Emerging Themes: BMW AD. Banned for Making "Misleading" Environmental Claims

Paper Type:  Essay
Pages:  5
Wordcount:  1337 Words
Date:  2022-03-29
Categories: 

Introduction

The article addresses the issue about business ethics in the motor vehicle industry. The world is faced by many challenges among them is global warming and climate change that are caused by environmental pollution. The issues brought about by global warming include rising temperatures, shortage of food supplies, and rise in sea levels (Hobbs et al., 2017). It has thus become important to develop strategies that would help in reducing cases of global warming around the world. Manufacturing electric cars is a move towards ending the problem of global warming around the world (Peters et al., 2012, p.4). The article looks at the BMW's advertisement that was banned for making claims that are misleading about the environment.

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Analysis

The issue of global warming has forced many companies in the world to work on reducing emissions by adapting to green energy sources (Rogelj, Meinshausen, and Knutti, 2012, p.248). The problem of global warming thus affects all the industries in the world. It is important to have global brands support the message against climate change (Anderson, 2012., p.16). The key emerging themes in the article are with regards to corporate ethics and environmental protection. These themes are the focus of every company as pressure to preserve the environment increases. Ethical issues are sensitive to any business's development in the market. It is important to develop ethical business practice to reduce on doubt from customers and stakeholders. The BMW advertisement about environmentally friendly cars was meant to boost sales of the electric i3 series cars. However, making wrong claims which cannot be justified about a product is wrong and unethical business practice.

Business ethics and corporate responsibility are some of the most important factors that can create a favorable business environment for a company. The decisions that a business makes are likely to affect millions of people worldwide. For bigger brands such as BMW, the issues that occur due to their social irresponsibility can affect their customers across the world. The corporate social responsibility rule states that it is important to protect the environment and the community of the people around (Stanley, Hensher, and Loader, 2011, p.1040). Failure to uphold this can lead to a decrease in consumer trust on the brand.

The community is likely to gain a negative attitude about a brand that does not help in their development. Business ethics help in building the public image of a company. It helps in growing the public trust and thus increase the customer loyalty. BMW is likely to face challenges for their unethical business practice since customers will not believe anymore about the products which are released by the company (Hobbs et al., 2017). The company will not be able to sell its products successfully to customers across the world. It will be important to rectify the solution first before working on convincing the customers about the environmentally friendly i3 models (Hobbs et al., 2017).

On the other hand, good business ethics and corporate social responsibility will be able to increase the investor confidence (Joyner, and Payne, 2002, p.23). However, the existing issue with regards to the advertisement made can reduce the investor confidence and thus result to reduced value of the business. The stock prices of BMW are likely to reduce in the long run. The value of the business can also change depending on how the company will be able to convince its investors that it can regain back its markets (Kan, Chen, and Tong, 2012, p.19).

Work place ethics also promote employee motivation (Pimple, 2012., p.761). Employees will be more motivated to work and grow the company if they are involved in ethical business practice. The observation is common in many countries around the world. In this case, the company is likely to have low employee motivation due to the issues that exist in the company (Dodman, 2009., p.187). Additionally, the fact that the company does not provide accurate information about appreciating the society creates a challenge for developing the company's corporate culture.

It is important to maintain good employee motivation through work ethics as it helps in building a corporate brand in the market. Motivated employees are likely to help in building the brand further through quality services and products in the long run. Ethical issues, environmental issues and corporate social responsibility are some of the factors that are likely affect the development of a brand in the market over the next five years (Griseri, and Seppala, 2010, p. 23). The factors are some of the most challenging emerging issues in the present business environment. For example, the issue about climate change is affecting the whole world and every country is working on ways to reduce on emissions. The motor vehicles are some of the highest in emissions (Marshall et al., 2005, p.290).

