MN3916K Report: Daimler's Responsible Management Strategy

This report provides a detailed analysis of Daimler's approach to responsible management, focusing on key megatrends and their implications for the company's reputation. It begins with an executive summary and an introduction that highlights the growing importance of Corporate Social Responsibility (CSR) and the role of the United Nations Global Compact in promoting responsible business practices. The report then provides context on the Daimler Group, including its global presence and diverse business activities, emphasizing its commitment to sustainable business practices and social responsibility. The core of the report explores critical responsible management megatrends, including carbon neutrality and human rights, providing justifications for their importance to Daimler. The discussion includes an examination of Daimler's carbon neutrality goals, the importance of carbon data across the automotive supply chain, and the company's efforts to maintain human rights standards, addressing accusations of unethical practices within the car manufacturing sector. The report analyzes the opportunities and constraints these megatrends pose for Daimler, offering recommendations to safeguard the company's long-term reputation and align its business with CSR approaches. The report concludes by emphasizing the significance of responsible management for Daimler's continued success in the commercial vehicles manufacturing industry, offering insights into how Daimler can adapt to evolving market demands and maintain its position as a leader in the automotive industry. The report includes references and recommendations for the CEO of Daimler Company, focusing on the importance of aligning business practices with CSR approaches and managing megatrends.

Running head: INTEGRATING MANAGEMENT
INTEGRATING MANAGEMENT
Name of the Student:
Name of the University:
Author note:

1
INTEGRATING MANAGEMENT
Executive Summary
The United Nations has launched the Global Compact with an objective of motivating
businesses to perform in socially responsible method and act in association with values on
human rights, labour as well as the environment. The Daimler Group is one of the major and
leading producers of first-class cars and world’s largest manufacturer of commercial
automobiles with a global influence. The company has been engaged in financing, leasing,
fleet management as well as innovative mobility services. Daimler has designed in attaining
sustained and noticeable optimistic impact, which will positively promote shared good. As
per reports, Daimler Group in 2018 has spent approximately €66 million on contributions to
non-profit institutions in addition to the subsidy of socially beneficial ventures. Daimler
emphasizes robust promise towards maintaining human rights values in their business
practices. Daimler must recognize the limitations of “mass customization” of engagement on
the part of organizations as well as authorize public to take answerability for their own
appointment, connecting them with the implements as well as capitals obtainable to profit
them accomplish their work involvements, growth as well as execute maintainable
functioning in positive way. The following report has provided consultation to the CEO of
Daimler Company to safeguard the company’s longstanding reputation especially responsible
management by aligning its businesses with CSR approaches. The report has provided a
reasoning to which responsible management megatrends are essential for Daimler to maintain
its position in the commercial vehicles manufacturing industry.

2
INTEGRATING MANAGEMENT
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Context of the Daimler Group................................................................................................4
3a) Justification of Daimler Choosing Responsible Management Megatrends.....................5
Carbon Neutrality as a Corporate Objective for Daimler..................................................5
Human Rights Standards Maintained by Daimler.............................................................7
Digitalisation Megatrend followed by Daimler.................................................................8
Opportunities and constraints of key responsible management megatrends- Daimler..........9
Conclusion................................................................................................................................11
Recommendations................................................................................................................12
References................................................................................................................................14

3
INTEGRATING MANAGEMENT
Introduction
The increasing understanding of CSR (Corporate Social Responsibility) reveals that
companies in recent times have developed the understanding of the need to maintain
responsible management rather than simply focusing on making profit and to be part of
improved social resolution (Hibbert and Cunliffe 2015). Although, number of organizations
has corporate giving programs, there can be seen limited organizations that are aware of
executing ways of achieving a substantial social impact. By drawing relevance to these
factors, the United Nations has launched the Global Compact with an aim of stimulating
businesses to act in socially responsible manner and act in alliance with values on human
rights, labour as well as the environment. According to Blok, Hoffmans and Wubben (2015),
since past 20 years, the world has been undergoing significant changes with globalisation,
skill, advanced technology, social media along with the intensification of consumers’
responsiveness as well as actions for change, unethical behaviour by companies. These have
resulted in cause of disasters in addition to the recent global financial disaster, which has
been significantly attributing to unethical behaviour of governments as well as firms. Some of
these changes result in the ongoing conversation on the role of customers, administrations as
well as firms. However, Hibbert and Cunliffe (2015) have argued that apportioning
consideration as well as capitals to CSR might not be as beneficial as capitalizing on the
development of essential human resource practices, when the goal relies on improving
employee engagement. The aim of the following report is to provide consultation to the CEO
of Daimler Company to safeguard the company’s long-term reputation especially responsible
management by aligning its businesses with CSR approaches. The report will provide a
reasoning to which responsible management megatrends are essential for Daimler to maintain
its position in the commercial vehicles manufacturing industry.

