1.1 Background:
TNT is one of the largest logistics and shipping companies occupying a predominant place in the multinational countries. Headquartered in Netherlands this specific organization is dealing with 156,128 millions of employees (tnt.com, 2017). As per the business ethics of TNT, the service providers are flexible enough to provide freight service to the organization. As a result, the service users do not have to wait for a long time in order to receive the services. As per the report of 2009, this particular organization has received sound sales record about €4.2 billion. On the other hand, BMW is one of the most recognizable global car manufacturing brands that are especially famous for luxury automakers. Headquartered in Germany this particular brand has given the product output of 2,512,635 vehicles till the year 2016. At the same time, it is undeniable that these two countries facing major issues while running the business that highly affects in maintaining an effective environmental and social balance (bmw.com, 2017).
1.2 Aims:
The aim of this particular study is to evaluate the necessary issues that highly affect in maintaining the social and environmental balance of these two specific organizations.
1.3 Scopes:
It has been observed that BMW in order to be a prestigious automaker has to face innumerable difficulties in maintaining environmental balance. While manufacturing cars the organization has immense contribution in environmental pollution. Therefore, by implementing some of the most effective strategies and policies the business experts of BMW have decided to overcome the social issues that they have faced due to immense carbon emission.
On the other hand, TNT has faced the same issues while running their business process in the market. TNT while maintaining their shipping process has to use immense energy that ultimate causes a negative effect on the society. Therefore, TNT has taken certain initiatives in order to overcome the social issues (Crane & Matten, 2016). While surviving in the current market every business organization has to follow a proper business ethics. TNT is not exceptional to that. Therefore, the business strategies and polices that TNT should follow for overcoming the major issues can be evaluated in this specific study.
In terms of the range of issues the two companies differ from each other. In case of BMW the social issues that the brand has faced while manufacturing cars are follows:
Carbon emissions:
While designing a new car a particular brand has to use huge energy efficiency. As a result, carbon emission has become one of the most significant factors based on which the climate has to be changed completely. The burning fossil fuels release huge number of carbon dioxide that ultimately the natural growth of environment. Due to the extreme level of carbon emission the global temperature is getting increased rapidly (Weiss, 2014). BMW being one of the most recognizable business brands had to face challenges in gaining brand identity and image due to extreme level of carbon emission.
Environmental pollution due to the increased rate of carbon emissions:
Due to the rapid increase of carbon emissions the car manufacturing companies like BMW have to face innumerable difficulties in order to gain the customers’ attention due to the huge range of environmental pollution. As a result, BMW has faced innumerable difficulties in order to maintain their organizational image and reputation. While running the business process every single organization has to follow an ethics and beliefs (DesJardins & McCall, 2014). As per the ethical consideration, organizations are bound to manufacture eco-friendly products so that the products do not cause a serious harm to the environment.
On the other hand, TNT is facing innumerable difficulties in maintaining their transportation system and the issues are as follows:
Marine pollution:
At the time of shipping the products large number of chemical fertilizers, particles, oil spill, swages have been thrown in the ocean that causes a serious marine pollution. As a result, ocean mammals have to face premature death due to the unnecessary use of micro plastics and other chemical fertilizers (Rahman & Post, 2012). Therefore, the organization like TNT has to face innumerable challenges in maintaining their organizational image and reputation.
Security threats:
On the other hand, while maintaining the transportation system the organization like TNT is facing difficulties in maintaining their security (Rahman & Post, 2012). While following the shipping process the appointed employees sometimes fail to reach the service process to the destination. TNT is primarily famous for superior quality of service process (Ulrich & Sarasin, 2012). At the same time, it is undeniable that TNT service process is not restricted within the regional market. In addition, the entire service process is surrounded with different geographical boundaries. Therefore, people would face their immense reluctance in using the service process of TNT if they fail to get any security from the service providers.
