Report: Volkswagen's Corporate Social Responsibility and Ethics

This report examines Volkswagen's approach to sustainable management, focusing on its corporate social responsibility (CSR) initiatives and business ethics. It provides an overview of Volkswagen AG, its operations, and its commitment to CSR, including community engagement cells, welfare programs, and local vendor development. The report analyzes the theoretical and conceptual frameworks used by the company, detailing the importance of CSR in building brand image, improving financial performance, and establishing relationships with stakeholders. It also addresses the negative impacts of CSR, debates, and criticisms. Furthermore, the report explores business ethics, including codes of conduct and ethical considerations, and their significance in ensuring fair practices and public acceptance. The analysis highlights how Volkswagen integrates ethical principles into its business functions to achieve long-term goals, attract customers, and maintain a positive corporate image. The report concludes by emphasizing the role of CSR and ethics in Volkswagen's overall success and sustainability.

Sustainable Management
Futures

Table of Contents
INTRODUCTION ..........................................................................................................................1
CONCLUSION ...............................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Sustainable management is known as overarching group that mainly refers to the
responsible, daring to care, innovative and ethical form of management. One of the main aims of
this is to develop actual ideas or plans on sustainable management considering three main
dimensions such as theoretical framework and ethical problems relevant for both organisational
and individual. It is also defined as an application of practices in the agriculture, businesses,
environment, society and personal life categories by handling them (Adomßent and et. al., 2014).
It is the best advantage for both future and current generation in an effective manner.
This report is based on Volkswagen which is a car industry that deals in different
varieties and brands in car products. “Main aim and purpose of this project is to support an
organisation by evaluating CSR concept and follow all business ethics properly”. This
assignment described about the conceptual and theoretical analysis with the help of different
tools and techniques.
Overview of Volkswagen:
VW AG is a chosen car industry which deals in different automobile products. It was
founded on 28th May 1937 by German labour front in the Wolfsburg, German and worldwide. In
the organisation, there are large number of employees (626,715 approx.) that work with each
other. Main motive of business employees is to achieve long term goals and objectives in
specific time period. This business is a German Automobile organisation which is headquartered
in Germany, lowe saxony and Wolfsburge. Manufacturer of the company are both passengers
and commercial vehicles. Business entity sells or produces its passenger vehicles under the
names such as MAN, Scania, Volkswagen and Neoplan. Commercial brand’s name of the
enterprise are Skoda, Audi, Lamborghini. They also offer a wide and certain financial facilities
including customers and dealer financing, insurance and banking activities, fleet management
and leasing. Main objective of this company is to provide a wide range of products and services
to their potential or target buyers in a systematic manner. In order to promote their product
brand, they use different tools and techniques such as communication channels i.e. promotion,
advertisement, publicity, public relation sponsorship and other essential parts. Vision and
mission of the organisation is to expand their business operations and functions in all over the
world by providing various features in their car products. Company adopts corporate social
responsibility which supports the project in order to advertise art, culture, science, education,
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sport and health. It is an essential part of the success and development of business and so, in this,
they try to give better quality of products and services as per customer’s demand and needs.
In the company, Volkswagen use different approaches such as conceptual and theoretical
in order to attract large number of the customers and increase their market share. With the use of
conceptual methods, company and their managers increase their learning experience,
conceptualization by creating theories and strategies. Another is theoretical which is also very
important for company with regard to attain desired objectives and goals in an effective or
efficient manner (Altman and et. al., 2011). This will support the firm to fulfil their society’s
needs and demands by providing high quality products and services to their customers at
reasonable rate. So, both the approaches are important for organisation to survive in national and
international market as well as maximise their sales or revenues. Business entity provides
different products and facility to their potential or target buyers in order to increase their sales or
revenues as well as achieve desire objectives or goals.
Theoretical approach: It is define as a logically structured which represent of the relationship,
variables and concepts in a scientific report with the aim of clearly determining what will be
examined, described, explored and measured.
Conceptual approach: It is also an essential part of company’s growth and success which is only
focused on marketing activities and plans. It is emphasised on the development of innovative
aspects whether of functions, policies, consumers, marketing institutions, or products.
