BMW HISTORY

BMW AG originated with three other manufacturing companies, Rapp Motorenwerke and
Bayerische Flugzeugwerke (BFw) in Bavaria, and Fahrzeugfabrik Eisenach in Thuringia.
Aircraft engine manufacturer Rapp Motorenwerke became Bayerische Motorenwerke in
1916. The engine manufacturer, which built proprietary industrial engines after World War I,
was then bought by the owner of BFw who then merged BFw into BMW and moved the
engine works onto BFw's premises. BFw's motorcycle sideline was improved upon by BMW
and became an integral part of their business. BMW became an automobile manufacturer in
1929 when it purchased Fahrzeugfabrik Eisenach, which, at the time, built Austin Sevens
under license under the Dixi marque. BMW's team of engineers progressively developed their
cars from small Seven-based cars into six-cylinder luxury cars and, in 1936, began production
of the BMW 328 sports car. Aircraft engines, motorcycles, and automobiles would be BMW's
main products until World War II. During the war, against the wishes of its director Franz
Josef Popp, BMW concentrated on aircraft engine production, with motorcycles as a side line
and automobile manufacture stopped altogether. After the war, BMW survived by making
pots, pans, and bicycles until 1948, when it restarted motorcycle production. Meanwhile,
BMW's factory in Eisenach fell in the Soviet occupation zone and the Soviets restarted
production of pre-war BMW motorcycles and automobiles there. This continued until 1955,
after which they concentrated on cars based on pre-war DKW designs. BMW began building
cars in Bavaria in 1952 with the BMW 501 luxury saloon. Sales of their luxury saloons were
too small to be profitable, so BMW supplemented this with building Isettas under license.
Slow sales of luxury cars and small profit margins from microcars caused the BMW board to
consider selling the operation to Daimler-Benz. However, Herbert Quandt was convinced to
purchase a controlling interest in BMW and to invest in its future.

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ETHICAL CHALLENGE FOR GREEN MARKETING STARTEGY

INCORPORATING ENVIRONMENTAL CONSIDERATIONS INTO PRODUCT

DESIGN
According to Fuller (1999, p. 127), implementing a green marketing strategy gives a
company a new mission. This involves redirecting customer choices toward choices that are
environmentally compatible, reorienting the marketing mix to include such choices, and
reorganizing the company’s delivery systems and enable them to meet environmental
challenges. According to (Downing & White 1986, Keohane 2006). Ideally, the externality
caused by pollution is reduced in such a way that l equates the marginal costs of the
regulatory policies with the marginal benefit to society.

The many raw materials had becoming increasingly scarce worldwide; the BMW Group
engages in recycling management throughout material life cycles. Part of this entails
continuously optimizing our processes and reducing waste volume. Because what we think of
as waste is often a valuable resource, which we try to use intelligently.

AVOIDING AND RECYCLING WASTE

When we recycle materials or residual materials, we comply with the five-step hierarchical
model set down in order to comply with this target hierarchy we focus on the following areas
of action:

1. Complete utilisation cycles at our plants

BMW try to either immediately reuse any viable residual materials on the same machine
(closed loop) or to first prepare them and then reuse them (post-industry loop). For example,
we send sheet metal scraps from our press line back to the same steelworks the coils for
vehicle production came from. Old plastic containers go through a recycling process that
produces new
containers.

2. Actively managing waste

BMW manage and gather data on all waste and materials at BMW Group production plants
worldwide. To do this, we use our central waste information system

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“Abfallinformationssystem” (ABIS), which is installed at all BMW Group production
plants.

APPLYING BEST PRACTICES TO AVOID WASTE

Materials use and waste management are two areas in which we apply best-practice solutions
that we have gradually rolled out across our production network. These are some examples of
our activities in 2014:

1. BMW changed the processing method for washing water on the vehicle production
line for brake discs at our Berlin plant. This led to a reduction in waste for disposal of
approximately 14% compared to the previous year.

