BMW Motor Company
History: The Bavarian Motor Company or BMW has been a fixture in the automobile industry for years. The BMW logo and brand today is associated with the elite of the industry, when you think BMW you think luxury, and speed. BMW was founded in 1916 during World War 1 by Franz Josef Popp, with the purpose of creating and manufacturing aircraft engines. When the World War ended so did BMW's aircraft engine manufacturing, BMW was forced to bring their talents to a new industry.
BMW brought those talents to the automobile industry, starting with motorcycles in 1923 and progressively to cars in 1928. The company bought the rights to a car called the Dixi, The Dixi was going to be BMW's first production car. BMW at this time still favored making motorcycles and put most of their effort into that. BMW's switch to the automobile industry was short lived, with Germany rearming itself ,and World War 2 heating up the Luftwaffe once again called upon BMW. During World War 2 BMW once again went back to
manufacturing and designing aircraft engines. BMW wouldn't make another production model car again until after the war in 1951(Garza).
Post World War 2 was truly a new beginning for the BMW company. The company found huge success when it launched the different classes of its automobiles in 1962. Bringing family sedans to its customers and a sporty 2 door coupe that it will forever be remembered for. Today BMW is the number one luxury car manufacturer in the world, with 3 other brands: Mini, Rolls Royce, and BMW Motorcycles.
Current Products:
1 Series-Coupe
3 Series-Coup/Sedan
4 Series-Coupe
5 Series-Sedan/GT
6 Series-Coupe
7 Series-Sedan
X-1,3,5,6
Z4
M Racing Line- M3,M5,M6 X6M
BMW brought those talents to the automobile industry, starting with motorcycles in 1923 and progressively to cars in 1928. The company bought the rights to a car called the Dixi, The Dixi was going to be BMW's first production car. BMW at this time still favored making motorcycles and put most of their effort into that. BMW's switch to the automobile industry was short lived, with Germany rearming itself ,and World War 2 heating up the Luftwaffe once again called upon BMW. During World War 2 BMW once again went back to
manufacturing and designing aircraft engines. BMW wouldn't make another production model car again until after the war in 1951(Garza).
Post World War 2 was truly a new beginning for the BMW company. The company found huge success when it launched the different classes of its automobiles in 1962. Bringing family sedans to its customers and a sporty 2 door coupe that it will forever be remembered for. Today BMW is the number one luxury car manufacturer in the world, with 3 other brands: Mini, Rolls Royce, and BMW Motorcycles.
Current Products:
1 Series-Coupe
3 Series-Coup/Sedan
4 Series-Coupe
5 Series-Sedan/GT
6 Series-Coupe
7 Series-Sedan
X-1,3,5,6
Z4
M Racing Line- M3,M5,M6 X6M
Product Locations:
BMW is an international company with its headquarters located in Munich, Bavaria. They have 28 production facilities in total, across 13 different countries, globally they employee over 105,000 people. BMW holds the title as the #1 luxury car producer in the world, and is #5 overall. They sold over 1.85 million cars in 2012, and boasted over 98.8 billion dollars in revenue.
Company Culture:
According to BMW their company strives to bring the best premium products to its customers as possible. They use what they call "Strategy #1", it has two targets, maintain profitability and to always keep long-term value in their brand and company. The strategy has 4 pillars : Growth, Shaping the future, Profitability, and Access to customers. BMW has a clear defined strategy for its company culture and they stay committed to it.
BMW's company culture seems to be one of excellence. When going through BMW's values, company portrait, and levels of management you see that in all categories, a "premium" quality is always demanded. They have worked very hard to build a brand name like BMW that demands recognition and implies excellence, and have many strategies and values in place to maintain that("BMW Company Portrait").
Ethical Reasoning:
Lawrence Kohlberg's Stages of Ethical Reasoning states there are three levels of reasoning and six stages. I believe BMW would fall into level 3 or post conventional, at this level of ethical reasoning a person makes a clear effort to define principles and moral values that reflect individual value systems. Within level three they would fall into stage six or universal ethics, at this level a person would be focused on self given principles that are consistent and comprehensive.
