An Ethical Audit of Mercedes-Benz: CSR and Sustainability Report

This report provides an ethical audit of Mercedes-Benz, focusing on its Corporate Social Responsibility (CSR) and sustainability practices. The analysis covers two key areas: CSR and Sustainability, examining the company's approach through frameworks like Carroll's Pyramid and the Triple Bottom Line model. The report explores Mercedes-Benz's economic, legal, ethical, and philanthropic responsibilities, highlighting initiatives related to education, health, and environmental conservation. Furthermore, it delves into the company's sustainability efforts, evaluating its commitment to economic, environmental, and social pillars, including initiatives like fuel efficiency and waste management. The report utilizes company reports and external sources to provide a critical evaluation of Mercedes-Benz's ethical and sustainable business practices, offering insights into their impact and effectiveness.

Corporate
Responsibility

Table of Contents
INTRODUCTION...........................................................................................................................3
TOPIC 1: Corporate Social Responsibility......................................................................................3
TOPIC 2: Sustainability...................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Corporate social responsibility is the self regulating business model which is useful for
company in terms of becoming more socially responsible to its stakeholders and other
individuals. CSR is the wide concept that leads to take various forms and also depend on the
company and overall industry (Advantage, 2020). CSR is the type of international private
business that tends to self regulate the prominent objectives in terms of contributing to the
societal goals on activist or charitable nature in terms of engaging and supporting suitable
practices. To carry forward this report, Mercedes Benz is considered which is the German
automotive company and also known for producing luxury and commercial vehicles. Moreover,
report tends to cover details about two prominent topics including corporate social responsibility
and sustainability with the help of suitable approaches and frameworks.
TOPIC 1: Corporate Social Responsibility
Corporate social responsibility is the management concept in which organisations tends
to integrate environmental and social concern for the business operations and also leads to
interact with their stakeholders. CSR is understood for company in order to achieve balance for
the economic, social and environmental imperatives to address the expectations of shareholders
and stakeholders.
Mercedes Benz is the well known brand across the globe and company also stands for the
success of business, social responsibility and advanced solutions. In regard of this, company
tends to work and perform various CSR activities in order to achieve sustainable social
development in the market and communities in which they operate (Crane, Matten and Spence,
2019). For this, Carroll's Pyramid of CSR is used in order to fulfil the suitable shortage for the
welfare of society as it tends to undertake four suitable components which are discussed as: Economic: It depict the suitable economic responsibility in order to produce suitable
goods and services considering the requirements of society. For this, Mercedes Benz
tends to have shareholders by considering their demand for the suitable return on the
investment (Girschik, 2020). In terms of Mercedes Benz, they tends to take initiative
regarding the education, skill development and awareness in order to improve their
overall image by obtaining the overall quality of education in order to improve the lives
of people and also make sure the sustainable development. In various nations and

countries, Mercedes Benz tends to focus on enhancing and offering qualitative education
to the underprivileged people in terms of making sure their growth and development. In
this context, Mercedes Benz tends to develop various programs like Advanced Diploma
in Automotive Mechatronics, describe rules about safe roads, offer scholarship in terms
of aspiring female engineers and so on that helps in improving and developing the overall
image of company and making it more successful in terms of performing their functions
in business environment. Legal: It undertake the legal standards and responsibility of company which comply with
the minimum rules and company also tends to expect to operate and function with those
rules. In regard of this, it leads to undertake suitable laws and regulations which is being
represented by Mercedes Benz. In terms of Mercedes Benz, they leads to take initiative
for health and sanitation regarding the unsafe and unhygienic birth practices, poor
nutrition, unclean water and unsanitary environment regarding the suitable challenges for
the public health system. This initiative leads to depict the basic nature for the health
issues which are attributed to the shortage of health literature and health consciousness
among people (Karpenko and et. al., 2019). In this, Mercedes Benz take initiatives in
order to support for the cancer treatment of underprivileged kids, organise health check
up camps for public and their employees, water purifiers in rural schools and many more.
These initiatives are developed for health and safety of people which a law as well. Ethical: It depict the ethical responsibility which is beyond the normative expectations of
society and also undertake laws and regulations. Here, society expect that company tends
to organise and manage their business in ethical way and also tends to embrace activities,
standards and suitable practices (Popova and et. al., 2019). In terms of Mercedes Benz,
they tends to undertake sustainability for better today better tomorrow by focusing on the
local issues for the suitable communities which are benefited and engage people
regarding the successful execution. For this, the motive of company is to enhance the
quality of education, offer infrastructural facilities and also facilitate to the local
community with clean and disciplined manner. In regard of this, Mercedes Benz is also
concerned regarding the natural resources because of human interventions. Hence, it is
important to preserve suitable resources predominantly working to protect suitable
resources in several possible manner.

