Corporate Social Responsibility in BMW, Germany

The BMW Company, in this context, being one of the dominant luxury automobiles producing companies in the global scenario, can be seen to be building a robust CSR and sustainable development framework in their operations, in Germany, taking into consideration the welfare of their employees, investors, suppliers, consumers and the society as a whole as well as the improvement of the environment.

Running head: CORPORATE SOCIAL RESPONSIBILITY IN BMW, GERMANY
Corporate Social Responsibility in BMW, Germany
Name of the Student
Name of the University
Author Note

1CORPORATE SOCIAL RESPONSIBILITY IN BMW, GERMANY
Executive Summary
The notion of Corporate Social Responsibility has been increasingly gaining
popularity with time, in the integrated and inclusive business environment, where the
customers are more aware about the operational frameworks of the businesses and the
outcomes. The BMW Company, in this context, being one of the dominant luxury
automobiles producing companies in the global scenario, can be seen to be building a robust
CSR and sustainable development framework in their operations, in Germany, taking into
consideration the welfare of their employees, investors, suppliers, consumers and the society
as a whole as well as the improvement of the environment. However, much of these CSR
activities of the concerned company are influenced by the policies and strategic frameworks
which are present with the governing authorities of Germany, one of the countries
emphasizing considerably on these aspects, in the contemporary period.

2CORPORATE SOCIAL RESPONSIBILITY IN BMW, GERMANY
Table of Contents
Introduction................................................................................................................................3
Corporate Social Responsibilities: Conceptual Framework......................................................3
Corporate Social Responsibility of BMW.................................................................................4
Influence of Governing systems of Germany on CSR activities of BMW................................7
Conclusion..................................................................................................................................9
References................................................................................................................................10

3CORPORATE SOCIAL RESPONSIBILITY IN BMW, GERMANY
Introduction
In the contemporary period, with the global corporate scenario becoming more
interconnected and with increased awareness and dissemination of information about the
commercial activities among the different stakeholders like consumers, investors, employees
and societies as a whole, it has been becoming immensely important for the business
organizations across the globe to concentrate on their social responsibilities and ethical
aspects, along with profitability and revenue generation, in order to stay competitive, relevant
and sustainable in the increasingly complex global business framework (Schwartz 2017).
This in turn, has resulted in increasing popularity of the term, “Corporate Social
Responsibility”.
Keeping this into consideration, the concerned report tries to analyse the framework
of corporate social responsibilities which is present in one of the most esteemed and reputed
luxury automobile company, the BMW, in their operational framework in Germany. The
report also tries to analyse and explore the influence of the governance systems of the
concerned country on the CSR related activities and framework of the BMW Company in
Germany.
Corporate Social Responsibilities: Conceptual Framework
The notion of Corporate Social responsibility, is a wide and multilateral one, in
general referring to the self-regulatory activities which are taken into account by different
organizations, especially corporate or business organizations, with the intention of operating
in an ethical and sustainable framework, thereby not only ensuring economic profitability but
also generating higher welfare (both economic and overall) for the different people associated
with the organizations, like the employees, the customers, other stakeholders and the society
and community as a whole (Tai and Chuang 2014). The primary components of the

4CORPORATE SOCIAL RESPONSIBILITY IN BMW, GERMANY
Corporate Social Responsibility of business organizations, in a generalised framework can be
seen to be as follows:
Economic Responsibilities- The primary economic responsibility of any business
organisation is that of being profitable, such that it can sustainably cater to the employees (in
terms of wages), shareholders (in terms of their share of profits) and governments (in terms of
taxes and other financial obligations) (Suliman, Al-Khatib and Thomas 2016).
Legal Responsibilities- The companies need to abide by the laws and regulatory framework
in the regions where they operate, in order to maintain their reputation and goodwill.
Ethical Responsibilities- In the contemporary period, to stay sustainable and reputable, it is
of immense importance for the companies to operate in an ethical framework and in a
righteous manner.
Discretionary Responsibilities- The business organizations need to contribute to the
community and the society with the help of their own resources, such that the overall welfare
of the society increases (Roy et al. 2015).
Keeping this into consideration, the following section of the report tries to analyse the
CSR activities and practices of the concerned company, BMW, in Germany.
Corporate Social Responsibility of BMW
The BMW Company, being one of the predominant names in the global luxury
automobile industry, has its operations in many countries, but the base and origin of the
company is in Germany, with its headquarters in Munich. However, apart from its luxury
products and customised services, the company is also known for its actions of incorporating
sustainability and corporate social responsibilities in its operations (Bmwgroup.com 2018).
From 2001, the concerned company has developed its strategic sustainability and CSR