4
INTEGRATING MANAGEMENT
Discussion
Context of the Daimler Group
The Daimler Group is one of the major and leading producers of premium cars and
world’s largest manufacturer of commercial automobiles with an international reach. The
company has been engaged in financing, leasing, fleet management as well as innovative
mobility services. As per reports, as part of Daimler Group’s sustainable business strategy,
the company has been advancing towards its products, electrification as well as digitalization
belligerent (Daimler 2020). In addition to this, with an agenda of responding rapidly and in a
precise approach towards altering client needs in addition to multifaceted market
requirements in the upcoming days, the Daimler Group is further emerging its organizational
structure. Moreover, the primary agenda relies on improving the development as well as
production processes of automobiles, machineries as well as services by means of integrated
and highly efficient cooperation.
According to reports, Daimler executes all across the world. Thus, attaining success
while concurrently shaping development and contributing to the progress of the way of living
in society remains on fundamental base of the company (Daimler.com 2020). Considering,
these activities associated with social commitment Daimler has designed in attaining
sustained and visible positive impact which will successfully promote common good. As per
reports, Daimler Group in 2018 has spent roughly €66 million on donations to non-profit
institutions in addition to the funding of socially beneficial ventures (Daimler 2020). The
CSR approach is holistic and assimilated with the essential business strategy for addressing
social as well as environmental impacts of businesses. It is spoken to the happiness of all
stakeholders as well as not only the company‘s stockholders. In the view of Stoycheva et al.
(2018), philanthropic activities are individual part of CSR, which otherwise establishes a

5
INTEGRATING MANAGEMENT
significant range of activities involving strategic business benefits. Daimler Group as a
founding participant of the UN Global Compact relies its aims and objectives as per
expectation considering that it follow the UN Global Compact Principles on human rights,
labour, and the environs in addition to anti-corruption in unification with CSR.
3a) Justification of Daimler Choosing Responsible Management Megatrends
The world is gradually advancing into implementing the ambitious 2030 Agenda
which has been viewed as a historic agreement for combatting environmental challenges,
society and demographics, along with globalisation and connectivity with evolving economy
growth and dynamism in addition to technological developments. Megatrends have been
elucidated as global macro pressures which will transform business and the industries where
they execute operations and most importantly the society. According to Datta,
Gopalakrishna-Remani and Bozan (2015), the individual sub-trends have been positioned by
composite score on the basis of the criticality of impact added to the facilitation of the
management. It has been noted that the degree of composite score determines the level of risk
or opportunity to be viewed. On the other hand, the megatrend score along with
independence of individual sub-developments has further been generated. This positions each
of the megatrends on the basis of the criticality of the impact that has been added to the
facilitation of the business.
Carbon Neutrality as a Corporate Objective for Daimler
Daimler has been putting significant efforts in combatting environmental challenges
as severe climatic developments like rising sea levels, acute climatic conditions and a shift
away from carbon-based energy release show the capacity of causing disruption of asset
values as well as developmental goals (Kapil 2015). The importance of carbon neutrality as a
responsible management megatrend is vital for Daimler Group as it has been considered as a

