Corporate Social Responsibility

1/20/13
Corporate Social Responsibility: Concept and current Overview in Automotive Industry Within Europe, America and Asia - MBSIntercultural
Corporate Social Responsibility: Concept and current Overview in Automotive Industry Within Europe, America and Asia IM 603: Seminar Internationales Management (Wintersemester 09/2010), Christina Ehlert
Contents
1 Introdution 2 CSR in global context 2.1 Definitions of corporate responsibility 2.2 Core Characteristics of CSR 3 Concept of CSR 3.1 The Pyramid of CSR 3.2 International Organization for Standardization (ISO) 3.3 UN Global Compact 3.3.1 Ten Principles of Global Compact 3.3.2 Companies Participation in Global Compact 4 CSR in Automotive Industry in Europe 4.1 BMW Companys Profile 4.2 BMWs Approach to CSR 5 CSR in Automotive Industry in Asia 5.1 Nissan Companys Profile 5.2 Nissans Approach to CSR 6 CSR in Automotive Industry in America 6.1 Ford Companys Profile 6.2 Fords Approach to CSR 7 Conclusion 8 Literature
Introdution
It goes without saying that Corporate Social Responsibility (CSR) has grown in importance in recent years, very often through public scandals and mismanagement. Therefore, demands from customers, employees, statutory bodies and the general public for detailed information about whether companies are meeting acceptable standards increased enormously. Every business today understands that its actions impact the society. Publicity, and especially bad publicity spread out fast through communication channels. In most cases these communication channels are out of organizational control - the Internet is the most vivid example.
[edit]
CSR is an issue in which every person has a stake. Nowadays people realize that our actions today will influence the lives of future generations. And this changes the way business is being done. Being proactive about CSR provide any company a competitive advantage both externally through protecting company reputation and the accompanying publicity, and
www.munich-business-school.de/intercultural/index.php/Corporate_Social_Responsibility:_Concept_and_current_Overview_in_Automotive_Industry_Within_Eur
1/11
1/20/13
internally through employee engagement. To really do CSR business companies need to accept that they dont exist in a vacuum and operate in a wider and globalized community that has an impact on everybodys future. When CSR is done well, it means a precious trust in business. No doubt successful CSR can bring a company benefits such as a distinct position in the marketplace, protecting its employer brand, and building credibility and trust with current and potential customers and employees. Moreover, it can help significantly with recruitment, engagement and retention of employees. In this thesis a short overview of CSR definitions and concept are given, followed by three concrete examples of CSRs of automotive companies in Europe, Asia and America. Concrete examples of the BMW Group, Nissan Motor Company and Ford Motor Company were studied. In the end a small comparison is presented and the conclusion about the importance of CSR is made.
CSR in global context
[edit]
Corporate Social Responsibility was first noticed in the Anglo-Saxon world at around 1950s with the idea of contributing societal welfare and environmental responsibility. As this management tool was very successful the idea spread around the world and is now a global business concept.
Definitions of corporate responsibility
[edit]
A lot of different views and definitions of CSR exist as there are a lot of instruments, activities and issues that companies consider. Sustainable research and development, non-financial reporting, labour rights, pollution reduction and sport events are a few different aspects of CSR. (Barth, Wolff, 2009, p. 4) Therefore, there are several concepts which count to CSR like corporate sustainability, corporate citizenship, corporate accountability, corporate social performance, corporate social responsiveness, corporate responsibility and corporate governance. (Barth, Wolff, 2009, p. 5) As the following thesis focuses on the description of CSR in America, Europe and Asia the definitions presented are the ones officially accepted there. A definition from the European Commission states CSR as a concept whereby companies integrate social and environmental concerns in their business operations and in their interactions with their Stakeholders on a voluntary basis. (European Commission, 2010) Being socially responsible means not only fulfilling legal expectations, but also going beyond compliance. (Barth, Wolff 2009,xiii) In the Asian view CSR is a companys commitment to operating in an economically, socially and environmentally sustainable manner while balancing the interests of diverse stakeholders. (CSR Asia, 2010) Especially in Japan CSR is an accepted management tool that comes naturally within the business. However, some see CSR as the core business of a company itself to help society which means no further activities are necessary. (Fukukawa, 2010, p. 48) While in America CSR is seen as the social responsibility of business which encompasses the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time. (Carroll 1979, p. 500)
Core Characteristics of CSR
[edit]
There are six core characteristics of CSR. According to modern researchers there is hardly any definition of CSR that includes all of these characteristics. However, they are the essential features of the CSR concept that are being reproduced in all the CSR definitions. (Crane, Matten, Spence, 2008, p.6) The first characteristic is that CSR is voluntary. Although a lot of CSR activities are described by the law, many definitions of CSR state these activities to be voluntary. A vivid example is the European Commission definition given above. (Crane, Matten, Spence, 2008, p.7) Internalizing or managing externalities together are the second characteristic of CSR, where externalities are the positive and negative side effects of economic behavior of others on the company. They are not taken into account in a firms decision making process. A classic example of externality is pollution. Through such regulations as pollution fines the firms can be forced to internalize the cost of this externality, but CSR represents a voluntary approach. For example, a firm investing in clean technologies that prevent pollution. (Crane, Matten, Spence, 2008, 7) Multiple stakeholder orientation. It goes without saying that companies have responsibilities to their shareholders. However, companies rely on various constituencies such as suppliers, employees, consumers and local communities in order to survive and prosper. Therefore, companies have responsibilities to them as well. There are debates on to which extent shareholders and stakeholders should be taken into account in a companys CSR. (Crane, Matten, Spence, 2008, p.8) Alignment of social and economic responsibilities. Although this is much debated about, many definitions of CSR stress that social