This presentation discusses the concept of corporate social responsibility (CSR) and its importance for organizations. It explores the nature of CSR issues and the impact of criticism. The presentation also provides strategic solutions for addressing CSR issues, using the case of Volkswagen and its CSR scandal as an example.
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Corporate Social Responsibility
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Table of Content ο¬Introduction ο¬Nature of the issue involving the criticism ο¬Strategic solution for such issues ο¬Conclusion ο¬References
Introduction Corporate social responsibility is a self regulating model of businessthatenablesacompanytobecomesocially accountable for own, their stakeholders and for the public. It is also known as corporate citizenship, firms should be aware aboutinfluenceonvariousfactorsonsocietyinwhich economic, social and environmental factors that helps to business to engage with consumers.
Nature of the issue involving the criticism Corporate social responsibility is one of the important factor for every organisation to lead and frame an distinctive image in front of their consumers. Volkswagen is a German auto maker company and contributes in CSR activities. But it fails in giving best CSR activities to their consumers. It design an device of circumvent emissions control device to control pollution. It is known as diesel dupe and when Volkswagen cars sold in America and in other nations the software that detect with cares are being testedand recommendto changing performance for improving results
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Continueβ¦ 08/01/19 Volkswagen is a German automated company that deals in manufacturing sector and offers a range of automobile products. It includes sportswear cars and low fuel vehicles like Bugatti, Audi, Bentley, Lamborghini and more. Some major issues faced by Volkswagen that breakdown its reputation in marketplace are given as beneath: β’It is well proved that they cheat by emissions and it has to major push to marketing campaign to low emissions cars. It found that approximately 482000 cars occurred in defeat device.
Continueβ¦ 08/01/19 β’Respective company has been accused for the EPA by improving in 3 litre diesel that fitted in Porsche and Audi and others models of VW. β’It has been claimed that it affects almost 10,000 vehicles and pollute so much to environment. It is one of the fierce scandal in history of Volkswagen because it spoils its image in marketplace and its fierce competitors take advantage of that circumstances to become market leader.
Cont... It proved harmful for both employees and consumers because it is very hard for them to build image again that is primarily they have in front of market place (Aguinis and Glavas, 2012.). To deal with that case an head of CSR appointed that handles all case and find out the root cause of problem by identifying factors that directly affecttoorganisationaldevelopmentinnegativemanner. This scandal harms it financially in 2015 almost $18 billion and turning a best year into a $4.6 billion loss.
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Cont... Impact of such issue on organisation as well as industry:As per the case, Volkswagen represent a system which help in controlling pollution but it can be seen that this is failure in indicating actual pollution rate of running cars. This will directly impact on country environment which create major disease among people. Most of the car manufacturing company are directly effect due to high pollution rate which reduces their customers base.
Cont... If the companies involved in kinds of CSR activities then it also impactthewholeindustry.SuchasVolkswagenwhichisa multinational automotive manufacturing firm are failed to represent the CSR activities. It design a software which shows the level of pollution that incurred because of vehicles, it shows that, their vehicles are occurred less pollution. But it is identified that it is not true in fact its vehicles are creating more pollution which harm the environment as well as society.
Strategic solution for such issues Therearevariouscompanyhowconductcorporatesocial responsibilities in order to attract more numbers of customers and enhance profitability ratio. But along with this there are also some big and famous who conduct scandal due to which there customer base and profitability ratio get reduce. Along with this name and image of company also get hamper and affected.
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Cont... To overcome this situation and gaining their image and name back Volkswagen conduct various activities. Such as respective company management revile all true things in front of government and media and they also apologize about this in front of media, government as well as customers. This will help them in saving there image and name at a market place of over all countries in effective and efficient manner. Along with this they also return back all the cars in which respective company install software which manipulate the level of pollution.
Conclusion From above discussed point it can be conclude and evaluate that corporate social responsibilities are necessary for a company in order to attract customers on large scale which help in enhancing customers base and profitability ration in effective and efficient manner. but along with this if any company do scandal in this it will directly fall as well as harm their profit and market share. Moreover, by this name and image of company also get hampered.
References ο¬Cheng, B., Ioannou, I. and Serafeim, G., 2014. Corporate social responsibility and access to finance.Strategic management journal.35(1). pp.1-23. ο¬Aguinis, H. and Glavas, A., 2012. What we know and donβt know about corporatesocialresponsibility: A reviewandresearchagenda.Journalof management. 38(4). pp.932-968. ο¬Hancock, J. I. and et. al., 2013. Meta-analytic review of employee turnover as a predictor of firm performance.Journal of Management. 39(3). pp.573-603.
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