Abstract
This report analyzes the BMW’s controversial activities, which involves the production of electric Tesla cars. Although dubbed ‘green' vehicles, they pollute the environment as reported by the Company’s customers from Hong Kong, China. The paper uses a pair of theoretical concepts of Business Ethics – Kantian Ethics of Duties and Utilitarianism, which it applies to the issue at hand. In addition to that, the report compares the frameworks with the sole focus on how they relate to the BMW’s case. Lastly, it gives a few recommendations that BMW can use in handling the problem.
Introduction
This report outlines the application of business ethical theories as presented in the case of a multinational automobile company, BMW. The paper will use a pair of ethical concepts - the Utilitarianism and Kantian Ethics of duties, as they allow the author to give two contrasting factors of giving a comprehensive judgment of actions’ morality. While this paper focuses on BWM, the scope of its purpose is broader than just one company and strives to highlight the controversial activities practiced by many companies in the automobile industry. In addition to that, it aims at demonstrating how such activities impact the growth and overall performance of the company. The primary debate in this paper is the fact that BMW produces electric cars (Tesla), which reports in Hong Kong claimed that pollute the environment at a higher rate than the petrol models.
History of the Company
BMW became a business entity in 1917 after the restructure of the Rapp Motorenwerker Aircraft in 1917. One year later, after the end of the First World War, the Versailles Armistice Treaty ordered BMW to cease the production of aircraft engines. As a result, it shifted to the manufacture of motorcycles when the administrators started to lift the rules of the treaty in 1923. Five years later, BMW started to produce automobiles (1928-1929). Widely referred to as the BMW, the Bavarian Motor Works is a German-based automobile multinational company, which specializes in manufacturing luxury vehicles, engine, and motorcycle. The company has remained operational since 1916 and has its headquarters in Bavaria, Germany and also functions as producer and owner of Mini cars. BMW is the parent owner of the infamous Rolls-Royce Motor Cars; manufacturers motorcycles under the BMW Motorrad sub-brand; and plug-in electric vehicles under the BMWi. Currently, the Bavarian Motor Works is one of the world’s best-selling automakers of luxury cars, manufacturing some of the elite and expensive vehicles. In addition to that, BMW is one of the biggest automobile companies in the Europe’s stock market index (Euro Stoxx 50).
Theoretical (Conceptual) Frameworks
Kantian Ethics of Duties
The focal point and central concept of this theory are the fact that it lays emphasis on the duties and obligations of the employees to the company. For that reason, its concepts prove to become practical in its application.
Utilitarianism
The fundamental provision of this theory is that it promotes the right (good) things and phases out the (wrong) bad ones. For that reason, the prospects of this concept are the idea that what people ought to do should reflect the net utility all the actions involved in it.
Applications of the Theories
Kantian Ethics of Duties
According to claims by the BMW buyers from Hong Kong, China, electric Tesla cars harm the environment more than similar models that use petrol. In the light of the Kantian Ethics of Duties, producing vehicles that pollute the environment is unethical, as it violates the key concepts of this theory.
Utilitarianism
In the utilitarian perspective, any situation attains ethical justification, if many people accept it. In this case, the pollution of the environment by Tesla is not a problem because it commands 70 percent of the Hong Kong’s electric car market.
Discussion and Conclusion
These two concepts are different in that Kantian Ethics of Duties principles purpose for an action while Utilitarianism lays emphasis on the outcomes of an action. On the other hand, they are similar in the sense that they view the ethical feature of a situation.
Relation to the Report’s Purpose
Relating these ethical theories to a real-life case of BMW producing cars that pollute the environment enables consumers to learn the fact that many businesses make higher profits at their expense as well disregard moral conducts and ethics related to their practices.
Conclusion and Recommendation
Every company needs sustainability to remain competitive in the market and grow. For that reason, BMW should consider the outcries of the consumers and produce environment-friendly cars.
References
BMW. (2016). BMW. Retrieved from BMW: https://www.bmw.co.uk/en/index.html
Garrett, J. (2006, October 2). Kant's Duty Ethics. Retrieved from WKU: http://people.wku.edu/jan.garrett/ethics/kant.htm
Kao, E. (2016, April 14 ). Electric shock – Tesla cars in Hong Kong more polluting than petrol models, report claims. Retrieved from SCMP: http://www.scmp.com/news/hong-kong/health-environment/article/1935817/electric-shock-tesla-cars-hong-kong-more-polluting
Markkula Center for Applied Ethics. (2014, Aug 1). Calculating Consequences:The Utilitarian Approach to Ethics. Retrieved from Santa Clara University: https://www.scu.edu/ethics/ethics-resources/ethical-decision-making/calculating-consequences-the-utilitarian-approach/