 Philanthropic: It represent that business undertake the voluntary activities and suitable
practices for business. For this, companies also tends to undertake the nature and quantity
of the suitable activities which are being guided in terms of taking part in the social
activities in ethical sense (Nave and Ferreira, 2019). In terms of Mercedes Benz, they are
concern regarding the environment and also aggravated over the years and the reason for
concern is the increased pollution, deforestation, loss of biodiversity and other natural
calamities that lead to severe for climate changes. Here, the major concern of company is
to give something back to nature which they are constantly thrive on. For this, company
take initiatives for decentralised waste management system, active restoration of
degraded forest land and conservation of sacred groves.
TOPIC 2: Sustainability
Sustainability is the broad concept that tends to focus on the suitable aspects of the
human world from the business to the technology and also related with environment. For this,
sustainability focuses on effectively meeting of the requirements of present without
compromising the capability of future generations as per their needs (El Ghoul and et. al., 2019).
This concept is developed with three suitable pillars like economic, environmental and social
which is also known as profits, people and planet. In order to describe sustainability in terms of
Mercedes Benz, Triple bottom line model is discussed that tends to believe that organisation
need to focus on suitable social and environmental concern regarding their profit. This model
seek to gauge the corporation level of commitment towards CSR and its impact on overall
environment. Furthermore, the objective of Triple Bottom line is to measure the social, financial
and environmental performance of an organisation.
Away with this, Triple Bottom Line model upgrade the goal of sustainability within the
business practices by which Mercedes Benz look beyond the profitability to undertake the social
and environmental issues in order to measure cost of doing business. This model leads to focus
on the suitable finances as it does not examine that how it interacts socially by describing the
environmental responsibility (Yuan and et. al., 2020). TBL idea is beneficial for Mercedes Benz
who tends to gain grip within the corporate world and helps in driving the decision making for
company. Some factors of Triple Bottom Line are mentioned as: People: This factor consider workforce who is involved in the working of company
considering the wide community. Mercedes Benz tends to follow the triple bottom line as

the effective way in terms of doing their business as it also tends to impact the prominent
actions in which maximum number of people are involved. It tends to undertake every
individual regarding the supply of raw materials to the CEO of company. For this,
Mercedes Benz leads to offer prominent health care, flexible and good working hours,
safe place and effective opportunities for the growth and development by does not
exploiting their workforce by considering the child labour and other services. In regard of
this factors leads to undertake the effective development of community in which
Mercedes Benz run their business by developing their brand image. Planet: In this factor, Mercedes Benz strive or take pain to eliminate the ecological
footprint. For this, Mercedes Benz need to go for green initiatives in terms of generating
more profitability for the long run of business as it is not just about the money. Triple
bottom line consider the overall life cycle of respective company considering the action
to determine the actual cost which is related with overall environment (Arouri, Gomes
and Pukthuanthong, 2019). For this, Mercedes Benz leads to take pain to eliminate the
energy which is used to dispose any toxic waste in safest manner to use the renewable
energy sources. For instance, Mercedes Benz take initiative for cutting consumption and
cost by taking the sustainability issue more seriously undertaking the survival matter. The
operators opting for the fuel efficiency Euro VI engines in order to eliminate CO2
engines that helps in saving money and leads to help for the sustainable development and
growth.
 Profit: Each and every business tends to pursue and take initiatives regarding their
financial profitability as it is seen as the suitable part of the business plan. In terms of
Mercedes Benz, it also tends to recognise the profit factor for their business with the help
of workforce. In terms of Mercedes Benz, the suitable initiatives which are taken by
company like life cycle management, hope plantation, cutting cost in order to go one step
ahead. When respective company look for the profit they need to consider triple line
bottom regarding their growth considering the idea of suitable profit that helps in
empowering and sustaining the overall community (Sharma, 2019).
Triple bottom line is useful for Mercedes Benz significantly for the reporting system and
also helps in improving the impact on people over the environment by focusing on the suitable
action of producing the set of management accounts that impact profitability. It also tends to

