Corporate Social Responsibility Impact

This assignment delves into the multifaceted effects of corporate social responsibility (CSR). It examines how CSR practices influence a firm's financial performance, specifically its ability to generate revenue and contribute to charitable causes. The assignment emphasizes the link between ethical business conduct, financial success, and positive societal impact.

Strategic Management &
Corporate Social
Responsibility

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1 A brief introduction of the company and its current CSR policy............................................1
2 CSR contribution in success of company from the perspective of different stakeholder
groups..........................................................................................................................................3
3 Critically evaluation of challenges and advantages of new product in emerging market in
reference to triple bottom line.....................................................................................................4
4 Recommendations ...................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Corporate social Responsibilities is simply a management thought where organisations
combine themselves in environmental and social responsibilities in their business activities. This
also help in welfare of society instead of this if company implement CSR thoughts properly then
it bring competitive advantages with it like; better decision making and risk management,
increase productivity and quality of goods, enhance sales and profit etc. this assignment is based
on Volkswagen it is an Automotive industry founded on 28th May 1937 and serving area
worldwide (Aguinis & Glavas, 2012). Founder of this company are German Labor Front, Adolf
Hitler they have headquarter in Wolfsburg, Germany. Below mention assignment gives brief
about the company taken and its current CSR policies. This also through light on company's
success because of corporate social responsibilities from the views of various stakeholder groups
and triple Bottom Line is also describe instead of this advantages and disadvantages of new
production based on emerging economy is explained. In the last, recommendation for company
is given.
TASK
1 A brief introduction of the company and its current CSR policy
Name Volkswagen Group
Industry served Automotive
Geographic area
served
Worldwide
Headquarter Germany
Revenue € 192.7 billion (2012)
Profit € 21.7 billion (2012)
Main Competitors Nissan Motor, Ford Motor co., Toyota Motor Corporation and many
more.
Founded In 28th May, 1937
This company have some corporate social Responsibilities because this is an automotive
industry and product of these organisation give impact on environment so they have some
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responsibilities towards natural thing because natural factors are important for every human
being. If surrounding in which people are living is fresh and not polluted then it will be good in
many factors as well as beneficial for both human being and animals. Below mention is the
mission and vision of Volkswagen:-
Mission: The respective company is to offer attractive, environment friendly and safe
products to customer so that they can compete in competitive market and set their standard in
respective class (Asif and et. al., 2013). They produce product according to economic protection
and support.
Vision: Volkswagen vision is to became most popular and famous automotive company
who serve innovative and creative products in market and serving best quality in their respective
sector. Same organisation want to produce such environmental friendly products so that this will
help in easily capturing market.
Corporate Social Responsibility- every organisation follow some responsibilities towards their
environment and society because these are important and for Automotive sector it is more
essential compare to other sectors. The respective sector produce such goods which may
sometimes give negative and harmful impact on surrounding in which human beings are living.
Thus, Volkswagen have some CSR policy explained below:- Road safety: now a days roads are being unsafe because of drink and drive, unsafe road
behaviour, road rage these are some reason of this. Volkswagen have to give education
and training to customers when they are selling their products. So that their will be no
loss of human beings. Environment Orientation: customers are aware about environment and they are health
conscious. So for this purpose people started using greener fuel and greener transport as
well as carpooling services. So that their will be no harm to natural things and
environment (Cheng, Ioannou & Serafeim, 2014). Air Pollution: vehicles are mostly using by everyone this is the cause of main air
pollution because many gases are released in air which is harmful for plant, air and
human beings. Volkswagen have to use such techniques that this will not harmful for air.
 Waste Management: when production is going on in industry this will create wastage
same in automotive sector there are many like production wastages, end of life product
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and scrap. Material use in this process give huge impact on environment as well as this
use large amount of energy in production process.
Above mention are some corporate social responsibilities these must be follow by Volkswagen
so that their will be no harm to environment and social lives of human beings.