2. Waste for disposal in our plant Landshut has been reduced by more than 100 tons in
2014 compared to 2013. Main activities for this improvement has been an adjustment
of the waste water treatment plant in the paint shop of the bumpers as well as the
recycling of the demolition rubble of the lining of the smelting.

5 Program plan that BMW had make

1. Prevention: Where possible, we avoid creating waste in the first place. This is the best
solution, both in economic and environmental terms.
2. Reuse: BMW reuse any viable waste material immediately. Otherwise we prepare it
for reuse in its original area of application.
3. Recycle: If reuse is not an option, BMW recycle the material in such a way that we
can reintroduce it to the cycle and it can then replace primary raw materials.
4. Recovery: BMW incinerate most non-recyclable waste materials. BMW also use other
recovery options such as filling caverns in salt mines.
5. Disposal: Only the small volume of non-recyclable waste that is then left over is
earmarked as waste for disposal.

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THE IMPACT OF BMW GREEN PROGRAM

Positive Ethicality
The BMW Group aims to be not only the leading, but also the most sustainable, premium
provider of individual mobility. BMW therefore pursue a policy of comprehensive, Group-
wide environmental management. The company integrates environmental considerations into
all its major investment decisions at an early stage, setting itself ambitious targets and using
key environmental indicators to constantly track and monitor how it is performing. BMW also
transfer best-practice solutions from within the company to the entire production network and
are convinced that by taking farsighted action now and by integrating environmental
principles into all business processes we can achieve added value both in terms of the
environment and Their business.

Negative Ethicality
The negative thing about the BMW Green Program is that BMW is focus more on usage of
recycle material that sometime make consumer thing that recycle product never last long.
Nevertheless, these changes have been insufficient to make the sector more sustainable. As
evidence of this the automotive industry is still struggling against economic, environmental
and social challenges. Orsato and Wells (2006) point out the many economic challenges
currently facing the industry with notably over-capacity; saturated and fragmenting markets
capital intensity and persistent problems with achieving adequate profitability. Strong
dependence on fossil fuels and large consumption of raw material lead the environmental
problems. As a result, in a near future, it is expected that the sector will face strong pressures
and take initiatives in order to reduce the environmental burdens from car use and its
production process.

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CONCLUSION

Social responsibility frameworks have interesting implications for the automobile industry,
particularly BMW. Until the 1990's, an automobile manufacturer was considered successful
when it produced cars that were either cost leaders or attractive to their target customers. As
environmental consciousness has increased, social activists have raised their voices criticizing
car manufacturers that produce polluting and unsafe cars. Successful automobile
manufacturers may be the ones that respond to these voices and create products that are safer
and more environmentally friendly. BMW has expended considerable efforts to improve the
ecological efficiencies of its automobiles, including the development of several engineering
oriented processes. In developing an ecologically sustainable economy, various stakeholders
throughout the world are debating the parameters of an optimum transportation system
encompassing commercial delivery of goods and services, public air and rail networks, and
perhaps most importantly for BMW, the socially responsible production of personal
automobiles serving a wide range of tastes and preferences. In the debate about corporate
social responsibility and the role of the automobile, BMW is one of many participants.
Moreover, the detailed publication of its m y environmentally related activities can be
described as corporate socially responsible participation in the overall societal debate about
the role of personal automobiles. More specifically, in terms of the Basus and Palazzo
framework, BMW. can be viewed as contributing its heritage of engineering sense-making
framework to decision-making. So, is BMW one more example of a company that is trying to
Greenwash us, or are its environmentally friendly efforts genuine and sincere? This vital
corporate social responsibility question is a critically important issue for society and its
various stakeholders.

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REFERENCES

The list of references use in this assignment are mainly from BMW Cooperate Report

1. BMW CR Report 2013.pdf

2. BMW CR Report 2014.pdf
3. BMW Environment Report