BMW Environmental Performance Analysis and Management Strategies

This report provides an in-depth analysis of the environmental issues faced by BMW, a leading German automobile manufacturer, examining these issues through Zadek's Issue Maturity Framework. It details BMW's environmental management system, focusing on how the company utilizes it to implement strategies and measure performance. The report further explores the extent to which BMW has achieved success in applying resource-saving principles, including operations and supply chain management, highlighting initiatives such as recycling, waste reduction, and the adoption of eco-friendly practices in manufacturing. Additionally, the report discusses BMW's corporate social responsibility (CSR) activities, such as employee training and community development, and how these efforts contribute to enhancing the company's brand image and stakeholder relations. The report concludes by assessing BMW's performance and recommending further improvements to address environmental challenges and optimize resource utilization within the organization.

Environmental Report

Table of Contents
PART 1............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
Analyzing the key environmental issues which are facing by BMW on the basis of Zadek's
(2004) Issue Maturity Framework..............................................................................................1
PART 2............................................................................................................................................3
2.1 Ways through which company make use of environmental management system and
performance measure to implement the strategy........................................................................3
2.2 Stating the extent to which BMW have attained success while applying the principles of
resource saving............................................................................................................................4
CONCLUSION................................................................................................................................5
RECOMMENDATIONS.................................................................................................................5
REFERENCES................................................................................................................................7

PART 1
INTRODUCTION
Environmental reporting my be defined as a disclosure of the environmental performance
of the firm. It provides deeper insight to the stakeholders about the extent to which activities of
the organization have influence upon the living and non-living natural living system (Hřebíček
and et.al., 2014). This project is based upon BMW who is the German automobile manufacturer.
BME offers luxury vehicle to the customers and it is one of best selling luxury automaker in the
world. Mercedes-Benz, Audi, Porsche etc. are one of the main competitors of BME. Thus,
company is facing major threat from all theses automobile manufacturing company. The present
report will describe the environmental issues which are facing by BMW. Besides this, it will also
shed light in the extent to which BMW makes use of environmental management system.
Analyzing the key environmental issues which are facing by BMW on the basis of Zadek's
(2004) Issue Maturity Framework
BMW have fulfilled its responsibility towards the environment and society to the large
extent. Business organization have made its best efforts to decrease the energy, water and
industrial wastage. In addition to this, company have also made remarkable contribution in the
development of the community. Nevertheless, there are several key environmental issues which
are facing by BMW in accordance to the Zadek's (2004) Issue Maturity Framework are
enumerated below: Defensive: In this stage, organization deny or prevent to follow all the responsibilities
which they needs to undertake. Moreover, BMW is operating in the manufacturing
industry so they have accountability to perform their activity in such a manner which
does not provide harm to the society or environment. Nevertheless, in the initial stage
BMW place emphasis on the manufacturing of car and avoid the aspect of pollution. This
aspect negatively affects the brand image, productivity and profitability aspect of the firm
(Epstein and Buhovac, 2014). Moreover, when company avoids environmental health and
safety aspects then it also place negative influence upon the purchasing decision making
of the customers. In addition to this, health and safety measures also affects the
recruitment and selection of the personnel. Moreover, personnel prefers to perform the
work in the organization who follows all the health and safety aspects.
1

 Compliance: In the second stage business unit place emphasis on the adoption of the
policy based compliance approach. Thus, according to the laws and legislation BMW
also requires to make modification in its existing strategies and policies. This aspect also
impose challenge in front of the organization. Moreover, firm is compelled to comply
with the legal framework due to the reputation or image aspect. Brand value or image is
highly influenced by the practices and framework which is undertaken by the business
unit. Managerial: Under this, company is required to include societal issues in the core
management process which helps them in enhancing or strengthen the brand image
(Schneider and Schmidpeter, 2012). With the aim to achieve ling term benefits BMW
have made its great efforts to develop awareness among the children about the traffic
rules and safety. Through this, business enterprise is able to build distinct image in the
mind of stakeholders. Strategic: At this stage, company makes focus upon the integration of social issue with
their core business strategies. For getting long term benefits BMW offers mobile phone
application on traffic safety with the aim to provide benefit to more people (Fusheng,
2016). Thus, by making innovation in the process company is able to handle societal
issues more effectively and efficiently.
 Civil: In order to enhance long term economic value BMW make high level of efforts to
promote participation of the automobile industry in corporate social responsibility
(Zadek, 2016).
Along with all the above mentioned aspects compel BMW to make changes in its
strategic and policy framework. In addition to this, company also has responsibility to follow all
the political, economical, social, technological, legal and environmental factors. BMW operates
in many part of the world (Korschun, Bhattacharya and Swain, 2014). Thus, it has to follow
different rules and regulations. In addition to this, economic condition as well as technological
and legal factor also vary from country to country. Further, environmental condition, availability
of the resources also have high level of influence upon the growth and success of firm. Thus, all
these environmental factors closely affects the business operations and functions of BMW.
Zadek's issue maturity framework are as follows:
2