Those are important part of the company, in this different theories and approaches of the
corporate social responsibility and business ethics are plays essential role. All those are
determine under this in detail form-
CSR: It is a significant part and process by which business entity thinks about as well as evolves
its connections with stakeholders such as customers, government, employees and society for the
common purpose and establish its loyalty in this regard by selection of correct business strategies
and processes. For company’s development and growth, CSR plays a vital role in giving better
quality products to society (Buckley, 2012). With the use of this, company can increase their
market share and easily fulfil buyer’s nerds and demands as per their requirements. It is also
define as a business method that contributes in order to develop sustainable growth by
delivering environmental, social and economic advantages for entire stakeholders (Corporate
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Social Responsibility, 2017). There are certain approaches which are considered in corporate
social responsibility which are as follows:
Community Engagement cell: In order to build better relationship, trust, goodwill and respect in
the mind of customers, CSR plays an essential role in the success, growth and development of
business in an effective or efficient manner. Main purpose of Volkswagen is to create a better
and effective platform to their target and potential clients. So, in this, each and every buyer is
connected with each other with the motive of achieving long term goals and desired objectives in
stipulated time period. It will facilitates the formulation of a transparent activities for enrolment
of national labour (Budd and et. al., 2013). So, in this, Volkswagen should try to provide
innovative and effective features in their car products which are essential for company in order to
attract various number of clients. Due to this, business can achieve long term and desired aim
and objectives in limited time period.
CSR Welfare programs: It is also essential and a vital part which is followed by company with a
motive of increasing market share. It mainly depends on identifying the local needs and
requirements which are beneficial for the business entity in order to fulfil customers’ needs in a
specific time period. In this, Volkswagen targeted all areas and efforts to ensure inclusive
success and growth. During the program, company can identify demands and needs of buyers
and current trends of market. So, they can understand their client’s requirements and also, they
can take care of the buyer’s health capacity and skills. Due to this, business organisation can
identify the sustainable and employment livelihood opportunities.
Local vendor development: In order to develop better relationship with their vendor, company
provide different variety in their car products and financial services. In this way, company give
various facilities to their clients such as occasion offer, free ride, and other services (Davies,
2014). All targeted and potentials clients are happy and purchase business expansive car which
beneficial for company to achieve desire objectives and goals in specific time period.
CSR is very important for the company in achieving aims and objectives which are define
under this:
 It will maximise the branding of the Volkswagen
 CSR building a better corporate goodwill for themselves.
 Corporate social responsibility impulse their connection with national communities.
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 It is reduce the negative effects of business functions or activities and generate value and
wealth for communities & stakeholders as an entire.
 It is builds confidence and trust with company in an effective or efficient manner.
 With the use of CSR, Volkswagen can improves their financial performance
systematically.
 It will increase the business growth, success and development in competitive market
place.
 CSR assist in establishing good relationship with their different stakeholders like:
customers, suppliers, vendors, governments, employees, investors and community.
 Main use of CSR in the business organisation is to develop better image of the company
in customer mind.
Negative impacts of of CSR upon business functions and activities of the Volkswagen are
determined under this-
 lack of information regarding corporate social responsibility which is a negative effects
on business image because Volkswagen do not aware about this, so they can not achieve
their long term goals and objectives in given time period (Gupta and Palsule-Desai,
2011).
 It is very expansive for the company by applying this, so it has negative effects on
company goodwill and its image. It is also have disadvantage in the car products of company. Polluted engine impacts on
society and personal health so it is negative in its nature.
Debates and Criticisms of CSR: In order to make better and long term reputation in market place
with customers, CSR is beneficial. In this Volkswagen often favour producer who demonstrate
liable policies. So it is identify as a positive effect on company how they detected by clients. It is
very essential and valuable to retention & recruitment of quality members. In this, potentials
workers often concern companies corporate social responsibility policy in interview time. This
type of policies help the business in order to attract large number of the buyers by maintaining
long term relation with them. In this staff members may stay in long time, reducing the cost and
disturbance of retaining and recruitment (Haasnoot and et. al., 2012). Weak CSR is very bad for
the business success and development which connected with civil society enterprises and critics
of company behaviour.
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Business ethics: It is define as a study of accurate practices and policies of company about
potentials controversial problems, such as discrimination, corporate governance, fiduciary
responsibilities, bribery, inside trading and CSR also. Law and legislation often guides or
promotes business ethics, it gives basic framework that company may select to consider in order
to increase public acceptance. It ensure that a fey needed level of trust which present between
buyers and different ways of market contestant with organisations. It includes different theories
or approaches which is very important and essential part of the business success and
development in a national and international level. It is significant part of the company by
applying this are as follows:
Code of conduct: In this business entity decide how to give better quality products and services
to customers in an effective manner (Jacobs and et. al., 2016). Manger of the Volkswagen
follow this aspects in order to giving better benefits and welfare to society.
