Csr Initiatives Taken By Bayer Material Science Management Essay

1. Introduction

This is the report which contains about the assessment and looks at the Corporate Social Responsibility initiatives taken by Bayer Material Science (BMS).

1.1 Introduction to the Case Study

This case study is based in the chemical industry and presents the decision of Germany’s Bayer Material Science (BMS) to choose appropriate measures of corporate social responsibility initiatives taken by the organization and to promote the process of setting up and running a plant in China. The story is centered on Dr Dirk van Meirvenne, who managed the plant in Map Ta Phut, Thailand, at the time of the case.

About BMS

Bayer AG is the management holding company of the Bayer Group, which was founded in 1863.Today Bayer is a research – based global enter-praise with core competences in the fields of health care, nutrition and innovative high -tech materials. It is represented around the world by 350 companies, which market approximately 5,000 products

Bayer’s global headquarters in Leverkusen, Germany, his business is structured into three sub groups.

Bayer’s Health Care AG

Bayer’s Crop Science AG

Bayer’s Material Science AG

These are supported by central service functions which are combined into the three service companies.

2. Corporate Social Responsibility (CSR)

Corporate social responsibility is related to, but not identical with, business ethics. It is concerned with the ways in which an organization exceeds the minimum obligations to stakeholders specified through regulation and corporate governance. This includes considerations as to how the conflicting demands of different stakeholders can be reconciled. Since the legal and regulatory frameworks pay uneven attention to the rights of different stakeholders it is useful to distinguish between contractual stakeholders – such as customers, suppliers or employees – who have a legal relationship with an organization and community stakeholders – such as local communities, consumers (in general) and pressure groups who do not have the protection of the law to the same extent as the first group. Therefore the corporate social responsibility policies of companies will be particularly important to these community stakeholders.

2.1. CSR in BMS

Corporate social responsibility (CSR) analyzed “economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time with focusing under four stances Leissez faire, enlightened self interest, forum for stake holder interaction and shaper of society those typically involve in terms of the ways organization practices.

The Laissez – Faire View

It represents an extreme stance where Bayer takes the view that the responsibility of business is the short term interest of shareholders and to make a profit, pay taxes and provide jobs. It is for government to prescribe throw legislation and regulation.

They have shown their commitment to CSR in their objectives. They have long track records of welfare engagement. Most activities are organized at the local level by Bayer foreign subsidiaries and maintain public – private partnerships which are corporative projects with local and government organization. They are ensuring their acceptances into the portfolio of investment and pension funds that are oriented around ethical principle and sustainability criteria. They also aimed at making an attracting employer for high skilled personnel. They are technical and economic expertise is closely link to a responsibility to work for the benefit of mankind and contribute to sustainable. They are well aware of the value of their 120,000 employee in achieving and sustaining the high standard. They are contracting their employees by recognizing in each country where they operate. These needs may vary along with customs and national culture from country to country. Before they decided to invest in Thailand they recruited educated employees by sending to Europe for one year. This shows they have always been forecast on the development of the CSR to make short term interest of shareholders.

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Enlightened Self-Interest

Is has tempered with recognition of the long term financial benefit to the shareholder of well-managed relationships with other stakeholders. The justification for social action is that it makes good business sense. An organization’s reputation is important to its long term financial success and there is a business case to be made for a more proactive stance on social issues in order to recruit and retain for staff, for example. So corporate philanthropy or welfare investment or promotion expenditure. The sponsorship of major sporting or arts events by companies is an example.

When employees view their organization’s commitment to socially responsible behavior more favorably, they also tend to have more positive attitudes in other areas that correlate with better performance.

Bayer group have promoted activities include health education programme and initiatives to improve child care project to combat child labour, education and vocational tanning. The promotion of culture and sports or projects to encourage cultural diversity form these shareholders believe their organizations recognize and reward great customer service, act quickly to address and resolve customer concerns, and are led by people in senior management who act in the best interest of customers. So we can add corporate social responsibility, the CSR factor to the top drivers of workplace engagement. It’s also a factor in attracting and retaining talent. And the more senior management is seen to be out front on the issue, the more employees like it.

Forum of Stakeholders Interaction

It defines multiple stakeholder’s interests and expectations. Bayer focuses on the right societal megatrends: a responsible approach to drinking water, children’s health, energy-efficient and environmentally friendly production and innovation are viewed as crucial issues, as are climate change and climate protection, sustainable health care and safety at the workplace. The transparent implementation of these issues is detailed particularly clearly in the focus issue sections but is also demonstrated in the Performance Report.

Granted funds to support the organizing, a soccer tournament and supported a School tournament for students from schools. Bayer Corporation believes that adhering to this ideology and continuously making improvements to their Work Life programs and benefits are what has made us one of the world’s top inventor companies.

