Transcript BRIDGESTONE

CORPORATE SOCIAL RESPONSIBILITY
Antje Friedrich
Evgeny Smyslenov
Carmen Sotomayor
Outline
o The Company
o Stakeholder analysis
o CSR at Bridgestone
o Corporate citizenship
o The scandal
o Opinions and effects
o Ethical foundations:
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Deontology
Consequentialism
Contractarianism
Ethics of virtue
o Conclusion
o Q&A
o Ranked No.1 tire manufacturer in the global
tire market
o Main competitors
o Michelin
o Goodyear
o Continental
o Europe
o Asia/Oceania
o Middle East
o Africa
Stakeholder Analysis
INTERNAL STAKEHOLDER
EXTERNAL STAKEHOLDER
EMPLOYEES
MANAGER
GOVERNMENTS
MEDIA
ENVIRONMENT
OWNER
COMPETITORS
CREDITORS
SUPPLIERS
SHAREHOLDERS
CSR at Bridgestone
o Environment
o 3 Areas of environmental
o progress
o 2 Strategies for growth
o Tire Safety
o Activities to communicate to people the importance
of maintenance of the tires
o Corporate Citizenship
o “For the welfare and
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happiness of all mankind”
Business + Public interest activities  Added
Benefit
Social Activities Committee
Support employees’ social contribution activities
Global Projects
The Scandal
o Bridgestone Corp. admitted that
subsidiaries had attempted to bribe middle
men to sell marine hoses.
o Bribe 150 million yen paid by overseas
offices
o News conference  Bridgestone executives
apologized
What Bridgestone says …
o " Such acts betray the confidence that
customers, shareholders and business
counterparts have in our company"
o "I expect the impact on our brand will be
quite a big one," CEO Shoshi Arakawa
said, adding he saw little impact on
immediate earnings but did not know
about the future
As a result…
o 8 executives were arrested in the US
o Investigating lawyers found wrongdoing, dating
back to 2003 but it could go back a further 15 years.
o Bridgestone got fined by European Comission
58.5 million euros
o The impact on the brand is a big one, the earnings
immediately decreased and there is no sure about
the future, admits the CEO, Shoshi Arakawa.
After the scandal Bridgestone …
o quit the marine hose business
o prepared education program for employees
o prohibited sales department to make
decisions on their own
The Ethical Foundations
Deontology
Consequentialism
The Ethical
Foundations
Contractarianism
Ethics of Virtue
Deontology
o “One of our deontological duties is the duty to
obey the law” (Gert, 1970)
o US Department of Justice, the European
Commission and the Fair Trade Commission of
Japan  Violation of the law
o “Right has priority over the Good” (SEP, 2007)
o Marine hose business closed and people lost
their jobs
Consequentialism
Whether an act is morally right
depends only on consequences
o The success of the company has the moral priority
which means moral rules can be broken as a cost
for the end result
o The people involved,
even the ones arrested, might
believe that even though their
actions in themselves might be
morally wrong, the ‘good’ end
result legitimized their behavior
Contractarianism
o Marine hoses scandal
o 1st mutually beneficial
o Revelation of scandal
o more parties involved
o Change of behavior
o assure same treatment
Contractarianism
o CSR reports – GRI
o Member of a sustainability
project
 acting good as long as it is
mutually beneficial
Ethics of virtue
o “Serve society with superior quality”
o Safety driving
o Bridgestone gives its time and resources for
community-oriented environmental and
social improvements
Conclusion
o very active in CSR
o BUT …
o several scandals in the past
o tyre scandals
o F1 scandal
o bribery
 repeated involvement in scandals however
suggest very thin moral motivation for CSR actions
Your questions are welcome