The document discusses corporate social responsibility (CSR) in relation to BMW and Volkswagen, highlighting their different approaches and challenges. BMW emphasizes sustainability, employee welfare, and social commitment, while Volkswagen focuses on reputation recovery post-'dieselgate' scandal by committing to emissions reductions and employee development. Recommendations suggest embedding CSR in business operations to enhance reputation and competitiveness.

1. Presentation​ ​Topic:
Corporate​ ​Social​ ​Responsibility
BMW​ ​and​ ​Volkswagen
Asignatura:​ ​​Inglés​ ​III
Profesora:​ ​​Paulina​ ​Mazur
Realizado​ ​por:
Laura​ ​Torva​ ​–​ ​N°​ ​311648
Marco​ ​Cucco​ ​–​ ​N°​ ​316451
Año​ ​académico​ ​2017/2018

2. Indice
1.​ ​Introduction
2.​ ​The​ ​BMW​ ​case
2.1​ ​A​ ​short​ ​overview
2.2​ ​BMW’s​ ​values
2.3​ ​Why​ ​CSR​ ​is​ ​so​ ​important
2.4​ ​A​ ​culture​ ​of​ ​appreciation​ ​and​ ​equal​ ​opportunities
2.5​ ​Social​ ​Responsibility​ ​worldwide
3.​ ​The​ ​Volkswagen​ ​case
3.1​ ​The​ ​history
3.2​ ​The​ ​“Dieselgate”​ ​scandal
3.3​ ​The​ ​reaction​ ​to​ ​the​ ​scandal
3.4​ ​The​ ​new​ ​CSR
3.5​ ​Responsibility​ ​for​ ​the​ ​Workforce
4.​ ​Recommendations​ ​for​ ​how​ ​to​ ​improve​ ​CSR​ ​in​ ​our​ ​company
1.​ ​Introduction​ ​-​ ​What​ ​is​ ​the​ ​CSR?
Today's consumers hold companies to a higher standard. They're looking for more than just
material products or quality services when choosing a company to work with. Nine in 10 consumers
expect companies to not only make a profit, but also operate responsibly to address social and
environmental issues and 84% of global consumers also said they seek out responsible products
whenever possible. This new wave of buyers is demanding transparency, and when given the
choice, will almost always choose a brand or product tied to a socially conscious cause rather than
a corporate big name brand. So, recognizing how important social responsibility is to their
customers, many companies now focus on and practice a few broad categories of corporate social
responsibility,​ ​such​ ​as​ ​environmental​ ​efforts,​ ​ethical​ ​labor​ ​practices,​ ​philanthropy​ ​and​ ​volunteering.
Nowadays, consumers want to hear that a business is building something more than just revenues
and​ ​prefer​ ​to​ ​buy​ ​from​ ​companies​ ​that​ ​show​ ​they​ ​care​ ​about​ ​society​ ​as​ ​a​ ​whole.
And so, sustainability is become essential not only for people and the planet, but is also vital for the
business success. For those reasons, thousands of companies have embed a CSR programme
into​ ​the​ ​core​ ​of​ ​their​ ​business​ ​operations​ ​to​ ​create​ ​shared​ ​value​ ​for​ ​business​ ​and​ ​society.
But​ ​are​ ​we​ ​so​ ​sure​ ​that​ ​companies​ ​really​ ​care​ ​about​ ​CSR​ ​or​ ​is​ ​it​ ​nothing​ ​but​ ​a​ ​marketing​ ​gimmick?
Let​ ​us​ ​look​ ​at​ ​some​ ​examples​ ​from​ ​the​ ​automotive​ ​business.
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3. 2.​ ​The​ ​BMW​ ​case
2.1​ ​​A​ ​short​ ​overview
BMW​ ​traces​ ​its​ ​roots​ ​in​ ​1916,​ ​back​ ​to​ ​its​ ​founders,​ ​Karl​ ​Rapp​ ​and​ ​Gusta​ ​Otto.
In the very first years, BMW have only supplied engines rather than complete vehicle. Moreover,
perhaps not everyone knows that BMW started his history producing motorcycles. Indeed, the first
automobile was produced only almost 35 years after the foundation of the company. Due to its
expensive cost for those years, it was not a commercial success at all, but, despite this, it set from
the​ ​beginning​ ​the​ ​status​ ​of​ ​a​ ​manufacturer​ ​of​ ​high-quality.
Today, the BMW Group is a global company that operates with its 31 production and assembly
facilities in 14 countries due to almost 130.000 employees and it is one of the world’s leading
manufacturers​ ​of​ ​premium​ ​cars​ ​and​ ​motorcycles,​ ​with​ ​a​ ​revenue​ ​of​ ​€94​ ​billion.
2.2​​ ​​BMW’s​ ​values
After this overview, we can now focus on what we are really interested in, the BMW’s Corporate
Social​ ​Responsibility​ ​that​ ​it​ ​is​ ​becoming​ ​even​ ​more​ ​important​ ​year​ ​after​ ​year.
Suffice it to say that the amount of investment in further education and training amounts to €350
million each year. Nowadays, for the BMW Group, challenges such as climate protection, dwindling
resources​ ​or​ ​increasing​ ​urbanisation​ ​are​ ​as​ ​essential​ ​as​ ​its​ ​core​ ​business.
Today, emissions and the raw materials and other resources used in production are taken into
consideration in many customer purchases. A sustainable lifestyle is viewed as a personal
enrichment​ ​and​ ​represents​ ​a​ ​conscious​ ​decision​ ​for​ ​many​ ​consumers​ ​worldwide.
Hardly is it possible to still ignore the environment situation and therefore the BMW Group has set
itself​ ​ten​ ​long-term​ ​sustainability​ ​goals​ ​encompassing​ ​the​ ​entire​ ​value​ ​chain.