Shapers of Society

It focuses of financial considerations as of secondary importance or a constraint, in this sense it seeking to change society and social norms.Bayer intends to contribute to a stable business environment, safeguarding the legitimacy and justification for the company’s operations while same time strengthening the confidence of board cross – section of society in the company’s social responsibility, here by highlighted the three main areas:

Bayer’s have legal obligations under statute and under tort to respect and protect the environment and human rights.

Bayer has long track of welfare involvements – nongovernmental organizations NGO’s to set up local or governmental initiatives to solve a wide variety of social problems.

Partners with United Nations Environment Programme; supports and organizes a no. of projects, which aim to reinforce environmental awareness and advance knowledge about the environment awareness.

Bayer’s believe in modern innovative technology transfer, creation of welfare and responsible development in their work.

Corporate boards should be permitted / forced to consider non-financial matters under securities and corporate law to insure that the business is not put at risk.

Bayer’s CSR commitment covers wide range of activities which, supported by monetary and material donations or company foundation.

Promoted activities include ; health educations programmes and initiative to improve child care projects to combat child labor, education and vocational training, environmental protection, promotion of culture and sports or projects to encourage culture and sports or projects to encourage cultural diversity and combat of discrimination.

Responsibility care code of management practices, BMS Thailand;

Bayer’s invest on pension funds that are oriented around ethical principles and sustainability criteria.

Bayer’s work hard to educate consumers and other actors in society to drive fair trade and sustainable models of production

Donating books and magazines to municipality school libraries, by educating pupils and also providing health care services.

3. Conclusion

Corporate social responsibility of BMS shows that organizations have moral, ethical, and philanthropic responsibilities in addition to their responsibilities to earn a fair return for investors and comply with the law. Organization adopting a broader view of its responsibilities that includes not only stockholders, but many other constituencies as well, including employees, suppliers, customers, the local community, local, state, and federal governments, environmental groups, and other special interest groups.

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Even though they have being proactive on environmental issues they are some issue on their environmental harm because of chemical exposed. To provide Support in the form of green initiatives is obtainable for improving processes, it would be helped them to improved public image, stake holder’s relationship and reputation. In addition, And all Bayer industries would be pressured to follow Bayer’s lead, resulting in an improvement of air quality (defend on air pollution) that would benefit residents, workers, and local government agencies and industries that depend on an influx of residents and tourists. 

Recommendations

Industrial environmental protection and corporate social responsibility have always been inseparably linked at Bayer, for further reference refer to Appendix – 1.

Developing enlightened self interest

Go out of the way to practice showing positive feelings towards others- gratitude, respect, trust – which in turn will arouse goodwill from them. Choose some new activities in various life areas – work, family, leisure that will bring goodwill and motivate the employees.

At the same time, act assertively.

In other words, until enlightened self-interest becomes part of you, consciously seek to get you get more of what you want, while respecting the views and feelings of the other people involved.

For further,

Making available Support in the form of green proposal is recommendable for improving processes, it would be helped them to gain better public image, stake holder’s relationship and reputation by invest considerable time, effort, and capital in green technology becoming much greener company.

Come up with additional funding for Health and Safety of the employees and residents against possible injury, illness, and death.

Should absolve Bayer by proving that actual air fabrication where were much operation occurrence and reflecting at the side of air pollution, heat and power without funding to allow the EPA to test air emissions at the site and without efforts by the stakeholders to persuade Bayer to reduce the amount of waste produced at the site

In order to invest in China they should focus those drawbacks and critical situations to be avoided inconveniences and to be successful and pave in China.

References

(2008). Coperate Social Responsibility. In K. S. Gerry Johnson, 8th Edition, Exploring Coperarte Strategy (pp. 145 – 148). England: Bristish Library Catalogue-In-Publication Data.

(2008). Bayer MaterialScience: Resposnsible Operations in Thailand and China. In K. S. Gerry Johnson, 8th Edition, Exploring Coperarte Strategy (pp. 677 – 684). England: Bristish Library Catalogue-In-Publication Data.

Bayer Material Science , Bayer Material Science [online] Available at: http://www.bayermaterialscience.com/internet/global_portal_cms.nsf/id/home_en [Accessed 11 January2011]

‘Bayer Bids to Be No. 1 in Polycarbonate,’ Plastics Technology, February 2000, p. 69.

‘Bayer, CuraGen Alliance,’ Chemical Market Reporter, February 26, 2001, p. 7.

‘Bayer Playing Catch-Up,’ Med Ad News, March 2001.

‘Bayer Prepares Bulk Chemicals Restructuring,’ Chemical Market Reporter, March 24, 1997, p. 8.

Brierley, David, ‘Bayer Finds Breaking Up Is Hard to Do,’ European, August 7, 1997, p. 24.

Hume Claudia, ‘Bayer Rejects Call for Split,’ Chemical Week, March 21, 2001, p. 7.

Rosendahl, Iris, ‘Out Miles, in Bayer,’ Drug Topics, February 6, 1995, p. 54.