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An Examination on Social Performance of BMW AG

Corporate Social Responsibility can be defined as performances of businesses in completing good practices and standards to accomplish positive and sustainable results towards business, environment and society (CSR Singapore Compact 2005). Implementation of corporate social responsibility concept within the businesses means the businesses will always try their best to give positive outcomes to the society, which give satisfaction to the people and may build a good reputation to the company. The three main responsibilities and roles usually discussed are in the perspective of business, social and environment (CSR Singapore Compact 2005). Despite the fact that BMW AG is one of the best car companies in the world (Kiley 2004), there are some of their practices, which have positive and negative impacts on the environment and stakeholders, including customers and workers. Therefore, this paper analyses how well does the company has impacted upon its society and stakeholders, which can be defined as any group or individual that can affect or affecting the firm’s objective accomplishment (Freeman n.d).

Role of BMW AG in Society

BMW AG is a European well-known company for producing luxury cars. BMW, firstly, originated in Germany in 1916. The company exists in more than 160 countries, with 21 factories worldwide, which employ more than 100,000 people worldwide (CSR Case Study Series 2005) and according to Corporate Communication, Identity, Image, and Social Responsibility: BMW (2010) a survey was carried out and resulted that there are about 200 stakeholders from over 20 countries. It gains the reputation of the brand and its products in 1920s (Schulenburg and Triebel 2008). The company is not just producing luxury cars, but it also producing motorcycle. According to Schulenburg and Triebel, the first motorcycle produced by BMW AG is on the year 1923.

The Positive Corporate Social Performance of BMW AG

In response to its Corporate Social Responsibility, BMW AG provides an environmental officer. According to Environmental Officer (2011), environmental officer functions to assist businesses to conduct sustainable environmental practices that stabilize their needs with the ecosystems in which they operate. The first environmental officer of BMW AG Company appointed in 1973. Second, in today’s world the global issue mentioned that the environmental managers are currently working on is on how to lower the environmental impact and how to reduce the consumption of resources (Group Wide Environmental Protection n.d.). According to Group Environmental Wide Protection (n.d.), the competitors of BMW, which is the other car maker company, can’t match the BMW’s group efficiency of using the resources. This is because BMW AG uses a systematic way to improve their resources' efficiency around its production worldwide every year. Regarding the pollution problem, BMW and other car companies have the solution already, which is to make hybrid cars. BMW hybrid car is one of the examples of the eco or environmental friendly vehicle, because it does not produce any hazardous waste (BMW Hybrid Cars n.d.). BMW Company has found a solution to reduce the pollution by producing hybrid cars. BMW has a plan to use carbon fiber material, which will result in producing an efficient type of vehicles, for their upcoming electricity vehicle (Garthwaite 2010).

There are some ways to give a positive impact to the stakeholders, such as reducing fuel consumption and CO2 emissions, refining traffic management concepts, active and passively safely and customer satisfaction (Product Responsibility 2010). This situation wills not only benefiting for customer, but it would also be a benefit to the workers or the employees in that company. Moreover, according to BMW Regional Operational Programme (n.d.), Environmental Protection Agency has developed the framework of air management quality in the countryside...
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