Management Problem in CSR of Volkswagen

MANAGEMENT PROBLEM IN CSR OF VOLKSWAGEN
MANAGEMENT PROBLEM IN CSR OF VOLKSWAGEN
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MANAGEMENT PROBLEM IN CSR OF VOLKSWAGEN
Executive summary
The purpose of this study is to delve deep into the issue of emission scandal as well as the
failures of Corporate Social Responsibility of Volkswagen. In this context this report attempts to
find out the main problem behind the ill management of CSR strategy of Volkswagen. The next
section of this study attempts to analyze the management problem in the CSR strategy of
Volkswagen Company. Further this study provides some recommendations to solve the problem.
The conclusion section sums up the entire problem discussed in this report.
Table of Contents
Introduction:....................................................................................................................................4

MANAGEMENT PROBLEM IN CSR OF VOLKSWAGEN
Problem Identification:....................................................................................................................5
Analysis of the Problem:.................................................................................................................5
Recommendations:..........................................................................................................................7
Conclusion:......................................................................................................................................9
References..................................................................................................................................11
Introduction:

MANAGEMENT PROBLEM IN CSR OF VOLKSWAGEN
Volkswagen is one of the most popular automobile companies of the world. It is
internationally popular as ‘Volkswagen Group’. It is basically a multinational company which
has its roots in Germany. The company is assigned with the responsibilities of designing ,
manufacturing as well as distributing passenger as well as commercial vehicles. The company
also manufactures vehicles like motorcycles, engines, vans as well as turbo machinery. Again it
also offers services associated with cars like-financing, fleet management and leasing. The
company was accused of violating the emission standards stipulated by EPA. This scandal
occurred on 18th of September in the year 2015. According to the notice published by
Environmental Protection Agency United States, the engineers at the Volkswagen company
programmed turbocharged direct injection (TDI) diesel engines in a way that tend to active the
emission control measures only at the time of the regulatory testing. As a result the newly
manufactured cars by Volkswagen were falsely assumed to meet the emission standard as
mention by EPA. Later scientist detected that there were 40 times more NOx emission during the
road tests, which was conducted live, for investigating the discrepancies in the emission
standards revealed in the reports of California Air Resources Board (CARB). Hence, it can be
said that, the Volkswagen case indicated its failure in the incorporation as well as
implementation of a prudent Corporate Social Responsibility strategy. This report attempts to
throw lights on the problems faced by Volkswagen due to this unscrupulous activity. The
introduction section of this report talks about the company and the ‘emission scandal’. This
section is followed by the identification as well as analysis of problem sections. In the analysis of
problem section discusses about the problem in details and points out the impact of this scandal
on the reputation of Volkswagen. This section indicated the ill management of CSR strategy of
Volkswagen. The recommendation section suggests Corporate Social Responsibility strategy for