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CSR Score card for bridgestone and goodyear
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CSR: Tyre IndustryMuir Woods Team 5Aarushi GoelGeorgy BalayanNicolas RodriguezSanjay AdikaneSwaroop Mishra
Companies
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Industry Environment Social Economic Governance Recommendation
Sole tire supplier for MotoGP
Employs about 17,000 people
Subsidiaries: Firestone
Incorporated in 1931 in Fukuoka, Japan
Incorporated in 1898 in Akron, Ohio
Sole tire supplier for NASCAR series
Employs about 73,000 people
Subsidiaries: Dunlop, The Kelly Springfield Tire Company, Fierce, Save Tires
“One of the top 50 CSR companies” in 2010 by Boston College
Tyre (Tire) Industry
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Industry Environment Social Economic Governance Recommendation
1844: Charles Goodyear invented the rubber vulcanization process
1880: John Dunlop made the first practical pneumatic tyre
1967: Poly/glass tyres introduced by Goodyear and Firestone
1992: Michelin introduced “green” tires
More than billion tyres are sold each year
Employs over 600,000 people directly and millions indirectly
The industry is toxic and is adding to pollution and global warming
The number of cars on the road is increasing every year. And currently, flying cars are not available.
Source: http://klahanie.blogspot.com/2011/01/welcome-to-future.html
Environmental Criteria
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Goodyear Tire and Rubber to Pay $45,000 Penalty to Resolve Hazardous Waste Violations at Goodyear Airport Superfund Site.
Greenhouse gases at the Danville Goodyear plant are generated by natural gas-fired boilers used to produce steam for the tire manufacturing process, said company spokeswoman Amy Brei in an email. Goodyear has a corporate-wide goal of reducing greenhouse gas emission rates by 3 percent each year.
To address these negatives, Bridgestone Corporation unveiled its latest entry in the category of environmentally friendly tires at the 2010 Chicago Auto Show.
Industry Environment Social Economic Governance Recommendation
Methodology: Heat Map
Red – Company failed in the specific criteria
Yellow – Company actions are doubtful
Green – Company is doing great
Social
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BFNAT understands that there are strengths from having a diverse workforce and serving a diverse customer base.In order to build governance structures appropriate for a global corporation, we have invited four outside directors, including two women and one non-Japanese individual, toserve alongside five internal directors on the Board of Directors.
Industry Environment Social Economic Governance Recommendation
Economic Criteria
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In 1998, Ledbetter discovered that after nearly 20 years of working for Goodyear Tire & Rubber Company, she had been paid significantly less than her male counterparts. Though a lower court found that she was the victim of pay discrimination, the Supreme Court ruled against her in 2007.
We have the only two tire manufacturing facilities in the world certified by the Leadership in Energy and Environmental Design (LEED) Green Building Rating System administered by the U.S. Green Building Council. We also have a Gold LEED certified retail facility from which we are using best building practices when constructing our new retail facilities.
Industry Environment Social Economic Governance Recommendation
Corporate Governance Criteria
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In May 2000, the U.S. National Highway Traffic Safety Administration (NHTSA) contacted Ford and Firestone about the high incidence of tire failureUS Gov. fines Bridgestone $28 million for corrupt deals (AFP - Sep 15, 2011)Rich Kramer is Chairman,
President and Chief Executive Officer of The Goodyear Tire & Rubber Company. He has been Chairman since October 1, 2010 and President and Chief Executive Officer since April 13, 2010. He has been a member of Goodyear's Board of Directors since February 23, 2010.
Industry Environment Social Economic Governance Recommendation
Summary
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Industry Environment Social Economic Governance Recommendation
Recommendation
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Industry Environment Social Economic Governance Recommendation
Start taking environment seriously
Diligently work on Greenhouse Gas Emission target
Fairness in compensation policies
Inculcate a Culture of Ethics
Retrain and emphasis on founder’s vision.
Follow stringent accounting guidelines
Both the companies have same person serving as the Chairman and the CEO. Under such circumstances, preference may be given to shareholders.
We believe both the companies are taking steps to become socially responsible.
Thank You.
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References
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• http://www.worldtirereport.com/
• http://www.gizmag.com/go/5989
• http://en.wikipedia.org/wiki/Tire
• www.bridgestone.com/corporate/
• http://www.goodyear.com/corporate/about/responsibility/