6
INTEGRATING MANAGEMENT
primary corporate goal for the safeguarding its reputation and upholding its business. As per
studies, against the conditions of diesel scandals, the encounters of electro mobility in
addition to imminent consequences for fiascos of achieving European Union
CO2 requirements there has been found increasing number of automobile manufacturers
establishing their determined as well as aspiring climate targets (Nieuwenhuis and Katsifou
2015). These factors have led Daimler to show obligation in developing as a carbon (CO2)
neutral organization by 2039. The company has gained the understanding of carbon neutrality
from other car manufacturing businesses like Volvo which has also shown its commitment
towards executing a fully climate neutral business practices in the next 20 years (Stoycheva et
al. 2018).
The need for carbon data all through the Automotive Supply Chain for Daimler is
because achieving the declared goals of climate neutrality implies to the fact that automobile
manufacturers have to evaluate their carbon footprints as well as improve their processes as
well as the materials which they utilize (Nieuwenhuis and Katsifou 2015). Thus, it is vital for
manufacturers like Daimler to take into consideration the whole development of automobiles,
together with all direct as well as indirect emissions. As per studies, majority of automotive
Original Equipment Manufacturers (OEMs) have been progressing towards their achievement
of turning their business practices towards carbon neutrality and subsequently has been
establishing carbon valuations processes previously (Kapil 2015). Nonetheless, there possibly
will be certain holes in the carbon map for particular parts combined into automobiles. In this
perspective, car manufacturers have to method their suppliers to accumulate primary
CO2 data for the affected parts. Thus, in order to mollify their clients, OEM suppliers
executing its business operations in the automotive industry must equip themselves in order
to promptly respond to related questions by providing the consistent data. Thus, in order to
evaluate the complete carbon foot print of products in holistic manner, it is imperative for

7
INTEGRATING MANAGEMENT
Daimler has taken into consideration the complete lifecycle of the product which ranges from
disposal to recycling. Additionally, since electro mobility has gained higher level of
commonness, customers in recent times have been expecting environmental assessments with
fossil fuel-based automobiles thus intensifying the demand for a complete evaluation. Thus,
by following this megatrend, Daimler has been easily evaluating the level of carbon
emissions from their products (Daimler.com 2020). Hence, the company has been sourcing
components and materials that require carbon assessment to strengthen their supply chains.
Human Rights Standards Maintained by Daimler
The car manufacturing sector has been facing accusation by renowned human rights
experts of ignoring the established labour standards to amplify their revenue margins.
Rationale of Daimler following human right megatrend is due to the recurrent accusations of
unethical issues encountered by car suppliers for disrespecting human rights standards
(Business-humanrights.org 2020). Blok, Hoffmans and Wubben (2015) have argued that
number of car suppliers in the 21st century has been affronting human rights standards, thus
the most prudent action for car manufacturing is to strategically allow them or in highly
critical situations terminate operating business practices with them. Most importantly, it is
imperative to note that if valuing human rights imply to the fact that car-manufacturing
companies lose certain reliable suppliers, it can be taken into consideration to follow
responsible management practices (Datta, Gopalakrishna-Remani and Bozan 2015). By
drawing relevance to the importance of following megatrend of human rights approach,
Daimler emphasizes robust commitment towards maintaining human rights standards in their
business practices.
As per the company’s sustainability report, it has been found that Daimler as an
automotive manufacturer sees great importance to employee rights, fair-minded working
conditions and refusing any acts of discernment, involuntary employment and most

8
INTEGRATING MANAGEMENT
importantly child labor (Daimler 2020). The responsibility for human rights matters is
fundamentally grounded on the UN Guiding Principles on Business as well as Human Rights.
Furthermore, aligning with the requisite of human rights policy, the company to evade any
accusation from human rights experts have specified operational accountabilities along with
approaches in its Supplier Sustainability Standards along with supplier agreements as core
requirement for its workforce as well as business associates (Daimler.com 2020). The focus
of company’s public external communication predominately lies on its internal governance of
human rights as well as its commitment along with different processes aligning with
differentiation between Daimler’s production locations, operations of sales & marketing in
addition to additional business associates and downstream providers in managing human
rights. Reports have revealed that the US National Labor Committee made strong accusations
on Toyota asserting that the company has executed strategic and target specific employment
exploitations not only in the execution of its own operations but also in its supply chain
management process. On the other hand, reports have claimed that Amazon while acquiring
steel procurement has been involved in unlawful practices and conducts, by disguising CSR
activities while executing their unlawful business practices ( Nawaz, Linke and Koҫ 2020).
Thus, Daimler relies on suitable communication as well as training measures in order to
permit maintenance of human rights in the highly multifaceted supplier chain wherein they
only attain an indirect influence. Furthermore, Daimler by following this megatrend
scrutinizes the performance of sustainability standards by its dealers in a multi-step process
based on comprehensive risk analysis, whereby Daimler executes its operation country wise
and through merchandise categorization.
Digitalisation Megatrend followed by Daimler
The car manufacturing industry has been undergoing noteworthy changes. With the
growth of electrification of the powertrain, several autonomously driven cars along with

