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Group Project Part 1

Vasudev Bajaj (2023020452),

BBA General, Yorkville Academy

BUSI2023; Business Ethics

Prof. Parminder Birring

28th January, 2024

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To initiate with, this essay will provide brief information regarding BMW group and its

history as well as their role in World War I and II discussing ethical dilemmas faced by them

throughout history. Our group decided to choose BMW group for ample of reasons,

furthermore, as we know that Germany is one of the main countries which played a crucial part

in World War I and II and has seen many ups and downs related to the economy and

international relations (Automotive World, 2016), and also, we know that BMW originated

Munich, Germany. As a result, they also went through many thin and thick, facing many ethical

dilemmas during both world wars such as doing unethical things forcing people like laborers

and prisoners to work beyond their abilities just to achieve production figures laid down by

government authorities (BMW Group, n.d.).

Bayerische Motoren Werk AG, popularly known as BMW is a worldwide corporation

with an interesting history of several decades for the development of the automotive and

mobility industries. BMW Corporation was established in 1916 in Munich, Germany, and was

making aviation engines during the First World War (BMW Group, n.d.). Later, engineering

experience in aircraft-making played a major role in the success of the company in the

automobile industry. During World War 1 & 2 BMW faced many transformations, they

transformed from a mobility company to an armaments company and played a vital role in the

German economy at that time.

As mentioned in the intro, during world wars BMW forced

men to work beyond their capabilities. In light of consequential

theory analysis of our group at that time the primary stakeholders

of the company were the government and the company owners

themselves, as well as consumers and employees along with

suppliers. If in that situation they had denied government contracts

for making armaments most probably the company would have

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shut down as at that time Germany was ruled by the national

socialist party and also the economic condition of the nation itself

was much worse. On the other hand, if we point out the benefits of

accepting a government contract, then the major advantage is that

the company survived tough economic situations (McElhaney et al.,

2004). Secondly, the stakeholders such as owners, and suppliers

were in economic benefit, even workers who worked extra saved

their day and their families in that war situation received their bread

and butter. Also, while applying deontological theory what the

company did was ethically related to the situation. This theory is

mainly focused on duties, obligations, and principles. By fulfilling

the figures of armament production, the promise that they made to

the government. Moreover, it was their duty to support their

country and to show patriotism towards their nation in that war

situation.
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References

Automotive World. (2016). 100 Masterpieces. BMW Group – 100 years of innovative strength

and entrepreneurial courage staged in BMW Museum. Retrieved from

https://www.automotiveworld.com/news-releases/100-masterpieces-bmw-group-100-

years-innovative-strength-entrepreneurial-courage-staged-bmw-museum/

BMW Group. (n.d.). History. Retrieved from

https://www.bmwgroup.com/en/company/history.html

BMW Group. (n.d.). Sustainability. Retrieved from

https://www.bmwgroup.com/en/sustainability.html

McElhaney, K. A., Toffel, M. W., & Hill, N. (2004). Designing a Sustainability Management

System at BMW Group: The Designworks/USA Case Study. Greener Management

International, 46, 102–116.