and economical responsibilities of a company are aligned, and profitability is an important issue. This characteristic of CSR prompts attention to how firms can benefit economically from being socially responsible. (Crane, Matten, Spence, 2008, p.8) Practices and values. It is obvious that CSR implies a particular set of business practices and strategies that deal with social issues. Moreover, many write that CSR is a philosophy or set of values that underpins these practices. Therefore, it is often being discussed not only what companies do in the social arena, but why they do it. (Crane, Matten, Spence, 2008, p.8) Beyond philanthropy. Sometimes CSR is mainly about philanthropy, which means, for example, corporate generosity towards the less fortunate. Currently it is being stated that CSR should also be about how the entire operations of the company impact our society. Among core business functions one can name production, marketing, procurement, human resource management, finance, and so on. This core characteristic implies that CSR needs to be mainstreamed into normal business practice rather than being left only to discretionary activity. (Crane, Matten, Spence, 2008, p.8)
Concept of CSR
and UN Global Compact.
[edit]
The following part of the thesis displays the Concept of CSR by presenting the pyramid of CSR developed by Archie Carroll, International Organization for Standardization,
2/11
1/20/13
[edit]
The Pyramid of CSR
One of the most popular concepts of CSR was developed by Archie Carroll in the early 1990s. It is known as the pyramid of CSR. The pyramid suggests that CSR is composed by 4 different kinds of social responsibility. These responsibilities are economic, legal, ethical and philanthropic. Caroll considers them to be basic economic responsibilities. The aim of economic responsibility is to provide goods and services for consumers and to gain profit out of it. (Crane, Matten, Spence, 2008, p. 62) Due to capitalism the idea of profit transformed into the extent of maximizing profits upon all other aspects. Society sanctioned businesses for their idea of maximizing profits and in this context governments legislated ground rules according to which businesses must operate. The rules indicated companies to comply with regulations and to fulfill legal obligations. Even though norms like fairness and justice are well ordered in economic and legal responsibility, ethical responsibility goes beyond the law and regulations. It embodies values, norms and expectations from stakeholders, like consumers, employees and shareholders, for what they believe is fair and right. For a company ethical components of CSR embrace acting morally and ethically and going further than compliance with laws and regulations. (Caroll, 1991) However, ethical responsibility is intertwined with the legal conception and is pushing toward more regulations and higher expectations. The last and smallest layer of the pyramid is philanthropic responsibility. Philanthropic responsibility means for the company to be a good corporate citizen. Taking this challenge into account the company has to contribute to arts, education and the community and, therefore, endorse human welfare or goodwill. Philanthropic responsibility is sometimes put on the same level as ethical. However, the difference is that it is not seen as unethical behavior if businesses do not contribute their money to humanitarian programs. (Carroll, 1991) The pyramid below shows the four components of responsibilities according to Carroll. The basis is the economic performance which is at the same time regulated by law through the legal responsibilities. It is the societys codex for accepted and unaccepted behavior. (Crane, Matten, Spence, 2008, p. 65) The next step is the ethical responsibility and the business and societies codex of what is right, just and fair. Finally, there comes the philanthropic responsibility, wherein companies sponsor money to enhance the quality of life in the society. (Crane, Matten, Spence, 2008, p. 66)
Ill. 1 Carroll's CSR Pyramid, (CSRQuest, 2010, http://www.csrquest.net/default.aspx?articleID=12770&heading=)
International Organization for Standardization (ISO)
[edit]
The International Organization is a non-governmental organization with 159 countries with one member representing a country. The ISO is responsible for the development of international standards with meeting the requirements of businesses and management as well as the needs of society. (ISO, 2010) These standards contribute for the safety of the development, the manufacturing and services of products. Also ISO focuses on safeguard consumers, solutions in common international problems and regards for fairer trade between countries. Furthermore, they provide advices on good management practices like CSR. Therefore, they established the ISO 14000, ISO 9000, and the most important one for the concept of CSR the ISO 26000. The ISO 26000 is the official guidance on social responsibility. It will be officially launched by the end of 2010. This standard will offer recommendations for public and private organizations for developed and developing countries. Contents of ISO 26000 will be terms and definitions of CSR, understanding, principles, guidance of CSR core subjects and implementing practices. (ISO, 2008) The aim of ISO 26000 is to be clear, transparent, understandable of non-specialists, objective and transferable on all types of organizations. Six stakeholders interests will be incorporated: government, industry, non-governmental organizations, labour organizations, consumers and support, service and science. (ISO, 2008) To sum the ISO 26000 up, it will be an additional starting point for companies and organizations in order to operate in CSR.
UN Global Compact
Launched in July 2000, the UN Global Compact is both a policy platform and a practical framework for companies that are committed to sustainability and responsible business practices. (Global Compact, 2008) It is a leadership initiative which is approved, first of all, by chief executives of the companies, and has the aim to align business operations and strategies everywhere with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption. (Global Compact, 2008) Being a voluntary initiative rather than a regulatory instrument, UN Global Compact has two main complementary objectives: 1) mainstream the ten principles in business activities around the world;
[edit]
3/11
1/20/13
2) catalyze actions in support of broader UN goals, including the Millennium Development Goals. These aims are supposed to be reached through a wide spectrum of specialized work streams, management tools, resources, and topical programs in business, in order to ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere and contribute to a more sustainable and inclusive global economy. (Global Compact, 2008) Global Compact as an initiative is global and local; private and public; voluntary, and yet accountable.
Ten Principles of Global Compact