9
INTEGRATING MANAGEMENT
expansion of new markets, digitalization has been significantly determining this development
of change (Bukowski and Śniegocki 2017). Notwithstanding the concerns regarding the
declined rates of developments, technological advancements have been continually
determining efficiency improvements and have the ability to upgrade the world’s capacity to
attain sustainable and inclusive financial growth and expansion. Thus, in relation to sub-
trends of megatrends, Daimler has focused on digitisation to reinforce its sustainability
practices. As per reports, Daimler through its sustainability practices has been digitizing its
operating model on two frontiers namely internally like car production and externally which
is directed towards its clientele (Will et al. 2017). Daimler while designing its automobiles
has been strategically influencing digital tools. It has been noted that contemporary
sustainable practices use improved reality mechanisms like Google glass and do not
concentrate on out-dated practices. Hence, they have been manufacturing cars in a highly
efficient and secured method. These cases have illustrated that traditional production process
at Daimler has been interrupted and altered by digitization and subsequently will shape future
technologies (Daimler.com 2020). However, organizations like Daimler has taken into
consideration the value of customers while implementing digitization on its operating as well
as business models. For that reason, Daimler requires managing the pace of new innovations
to guarantee that customers can slowly adapt.
3b) Opportunities and constraints of key responsible management megatrends-
Daimler
Assessing carbon releases from sourced elements and individual materials and
processes has been important for automotive companies like Daimler to accomplish their
carbon neutrality goals (Senn 2017). By following this particular megatrend Daimler has
been successfully optimizing their developments and targeting their efforts. Furthermore,
Daimler initially experiencing gaps in data has reached out to their suppliers. Such

10
INTEGRATING MANAGEMENT
acknowledgment of environmental megatrend has led the value of Daimler to rely
significantly on the competence of delivering strong and accurate data related to carbon
emissions as well as their capacity of implementing strategies of lessening or neutralizing
their CO2 footprints (Kaiser, Stocker and Viscusi 2017). These capabilities have positively
leveraged their purchasing decisions and generate competitive recompenses for suppliers that
acclimatize prompt on to the necessities. Integrating climate and carbon emission risks and
flexibility has presented major opportunity for Daimler in protecting substantial amounts in
assets and property in a highly cost-effective as well as logical manner in comparison to
sustainable practices executed by its competitors (Brinkaemper et al. 2017).
Through Human Rights Commitments and Standards, Daimler has been
communicating its participation and information by means of different networks. Daimler has
been provided the opportunity of establishing an organizational structure which attains as
well as reports into all business units (Planing, Pfoertsch and AG 2016). Furthermore,
megatrend of Human Rights approach related to societal challenges have led the company to
establish range of communication media with an aim of addressing information on human
rights issues on both external and internal level.
On the contrary, maintaining the sub-trend of Human Rights standard has also created
posed challenges in the sustainable functioning of Daimler (Kompalla et al. 2017). While, the
company has obtained the opportunity of setting up range of communication media,
maintaining continual statement on regular basis regarding changes in the company has been
challenging for its smooth business practice. Thus, Daimler is experiencing elevated media
pressures in addition to political and regulatory investigation (Kessler and Buck 2017).
In the 21st century, car manufacturing sector all across the world has more or less
remained unchanged. By following digitization as one of the sub-trends of technological