2 CSR contribution in success of company from the perspective of different stakeholder groups
Corporate social Responsibilities help in success of company because if Volkswagen
fulfil social and environmental responsibilities towards country then it will get more success
compare to current (David 2011). There are many stakeholders in organisation such as
customers, employees, manage, owners, suppliers many more. Benefit of CSR from stakeholders
perspectives are explained below:-
 Customers: customers are happy when the brand they prefer investing in social and
environmental benefits; social can be providing education, clothes, food to poor people
whereas, environmental are; noise and air pollution many more. Instead of this with the
help of minimum use of resources, less wastage and emission results in saving
environment as well as in money too so that their will be no expensive production. This
is beneficial for Volkswagen and as well as for their stakeholders also because they get
products at minimum cost. If customers are satisfy then respective company achieve its
goal and objective.
 Society: company contribute in society development this will make people happy as well
as other investors see that they are doing such welfare than this will encourage them to
invest in such organisation. Volkswagen contributes in education of children's and
promote girls education this will help in economic development as well as social welfare.
instead of this it create image of brand in the mind of customers. Thus, society want from
organisation that they continue contribution in development of economy (Epstein,&
Buhovac, 2014).
 Suppliers: they thing to provide material on time and proper according to requirement so
that respective company can do production and earn profit then contribute in social
activities. This results in growth as well as for success of Volkswagen. With this
suppliers also get money of time of their raw material provide to company.
 Owners: company owner are also happy with investing in CSR because this create image
and maintain good performance of organisation. With this policy company earn more and
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more profit and also help in increasing market share. If organisation do social welfare and
produce Ozone-friendly products then it will help in encouraging customers to buy their
products. Hence, this will result in profit maximisation and increasing productivity.
 Employees:Corporate Social responsibilities are for employees welfare also . If they get
fare remuneration according to their work then living standard of individual increase as
well this contribute in economic development also. With these personnel want that
organisation to do more social activities because this will help in many ways and
decrease employees turnover.
 Managers: manager have many responsibilities in company and have right to take
decision they are the one who think to contribute in social responsibilities. When there is
growth and development of people as well as society this will result in growth of
Volkswagen also. CSR lead to maintain reputation of company and create image in the
eyes of customers. The same help in earning profit with various opportunities they have.
3 Critically evaluation of challenges and advantages of new product in emerging market in
reference to triple bottom line.
CSR(corporate social responsibility) is a self regulatory by organisation. Every company
decide their amount they want to spend towards social responsibilities and generally this is
known as abbreviation of corporate social responsibilities (Kitzmueller & Shimshack, 2012).
Hence, for this company take some corporate decision to implement efforts for social and
environmental responsibilities. In this activity organisation look after all those initiatives taken
by them and their impact on society. Volkswagen have some responsibilities towards
environment they have to fulfil these for their own growth and development. Germany is an
rising industry for Volkswagen hence the organisation take some steps for CSR activities as it
render assist to make society awake for their trade good and country will relays on them they
look for Volkswagen operation is going in the favour of economy and don't harm society as well
as environment. This report is based on Volkswagen which is Germany based company. The
respective company is imagine to set up their goods in an rising industry hence Germany is
choose by them (McWilliams & Siegel, 2011). For launching any product in this competitive
environment same organisation have to firstly look Triple bottom line properly because this is
necessary for them. The triple bottom line is a model of accounting which has broadly three parts
such as: social, economical and environmental.
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There are various firm in business environment who consider this triple bottom line
(TBL) in their company. This model assist in judgement of their carrying out action in broad
view that creates powerful business belief . The statement Triple Bottom Line has been lunched
by JHON ELKINGTON in around 1994. in this bottom line mention to profit or loss which is
usually recorded in the bottom line on a evidence of expanses or income in the account. In
general words triple bottom line is accumulated on financial information by company that refer
environmental and social duties. It alleviate help in regard to and companies level of
environment impact, economic belief and social duty. The entire thought of TBL(Triple Bottom
Line) has a larger challenge that is the barrier of measurement in measuring the bottom line of
social factors and environmental, hence it is essential all three are accounted by company as per
their merit ground. With the assistance of triple bottom line firm will be capable to continue
running their business in such a way so that they will not only gain financial profits but also
provide safe and healthy lives to human beings as well as animals. The same has three manin
elements such as planet, profit and people.