The UN Global Compact asks companies to include, support and enact a set of core values in the areas of human rights, labour standards, the environment, and anticorruption, within their sphere of influence. The following illustration displays the ten principles of Global Compact.
[edit]
Ill. 2 Ten Principles of Glob al Compact (Glob al Compact, 2008)
Companies Participation in Global Compact

For companies participating, the UN Global Compact offers a wide array of practical benefits.
[edit]
First of all, it means adopting an established and globally recognized policy framework for the development, implementation, and disclosure of environmental, social, and governance policies and practices. Moreover, sharing best and emerging practices to advance practical solutions and strategies to common challenges. Also advancing sustainability solutions in partnership with a range of stakeholders, including UN agencies, governments, civil society, labour, and other non-business interests. (Global Compact, 2008) Participation in Global Compact allows to link business units and subsidiaries across the value chain with the UN Global Compacts Local Networks around the world, many of which are in developing and emerging markets. It also gives companies the opportunity to access the United Nations extensive knowledge of and experience with sustainability and development issues. (Global Compact 2008) Companies participating can utilize UN Global Compact management tools and resources, and the opportunity to engage in specialized workstreams in the environmental, social and governance spheres. When the company decides to participate in the UN Global Compact, a commitment must be signed by the companys chief executive, and, where applicable, endorsed by the highest-level governance body of the organization. In the context of this commitment, any company joining the initiative is expected to: 1) make the UN Global Compact and its principles an integral part of business strategy, day-to-day operations, and organizational culture; 2) incorporate the UN Global Compact and its principles in the decision-making processes of the highest-level governance body (i.e. board); 3) engage in partnerships to advance broader development objectives (such as the Millennium Development Goals); 4) integrate in its annual report (or in a similar public document, such as a sustainability report) a description of the ways in which it implements the principles and supports broader development objectives (also known as the Communication on Progress); 5) advance the UN Global Compact and the case for responsible business practices through advocacy and active outreach to peers, partners, clients, consumers and the public at large. (Global Compact, 2008)
4/11
1/20/13
Since its official launch on 26 July 2000, the initiative has grown to more than 7700 participants, including over 5300 businesses in 130 countries around the world. It is a network-based initiative with the Global Compact Office and six UN agencies at its core. (United Nation Global Compact, 2009)
CSR in Automotive Industry in Europe

The following chapter of this thesis gives an overview of CSR in the automotive industry on example of the BMW Group headquartered in Munich, Germany.
[edit]
BMW Companys Profile
[edit]
Founded in 1916, Bavarian Motor Works (BMW) is a German manufacturer of automobiles and motorcycles worldwide that concentrates entirely on premium standards and for all its brands and across all relevant segments. It owns and produces the MINI brand, and is the parent company of Rolls-Royce Motor Cars. Moreover, BMW produces motorcycles under BMW Motorrad and Husqvarna brands. (BMW Group, 2010) With the headquarters in Munich, Germany, BMW Group currently has 17 production facilities in six countries: Germany, Austria, Great Britain, South Africa, China, USA. By the end of September 2009 there were 98,358 people working under the BMW Group worldwide. This is according to the Quarterly Report released by the BMW Group for. (BMW Group, 2010) The company is on the Dow Jones Sustainability Group Index, which rates environmentally friendly companies. (BMW Group, 2010)
BMWs Approach to CSR