11
INTEGRATING MANAGEMENT
advances Daimler has generated economies of scale aligned with product manufacturing by
elevating the volume of its products which have been manufactured thus reducing the unit
outlays. In the view of Kagermann (2015), car manufactures have been commendably
captivating the price of intricacies involved in supply chain besides purchase of raw
materials. Leaders like Daimler in the automotive business have gained the opportunity of
using digital technologies in order to drive value. However, on the other hand, digitization
has interrupted the process of traditional car industry. Similarly, Daimler who earlier used to
build a prototype of a car and evaluated in the wind tunnel with comprehensive Big Data
models aligned with computer supported design results for creating and evaluating digital
prototypes, have now been acquired by the process of digitization (Amparo and Horváthová
2015). Furthermore, use of digitization such as QR coding, increased and virtual reality have
facilitated clienteles to gain better experiences in addition to improved understanding of the
product, thus elevating their profundity of awareness. This is because of digitization
clienteles in recent times have access to the media and can connect to the headquarters of the
company at their convenience. Such megatrend has posed challenges to the sustainable
functioning of Daimler wherein it has affected the dealerships of the company than their
revenues (Stephens 2017). It also has restricted the scope of additional prospects for Daimler
to the customer and has often caused dissatisfaction in the future due to the technical
concerns in addition to lack of digital set-up in the country.
However, irrespective this major change from traditional practice to contemporary
modern practice, car manufacturers and suppliers like Daimler has obtained robust
understanding of new challenges like inability of aligning to compete with innovative players
like Amazon, Lyft and Google.

12
INTEGRATING MANAGEMENT
Conclusion
Therefore, from the above discussion, it has been concluded that businesses in recent
times have established the understanding of the need to continue responsible management
instead of simply concentrating on making profit and to be part of improved social resolution.
As part of Daimler Group’s sustainable business strategy, the company has been advancing
towards its products, electrification as well as digitalization belligerent. In the 21st century
have been affronting human rights standards, accordingly the most sensible action for car
manufacturing is to deliberately authorize them or in highly critical situations terminate
operating business practices with them. Number of car suppliers in the 21st century has been
affronting human rights standards, thus the most prudent action for car manufacturing is to
strategically authorize them. Due to digitization, clienteles in recent times have access to the
media and can connect to the headquarters of the company at their convenience. The
responsibility for human rights matters is primarily grounded on the UN Guiding Principles
on Business as well as Human Rights. Additionally, aligning with the requisite of human
rights policy, the company to avoid any accusation from human rights specialists have
specified operational accountabilities along with methods in its Supplier Sustainability
Standards along with supplier agreements as core requirement for its staff as well as business
associates.
Recommendations
Thus as a consultant of Daimler, it is recommended that Daimler needs to develop as
well as reinforce robust employer brands by illustrating the exceptional attractions of working
for the company. Thus, need to recognize that rewards extend well past compensation as well
as benefits and should build core organizational messages around total reward offerings.
Furthermore, Daimler must recognize the limitations of “mass customization” of engagement
on the part of organizations as well as authorize public to take accountability for their own

13
INTEGRATING MANAGEMENT
engagement, linking them with the implements as well as resources obtainable to benefit
them accomplish their work experiences, growth as well as execute sustainable functioning in
positive way. Lastly, Daimler needs to have assurance that a business is well-driven, heading
in the right direction, and well-positioned to deliver products and services they know
customers want.

14
INTEGRATING MANAGEMENT
References
Amparo, T. and Horváthová, A., 2015. Catch Me If You Can: Post-Daimler Transnational
Litigation. QMLJ, 6, p.1.
Blok, V., Hoffmans, L. and Wubben, E.F., 2015. Stakeholder engagement for responsible
innovation in the private sector: Critical issues and management practices. Journal on Chain
and Network Science, 15(2), pp.147-164.
Brinkaemper, U., Gruener, J. and Rajagopal, R., Daimler AG, 2017. Fuel Tank Venting
System for a Motor Vehicle. U.S. Patent Application 15/650,120.
Bukowski, M. and Śniegocki, A., 2017. Megatrends. Wise Europa–Warsaw Institute for
Economic and European Studies, Warsaw.
Business-humanrights.org., 2020. [online] Business-humanrights.org. Available at:
https://www.business-humanrights.org/sites/default/files/BHRRC_AutomotiveSector_OCT20
18.pdf [Accessed 4 Mar. 2020].
Daimler., 2020. Daimler optimizes decision-making processes and streamlines
organizational structure | Daimler. [online] Available at:
https://www.daimler.com/company/news/organizational-structure.html [Accessed 4 Mar.
2020].
Daimler.com., 2020. Data Responsibility | Daimler. [online] Daimler. Available at:
https://www.daimler.com/sustainability/data/ [Accessed 4 Mar. 2020].
Datta, P., Gopalakrishna-Remani, V. and Bozan, K., 2015. The impact of sustainable
governance and practices on business performance: an empirical investigation of global
firms. International Journal of Sustainable Society, 7(2), pp.97-120.