The motor vehicle industry is challenging for the industry players. Major brands that have emerged include Telsa motors which is working on electrical, eco-friendly cars. Such brands will provide major competition to the BMW brand. Corporate social responsibility will not only help in growing the public trust in the brand but also in gaining global recognition for e-co friendly products sold in the market (Delucchi, 2000, p.140). Environmental protection is a global concern that world leaders have come together to identify a long-term solution to the problem (Davis, Caldeira, and Matthews, 2010, p.1032).

Conclusion

In conclusion, the study shows that BMW was involved in unethical business practice by publishing the advert which communicated wrong information. The information was meant to help the brand gain customer trust. The effect of the ruling is likely to affect the brand perfroamnace in the future. BMW will need to ensure that customers all over the world are able to understand that the company is providing products that meet the present environmental needs. Global markets also need to see that the brand supports the fight for climate change by focusing on producing eco-friendly cars, which would replace the fuel cars.

References

Anderson, K., 2012. Climate change going beyond dangerous-Brutal numbers and tenuous hope. Development Dialogue, 61(1), p.16.

Davis, S.J., Caldeira, K. and Matthews, H.D., 2010. Future CO2 emissions and climate change from existing energy infrastructure. Science, 329(5997), pp.1330-1333.

Delucchi, M.A., 2000. Environmental externalities of motor-vehicle use in the US. Journal of Transport Economics and Policy, pp.135-168.

Dodman, D., 2009. Blaming cities for climate change? An analysis of urban greenhouse gas emissions inventories. Environment and Urbanization, 21(1), pp.185-201.

Griseri, P. and Seppala, N., 2010. Business ethics and corporate social responsibility. Cengage Learning.

Hill, J., Polasky, S., Nelson, E., Tilman, D., Huo, H., Ludwig, L., Neumann, J., Zheng, H. and Bonta, D., 2009. Climate change and health costs of air emissions from biofuels and gasoline. Proceedings of the National Academy of Sciences, 106(6), pp.2077-2082.

Hobbs, T., Vizard, S., Woollen, P., Lyons, E., Fleming, M., Hammett, E. and Joy, S. (2017). BMW ad banned for making 'misleading' environmental claims. [online] Marketing Week. Available at: https://www.marketingweek.com/2017/12/06/asa-bans-bmw-ad-for-misleading-environmental-claims/ [Accessed 1 Mar. 2018].

Joyner, B.E. and Payne, D., 2002. Evolution and implementation: A study of values, business ethics and corporate social responsibility. journal of Business Ethics, 41(4), pp.297-311.

Kan, H., Chen, R. and Tong, S., 2012. Ambient air pollution, climate change, and population health in China. Environment international, 42, pp.10-19.

Marshall, J.D., McKone, T.E., Deakin, E. and Nazaroff, W.W., 2005. Inhalation of motor vehicle emissions: effects of urban population and land area. Atmospheric Environment, 39(2), pp.283-295.

Peters, G.P., Andrew, R.M., Boden, T., Canadell, J.G., Ciais, P., Le Quere, C., Marland, G., Raupach, M.R. and Wilson, C., 2012. The challenge to keep global warming below 2 C. Nature Climate Change, 3(1), p.4.

Pimple, M.M., 2012. Business ethics and corporate social responsibility. International Journal of Management Research and Reviews, 2(5), p.761.

Rogelj, J., Meinshausen, M. and Knutti, R., 2012. Global warming under old and new scenarios using IPCC climate sensitivity range estimates. Nature climate change, 2(4), p.248.

Samaras, C. and Meisterling, K., 2008. Life cycle assessment of greenhouse gas emissions from plug-in hybrid vehicles: implications for policy.

Stanley, J.K., Hensher, D.A. and Loader, C., 2011. Road transport and climate change: Stepping off the greenhouse gas. Transportation Research Part A: Policy and Practice, 45(10), pp.1020-1030.

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Emerging Themes: BMW AD. Banned for Making "Misleading" Environmental Claims. (2022, Mar 29). Retrieved from https://proessays.net/essays/emerging-themes-bmw-ad-banned-for-making-misleading-environmental-claims

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