Their company is committed to the community on an exceeding amount of levels. They have a commitment to bring products of premium quality to their customers but not only that, they strive to maintain a good relationship between their customers and the environment. BMW is involved in a many of environmental partnerships in the USA and across the world. They have a number of foundations and donated over 30 million dollars in 2012. I believe they fall into the highest category of ethical reasoning , because the company portrays an image of ethical concerns on all levels. They maintain profitability, without making it their only priority, but most importantly they demand the utmost of themselves at all times("BMW Social Responsibility").
BMW is an international company with its headquarters located in Munich, Bavaria. They have 28 production facilities in total, across 13 different countries, globally they employee over 105,000 people. BMW holds the title as the #1 luxury car producer in the world, and is #5 overall. They sold over 1.85 million cars in 2012, and boasted over 98.8 billion dollars in revenue.
Company Culture:
According to BMW their company strives to bring the best premium products to its customers as possible. They use what they call "Strategy #1", it has two targets, maintain profitability and to always keep long-term value in their brand and company. The strategy has 4 pillars : Growth, Shaping the future, Profitability, and Access to customers. BMW has a clear defined strategy for its company culture and they stay committed to it.
BMW's company culture seems to be one of excellence. When going through BMW's values, company portrait, and levels of management you see that in all categories, a "premium" quality is always demanded. They have worked very hard to build a brand name like BMW that demands recognition and implies excellence, and have many strategies and values in place to maintain that("BMW Company Portrait").
Ethical Reasoning:
Lawrence Kohlberg's Stages of Ethical Reasoning states there are three levels of reasoning and six stages. I believe BMW would fall into level 3 or post conventional, at this level of ethical reasoning a person makes a clear effort to define principles and moral values that reflect individual value systems. Within level three they would fall into stage six or universal ethics, at this level a person would be focused on self given principles that are consistent and comprehensive.
Their company is committed to the community on an exceeding amount of levels. They have a commitment to bring products of premium quality to their customers but not only that, they strive to maintain a good relationship between their customers and the environment. BMW is involved in a many of environmental partnerships in the USA and across the world. They have a number of foundations and donated over 30 million dollars in 2012. I believe they fall into the highest category of ethical reasoning , because the company portrays an image of ethical concerns on all levels. They maintain profitability, without making it their only priority, but most importantly they demand the utmost of themselves at all times("BMW Social Responsibility").
Code of Ethics:
BMW does have a stated code of ethics, they call it the legal compliance code. It is a 25 page document that states what the company does to insure that it is complying with all standards and laws, as well as how they carry out those procedures. Not only does it cover how they are being legally responsible but how they show responsibility to environment, customers, and employees.
For example in chapter two section four of their code, it is titled Environmental protection. It then goes on to state that the only way to run a long term business to is to run business is to run it on a sustainable basis. This structure is the format of the entire document, titles of what they comply with and paragraphs of how it is done.
From my research I believe that the companies CSR, was the level that was receiving the most attention. They have a number of CSR programs more than any other programs for other levels. I believe that they focus the most on this category because it is what people like to see. They want big companies to feel a sense of responsibility to the environment and local communities in which make their products.
Although from my research it did seem that their attention was on CSR, it is not to say that they don't have the other elements covered. They have a stated code of ethics that I discussed earlier, as well as many levels of corporate governance.
Human Resources:
In my research human resources is mentioned but I do not believe it has a lead role. BMW has a HR policy in place that is designed for the long-term employee. Training is a big part of their human resources and they are currently giving over 4200 people vocational training. They try to encourage co-worker determination as well as job security at their company.
I think most importantly BMW has the involvement of employee representatives. Before making a major operational change ,they will inform and discuss changes with these representatives. Employee representatives are from over 90 countries, and are at headquarters when decisions are being made.
Conflict of Interest:
A conflict of interest is a situation in which one relationship or obligation places you in direct conflict with an existing relationship or obligation. During my research I did not find any conflicts of interests on my own, but when looking at BMW's code of legal compliance I found one they listed. They stated their employee's potential conflicts of interests, and what actions should be taken in the event of one.
For example in their conflict of interest section they state that a employee must be able to keep private interests away from those of the companies. And if in the event they find themselves in a conflict of interest to talk to the relevant manager, BMW corporate audits, or legal affairs. In the next section they stress the importance that every order must go to the highest bidder and that business arrangements must always be objective.
Triple Bottom Line:
The triple bottom line refers to a company that not only reports revenue but also includes social and environmental reports. Just the idea of the triple bottom line shows how in todays culture companies have to take CSR much more seriously. BMW does in fact report the triple bottom line, as clear as they report their revenues they boast the environmental impact they have. They also report how they give back locally and internationally to make a social impact.
