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Business Society and Planet - Assignment

   

Added on  2021-06-17

14 Pages3034 Words36 Views
Running head: BUSINESS SOCIETY AND PLANETBusiness society and planetName of studentName of UniversityAuthor noteTable of Contents

1BUSINESS SOCIETY AND PLANETIdentification of the two companies and core business activities....................................................3Differences between two companies relating to the issues in social reports...................................3Sustainable development goals........................................................................................................4Quality of social accounting approach............................................................................................6Organizational values of the two companies...................................................................................6Reflection on group discussions......................................................................................................7References........................................................................................................................................7

2BUSINESS SOCIETY AND PLANETIdentification of the two companies and core business activitiesVolkswagen and Ford are the two business organizations within the automobile industrythat have been researched here. Volkswagen is one of the major German automaker that has itsheadquarters in Wolfsburg, Germany. The company operates worldwide and has a net incomeand revenue of €1.869 billion and €105.651 billion respectively. The parent company is theVolkswagen Group and it employs over 626715 staffs. The company operates in many countriesincluding Australia, India, United Kingdom, United States of America, etc (volkswagen.com.au,2018). On the other hand, Ford Motor Company is a reputed American multinational automakerthat has its headquarters in Dearborn, Michigan, United States. The automaker also operates allover the world and other than the automobile manufacturing and production, other servicesinclude automotive finance, vehicle servicing and vehicle leasing. It has a net income ofUS$7.602 billion and US$156.776 billion revenue with an average numbers of employees ofover 202,000 (ford.com.au, 2018). This automobile manufacturing company also operatesworldwide and few to the countries to mention are Australia, India, China, US, etc. One of the performance issues faced by Ford Australia is the customers’ complaintsregarding the transmission issues in few of the popular cars of the company including the Fiesta,Focus and EcoSports. The performance issues were experienced due to the inappropriatefunctioning of the gears in the cars. The faulty transmission created problems like delayed andharsh shifting in gears and this even deteriorated the performance of the clutch. The ACCCcreated statements related to the penalizing of Ford Motor company of Australia Limited,because it was found to be involved in misleading or deceptive conducts and false interpretationswere done. The Power Shift Transmission was not functioning properly, which created issues

3BUSINESS SOCIETY AND PLANETlike shuddering and jerking of the cars and excessive noisiness (Carroll & Buchholtz, 2014). Thecompany was fined with an amount of $10million for its wrong conduct over the inappropriatetransmission systems in the vehicle. Volkswagen failed in managing the corporate social responsibilities properly by emittingharmful gases after the vehicle tests. Previously, the company created a design to control theemissions and allowed the company to gain competitive advantage, though it failed to hide thefact that diesel engines could be highly contaminating. According to various researchesconducted by the Australian Automobile Association, It was found that 14 percent more fuel wasutilized, which resulted in higher emissions above the normal level of noxious gases. After therecall fix also, the tests confirmed that the diesel engines used more fuel and thus the vehiclesoftware also changed, which resulted in higher emissions of poisonous nitrogen oxides (Bockenet al., 2014). It was much higher than the permissible limit at Australia. Though after the recall,the nitrogen oxides emissions decreased from 6.71 times to 4.11 times over the Australianstandard, the fuel consumption became higher, i.e., from 18 percent to 26 percent.Differences between two companies relating to the issues in social reportsThere were several differences found from the corporate social responsibility or CSRreports of both these two companies in Australia in terms of social environmental and economicissues. The ways by which, these two companies deal with those were also different and quitecomprehensive for maintaining a good and sustainable position within the automobile industry ofAustralia. The content and style of the social reports of the two companies do not differ much,though their ways of functioning and ability to manage sustainability differ in certain areas.Volkswagen’s social report depicted the importance of stakeholders at first and then there were

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