The social issues that an automobile industry has to face while manufacturing cars are completely different from the issues faced by a shipping industry (Baumann-Pauly et al., 2013). The business issue of an automobile industry is restricted to carbon emission, burning of fossil fuel and environment pollution. On the other hand, shipping industry primarily pollutes the marines and marine mammals. People belonging to different geographical markets always expect to get the service within time (Hartman et al., 2014). Water transportation system is highly effective for maintaining shipping and logistics process. In addition, TNT intends to follow water transport due to the low cost of transport. Therefore, unnecessary use of micro-plastic in the ocean, chemical fertilizers may cause the death of ocean mammals. Therefore, the entire social issue that shipping industry has to face is related to ocean and marine pollution primarily. On the other hand, the automobile industry is mainly concerned to face the social issues of environment. Carbon emission increases the temperature of global. Therefore, automobile industries are the primary cause of global warming. Global warming has become a major issue in the current environmental scenario (Eriksson & Kovalainen, 2015). Therefore, the automobile industries are facing difficulties in running their entire process of business successfully.
Social accounting approach is the most effective way of communicating the social and environmental effects of organizations. As per the criteria of Zadak et al., (1997), the principle of social accounting is constituted with eight major factors that include Inclusivity, Comparability, Completeness, Evolution, Management policies and systems, Disclosure, External verification, and Continuous Improvement. As per the business strategy and policy of BMW the business experts have implemented Zadak et al. criteria at the workplace. By following the eight principles of Zadak et al. criteria, the organization has maintained organizational policies from the perspective of social accounting approach. TNT is the organization that by maintaining Zadak et al. criteria has focused to deal with corporate social responsibility. This specific criterion helps to reduce the environmental pollution that has been caused by the emerging particles for maintaining the shipping cost (Santos, 2012). By using these eight principles both the two organizations such as TNT and BMW has decided to improve their management policies so that the organizations can reduce the probabilities of carbon emissions, fossil fuels, marine pollutions and so on. People belonging to different geographical market would like to show their interests in purchasing the services only when the organizations would like to maintain corporate social responsibility and business ethics.
As per the social report of BMW, this particular organization had taken several initiatives in order to create a market demand. It has been already evaluated that BMW has faced major issues due to extreme level of carbon emission. In order to overcome this particular issue the product managers have decided to use organic products while manufacturing the cars (Smith, Gonin & Besharov, 2013). At the same time, BMW can focus on CSR activities as well. The business experts can focus on hiring people from the community in order to maintain an effective community relation. As a result, the social people would show a positive gesture towards this organization.
TNT as one of the largest shipping brands tends to follow CSR activities in order to reduce the marine pollutions. As per the legislations of marine industries, the business experts are not allowed to throw unnecessary fuels to the ocean. As a result, the environment would be able to maintain a balance (Bardy, Drew & Kennedy, 2012). Ocean mammals would not have to face premature death. At the same time, this specific organization is having immense contribution towards the government sponsorship. As a result, customers show their interest and positive attitudes towards using the products and services.
This specific part has focused to highlight the importance of effective business strategies in order to overcome the organizational and social issues that both TNT and BMW have faced in the current market. Corporate social responsibility is highly effective for both the two employees. People belonging to different geographical markets would show their interest for purchasing the products of these organizations only when the business experts are conscious towards the society (Shaw & Barry, 2015). As already discussed TNT after consulting with the environment analysts should follow legislations of marine industry with the help of which they can reduce marine pollution. At the same time, in order to create a demand in the market the organization can promote their service process more effectively (Swanson & Frederick, 2016). As a result, people belonging to different geographical markets can show their interest in using the service of TNT. In case of BMW, the business experts can use organic product to reduce the percentage of carbon emission. Automatically, the brand would create identity and image.
7. Conclusion:
The entire study has provided in-depth analysis about the importance of business ethics, society and environment for establishing a particular organization. BMW and TNT have been chosen as the selected company. These two specific companies have faced some of the major issues currently that leave a huge impact in maintaining organizational image. Environmental pollution is the most effective issues due to which both the two brands have faced major difficulties in keeping up their image in market. In order to overcome this kind of situation the organizations have followed some effective measures. The study has provided detailed analysis of those measures based on which the organizations have regained the trust of customers.
Reference List:
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