 Latent: Environmental emission of BMW shows that it completely ignores the
responsibility which it having towards the society. Such ignorance had placed negative
impact on the people of society. Emerging: Now awareness of the political and media sources towards the societal issues
are continuously increasing. In this way, company places more emphasis on employing
the strategies which may result into less pollution. Further, BMW also makes experiment
to assess the alternative ways through which they can make environment friendly cars. Consolidating: At this stage, company develops new standard work and thereby take
strategic actions for avoiding the problem of pollution. Further, to strengthen the
environmental safety mission government needs to frame laws and legislation. By
complying with such laws BMW can fulfill its responsibility towards 5the society ion an
effectual manner. Institutionalized: In this, company adopts or follows all the newly formed laws and
legislation with the aim to build distinct image in mind of society.
PART 2
2.1 Ways through which company make use of environmental management system and
performance measure to implement the strategy
Environmental management system plays a vital role in reducing the impact of
environment upon the functioning of business organization. This in turn provides high level of
assistance to the business unit in increasing their operational efficiency. This management
system provides help to the corporation in managing the environmental aspects in the highly
systematic and planned manner. BMW also undertakes environmental management system to
strengthen its brand image in mind of several stakeholders. According to this system, BMW
provides training to their personnel or employees to perform their work in a Eco-friendly
manner. Moreover, manufacturing of automobile may cause of emissions of the harmful gases
and pollution. Thus, by conducting training session BMW develops the skills and abilities of
their personnel. Through this, human resources of the firm is able to manufacture automobiles in
an effectual manner by reducing pollution and thereby offers high level of benefit to the society.
3

Environmental management system also plays a significant role in increasing compliance
and reducing the wastage. Moreover, pollution or gases which are emitted by the automobile
industry closely affects the people and other non-living things of the environment (Aguinis and
Glavas, 2012). Further, to survive in the dynamic business arena BMW also requires to comply
with the laws and legislation which are framed by the government. Moreover, if company fails to
maintain the minimal legal standards then it has to pay fine to the government.
Further, business organization also needs to reduce wastage to the extent or percentage
which is determined by the government. If company exceeds certain limit then fine is imposed
by the government on it. Through this, firm is able to improve its environmental performance to
the significant extent. Thus, this system assists BMW in managing its environmental affairs in
the best possible manner. In addition to this, BMW also do CSR activities time to time which
also build and develop faith of the existing and potential stakeholders in the operations. Business
organization has made its contribution in the education of people (Environmental responsibility,
2016). Besides this, company also makes high level of efforts for the development of
community and society by saving water and energy to the great extent (Middleton, 2013). This
aspect clearly reflects that BMW have performed its responsibility in an effectual manner. With
the aim to produce cars in the Eco-friendly manner company give training to their workers.
Environmental management system also place emphasis upon the monitoring and
measurement of the performance of the firm. BMW can easily measure its efforts by formulating
a measurement system and setting benchmark. Business unit can assess its environmental
performance by making comparison of the extent to which it have followed legal standards. In
addition to this, by making assessment of the amount of fine which is paid by the firm to
government company can easily evaluate its environmental performance (Pradier and Pradier,
2014). It is the most effective or significant measure which helps BMW in measure its
performance. Further, by assessing the percentage of waste reduction business organization can
measure its efficiency level. Thus, by taking into account all the above mentioned aspects BMW
can easily implement and monitor its business strategy and policy.
2.2 Stating the extent to which BMW have attained success while applying the principles of
resource saving
Five R's of resource saving implies for recycle, reduce, rethink, reuse and recreate. Every
organization places high level of emphasis upon 5 R's with the purpose of saving and making
4

