BUS301: Corporate Social Responsibility Analysis - Volkswagen Scandal

This report provides an analysis of Volkswagen's corporate social responsibility failures, specifically focusing on the emissions scandal. The introduction defines CSR and its importance, while the main body details the nature of the issue, including the use of defeat devices to circumvent emissions controls. The report examines the impact of the scandal on Volkswagen's reputation, financial performance, and the environment, highlighting the company's actions and the consequences for both the organization and the industry. It also explores the strategic solutions implemented by Volkswagen to address the crisis, such as public apologies and recalls. The conclusion emphasizes the importance of CSR for attracting customers and maintaining profitability, while also acknowledging the negative consequences of corporate scandals. The report is supported by relevant academic references.

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 a self regulating model of
business that enables a company to become socially
accountable for own, their stakeholders and for the public. It
is also known as corporate citizenship, firms should be aware
about influence on various factors on society in which
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 tested and recommend to changing performance for improving
results

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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:
•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.

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• 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.
• 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
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.

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
impact the whole industry. Such as Volkswagen which 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. 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
There are various company how conduct corporate social
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.

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.