BMW not only lists what environmental agencies they partner with and what foundations they give to but also every year they publish a company sustainability report. This sustainability report discusses the two parts of the triple bottom line other than the revenue. Financial reports are also stated clearly for financial investors.
CSR:
In CSR or corporate social responsibility there are three categories: Ethical, Altruistic, and Strategic. From these three categories I believe BMW to belong to the altruistic category. From my research it seems that BMW engages in a philanthropic approach when showing CSR. They have many initiatives to give back to local communities and environment but where that money comes from they did not report.
If they in fact do not take money for these initiatives from their shareholders than they may fall under another category. But from my research it seems that they would easily fall into the altruistic category based on the initiatives they choose to take. If they did report that the money did not come from the share holders, BMW would then fall under the ethical category. BMW would fall under this category because many of their initiatives you would only find on your research, they do not boast what they do to get positive public relations.
BMW does have a stated code of ethics, they call it the legal compliance code. It is a 25 page document that states what the company does to insure that it is complying with all standards and laws, as well as how they carry out those procedures. Not only does it cover how they are being legally responsible but how they show responsibility to environment, customers, and employees.
For example in chapter two section four of their code, it is titled Environmental protection. It then goes on to state that the only way to run a long term business to is to run business is to run it on a sustainable basis. This structure is the format of the entire document, titles of what they comply with and paragraphs of how it is done.
From my research I believe that the companies CSR, was the level that was receiving the most attention. They have a number of CSR programs more than any other programs for other levels. I believe that they focus the most on this category because it is what people like to see. They want big companies to feel a sense of responsibility to the environment and local communities in which make their products.
Although from my research it did seem that their attention was on CSR, it is not to say that they don't have the other elements covered. They have a stated code of ethics that I discussed earlier, as well as many levels of corporate governance.
Human Resources:
In my research human resources is mentioned but I do not believe it has a lead role. BMW has a HR policy in place that is designed for the long-term employee. Training is a big part of their human resources and they are currently giving over 4200 people vocational training. They try to encourage co-worker determination as well as job security at their company.
I think most importantly BMW has the involvement of employee representatives. Before making a major operational change ,they will inform and discuss changes with these representatives. Employee representatives are from over 90 countries, and are at headquarters when decisions are being made.
Conflict of Interest:
A conflict of interest is a situation in which one relationship or obligation places you in direct conflict with an existing relationship or obligation. During my research I did not find any conflicts of interests on my own, but when looking at BMW's code of legal compliance I found one they listed. They stated their employee's potential conflicts of interests, and what actions should be taken in the event of one.
For example in their conflict of interest section they state that a employee must be able to keep private interests away from those of the companies. And if in the event they find themselves in a conflict of interest to talk to the relevant manager, BMW corporate audits, or legal affairs. In the next section they stress the importance that every order must go to the highest bidder and that business arrangements must always be objective.
Triple Bottom Line:
The triple bottom line refers to a company that not only reports revenue but also includes social and environmental reports. Just the idea of the triple bottom line shows how in todays culture companies have to take CSR much more seriously. BMW does in fact report the triple bottom line, as clear as they report their revenues they boast the environmental impact they have. They also report how they give back locally and internationally to make a social impact.
BMW not only lists what environmental agencies they partner with and what foundations they give to but also every year they publish a company sustainability report. This sustainability report discusses the two parts of the triple bottom line other than the revenue. Financial reports are also stated clearly for financial investors.
CSR:
In CSR or corporate social responsibility there are three categories: Ethical, Altruistic, and Strategic. From these three categories I believe BMW to belong to the altruistic category. From my research it seems that BMW engages in a philanthropic approach when showing CSR. They have many initiatives to give back to local communities and environment but where that money comes from they did not report.
If they in fact do not take money for these initiatives from their shareholders than they may fall under another category. But from my research it seems that they would easily fall into the altruistic category based on the initiatives they choose to take. If they did report that the money did not come from the share holders, BMW would then fall under the ethical category. BMW would fall under this category because many of their initiatives you would only find on your research, they do not boast what they do to get positive public relations.
Evolution:
The information I could find on the evolution of the three levels is very limited surprisingly. From my research I could only find their three level approaches and when some of them were implemented but not who implemented them and why. In 2007 is when BMW incorporated their very important program,strategy #1, that runs their company culture.