5CORPORATE SOCIAL RESPONSIBILITY IN BMW, GERMANY
targets, which has been consistently pursued by the company from that point of time. The
CSR paradigm and sustainability practices as well as targets of the company can be seen to be
as follows:
Figure 1: CSR and Sustainability Targets of the BMW Company
(Source: Vallaster, Lindgreen and Maon 2012)
The three key areas where the company concentrates in its CSR related activities are
as follows:
 Products and services
 Value creation in the production processes
 Employees and the society as a whole (Ganescu 2012)
The Corporate Social Responsibilities which are already taken up by the company can
be seen to be as follows:
a. Environmental Responsibilities

6CORPORATE SOCIAL RESPONSIBILITY IN BMW, GERMANY
The concerned company, being an automobile company, acknowledges the
environmental degradations which are caused by the production and usage of the automobiles
across the globe. Keeping this into account, the company has already started decreasing the
level of carbon dioxide emissions in its new vehicle fleets and targets to reduce the same by
50% by 2020, as compared to its base year, 1995 (Bmwgroup.com 2018). The company has
already reduced the average fuel consumption of the new cars by 42% since 1994. BMW also
aims to reduce the wastage of fuel and excessive consumption of non-renewable fuel
resources and for doing the same it deploys company buses for its employees. In total, nearly
15,000 employees of the company take company buses, thereby reducing the number of cars
on the roads of Germany, reducing both fuel consumption and emission of carbon dioxide.
BMW, in the contemporary period, has been consistently moving towards electro
mobilisation, with launching of electric cars in Germany and also in other European
countries. The company has also installed more than 37,000 BMW i-charging points in 29
countries, including Germany. By transporting its cars by rails, the company has avoided
80,000 truck journeys in Germany in 2017 (Bohnsack, Pinkse and Kolk 2014).
b. Economic Responsibilities
The company, being a global employer and influencer in the international commercial
scenario, also acknowledges its economic responsibilities towards the different stakeholders,
including its employees, investors and suppliers across the globe. The supplier network of the
company accounts for nearly 80% of the total value added of the company and in Germany,
BMW has a long-term as well as expanding supplier network (Bohnsack, Pinkse and Kolk
2014). The company also offers transparency in their reports and financial as well as other
activities, to attract their investors and also maintains long-term relation with them by
catering to their interests.

7CORPORATE SOCIAL RESPONSIBILITY IN BMW, GERMANY
c. Responsibilities towards employees
BMW is known for providing an ethical and productive work environment to its
employees, comprised of different types of privileges. The company promotes healthy living
and work conditions for its employees. In the Munich branch alone, there are 21 bicycle
stands with nearly 118 bikes for the employees to commute within the campus, free of cost
(Brown 2013). The company also provides facilities like medical insurance, accidental
insurance, work-place safety drills and regular health check-up facilities to their workers. In
Germany, the company has its own Group health service, where 154 doctors and medical
staffs treat thousands of employees. The canteens of the company in Germany, provides
47,000 meals every day and nearly 2.6 million salad servings every year, to promote healthy
eating habits.
d. Responsibilities towards Society
The company believes in giving back to the community and the society in which they
venture. Being a supporter of healthy living, the company arranges for fitness drives, medical
check-ups and other welfare increasing activities in Germany. BMW also invests in the
educational sector of the country, especially for the under-privileged ones, in order to develop
the skills of the future work-force in the country, thereby contributing to the economic and
overall welfare of the society (Brown 2013).
Thus, from the above discussion, it can be asserted that the BMW Company has
developed a robust corporate social responsibility framework, especially in its domain of
operations in Germany. The CSR activities of the company, however, are influenced by
several factors, of which one of the primary one is the policy framework of the government
of Germany in this aspect.