optimum utilization of the resources. BMW have attained success in saving the resources in the
field of operations and supply chain to the great extent in the following manner:
 Operations: In the area of operation, BMW make focus upon the recycling of material
such as plastic, color etc. Thus, by making use of such material company is able to make
optimum use of its resources. Further, company also encourage their workforce to
perform their work in an effectual manner by reducing the wastage. Along with it,
business enterprise also needs to strive their best efforts in relation to the use of energy,
water, oil etc (Leismann and et.al., 2013). Thus, by exerting control over the
consumption of energy, oil and water business unit is also able to improve its
environmental performance and CSR. Moreover, this activity of firm reflects that
company is highly concerned towards the well being of society.
In addition to this, BMW also makes effort to offer unique or innovative cars and services
to the customers which evolve satisfaction among the customers. Further, company also needs to
assess the effectual ways through which it is able to manufacture the cars by cutting cost. With
the help of all these aspects BMW is able to build high tech cars at minimum cost. Company can
competitive edge over other only when they wisely make use of their resources which is
available to them. By taking into consideration all these R's company is able to enhance its
productivity and profitability.
 Supply chain: It consists of the way through which finished goods reach to the end
consumer. In automobile industry, company encourage their producers and customers to
return back all waste to the producer. With the help of this, company is able to
manufacture further automobile at the very cost effective rates. Further, BMW makes
thorough analysis of the logistic department while making decision about the medium of
transportation. Moreover, company can reduce the damages by making effective
arrangements of well designed cars. Further, BMW conducts research to find out the
suitable ways through which firm is able to provide well designed or manufactured car to
the end customers. Along with it, by taking into account the supply chain management
software company is able to redesign or recreate its supply chain (Sun and et.al., 2015).
Besides this, by implementing the tracking and mobile technologies business enterprise is
become able to make effective use of its supply chain. Thus, BMW have considered all
these aspects and thereby manages its resources in the best manner.
5

CONCLUSION
From this report, it has been articulated that defensive, compliance, managerial, strategic
and civil are the main environmental issues which are facing by BMW. All these factors have
high level impact upon the business activities and practices of the firm. Further, it can be inferred
that environmental management system provides assistance to company in achieving success in
the strategic business arenas. BMW undertakes this system to implement and measure strategy in
the right direction. It can be revealed from the report that BMW have made significant use of its
resources in the area of operations and supply chain. Five R's strategy provides assistance to the
business organization in getting desired outcome or success.
RECOMMENDATIONS
 BMW needs to encourage their workforce to give the best ideas and suggestion through
which they become able to maintain the safety standards.
 Besides this, company needs to undertake research and development activity to find out
the alternative ways of manufacturing which prevent pollution or harmful gases. With the
help of this, company is able to fulfill its responsibility towards the environment and
society to the full extent.
 Further, company should assess their environmental performance on a periodical basis.
By this, BMW is able to assess the deviations which take place in its environmental
performance. It offers opportunity to the firm to undertake effectual measure within the
suitable time frame.
 BMW is also required to frame sound distribution strategy for availing the cars to the
customers within the suitable time frame. It enables firm to build distinct image in the
mind of target market.
6

REFERENCES
Books and Journals
Aguinis, H. and Glavas, A., 2012. What we know and don’t know about corporate social
responsibility a review and research agenda. Journal of management. 38(4). pp.932-968.
Epstein, M.J. and Buhovac, A.R., 2014. Making sustainability work: Best practices in managing
and measuring corporate social, environmental, and economic impacts. Berrett-Koehler
Publishers.
Epstein, M.J. and Buhovac, A.R., 2014. Making sustainability work: Best practices in managing
and measuring corporate social, environmental, and economic impacts. Berrett-Koehler
Publishers.
Hřebíček, J. and et.al., 2014. Integration of economic, environmental, social and corporate
governance performance and reporting in enterprises. Acta Universitatis Agriculturae et
Silviculturae Mendelianae Brunensis. 59(7). pp.157-166.
Korschun, D., Bhattacharya, C.B. and Swain, S.D., 2014. Corporate social responsibility,
customer orientation, and the job performance of frontline employees. Journal of
Marketing. 78(3). pp.20-37.
Leismann, K. and et.al., 2013. Collaborative consumption: towards a resource-saving
consumption culture. Resources. 2(3). pp.184-203.
Middleton, N., 2013. The Global Casino: An Introduction to Environmental Issues: An
Introduction to Environmental Issues. Routledge.
Pradier, J.P. and Pradier, C.M. eds., 2014. Carbon dioxide chemistry: environmental issues.
Elsevier.
Schneider, A. and Schmidpeter, R., 2012. Corporate social responsibility. Verantwortliche
Unternehmensführung in der Praxis, Berlin ua.
Sun, B.. and et.al., 2015. Cumulative exergy demand analysis of the primary aluminum
produced in China and its natural resource-saving potential in transportation. The
International Journal of Life Cycle Assessment. 20(8). pp.1048-1060.
Online
7

Environmental responsibility. 2016. Online. Available through:
<https://www.bmwusfactory.com/sustainability/corporate-sustainability/environmental-
responsibility/>. [Accessed on 28th March, 2016].
Fusheng, L., 2016. BMW committed to 'Strategic CSR to solve the social problems. Online.
Available through:
<http://www.chinadaily.com.cn/cndy/2015-07/27/content_21415607.htm>. [Accessed on
28th March, 2016].
Zadek, S., 2016. The Path to Corporate Responsibility. Online. Available through:
<https://hbr.org/2004/12/the-path-to-corporate-responsibility>. [Accessed on 28th March,
2016].
8