Corporate Social Responsibility Analysis: The Case of Volkswagen

This report provides an in-depth analysis of Volkswagen's corporate social responsibility (CSR) practices, focusing on the significant emissions scandal that damaged the company's reputation. The report begins with an introduction to CSR and its importance, followed by an examination of the nature of the issue involving the criticism of Volkswagen's actions. It details how Volkswagen designed a device to circumvent emissions control, leading to environmental harm and financial losses. The analysis explores the impact of the emissions scandal on the organization and the industry, including environmental consequences and loss of stakeholder trust. The report then suggests strategic solutions, such as open communication, apologies, and product recalls. Finally, the report concludes by emphasizing the importance of CSR for attracting customers and maintaining a positive brand image. References from academic journals support the analysis.

Corporate Social
Responsibility

TABLE OF CONTENT
 Introduction
 Nature of the issue involving the criticism
 Strategic solution for such issues
 Conclusion
 References

INTRODUCTION
 Corporate social responsibility is an self regulating model of business that enables
a company to become socially accountable for own, their stakeholders and for the
public.
 The study is based on Volkswagen which is German multinational automotive
manufacturing company.
 Volkswagen is seventh-largest company by revenue in world.

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 an 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 tested and
recommend to changing performance for improving results

CONTINUE
 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 affect to
organisational development in negative manner.
 This scandal harms it financially in 2015 almost $18 billion and turning a best year
into a $4.6 billion loss.

IMPACT OF EMISSION ON
ORGANISATION AND 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.
 For this, there are large number of engineers who are give resignation for their
post along with CEO of the company.

CONTINUE
 If the companies involved in kinds of CSR activities then it
also impact the whole industry.
 Volkswagen is a 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.
 It is identified that it is not true in fact its vehicles are creating
more pollution which harm the environment as well as

CONTINUE
 Involvement of companies in CSR
activities assist the firm in protecting
interest of stakeholders.
 It is identified that it is not true in fact its
vehicles are creating more pollution which
harm the environment as well as society.
 This impact the whole industry negatively
as it minimise their value of brand image
and reputation.

STRATEGIC SOLUTION
 There are various company how conduct
corporate social responsibilities in order to
attract more numbers of customers and
enhance profitability ratio.
 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.

CONTINUE
 To overcome this situation and gaining their image and name back
Volkswagen conduct various activities.
 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.
 It is outlined that if 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
Cheng, B., Ioannou, I. and Serafeim, G., 2014. Corporate social responsibility and access to finance. Strategic
management journal. 35(1). pp.1-23.
Aguinis, H. and Glavas, A., 2012. What we know and don’t know about corporate social responsibility: A review and
research agenda. Journal of management. 38(4). pp.932-968.
Crowther, D. and Seifi, S. eds., 2018. Redefining Corporate Social Responsibility. Emerald Group Publishing.
Kim, Y., Park, M.S. and Wier, B., 2012. Is earnings quality associated with corporate social responsibility?. The
accounting review. 87(3). pp.761-796.
Servaes, H. and Tamayo, A., 2013. The impact of corporate social responsibility on firm value: The role of customer
awareness. Management science. 59(5). pp.1045-1061.
Brammer, S., Jackson, G. and Matten, D., 2012. Corporate social responsibility and institutional theory: New
perspectives on private governance. Socio-economic review. 10(1). pp.3-28.

CONTINUE
 Hahn, T., Pinkse, J., Preuss, L. and Figge, F., 2015. Tensions in corporate sustainability:
Towards an integrative framework. Journal of Business Ethics. 127(2). pp.297-316.
 Pinkse, J., Bohnsack, R. and Kolk, A., 2014. The role of public and private protection
in disruptive innovation: The automotive industry and the emergence of low‐emission
vehicles. Journal of Product Innovation Management. 31(1). pp.43-60.
 Ganescu, C. and Dindire, L., 2014. Corporate environmental responsibility-a key
determinant of corporate reputation. Computational Methods in Social Sciences. 2(1).
p.48.

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