2.3​ ​​Why​ ​CSR​ ​is​ ​so​ ​important
First of all, BMW from the production focuses on the efficient use of resources, which helps the
environment and lowers costs. Secondly, also the distribution is committed to increase the share of
electric models. Indeed, they have already sold more than 100,000 electric and hybrids vehicles to
date. In this way, they are doing their part in order to reduce greenhouse-gas emissions and
improve air quality. In addition to this, also a wide variety of different community, social and cultural
projects around the world is making an important contribution to securing the company’s long-term
reputation. For all these reasons, sustainability is therefore an integral part of BMW’s thinking and
actions and this approach is in line with values as trust, openness, appreciation, responsibility and
transparency. The innovations are not only developed to enhance the financial benefits but also to
have a positive impact on the society and the environment. For instance, reducing of CO2
emissions, increasing in the number of electric vehicles sold, cutting down the energy, solvent and
water​ ​consumption​ ​per​ ​vehicle​ ​produced​ ​and​ ​finally​ ​expanding​ ​the​ ​use​ ​of​ ​renewable​ ​energy.
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4. 2.4​ ​​A​ ​culture​ ​of​ ​appreciation​ ​and​ ​equal​ ​opportunities
The concerns of the company are not only sustainability and environment issues, but also
employees care. In fact, BMW employees earn above-average wages and enjoy lots of social
benefits, such as personalised retirement models, as well as health and accident insurance. Also
the employee's professional development is really taken into consideration. Constantly developing
their personal skills and promoting them according to their individual strengths is considered as an
investment in the company’s future and reflected in a high level of employee satisfaction.
Moreover, BMW really believes in a culture of appreciation and equal opportunities. Diversity is
respected and regarded as the engine of our success, because a diverse workforce is an important
force for innovation. Employees’ uniqueness and individuality are important values and contain
potential​ ​for​ ​the​ ​individual​ ​employee​ ​as​ ​well​ ​as​ ​for​ ​the​ ​company​ ​as​ ​a​ ​whole.
2.5​ ​​Social​ ​Responsibility​ ​worldwide
Finally, talking about social commitment, BMW is active in more than 150 countries, where they
want to use their global presence to contribute to greater intercultural understanding and social
inclusion. In order to do so, they regularly organise junior campus, projects for children and also
share selected contributions and collection of ideas and materials for the intercultural learning.
They are also in charge of some social foundations, with the aim to encourage leaders to embrace
venture philanthropy and invest not only on their businesses, but also on social changes. Last but
not least, there is also a “cultural engagement” programme, promoting modern and contemporary
art, jazz and classical music as well as architecture and design. In over 40 countries worldwide, the
Group​ ​supports​ ​more​ ​than​ ​200​ ​social​ ​and​ ​artistic​ ​projects.
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5. 3.​ ​The​ ​Volkswagen​ ​case
3.1​ ​​The​ ​history
On the other hand, Volkswagen was founded few years later, in 1930, when emerged the project of
make a car which it was accessible to a large number of people. In 1933, Hitler decided to launch a
plan to promote the automotive industry, with the aim of relaunching their factories and making
Germany more competitive than UK and France. In this way a contest was launched to the
entrepreneurs for the concession of the manufacture of the so-called “people's car” (this is what
Volkswagen ​means). Ferdinand Porsche was commissioned to carry out the project whose
purpose was to build a simple and cheap vehicle that could be available to most Germans.
Nowadays, Volkswagen is the original and best-selling brand of the Volkswagen Group, the largest
European​ ​automaker​ ​and​ ​the​ ​second​ ​largest​ ​automaker​ ​in​ ​the​ ​world.
3.2​ ​​The​ ​“Dieselgate”​ ​scandal
The Volkswagen emissions scandal (also called "​Emissions Gate​" or "​Dieselgate​") started on
September 2015, when it was discovered that the engines of their cars were manipulated and
emitted forty more times of nitrogen oxides than the amount legally allowed. The company
deliberately set out to design a means to circumvent emissions control with the aim of taking an
unfair advantage over its competitors and positioning as the first car brand in the world. This
caused 11 million vehicles worldwide emit up to 40 times more pollutant emissions than declared,
