Corporate Responsibility Ethics and Governance

CORPORATE RESPONSIBILITY ETHICS AND GOVERNANCE 1
Corporate Responsibility Ethics and Governance
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CORPORATE RESPONSIBILITY ETHICS AND GOVERNANCE 2
Executive Summary
The concern for strong associations in the society has stimulated studies on corporate
obligation morals and management. The view of business organizations as being revenue-
oriented has been substituted through globalization that requires the observation of morals. In the
context of corporate morals and governance, morals are integrated policies within the
organization that define the responsibilities of an organization to the society. Substantially, the
corporate obligation morals and management is a central part of business organizations and
therefore, the organizations need to sustain morals that ensure good relations in the society.
Globalization has further triggered the concern for corporate morals and management in the
society. Business entities make up the economic and social environment and consequently, the
entities should recognize the society through the corporate social responsibility. Consequently,
the governance of corporate social responsibility should assimilate morals in the organizational
chart and structure that ensure the welfare of the society. The ethical implication of business
organization is determined by the management and therefore corporate obligation moral and
management work simultaneously. Certainly, the Volkswagen organization is one of the global
companies that have assimilated morals in the organizational structure to guide its operation. The
report presents the need for sustainability of corporate obligation and management for the
Volkswagen organization.
Introduction
Significantly, ethics account for the strong relations that ensure the creation of a positive
society. Ethics are a code of principles that determine the resolutions in an organization or a
society (Tai and Chuang, 2014 p.17). Business organizations should have ethics that guide the
declarations of the organization and strive for the positive environment (Schwartz, 2017 p.111).
Corporations should not only assimilate principles in the internal structure of the organization
but also extends the application of the principles to the outside environment that offers the inputs
used in the organization (Lindgreen and Swaen, 2010 p. 13). Considerably, most business
organizations ignore e principles and value the agenda of revenues. The assimilation of ethics
should be not a matter of debate but an essential constituent of the organization erection.
Moreover, the management of the organization should attempt the integration of ethics for a
healthy community (Hopkins, 2012 p.114). The report seeks to front the need for sustainability
of governance for the Volkswagen Organization.

CORPORATE RESPONSIBILITY ETHICS AND GOVERNANCE 3
History of the Volkswagen Corporate
The Volkswagen Corporate is a global manufacturing company based in Germany. The
Volkswagen Corporate manufacture automotive and is one well established automotive
manufacturing organization in the world. The Volkswagen group has been reported to have
improved sales for the last years due to effective management and good societal relations.
Significantly, the Volkswagen group has for the past years had the largest percentage of market
share in Europe (Ihlen, 2011 p.72). The policy of the Volkswagen group of ensuring the
acquisition of skillful employees has significantly increased the sales (Schrempf-Stirling,
Palazzo, and Phillips, 2016 p. 704). Moreover, the effort of ensuring enabling business
environment through mobilization of well internal and external relations has earned the group so
far a good reputation. The participation of Volkswagen group in social undertakings such as
educating lineups regarding on the use of fuel, encouraging the protection of endangered species
and the promotion of technology has accounted for the progression of the Organization globally
(Dans, 2015 p.102). The need to maintain ethics and the sustainability of the management is
crucial for the success of the Volkswagen group.
Corporate responsibility theory (by Carolls)
The dawn of corporate social responsibility has been recognized by the need for business
organizations to participate in social affairs actively. The past perception of corporations being
revenue-oriented has been eliminated through the introduction of corporate social responsibility
that advocates for giving back to the society (Hung Chen, 2011 p.85). Regarding the definition of
corporate social responsibility as addressed by different scholars, corporate social responsibility
is the exercise of attaining the anticipations of the society, for instance, commercial, legal and
moral principles. Consequently, the operations of business organization should consider the
strategy of corporate social responsibility that demands social progress for both teams and the
society (Lindgreen and Swaen, 2010 p.5). The classification of corporate accountabilities into
ethical, economic, legal and discretionary by Caroll requires corporations to create awareness on
matters of social accountability and formulate optimal approachability. The classification of the
roles is explained regarding the Volkswagen group.
Essentially, the economic role details the main objective of a business organization of
earning revenue. The profits earned are engaged in the enhancement of the internal enabling