15
INTEGRATING MANAGEMENT
Hibbert, P. and Cunliffe, A., 2015. Responsible management: Engaging moral reflexive
practice through threshold concepts. Journal of business ethics, 127(1), pp.177-188.
Kagermann, H., 2015. Change through digitization—Value creation in the age of Industry
4.0. In Management of permanent change (pp. 23-45). Springer Gabler, Wiesbaden.
Kaiser, C., Stocker, A. and Viscusi, G., 2017. Digital vehicle ecosystems and new business
models: An overview of digitalization perspectives. i-KNOW ‘17 October, pp.11-12.
Kapil, P., 2015. Green HRM-Engaging Human Resource in reducing carbon footprint and
enhancing environment sustainability: A case study based approach. International Journal of
Engineering Technology Science and Research, 2(5), p.14.
Kessler, T. and Buck, C., 2017. How digitization affects mobility and the business models of
automotive OEMs. In Phantom Ex Machina (pp. 107-118). Springer, Cham.
Kipferler, A., 2018. How can the traditional car industry cope with digitalisation?. [online]
The Telegraph. Available at:
https://www.telegraph.co.uk/business/business-reporter/digitalisation-in-the-car-industry/
[Accessed 4 Mar. 2020].
Kompalla, A., Geldmacher, W., Just, V. and Lange, S., 2017. Tailored automotive business
strategies in the context of digitalization and service-oriented models. Calitatea, 18(156),
p.77.
Muniandy, S.L. and Rahman, A.A., green Human Resource Management as a Catalyst for
Sustainable environmental Practices in Organisation. Universiti Putra Malaysia Press
Serdang• 2016, p.116.

16
INTEGRATING MANAGEMENT
Nawaz, W., Linke, P. and Koҫ, M., 2020. Sustainable Initiatives and Practices of the Most
Sustainable Organizations in the World. In International Business, Trade and Institutional
Sustainability (pp. 17-41). Springer, Cham.
Nieuwenhuis, P. and Katsifou, E., 2015. More sustainable automotive production through
understanding decoupling points in leagile manufacturing. Journal of Cleaner
Production, 95, pp.232-241.
Planing, P., Pfoertsch, W. and AG, D., 2016. The Digital Business Transformation Paths
From Manufacturer To Digital Ecosystem Provider-Analyzing the Strategic Options of Large
Corporations Towards Digitalization. Summer Internet Proceedings, 18(2), pp.66-70.
Senn, T., 2017. Service transition in the context of digitized service ecosystems.
In Dienstleistungen 4.0 (pp. 241-267). Springer Gabler, Wiesbaden.
Stephens, B., 2017. The amorality of profit: transnational corporations and human rights.
In Human rights and corporations (pp. 21-66). Routledge.
Stoycheva, S., Marchese, D., Paul, C., Padoan, S., Juhmani, A.S. and Linkov, I., 2018. Multi-
criteria decision analysis framework for sustainable manufacturing in automotive
industry. Journal of cleaner production, 187, pp.257-272.
Unpri.org., 2020. [online] Unpri.org. Available at: https://www.unpri.org/download?ac=4078
[Accessed 4 Mar. 2020].
Will, C., Jochem, P., Pfahl, S. and Fichtner, W., 2017, October. Economic and sustainability-
potential of carbon-neutral charging services for electric vehicle customers. In Proceedings
of the 30th International Electric Vehicle Symposium & Exhibition, EVS30, Stuttgart,
Germany (pp. 9-11).

17
INTEGRATING MANAGEMENT