drive for the suitable development by which company leads to help their managers by focusing
on the effective development and enhanced in terms of keeping their work over their agendas
(Crane, Matten and Spence, 2019). In Mercedes Benz it is useful as the type of Balanced
scorecard and measurement system that undertake the suitable cost of monitoring and
measurement system undertaking the cost of calculating and monitoring by justifying their own
results with the help of figures. In relation with this, some of the sustainable initiatives which are
taken by Mercedes Benz are mentioned as:
Cutting cost and consumption, for the Swiss transportation company, company under the
issues regarding the sustainability which is not the question of attitude but for the certain extent it
become the matter of survival undertaking the brand image. In this, vehicles with over and above
3.5 tonnes gross vehicles weight which is the subject regarding the distance related heavy
vehicles and vehicle emissions. It depict that operators opt for the fuel efficient Euro VI engines
to eliminate CO2 emissions by standing to save money.
Mercedes Benz leads to present its sustainable business strategy regarding he motor
sport which is the online press conference by developing strategic plan for company undertaking
its suitable activities which are driven by innovation, efficiency and new technologies
undertaking the major communities to effectively eliminate carbon emissions of Mercedes Benz
to work as a team. By working as team company already tends to take suitable steps to eliminate
the emissions for the future season by transition to the renewable sourced energy at the factories.
CONCLUSION
By considering the above discussion, it is identified that corporate responsibility plays an
important role in the growth and success of company and it is also useful in order to make
company more socially responsible in order to perform its concerning activities. Moreover, it is
important for company in order to operate for the ethical and sustainable manner that leads to
deal with environmental and social impact. Report also tends to effectively depict the concept of
CSR and sustainability within an organisation with the help of suitable frameworks.

REFERENCES
Books and Journals
Advantage, C., 2020. Corporate Social Responsibility. CSR and Socially Responsible Investing
Strategies in Transitioning and Emerging Economies. p.65.
Arouri, M., Gomes, M. and Pukthuanthong, K., 2019. Corporate social responsibility and M&A
uncertainty. Journal of Corporate Finance. 56. pp.176-198.
Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings and
cases in a global context. Routledge.
El Ghoul, S and et. al., 2019. New evidence on the role of the media in corporate social
responsibility. Journal of Business Ethics. 154(4). pp.1051-1079.
Girschik, V., 2020. Shared responsibility for societal problems: The role of internal activists in
reframing corporate responsibility. Business & Society. 59(1). pp.34-66.
Karpenko, L and et. al., 2019. Formation of the system of fair business practice of the company
under conditions of corporate responsibility. Academy of Strategic Management
Journal. 18(2). pp.1-8.
Nave, A. and Ferreira, J., 2019. Corporate social responsibility strategies: Past research and
future challenges. Corporate Social Responsibility and Environmental
Management. 26(4). pp.885-901.
Popova, O and et. al., 2019. Corporate social responsibility of agricultural enterprises according
to their economic status. Management Theory and Studies for Rural Business and
Infrastructure Development. 41(2). pp.277-289.
Sharma, E., 2019. A review of corporate social responsibility in developed and developing
nations. Corporate Social Responsibility and Environmental Management. 26(4).
pp.712-720.
Yuan, Y and et. al., 2020. Business strategy and corporate social responsibility. Journal of
Business Ethics. 162(2). pp.359-377.