8CORPORATE SOCIAL RESPONSIBILITY IN BMW, GERMANY
Influence of Governing systems of Germany on CSR activities of BMW
Germany is one of those countries which emphasize considerably on the corporate
social responsibilities of the companies venturing in the country and on the aspects of the
duties which the companies need to acknowledge in order to ensure an overall societal
welfare. In 2009, the Labour Ministry of the country, launched the National CSR Forum,
which advises the Federal Government of the country, regarding the developments of the
national CSR strategic framework (Csr-in-deutschland.de 2018).
The most crucial CSR activities of the governing authorities of Germany include the
following:
 Promotion of decent work environment across the globe, through creation of
sustainable supply chain
 Abiding by the guiding principles of UN and implementing the same in their National
Action Plan for Business and Human Rights
 Implementing the EU Directives in the CSR activities of the companies operating in
the country
The primary areas where the government of the country focusses, in terms of CSR
activities, are as follows:
 Overall welfare of the employees and workers associated with the operational
activities of different companies in the country, in the aspects of standard wage
structure, job securities, work environment and health related facilities.
 The improvement of the overall lifestyle of the employees and their family members.
 Educating the business institutions about their responsibilities towards societies,
environments and towards the community in which they operate (Verbeeten,
Gamerschlag and Möller 2016).

9CORPORATE SOCIAL RESPONSIBILITY IN BMW, GERMANY
 Imposing stricter environmental regulation on the companies, especially those whose
production and operational activities include components of environmental
degradation (Brown 2013).
 Protection of human rights.
 Eradication of poverty in the country as a whole.
Conclusion
Keeping into consideration the above discussion, it can be asserted that over the years,
the notion of CSR has been increasingly becoming popular and different companies are
incorporating the same in their operational framework. The BMW Company, is one of the
business organizations known for their activities in this aspect, especially in their domain of
operations in Germany. However, much of their operations in Germany are influenced by the
governing policies and strategic framework which are present with the government of the
country, keeping into consideration the fact that the government of Germany focusses
considerably on the aspects of corporate social responsibilities of the businesses and their
duties in the aspects of increasing the overall welfare of the society and the community in
which they serve and in the aspects of preserving the environment quality for future
generations.

10CORPORATE SOCIAL RESPONSIBILITY IN BMW, GERMANY
References
Bmwgroup.com 2018. SOCIAL COMMITMENT. [online] Bmwgroup.com. Available at:
https://www.bmwgroup.com/en/responsibility/corporate-citizenship/social-commitment.html
[Accessed 25 Sep. 2018].
Bmwgroup.com 2018. SUSTAINABLE VALUE REPORT. [online] Bmwgroup.com. Available
at: https://www.bmwgroup.com/en/responsibility/sustainable-value-report.html [Accessed 25
Sep. 2018].
Bohnsack, R., Pinkse, J. and Kolk, A., 2014. Business models for sustainable technologies:
Exploring business model evolution in the case of electric vehicles. Research Policy, 43(2),
pp.284-300.
Brown, A., 2013. Quality: where have we come from and what can we expect?. The TQM
Journal, 25(6), pp.585-596.
Csr-in-deutschland.de 2018. CSR - CSR Policies in Germany. [online] Csr-in-deutschland.de.
Available at: https://www.csr-in-deutschland.de/EN/Policies/CSR-national/CSR-Policies-in-
Germany/csr-policies-in-germany.html [Accessed 25 Sep. 2018].
Ganescu, M.C., 2012. Corporate social responsibility, a strategy to create and consolidate
sustainable businesses. Theoretical & Applied Economics, 19(11).

11CORPORATE SOCIAL RESPONSIBILITY IN BMW, GERMANY
Roy, S.K., Roy, S., Mubeen, R., Brindha, N., Abirami, A., Leve, S.L., Mohanraju, B.L.,
Priyadarshini, K., Jeyabharathy, P., Thilakam, C. and Mahadevi, S., 2015. Corporate social
responsibility. EduPedia Publications Pvt. Ltd..
Schwartz, M.S., 2017. Corporate social responsibility. Routledge.
Suliman, A.M., Al-Khatib, H.T. and Thomas, S.E., 2016. Corporate social
responsibility. Corporate Social Performance: Reflecting on the Past and Investing in the
Future, p.15.
Tai, F.M. and Chuang, S.H., 2014. Corporate social responsibility. Ibusiness, 6(03), p.117.
Vallaster, C., Lindgreen, A. and Maon, F., 2012. Strategically leveraging corporate social
responsibility: A corporate branding perspective. California management review, 54(3),
pp.34-60.
Verbeeten, F.H., Gamerschlag, R. and Möller, K., 2016. Are CSR disclosures relevant for
investors? Empirical evidence from Germany. Management Decision, 54(6), pp.1359-1382.