BMW reports through their webpage that they have set the goal of integrating sustainability throughout the entire value chain and its underlying processes creating an added value for the company, the environment and society. Annual reports on Sustainability and Corporate Social responsibility are being issued worldwide.
[edit]
In early 2007, the position of the Group Representative for Sustainability and Environmental Protection was assigned to the Corporate Strategy division. The corresponding department reports to the Head of Corporate Strategy and Planning and Environment who, in turn, reports directly to the Chairman of the Board of Management. In summer 2009 Sustainability Board was established at the highest management level. This board, which comprises the entire Board of Management, is to determine the strategic alignment for sustainability issues during it meetings twice a year. (BMW, Sustainable Value Report 2008, p.10) However, at the BMW Group, sustainability is not just the responsibility of one particular department. All employees are called upon to implement elements of corporate sustainability in their area of responsibility. The company adheres to the OECD guidelines for multinational companies as well as the Business Charter for Sustainable Development of the International Chamber of Commerce. (BMW, Sustainable Value Report 2008, p.11) The BMW Group call themselves a committed member of society, and, therefore, report to have a goal to provide the best products and services to customers and also contribute to the common good. BMW claims that by them corporate social responsibility is not viewed simply as a public welfare activity or charitable giving, but also as a valuable source of corporate development, innovation and competitive power. (BMW China, 2010) Therefore, there are 6 areas in which the BMW Group divide their responsibility overview:
5/11
1/20/13
Ill. 3 BMW Group Responsib ility Overview (BMW Group, 2010) Sustainability Management. BMWs sustainability management includes dialogue with stakeholders. The goal is to integrate sustainability throughout the entire value chain and its underlying processes - creating an added value for the company, the environment and society. (BMW, Sustainable Value Report 2008, p.6)
Ill. 4 BMW Group Sustainab ility Strategy and Key issues(BMW Group, 2010) According to the Dow Jones Sustainability Indexes, the BMW Group is currently the worlds most sustainable carmaker. The company was named industry leader in these important global sustainability indices for the fifth consecutive year in 2009. Numerous other ratings and awards also confirm the companys big role in the field of sustainability. (BMW Group ,2010) The operational implementation of sustainability activities is governed by the existing management systems for environmental protection (according to ISO 14001 and EMAS), quality assurance (ISO 9001) and occupational safety (OSHAS). In 2001, the BMW Group committed itself to complying with the ten principles of the UN Global Compact and the Cleaner Production Declaration of the United Nations Environment Programme (UNEP). The company also honours the United Nations Millennium Development Goals (MDG). (BMW, Sustainable Value Report 2008, p.11) Economics. In late 2007 the BMW Group presented its new corporate Strategy Number ONE. It is the vision to be the leading provider of premium products and premium services for individual mobility. To reach this goal, the company needs to focus consistently on growth and profitability; to constantly develop new technologies; to guarantee access to relevant customer groups; and, most importantly, to actively shape the future. These key fields of action are the four pillars of Strategy Number ONE. As in the long run, only companies that plan for the long term and conserve resources will succeed. (BMW Group, 2010) Product Responsibility. BMWs aim is to make individual mobility sustainable. That is why product responsibility starts with developing vehicles that are fuel-efficient and safe for both the driver and other road users and that will one day run completely emission-free. It includes resource-friendly production processes, high-quality customer service as well as environmentally-friendly recycling concepts. (BMW Group, 2010) Thus, for example, BMW is intensively working on reducing fuel consumption and CO2 emissions. Environmental Protection. Regardless whether it is a BMW, a MINI or a Rolls-Royce being built - resource protection and environmental protection are firmly established at every stage of production. Energy and water conservation have been requirements for all production sites for many years. BMW reports to avoid waste and solvents - and reduce emissions wherever possible. Moreover, the BMW Group supports the Kyoto targets and has been working intensively for years to reduce its fleets fuel consumption. (BMW Group, 2010) The BMW Group targets are clearly defined: to reduce resource consumption and emissions by 30% between 2006 and 2012. (BMW Group, 2010) The BMW Group appointed its first environmental officer back in 1973 a first for the industry at that time. Since then the BMW Group has continually systemised its environmental efforts: All production plants are now independently certified according to environmental protection standard ISO 14001. Employees. The BMW Groups communicates through its webpage that companies are made by people. Therefore, the company invests in the training and further
6/11
1/20/13
education of its employees, guarantees workplace safety and ergonomics to keep staff healthy and to minimise the risk of occupational accidents, integrate staff with performance restrictions, help employees lead a healthy lifestyle. In the Joint Declaration on Human Rights and Working Conditions, the BMW Groups Board of Management and the Works Council confirmed their commitment to the core labour standards of the International Labour Organization (ILO) in 2005. (BMW, Sustainable Value Report 2008, p.4) Society. The BMW Group claims to posess the desire and the obligation to be a reliable partner for society. Their social commitment focuses on road safety, education and health. BMW are committed to a wide range of initiatives to promote art and culture worldwide. The BMW Foundation Herbert Quandt and the Eberhard von Kuenheim Foundation are also engaged in projects to find solutions to social challenges.
Another focus is the challenge of HIV / Aids - since this affects both BMW Group employees and their communities. The company has developed programmes for disease prevention and education in a number of locations. Once they had proven successful, these programmes were transferred to several communities. (BMW Group, Verantwortung, 2010) The BMW Group states that is only possible to monitor and improve what can be measured. The BMW Group uses Key Performance Indicators to control internally and monitor the BMW Groups sustainability performance in the fields of sustainability management, economics, product responsibility, group-wide environmental protection, employees and society. (BMW Group, Verantwortung, 2010) The company actively promotes compliance with internationally adopted standards and regulations in the fields of human rights, occupational standards, environmental protection and the fight against corruption. The BMW Group also requires its suppliers to adhere to the same standards.
CSR in Automotive Industry in Asia