from 2009 to 2015. Therefore, they had to pay for the repairs of all damaged cars, as well as
paying​ ​a​ ​criminal​ ​fine​ ​of​ ​almost​ ​€3​ ​billion.
3.3​ ​​The​ ​reaction​ ​to​ ​the​ ​scandal
Despite the Volkswagen case represents one of the most absolute failure and this scandal had
huge repercussions on the terms of Corporate Social Responsibility, the company now is trying to
restoring its reputation, presenting itself as responsible company. As a result of that, they aim to
reduce average CO2 emissions and reduce fuel consumption and emissions by 25%, in 2020. With
correspondingly less energy and water consumption and CO2 and solvent emissions. Now the
company ensures that every new Volkswagen is at least 10% more efficient than its predecessor
model. In addition, the German car group will invest more than €34 billions in the development of
electric mobility, autonomous driving and new mobility and digitization services until the end of
2022.
3.4​ ​​The​ ​new​ ​CSR
Nowadays,​ ​the​ ​CSR​ ​department​ ​is​ ​working​ ​hard​ ​to​ ​set​ ​a​ ​new​ ​image​ ​of​ ​the​ ​company.
In order to do so, the company is investing a lot in development and production. The Volkswagen's
cars are designed in a way which protects the environment. Some experts are involved from the
very start of the initial design operations and they make sure that across its entire life cycle a new
vehicle achieves the best possible values in terms of protecting the climate, conserving resources
and protecting health. Volkswagen now gives to the social and ecological objectives the same
priority​ ​as​ ​the​ ​economic​ ​objectives.
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6. 3.5​ ​​Responsibility​ ​for​ ​the​ ​Workforce
Volkswagen tries to offer the best possible working conditions to its employees, promoting their
health and providing them with future prospects, development opportunities and participation. As
the company affirms, at Volkswagen all employees can develop their skills further, in every phase
of their working lives and in accordance with their individual capabilities. They give to all staff the
opportunity to participate in shaping specific processes within their immediate working
environment, thus supporting the process of continuous improvement. To conclude, also equality of
opportunity of the workforce is taken into consideration: flexible working time models and childcare
facilities​ ​make​ ​it​ ​easy​ ​to​ ​combine​ ​career​ ​and​ ​family.
4.​ ​Recommendations​ ​for​ ​how​ ​to​ ​improve​ ​CSR​ ​in​ ​our​ ​company
So,​ ​we​ ​have​ ​seen​ ​two​ ​relevant​ ​cases​ ​of​ ​CSR​ ​and​ ​compared​ ​them.
In view of these two examples it is strongly recommended to embed a CSR Department also in our
company.​ ​We​ ​have​ ​proved​ ​that​ ​corporate​ ​social​ ​responsibility​ ​is​ ​important​ ​for​ ​many​ ​reasons.
Companies benefit because their customers appreciate the fact they are giving back to the
community,​ ​and​ ​the​ ​community​ ​benefits​ ​from​ ​the​ ​generosity​ ​of​ ​these​ ​companies.
Based on the case studies we have showed, we are now fully encouraged to put part of our profit
into this kind of programs that give back in terms of reputation, ability to recruit, develop and retain
staff,​ ​improved​ ​innovation,​ ​competitiveness​ ​and​ ​market​ ​positioning.
To sum up, undertaking socially responsible initiatives is truly a win-win situation. Not only our
company appeals to socially conscious consumers and employees, but we’ll also make a real
difference in the world. The important thing is to really believe in it, and not doing it such as a
greenwashing​ ​operation.​ ​Our​ ​consumers​ ​need​ ​to​ ​understand​ ​that​ ​it​ ​is​ ​not​ ​only​ ​a​ ​business​ ​strategy.
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20. Volkswagen

21. Founded in 1930, when emerged the project to make a car.
➔ Ferdinand Porsche was commissioned to carry out it
Today, Volkswagen is the largest
european automaker and the second
largest automaker in the world
Nowadays, Volkswagen is the
original and best-selling brand
of the Volkswagen Group

22. ➢ Discovered in September 2015
➢ Emissions Scandal
➢ The engines of their cars were manipulated
THE “DIESELGATE” SCANDAL

23. Now, The company is trying to restoring
its reputation:
- Reduce average CO2 emissions and
reduce fuel consumption and
emissions.
- Also, new Volkswagen is more
efficient than its predecessor model
THE REACTION TO THE SCANDAL

24. THE NEW CSR
Investing in
Development and production
SOCIAL AND ECOLOGICAL
Objectives
Economic objectives

25. Volkswagen tries to offer the best
possible working conditions to its
employees.
➢ They can develop their skills
further.
➢ Also equality of opportunity of
the workforce is taken into
consideration: career and
family.
RESPONSIBILITY
FOR THE WORKPLACE