TBL concept application in Volkswagen with challenges and advantages:-
Volkswagen is an automotive company serving its product worldwide. When they apply
Triple Bottom Line in organisation they mainly focus on environment ans safety of human
beings because this company mainly deal in cars. Company always gives their best quality of
product and make customers satisfy because this will help them in creating loyal customers as
well as brand image. Automotive is the sector which create noise as well as air pollution so the
respective organisation take care of these things while production is going on. According
to(Schermerhorn and et. al., 2014) Volkswagen have some policies of making products and
services ozone-friendly so that their will be no harm to environment and human beings.
Apart from this, sometimes company gone through some problems same as Volkswagen
also with global ambition scandal in which they launch car having some microprocessors and
controllers in it. At the time of testing these cars where selected and lunched in USA but after
that the same cars create too much pollution in that country. Hence, Volkswagen take back their
all cars because of environment harm. Thus, it shows that this company fulfil social and
environmental responsibilities towards every country in which they serve. When products serve
by then are ozone-friendly this help them in building and maintaining their performance in
market.
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Volkswagen is producing their goods more economical friendly as their quality of
products are standardized cause they are not distinguish between products and their standards.
The respective is producing in the manner with the help of which all regulate standards will
compatible with respective goods. For a Social element, Volkswagen has very authenticated
intent for implementing CSR activities because they want to develop society what they earn from
them want to contribute some amount of that in education, food, clothes of people who cannot
afford. In the addition, deficiency of accessible or demanded goods could be a chance for the
Volkswagen to acquire it's desire by making desirable products available in market this will
create or build brand image. Another evidence is on the words of (Stanaland, Lwin &
Murphy,2011)when Volkswagen is establishes their firm in rising their market share and they
having opportunities to raise their business more and more they can. As discussed before that
Automotive in raising sector and the respective company have more chances to show their
abilities and capabilities. As per (Tai & Chuang, 2014) Volkswagen have chance to snatch
prestige through investing in market to global level in both the nations, parent or in working
order country. Investment in rising market will be facilitative in getting growth and increasing
productivity. accordance to the words of (Peloza & Shang, 2011) if organisation are dealing in
only single country then there is more chance of getting trouble in their firm but if they are
dealing in more than one country then these all barriers are washed away, Hence if Volkswagen
do the similar then this variegation will assist to face off all the obstacle in their development.
Product launched in the developing market is not only gainful but same comes with many
barriers which organisation have to face while introducing new product in market. As per the
words of (Orlitzky Siegel & Waldman, 2011)it is not easy for Volkswagen to introduce new
product in market because of government policies, rules and regulation of different countries
(Kim, Park & Wier, 2012) some nation have some problem in related to inadequate labour, high
inflation and deflation, raw material or unstructured area or decayed financial policies then it is
not simple for same company to launch their product or business in such competitive market.
Hence, if Volkswagen want to launch their product in market then they have to do all market
research and should have to properly examine market condition. such approach are known as the
Ethical CSR, Altruistic CSR and Strategies CSR.
Ethical CSR- there are some ethical corporate social responsibilities is also known as
purest and major legitimate. This also help in managing monetary values responsibilities to stake
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holders, mainly CSR for customers, suppliers etc. fulfil their responsibilities by providing them
better quality of goods which don't harm them as well to environment also.
Altruistic CSR- It is also known as Philanthropic approach to CSR, from this strategy
company don't gain any profit whatever they earn goes to some charity, NGO etc. sometimes
company have to get engage in such CSR activity for the welfare of society. These types of
strategies don't generate revenue for company but also gives negative impact on stakeholders.