The overview of CSR in the automotive industry in Asia is presented on the example of Nissan Motor Company headquartered in Yokohama, Japan.
[edit]
Nissan Companys Profile
[edit]
Established in 1933, Nissan Motor Company, shortened to Nissan, is a multinational automaker headquartered in Japan. It was formerly a core member of the Nissan Group, but has become more independent after its restructuring. Nissan is the third largest car manufacturer in Asia. It formerly marketed vehicles under the "Datsun" brand name and is one of the largest car manufacturers. As of August 2009, the company's global headquarters are located in Nishiku, Yokohama. In 1999, Nissan entered a two way alliance with Renault S.A. of France, which owns 44.4% of Nissan while Nissan holds 15% of Renault shares, as of 2008. In 2008 Nissan was employing 175,766 people worldwide and sold more than 3,4 million units. (Nissan, 2010)
Nissans Approach to CSR
[edit]
Nissan started its CSR activity in 2004. Beforehand it was not a priority for Nissan although was running with its core businesses, which was seen as a contribution to the society itself. As the pressure rose, Nissan decided to invest heavily into CSR. They created a CSR Steering Committee which should define CSR for the company and develop a plan or strategy. Furthermore, Nissan promoted a new business plan for 2005 with the effort to Value UP the company. (JCNNewswire 2005) This plan included CSR as a balance to its core competencies of business by contributing to the development of society and involving simultaneously all interests of stakeholders. (Nissan 2007, p11) So Nissan uses CSR as a process-management tool combining three balances: 1. Balance between short- and long-term perspectives 2. Balance between corporate growth and societal development 3. Balance of value provided by the company to all its stakeholders (Nissan, 2007, p11)
To meet their own requirement they formed a nine key plan. The diagram below shows the nine challenge areas of CSR for Nissan.
7/11
1/20/13
Ill. 5 Key Areas of Nissan's CSR (Nissan, 2010) The improvement in the nine key areas and the balances should build up trust with the stakeholders as well as reach sustainability and profitable growth. The fast improvement in their CSR activities was reflected in creation of Nissans CSR scorecard. Moreover, Nissan was mentioned to have made a huge step in CSR development in 2006 by SustainAbility, a nongovernmental organization reporting about success in the business of CSR, in their 2006 Global Reporters report. (SustainAbility, 2010) In 2009 Nissan received the Catalyst Award in Japan for employing more and assigning women into higher positions. (Catalyst, 2008) Furthermore, Nissan tries to care about the environment and the nature by adopting new energy and environmental policies and also by taking into account the Kyoto Protocol. Therefore, Nissan develops sustainably and in touch with the nature. The company introduced three aims for how such development can be achieved: reduce CO2 emissions, reduce other emissions including water, air and soil protection recycle resources. (Nissan, 2009) With these issues they formed the Nissan Green Program and received the Eco First title from the Japanese government in 2008 for their environmental commitment. (JCNNewswire, 2008) Nissan environmental objectives find their way into all levels from developing and manufacturing cars to innovative fuel reduction and zero emition and the concept of eco-car.(Reuters 2010) Other achievments since 2005 are the improvement of the safety of the cars and the value enhancement for the stakeholders.
CSR in Automotive Industry in America

