CSR Score card for bridgestone and goodyear

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2. CSR: Tyre Industry
Muir Woods Team 5
Aarushi Goel
Georgy Balayan
Nicolas Rodriguez
Sanjay Adikane
Swaroop Mishra

3. Companies
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
Incorporated in 1931 in Fukuoka, Japan
Sole tire supplier for MotoGP
Employs about 17,000 people
Subsidiaries: Firestone
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Industry Environment Social Economic Governance Recommendation

4. Tyre (Tire) Industry
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 Source: http://klahanie.blogspot.com/2011/01/welcome-
to-future.html
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.
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Industry Environment Social Economic Governance Recommendation

5. Methodology: Heat Map
Environmental Criteria
Goodyear Tire and Rubber
to Pay $45,000 Penalty to
Greenhouse gases at the
Resolve Goodyear plant
Danville Hazardous Waste
Violations at byGoodyear
areaddress these natural
To generated
Airport Superfund Site.
gas-fired boilers used to
negatives, Bridgestone
produce steam for theits
Corporation unveiled tire
manufacturingthe
latest entry in
process, said company
category of
spokeswoman Amy Brei in
environmentally friendly
Red – Company failed in the specific criteria an email. Goodyear has a
tires at the 2010 Chicago
corporate-wide goal of
Auto Show.
Yellow – Company actions are doubtful reducing greenhouse gas
emission rates by 3
Green – Company is doing great percent each year.
5
Industry Environment Social Economic Governance Recommendation

6. Social
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, to
serve alongside five internal
directors on the Board of
Directors. 6
Industry Environment Social Economic Governance Recommendation

7. Economic Criteria
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
In 1998, Ledbetter discovered
facilities. nearly 20 years of
that after
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.
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Industry Environment Social Economic Governance Recommendation

8. Corporate Governance Criteria
In May 2000, the U.S. National
Highway Traffic Safety
Administration (NHTSA)
contacted Ford and Firestone
about the high incidence of tire
US Gov. fines Bridgestone $28
failure
million for corrupt deals (AFP -
Rich 15, 2011)
Sep 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.
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Industry Environment Social Economic Governance Recommendation

9. Summary
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Industry Environment Social Economic Governance Recommendation

10. Recommendation
Start taking environment seriously Inculcate a Culture of Ethics
Diligently work on Greenhouse Gas Retrain and emphasis on founder’s vision.
Emission target
Fairness in compensation policies 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.
10
Industry Environment Social Economic Governance Recommendation

11. Thank You.
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12. References
• 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/
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