transition in the automotive
industry. International Journal of Automotive Technology and Management, 13(3),
237-256.
MarkotaVukic, N. (2015). Corporate Social Responsibility Reporting: Differences among
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news.iguana2.com. (2017). News.iguana2.com. Retrieved 5 September 2017, from
http://news.iguana2.com/anz/ASX/ANZ/459865

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PozoCardenal, A., &Carrió Garcia, F. (2013). Qualitative and quantitative financial analysis
of BMW GROUP.
Shamsuddin, A., & Xiang, D. (2012). Does bank efficiency matter? Market value relevance
of bank efficiency in Australia. Applied Economics, 44(27), 3563-3572.
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www.bmwgroup.com. (2017). Retrieved 5 September 2017, from
https://www.bmwgroup.com/content/dam/bmw-group-websites/bmwgroup_com/ir/
downloads/en/2016/BMW-Group-SustainableValueReport-2016--EN.pdf
www.bmwgroup.com. (2017). Retrieved 5 September 2017, from
https://www.bmwgroup.com/content/dam/bmw-group-websites/bmwgroup_com/ir/
downloads/en/2016/BMW_GB16_en_Finanzbericht.pdf
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Zadek S, Pruzan P and Evans P, 1997, Building Corporate Accountability-Emerging
Practices in Social and Ethical Accounting, Auditing and Reporting, Earthscan,
London.