CSR Challenge and Strategic Innovation in Volkswagen

Running head: CSR CHALLENGE AND STRATEGIC INNOVATION IN VOLKSWAGEN
CSR Challenge and Strategic Innovation in Volkswagen
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1CSR CHALLENGE AND STRATEGIC INNOVATION IN VOLKSWAGEN
Executive Summary
Volkswagen Group has positioned its business internationally as well as in Australia being a
renowned German automobile organization that manufactures both passenger and commercial
vehicles. In addressing the CSR issue faced by Volkswagen, the report will consider developing
a strategic innovation model through employing innovative idea generation techniques. The
report revealed that for implementing the socially responsible strategies through its strategic lean
innovation model, Volkswagen needs to ensure that it requires transforming its organisational
leadership and culture that can support the success of this innovation strategy. In addition, it also
revealed that implementation of creative thinking technique can facilitate in developing a
strategic “Lean innovation model” that can facilitate the automobile company in dealing with its
CSR approaches.

2CSR CHALLENGE AND STRATEGIC INNOVATION IN VOLKSWAGEN
Table of Contents
1. Introduction..................................................................................................................................3
2. Innovation Challenge...................................................................................................................3
2.1. Corporate Social Responsibility Challenge Faced by Volkswagen.....................................3
3. Leading Edge Strategic Innovation Solution...............................................................................5
4. Strategic Innovation Model.........................................................................................................9
4.1. Innovation Action Plan.......................................................................................................10
4.2. The Leadership...................................................................................................................11
4.3. The Innovation Implementation.........................................................................................12
5. Conclusion.................................................................................................................................13
References......................................................................................................................................14

3CSR CHALLENGE AND STRATEGIC INNOVATION IN VOLKSWAGEN
1. Introduction
Corporate Social Responsibility (CSR) and strategic innovation are the foundation of
business competencies and improvements in the CSR initiatives can drive social innovation and
improvement in business operations. Volkswagen Group has positioned its business
internationally as well as in Australia being a renowned German automobile organization that
manufactures both passenger and commercial vehicles (Altenburger 2018). The company
manufactures and sells its passenger automobiles under its brand names like Scania, MAN,
Neoplan and Volkswagen. It also holds its leading position in global automobile industry through
distributing passenger commercial vehicles, engines, motorbikes, turbo machinery along with
sources such as leasing, financing and fleet management (Aragón-Correa, Marcus and Hurtado-
Torres 2016). The objective of the report is to propose a leading edge, strategic innovation
solution in order to deal with a corporate challenge faced by the selected company Volkswagen
Australia regarding its corporate social responsibility aspects within the nation’s automobile
industry through renewing the company’s recent approach. In addressing the CSR issue faced by
Volkswagen, the report will consider developing a strategic innovation model through employing
innovative idea generation techniques.
2. Innovation Challenge
2.1. Corporate Social Responsibility Challenge Faced by Volkswagen
CSR or Corporate Social Responsibility can be explained as the business practices that
are greatly relied on the ethical values for addressing the legal requirements along with
maintaining respect for communities, people, environment and marketplace. The Volkswagen