Corporate social responsibility (CSR) is one of the most fundamental subjects in contemporary business. The idea that any company holds an obligation towards humanity to maximize its positive effects on society while minimizing negatives has become even more critical in recent years, with public debate becoming more active (Bateman, 2017). Nowadays, businesses are required to be responsible about equal opportunity, pollution control, consumer rights, and other social issues to maintain a good reputation and create a significant competitive advantage and stay successful. The goal of the present paper is to examine the BMW Group’s corporate social responsibility policy and analyze its vital role in the company’s business strategy.
Definition of the Company’s CSR Policy
The BMW Group, being a leader in automotive manufacturing, one of the most criticized and controversial industries, is an example of how a company can implement its social responsibility duties and incorporate them into their business vision. According to BMW Group (2019b), in its production and employment policies, the organization is dedicated to environmental protection, responsible resource consumption, long-term health and performance preservation of their staff, employee development, and diversity. By investing in research and development, manufacturing more eco-friendly cars, and taking care of their employees, the company neutralizes future threats, poses competition to rivals, and builds up the trust of stakeholders and customers.
Moreover, BMW Group also contributes multiple resources to social issues. They have identified five focus Sustainable Development goals: quality education, gender equality, clean water and sanitation, reduced inequalities, sustainable cities, and communities (BMW Group, 2020a). Tackling these challenges and focusing on these areas, the company is determined to contribute to achieving the most significant long-term impact (BMW Group, 2020b). It is also quite significant that the corporate website’s menu features a page focused on the company’s responsibility right after the information of the company. All of these allow the company to create a positive image and be both socially responsible and strategic about it.
Pillars of Corporate Social Responsibility and Their Examples
Addressing the issues mentioned above, BMW Group seems most focused on corporate social responsibility’s ethical and philanthropic pillars. While the company is not neglecting its economic and legal responsibilities in terms of following their business obligations and obeying relevant laws, the automotive manufacturer concentrates mostly on sustainable development. The BMW Group takes responsibility for the car industry pollution effect, puts a certain amount of effort into employee comfort and development, and supports community projects and charities.
Several examples can illustrate BMW’s focus on ethical and philanthropic responsibilities. First, in 2019 the BMW group, already being the leader in the use of renewable energy, invested an additional 159 million euros in environmental protection (BMW Group, 2019a). It is essential to mention that this donation occurs annually. Therefore, it is also a part of a strategy that allows the company to gain good publicity and contribute to a good cause. Second, the BMW Group successfully implements “Health Initiative” program for its employees. Over recent years, the company’s specialists have developed an extensive prevention and rehabilitation program that would allow workers to learn more about nutrition, exercise, and sickness prevention.
Moreover, the company actively contributes to such spheres as societal development, education, and gender equality. For instance, they support innovative ideas and social organizations across the globe in partnership with the United Nations Alliance of Civilizations (UNAOC). Thus, in 2011 they established the Intercultural Innovation Award, through which they have been supporting worldwide grassroots organizations engaged in promoting gender equality and intercultural dialogue (“About the award”, n.d.). There are numerous other initiatives supported by the BMW Group that illustrates their primary focus on ethics and philanthropy.
Alignment Between Mission Statement and CSR Policy
Finally, it is vital to analyze how the BMW Group’s corporate social responsibility policy is well aligned with the company’s mission statement. The BMW Group claim that they are “the most successful and sustainable premium provider of individual mobility” (BMW Group, 2019b). The company makes it clear by putting the word “sustainable” in their mission that they value ecological and social safety and commitment to product responsibility and conserving resources. To prove the point, one might refer to ten sustainability goals that the company has set for itself. They include not only productivity goals, such as electromobility and use of renewable energy, but also ethical and philanthropic objectives, such as the development of employees, secure employability, fostering diversity, and intercultural understanding inside and outside the company. It clearly shows how closely the company connects its business mission and corporate social responsibility integrating it with the business strategy.
Conclusion
Corporate social responsibility – economic, legal, ethical, and philanthropic – carries an unprecedented significance for any organization nowadays. Commitment to ecological issues, equal rights, work safety, educational, and mobility issues has become a significant part of the business strategy of any company that wants to stay profitable and maintain their customers. This paper showed how corporate social responsibility – the commitment to sustainability in all its forms – has become a part of the business strategy of one largest international corporations such as the BMW Group.
References
About the award. (n.d.). Web.
Bateman, T., Scott, S., & Konopaske, R. (2017). Management. Dubuque: McGraw Hill Education.
BMW Group. (2020a). Company. Web.
BMW Group. (2020b). Social commitment. Web.
BMW Group. (2019a). Sustainable value report. Web.
BMW Group. (2019b). Sustainability factbook 10×10 facts. Web.