I do know from my research BMW of today is very different of the BMW of the past. When BMW was manufacturing during World War 2 they later admitted that they had many forced Jewish laborers. Obviously with the help or the influence of Nazi Germany this took place but it is a drastic change of the BMW we think and picture today (Govan).
Corporate Governance:
I believe from my research that BMW has a very effective program of corporate governance. They have 7 different boards of management with a chairman overseeing them all. The company also has a board of supervisors that includes 20 members. BMW's board members are required to meet once a year to make sure that all corporate governance codes are being complied with.
They state that corporate governance to them is an issue that can affect an enterprise on all levels. This is why they choose to make sure there are policies of corporate governance in place, and that they are being enforced. They promote and build the environment of trust between the supervisor and management board so they can efficiently conquer problems. All of their policies for corporate governance I believe cover them on most levels, they also are transparent in what their policies are so that they can be held up to their own and governmental standards (BMW Investor Relations).
The information I could find on the evolution of the three levels is very limited surprisingly. From my research I could only find their three level approaches and when some of them were implemented but not who implemented them and why. In 2007 is when BMW incorporated their very important program,strategy #1, that runs their company culture.
I do know from my research BMW of today is very different of the BMW of the past. When BMW was manufacturing during World War 2 they later admitted that they had many forced Jewish laborers. Obviously with the help or the influence of Nazi Germany this took place but it is a drastic change of the BMW we think and picture today (Govan).
Corporate Governance:
I believe from my research that BMW has a very effective program of corporate governance. They have 7 different boards of management with a chairman overseeing them all. The company also has a board of supervisors that includes 20 members. BMW's board members are required to meet once a year to make sure that all corporate governance codes are being complied with.
They state that corporate governance to them is an issue that can affect an enterprise on all levels. This is why they choose to make sure there are policies of corporate governance in place, and that they are being enforced. They promote and build the environment of trust between the supervisor and management board so they can efficiently conquer problems. All of their policies for corporate governance I believe cover them on most levels, they also are transparent in what their policies are so that they can be held up to their own and governmental standards (BMW Investor Relations).
Works Cited:
"BMW Company Portrait." BMW Group. BMW, 10 Apr 2012. Web. 14 Nov 2013.
<http://www.bmwgroup.com/bmwgroup_prod/e/0_0_www_bmwgroup_com/unternehmen/unternehmensprofil/investorr/relations.html>.
"BMW Investor Relations." BMW Group. BMW, 10 Apr 2012. Web. 14 Nov
2013.
<http://www.bmwgroup.com/bmwgroup_prod/e/0_0_www_bmwgroup_com/unternehmen/unternehmensprofil/investorr/relations.html>.
"BMW Social Responsibility." BMW Factory. BMW. Web. 14 Nov 2013.
< https://www.bmwusfactory.com/sustainability/social-responsibility/>.
Garza, George.
"History of BMW." Catalogs Information. N.p.. Web. 14 Nov 2013.
Govan, Fiona.
"BMW Dynasty Breaks Silence." Telegraph. n. page. Print.
<http://www.telegraph.co.uk/history/world-war-two/8796157/BMW-dynasty-breaks-silence-over-Nazi-past.html>.
"BMW Company Portrait." BMW Group. BMW, 10 Apr 2012. Web. 14 Nov 2013.
<http://www.bmwgroup.com/bmwgroup_prod/e/0_0_www_bmwgroup_com/unternehmen/unternehmensprofil/investorr/relations.html>.
"BMW Investor Relations." BMW Group. BMW, 10 Apr 2012. Web. 14 Nov
2013.
<http://www.bmwgroup.com/bmwgroup_prod/e/0_0_www_bmwgroup_com/unternehmen/unternehmensprofil/investorr/relations.html>.
"BMW Social Responsibility." BMW Factory. BMW. Web. 14 Nov 2013.
< https://www.bmwusfactory.com/sustainability/social-responsibility/>.
Garza, George.
"History of BMW." Catalogs Information. N.p.. Web. 14 Nov 2013.
Govan, Fiona.
"BMW Dynasty Breaks Silence." Telegraph. n. page. Print.
<http://www.telegraph.co.uk/history/world-war-two/8796157/BMW-dynasty-breaks-silence-over-Nazi-past.html>.