Essay: Sustainability at BMW Group

Sustainability has a powerful influence on the automotive industry; therefore also on the worlds number one producer of premium vehicles. BMW takes sustainability to a higher level. As quoted by Dr.-Ing. E. H. Norbert Reithofer: ‘We take a Holistic approach by implementing sustainability along the entire value chain’. BMW implements sustainability as a definition of producing its vehicles CO2-free and reducing the CO2 emission of the new-vehicle fleet, because the reduction of CO2-emission of cars is seen as one of the crucial factors to save our planet. That is why investing in developing Electric Vehicles is the main goal for the automotive industry these days. Thus BMW is mainly focussing on the environmental side of sustainability. Therefore, every company chooses its own way of implementing sustainability.
In this essay, the resolution of sustainability for BMW and the way BMW implements the importance of sustainability in its vision will be explained briefly.
Stakeholder engagement
BMW Systematically seeks its stakeholders’ perspectives and expertise to understand, address, and manage its expectations and this will enable the BMW Group to promote higher quality and sustainable decisions. BMW thinks it is essential to have a global approach towards involving stakeholders. For this reason, BMW has developed the ‘Stakeholder Engagement Policy of the BMW Group’ (SEP). This ensures that the engagement is applied consistently across its worldwide operations. Quoted: ‘Community interest groups, political and academic leaders, non-profit-organizations, investors, analysts, and other stakeholder groups all have different viewpoints and expectations related to our business’. BMW tries to improve its competitive advance and its long-term decisions with the input of its stockholders.
Sustainability
Sustainability is becoming more important by day. Companies consider the notion of managing in a sustainable way. This due to two facts. Firstly, nowadays, managing sustainable is becoming a trend and companies are trying yo implement the trend. Secondly, acting sustainable as a company could be profitable in the long-term. On the other hand, decisions based on the long-term profitability are also of importance for the society. For instance, the expendability of the population and the depleting of natural resources lead to take consequences to make sure our planet still is habitable for the following decenniums. These sustainable issues need to be solved with a long-term based vision.
BMW proves with its 13th place on the Forbes top 100 list of sustainable companies, and the 1st place If only looking at the automotive industry to be a front runner. This may lead to a positive influence on BMW’s image/reputation. The reputation of a sustainable company proves to attract costumers. With the two new electric vehicles (the i3 and the i8) and investing in constructing cleaner and more efficient petrol engines, in comparison with the current engines, BMW gives also its customers an opportunity to invest in a sustainable vehicle. This combines that, BMW and its costumers are together investing in an environmental friendly vehicle fleet.
With the appearance of the electric vehicles, BMW submits it is investing in a sustainable hereafter instead of proceeding the short term, by simple earning revenue with selling the present fleet.
With these actions above, BWM answers all the considerations to give thought to before acting Sustainable. These questions include for instance:
Is it profitable to integrate a sustainable way of managing, does it still fulfil the needs of the customers after changing the vision and mission? Will it improve the image?
Apple/Foxconn issue
BMW, Apple and Foxconn are considered with their global acting and high amounts of market share as being the market leaders.
The biggest difference between these three is; Apple only creates and sells customer goods and a percentage of the assemble process is reserved for Foxconn. On the contrary, BMW both produces and sells costumer goods. Nevertheless, a few concerns have taken place in the partnership of Apple and Foxconn. For example, there have been two explosions in different production plants and in a plant in Wuhan were 18 suicides attempts. Despite the facts that the working conditions in the plants are considered to be sufficient, Apple still choses to work together with Foxconn. Although, BMW has no background of problems with poor working conditions, there have been a few strikes in different plants of BMW. For instance a strike on the 19th of August, in South Africa, Rosen. Which has led to a enormous lack production issues. To counteract this, BWM has set up Joint Declaration on Human Rights and Working Conditions. Here is stated, the basic goals and principles of implementation inspired by the ILO (International Labor Organization).
Conclusion
To conclude, the rising awareness of our depleting resources and changing climate are resulting in the fact that, acting sustainable as a company is becoming more crucial and purposeful every day. We as community should not only contemplate about it acting sustainable, but also standardise sustainable management for every company. We should follow the management of BMW as an example. Our planet deserves it.