Strategies CSR- this type of Corporate social responsibilities gives direct impact on
companies. This is beneficial for Volkswagen because this help in generating positive publicity
as well as goodwill of the firm. This can be in the form of monetary as well as non monetary.
Above mention concept should be implemented by company in their operation activities
so that they can achieve their day to day activity properly. This also help in achieving goal and
objective in effective manner.
4 Recommendations
CSR(Corporate social responsibility) this should be about by every organisation because
every have some duties towards environment and social factors. Company should have to fulfil
this for building their image in market, raising shares, for making customers loyal so that this
will be beneficial for both organisation as well as for people of country. If environment in which
human beings are living should be is not safe then their will be loss of lives and many more so
company have to take care all these things while production of goods.
Through, Triple Bottom Line concept Volkswagen take care of their monetary policies in
competitive market before introducing new products in market or also in establishing their
business in some more countries. Company should have to do market research and analysis
because external and internal factors can also effect company. This help in effective production
of goods and service and in achieving goals and objectives of organisation.
Company should have to take care of environment, resources and their customers taste
and preference while doing production. So that, environment and human beings harm will be
decrease such as; road accident, air pollution, noise pollution, minimising wastage of resources
this will results in reducing cost of production. Apart from this there are more benefits of
corporate social responsibilities. Volkswagen have to implement Triple Bottom Line concept in
their operation so that they can able to measure all expanses, profit and revenue as well as they
examine all these elements like economical, social and environmental factors. If this company
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wants high growth and development then they have to continue their working with this Triple
Bottom Line concept so that this will be done.
CONCLUSION
As the above report it is concluded that corporate Social Responsibilities must be
implemented by every organisation for their growth, loyal customer and building image as well
as in economical growth, environment safety and fulfil social responsibilities. Instead of this
brief description of company and its CSR policy given. Triple Bottom line is explained because
this is very important for Volkswagen and also for other companies for their monetary values
and many more. If company produce environment friendly products then it will results in
building market share and image, customer satisfaction also so that if customers are satisfy then
respective firm generate revenue and contribute more amount in CSR activities.
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REFERENCES
Books and Journals
Aguinis, H., & Glavas, A. (2012). What we know and don’t know about corporate social
responsibility: A review and research agenda. Journal of management, 38(4), 932-968.
Asif, M., and et. al., (2013). An integrated management systems approach to corporate social
responsibility. Journal of cleaner production, 56, 7-17.
Cheng, B., Ioannou, I., & Serafeim, G. (2014). Corporate social responsibility and access to
finance. Strategic Management Journal, 35(1), 1-23.
David, F. R. (2011). Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in
managing and measuring corporate social, environmental, and economic impacts.
Berrett-Koehler Publishers.
Kim, Y., Park, M. S., & Wier, B. (2012). Is earnings quality associated with corporate social
responsibility?. The Accounting Review, 87(3), 761-796.
Kitzmueller, M., & Shimshack, J. (2012). Economic perspectives on corporate social
responsibility. Journal of Economic Literature, 50(1), 51-84.
McWilliams, A., & Siegel, D. S. (2011). Creating and capturing value: Strategic corporate social
responsibility, resource-based theory, and sustainable competitive advantage. Journal of
Management, 37(5), 1480-1495.
Orlitzky, M., Siegel, D. S., & Waldman, D. A. (2011). Strategic corporate social responsibility
and environmental sustainability. Business & society, 50(1), 6-27.
Peloza, J., & Shang, J. (2011). How can corporate social responsibility activities create value for
stakeholders? A systematic review. Journal of the academy of Marketing Science, 39(1),
117-135.
Schermerhorn, J., and et. al., (2014). Management: Foundations and Applications (2nd Asia-
Pacific Edition). John Wiley & Sons.
Stanaland, A. J., Lwin, M. O., & Murphy, P. E. (2011). Consumer perceptions of the antecedents
and consequences of corporate social responsibility. Journal of Business Ethics, 102(1),
47-55.
Tai, F. M., & Chuang, S. H. (2014). Corporate social responsibility. Ibusiness, 6(03), 117.
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