CSR in the automotive industry in America is presented on the example of Ford Motor Company headquartered in Dearborn, USA.
[edit]
Ford Companys Profile
[edit]
The Ford Motor Company is an American multinational corporation based in Dearborn, Michigan. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford, Lincoln, and Mercury brands, Ford also owns Volvo Cars of Sweden, and a small stake in Mazda of Japan and Aston Martin of England. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India in March 2008. In 2008, Ford produced 5.532 million automobiles and employed about 213.000 employees at around 90 plants and facilities worldwide. (Ford Motors Company, 2010)
Fords Approach to CSR
[edit]
Ford does not use the term Corporate Social Responsibility directly to promote what stands behind that idea. First they published the actions and the understanding behind CSR as Corporate Citizenship to report about the Fords social, economic and environmental interests. Later, due to social pressure and a better transportation of the emphasis, it was renamed into Corporate Sustainability. (World Wire, 2007) Ford now defines sustainability as a business model that creates value with the long-term planning and improvement of environmental, social and financial capital. (World Wire, 2007)) The main areas Ford forges in their blueprint are the minimization of effects on climate changes, mobility in urban areas, the compliance of human rights, vehicle safety and the capability to sustain Ford. (World Wire, 2007)
8/11
1/20/13
Ill. 6 Key Areas of Ford's Sustainab ility (Ford, 2010) Climate change: Fords climate change strategy is based on delivering products that are wanted by customers while taking concern about stabilization of greenhouse gas (GHG) concentrations in the atmosphere. This is being achieved by continuous reduction of GHG emissions. Fords approach implies a partnership of all stakeholders, including the automotive industry, the fuel industry, government and consumers. (Ford Sustainability Report, 08/09) Ford even won an ENERGY STAR Award for their achievements in energy efficiency in manufacturing the vehicles in U.S plants. Furthermore, for the energy program in Asia Pacific and Africa. (Energy Star, 2008) While production at a new plant pilot project in Dagenham, East London, Ford saves annually 3,000 tonnes of CO2 emissions, as well as 67 tonnes other pollutants like sulphur dioxide because they installed turbines to produce clean electricity. (Article 13, CBI, 2006) Mobility. Ford work on the understanding of the future of mobility and the development and testing of sustainable mobility solutions for their global customers. Many cities are already imposing regulations to restrict the use of private transportation. Vivid examples are anti-congestion policies in the form of a tax on personal vehicle usage in such cities as London, Vienna and Bucharest.( Ford Sustainability Report, 08/09) Ford spent several years developing the mega-city mobility concept. Together with the University of Michigan Ford works on the program called Sustainable Mobility and Accessibility Research and Transformation (SMART). They have been trying since 2007 to engage private-sector leaders, local thought leaders and government and transportation officials, as well as taxi, minibus and bike entrepreneurs, in planning for a new mobility project. The main idea is to create a network of mobility hubs transfer points where multiple mobility options and services come together. (Ford Sustainability Report, 08/09) Human Rights. Ford claim to follow the concept of Human Rights through ensuring their products, no matter where they are made, are manufactured under conditions that demonstrate respect for the people who make them. It also means respecting the rights of people living in the communities around Ford's facilities, and those of their suppliers, who may be affected by these operations. Since 2004 Ford conducted 41 formal assessments of Ford facilities. During 2008 assessments at Santa Rosa plant in the Philippines, the Haiduong Assembly Factory in Vietnam and the Chicago Assembly Plant in Illinois were conducted. (Ford Sustainability Report, 08/09) Vehicle Safety. Ford use the Haddon Safety Matrix to take a general view of the factors that affect vehicle safety. (Ford Sustainability Report, 08/09) Ford received Top Safety Picks from the Insurance Institute for Highway Safety with Ford Galaxy received best-in-class, a five-star adult protection and four-star child protection rating. (Ford 2009) Sustainability Ford. After the financial crisis came, Ford recognized that their business model needed to be changed, and they are changing it. Ford claims to have taken many of the decisive actions necessary to ensure a healthy future for the company, including shifting their emphasis away from trucks and SUVs to a more balanced portfolio that includes more small and midsize vehicles. Ford also have set a CO2-reduction goal for their products. ( Ford Sustainability Report, 08/09) Established in 1949 and funded by Ford Motor Company, Ford Motor Company Fund supports initiatives and institutions that foster innovative education, auto-related safety and American heritage and diversity. According to the Ford Motor Company Fund and Community Services 2008 Annual Report Ford claims to be committed to creating opportunities that promote philanthropy, volunteerism and cultural diversity for the communities where Ford does business. National programs include Ford Partnership for Advanced Studies, which provides high school students with academically rigorous 21st-century learning experiences, and Driving Skills for Life, a teen-focused auto safety initiative. The Ford Volunteer Corps, established in 2005, continues Fords legacy of caring worldwide. Through the Volunteer Corps, salaried employees and retirees participate in a wide range of volunteer projects in their communities. (Ford Motor Company Fund and Community Services Annual Report, 2008)
Conclusion
CSR has become an increasingly important construct for corporate strategies, notably in the automotive industry.
[edit]
There are various definitions of CSR worldwide as there are a lot of instruments, activities and issues that companies consider. According to Caroll, economic, legal ethical and philanthropic responsibilities are considered to be basic responsibilities in the CSR concept. This thesis presented the definitions of CSR officially accepted in America, Europe and Asia and the description of CSR of three automotive multinational companies in these countries: Ford Motor Company, the BMW Group and Nissan Motor Company. Having studied the CSR concepts of these companies it became clear that the BMW Group in Europe was the first among these three who took the CSR concept into account when building their short-term and long-term strategies and defined it as a business management unit. The Ford Motor Group introduced its Corporate Citizenship approach in 1999, and Nissan began to incorporate CSR in 2004. All three companies are included in the Dow Jones Sustainability Indexes (DJSIs). The DJSIs rank companies based on a 'best-in-class' approach, and reviews each organisation through an analysis of corporate economic, environmental and social performance. Climate change improvement, supply chain standards and labour practices figure among the criteria, along with corporate governance and risk management. BMW is the only carmaker to feature in the list every year since its inception in 1999. In 2009 the company was ranked as the world's most sustainable automobile manufacturer for the fifth year in a row. (The Motor Report, 2009) All three companies base their CSR on the ten principles of United Nations Global Compact, although there are many automotive companies who still did not imply these principles for their performance, as for example, Toyota (Japan) and General Motors (USA).
9/11
1/20/13
While the BMW Group and Nissan Motors are equally active worldwide in implementation of their CSR concepts, Ford Motors seem to concentrate more of their activities in their country of origin (USA). To sum it up, all three companies studied for this thesis are among the leaders of an automotive industry locally and worldwide. All, the BMW Group, Ford Motor Company and Nissan Motor Company claim to pay a lot of attention to CSR for their strategic planning and report about integrating sustainability within their working process. Moreover, there are numerous projects organized and sponsored by these companies locally and globally outside their business activities. Furthermore, they all have broaden their CSR activities within the last years and issue different reports on the matter annually and quarterly.
Literature
Books: Ackerman, Bauer (1976): Corporate Social Responsiveness, Reston Publishing, Reston Barth, Wolff (2009): Corporate Social Responsibility in Europe, Rhetoric and Realities, Edward Elgar Publishing Limited, Cheltenham, UK Boeger, Murray, Villiers (2008): Perspectives on Corporate Social Responsibility, Edward Elgar, Cheltenham, UK Cannon T. (1994): Corporate responsibility, Pearson, London Carroll A. (1979): A Three-dimensional Conceptual Model of Corporate Social Performance, Academy of Management Review Carroll A. (1991): The Pyramide of Corporate Social Responsibility: Towards the Moral Management of Organizational Stakeholders, in Business Horizons, p. 39-48 Crane, Matten (2007): Business ethics: Managing corporate citizenship and sustainability in the age of globalization, Oxford University Press, Oxford Crane, Matten, Spence (2008): Corporate Social Responsibility, Readings and cases in a global context, Routledge, New York Fukukawa K. (2010): Corporate Social Responsibility in Asia, Routledge, New York Khurana, Nohria (2008): Its Time to Make Management a True Profession, Harvard Business Review, October 70-77 Mayerhofer, Grusch, Mertzbach (2008): Corporate Social Responsibility, Einfluss auf die Einstellung zu Unternehmen und Marken, Schweiger(Hrsg.), Wien Mller, Schaltegger (2008): Corporate Social Responsibility, Trend oder Modeerscheinung?, oekom, Mnchen, Deutschland Nissan Motor Co., Ltd. (2007): Sustainability Report 2007, Kanagawa, Japan Nissan Motor Co., Ltd. (2009): Sustainability Report 2009, Kanagawa, Japan Soule S. (2009): Contention and Corporate Social Responsibility, Cambridge University Press, New York, USA
[edit]
Internetsources: Article 13, CBI (2006): Ford, Investing in renewable energy generation on its operational site, reducing greenhouse gas emissions, http://www.article13.com/A13_ContentList.asp?strAction=GetPublication&PNID=1336, assessed 7.4.2010 BMW (2010): Verantwortung, http://www.bmwgroup.com/e/nav/index.html?http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/verantwortung, assessed 22.03.2010 BMW China (2010): Cause and effect. BMW Corporate Social Contribution, http://www.bmw.com.cn/cn/en/insights/corporation/social_responsibility/introduction.html, assessed 20.03.2010 BMW Group (2010): Company, BMW at a glance, http://www.bmwgroup.com/e/nav/index.html?../0_0_www_bmwgroup_com/home/home.html&source=overview, assessed 20.03.2010 BMW (2008): Sustainable Value Report 2008, http://www.bmwgroup.com/bmwgroup_prod/e/0_0_www_bmwgroup_com/verantwortung/publikationen/sustainable_value_report_2008/_pdf/SVR_2008_engl_Kapitel_1.pdf, assessed 21.03.2010 CSR Asia (2010): Corporate Social Responsibility in Asia, http://csr-asia.com/aboutus.php#6, assessed 13.02.2010 Energy Star (2008): ENERGY STAR Award for Sustained Excellence, http://www.energystar.gov/index.cfm?fuseaction=pt_awards.showAwardDetails&esa_id=3809, assessed 5.4.2010 European Commission (2010): Corporate Social Responsibility, http://ec.europa.eu/enterprise/policies/sustainable-business/corporate-social-responsibility/index_en.htm, assessed 13.02.2010 Ford (2007): For a more sustainable future, Connecting with society Ford Motor Company Sustainability Report 2006/7, http://www.ford.com/doc/200607_sustainability_report.pdf, assessed 5.4.2010 Ford (2008): Blueprint for Sustainability, Report 07/08, http://www.ford.com/doc/sr07-ford-sustainability.pdf, assessed 5.4.2010 Ford (2009): Blueprint for Sustainability, Our Future Works, http://www.ford.com/doc/sr08-blueprint-summary.pdf, assessed 5.4.2010 Ford (2009): Sustainability Report, Ford Motor Company (2010): About Ford, http://www.ford.com/about-ford/company-information, assessed 1.4.2010 Global Compact (2008): Corporate Citizenship on The World Economy, United Nations Global Compact, brochure ,New York
www.munich-business-school.de/intercultural/index.php/Corporate_Social_Responsibility:_Concept_and_current_Overview_in_Automotive_Industry_Within_Eu 10/11
1/20/13
ISO (2008): ISO and social responsibility, http://www.iso.org/iso/socialresponsibility.pdf, assessed 6.03.2010 ISO (2009): Guidance on social responsibility, DRAFT INTERNATIONAL STANDARD ISO/DIS 26000 ISO (2010): About ISO, http://www.iso.org/iso/about.htm, assessed 18.03.2010 ISO (2010): Discover ISO, What standards do, http://www.iso.org/iso/about/discover-iso_what-standards-do.htm, assessed 18.03.2010 JCNNewswire(2005): NISSAN Reports Record Results for FY04 - NISSAN Value-Up Business Plan Unveiled, http://www.japancorp.net/Article.Asp?Art_ID=9931, assessed 4.4.2010 JCNNewswire(2008): Nissan Endorsed as ECO First Company, http://www.japancorp.net/article.asp?Art_ID=18958, assessed 4.4.2010 N. A. (2008): Catalyst Honors Initiatives at ING USFS and Nissan Motor with the 2008 Catalyst Award, http://www.catalyst.org/press-release/56/catalyst-honors-initiatives-ating-usfs-and-nissan-motor-with-the-2008-catalyst-award, assessed 4.4.2010 N.A. (2010): Carrolls CSR Pyramid, http://www.csrquest.net/default.aspx?articleID=12770&heading=, assessed 13.03.2010 Nissan (2004): Nissan Publishes Inaugural Sustainability Report, http://www.nissan-global.com/EN/NEWS/2004/_STORY/041029-01.html, assessed, 4.4.2010 Nissan (2010): Corporate Information, http://www.nissan-global.com/EN/COMPANY/, assessed 1.04.2010 Reuters (2010): Nissan launches first Thai-promoted "eco-car", http://www.reuters.com/article/idUSSGE62B0AI20100312, assessed 4.4.2010 SustainAbility (2010): Vision, Mission & Values, http://www.sustainability.com/aboutsustainability/keyfacts.asp?id=1038, assessed 4.4.2010 The Motor Report (2009): BMW, The World's Greenest, Most Sustainable Carmaker: Dow Jones Sustainability Index, http://www.themotorreport.com.au/41660/bmw-theworlds-greenest-most-sustainable-carmaker-dow-jones-sustainability-index, assessed 5.4.2010 United Nation Global Compact (2009): UN Global Compact Participants, http://www.unglobalcompact.org/ParticipantsAndStakeholders/index.html, assessed 15.03.2010 World Wire (2007): Ford Motor Company Issues Its 8th Annual Sustainability Report, http://www.world-wire.com/news/0706290001.html, assessed 5.4.2010 Retrieved from "http://www.munich-businessschool.de/intercultural/index.php/Corporate_Social_Responsibility:_Concept_and_current_Overview_in_Automotive_Industry_Within_Europe%2C_America_and_Asia"
www.munich-business-school.de/intercultural/index.php/Corporate_Social_Responsibility:_Concept_and_current_Overview_in_Automotive_Industry_Within_Eu 11/11

Corporate Social Responsibility

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Corporate Social Responsibility

Uploaded by

Copyright:

Available Formats

1/20/13

CSR in global context

Definitions of corporate responsibility

Core Characteristics of CSR

The Pyramid of CSR

Ill. 1 Carroll's CSR Pyramid, (CSRQuest, 2010, http://www.csrquest.net/default.aspx?articleID=12770&heading=)

International Organization for Standardization (ISO)

Ten Principles of Global Compact

Ill. 2 Ten Principles of Glob al Compact (Glob al Compact, 2008)

Companies Participation in Global Compact

CSR in Automotive Industry in Europe

BMW Companys Profile

BMWs Approach to CSR

CSR in Automotive Industry in Asia

Nissan Companys Profile

Nissans Approach to CSR

CSR in Automotive Industry in America

Ford Companys Profile

Fords Approach to CSR

You might also like