Based on social and moral values: It contains social and moral rules for doing business
activities and functions in an easy manner. This will consider consumer protection, self-control,
service to society, welfare and fair treatment to the group of social. In this company try to give
better quality products as per the customers needs and wants. So in this they highly satisfied and
achieve long term objectives and goals of the company.
Provides protections to social groups: In this, Business ethics give full protection to various
social groups like small businessmen, consumers, stakeholders, employees, creditors and
governments etc. all these are important part of the company development and success accuse
without all people, organisation can not grow in competitive market (Seidl and et. al., 2011).
Provides basic framework: It is essential part of the business ethics because it will give basic
framework to company in order to do their business functions and activities smoothly. It will
provides the legal, economic, social cultural and other business limits. According to the customer
feedbacks and comments, VW AG give different products in car products in an essential and
systematic manner.
Voluntary: It is follow by the manger of the Volkswagen in regards to provides discipline and
manage all work (Khan and et. al., 2011). In this rules and regulations of the government are not
effect no operations and activities of entity.
Needs guidance and educations: In this situation, manger of the firm is responsible to give
proper direction to their employees regarding company work and activities. So they can do all
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function and work on give time period which is success of the firm. Business ethics support the
businessmen in order to motivate and promote their employees about is working capabilities.
Manager of the company give accurate direction to their staff members in regards to all work and
functions effectively.
Relative term: In this company expand their business functions and activities at national and
international level in respect to increase their sales or revenues. With the use of this, an
organisation can attract large number of the clients as well as capture maximum share in
marketplace.
New concept: Business ethics support the company to adopt innovative tools and techniques.
Due to this, company use communicational channel and promotion mix to promote their products
and services (Madani and Dinar, 2012). Volkswagen is responsible to give proper information
regarding business changes , government rules and regulations to customers. So they understand
about business information and its commodity effectively.
Both are corporate social responsibility and business ethic are important for the business
success, development and growth. These are apply by the Volkswagen in order to introduce their
products and services to customers. In regards to supply their car Skoda, Audi, Lamborghini,
Porsche, Porsche, MAN, Scania, Volkswagen, Neoplan and other products to customers.
Different sources such as material, funds, human resources and other important aspects in order
to do business activities and functions in a proper manner (Scott, 2016). In this HR is very
important and essential part of the organisation in order to recruit and select knowledgeable
person who can easily communicate with their customers about business policies, activities and
functions. In this fund is highly necessary to apply internal and external factor for for hiring
persons. Both factor help individual by providing important information regarding vacant
position to buyers. SCR and business ethics are necessary in easily do all functions and activities
in an effective and efficient manner.
Corporate failure: It is refers to business operations considering its inability in order to make
revenue or profit and bring in accurate money to covers business expanses. It can be occur as an
output of poor management inability and skills to full or even deficient marketing (Marlow and
et. al., 2013). There are mainly two types of model which are includes in this such as quantitative
and qualitative.
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Quantitative model: In this way, business organisation can identity or determine the financial
ratios with business values which disagree markedly among the different companies like failing
and surviving. It is vital element of the VW AG to analysis the financial factors in different ways
so in this they can increase their financial ration in an effective and efficient manner. In this
corporate social responsibility plays essential role in order to enhancing the ratio as well as
achieving desire objectives and goals of the business entity.
Qualitative Models: In this way, an organisation can assign their scores to specific qualitative
risk and uncertainty factors (Prior and et. al., 2012). With the use of this aspects, company
mainly focus on their car quality and brand because it is necessary for business to set their
positive image in customers mind and market place.
Sustainability and Corporate social responsibility at Volkswagen
 VW AG needs to be Eco-friendlly and also contribute towards the humanity development
and society so that best can be taken out from resources.
 Manufacture environment safe, quality and friendly services & products.
 Undertake section that increase the life quality and give enriching or unique opportunities
in order to connecting diverse teams that in long duration will output in sustainable
business shaping the society in which business workers work and live (Schneider and
Rist, 2014).
 Formulation modalities and schedule of execution: Business entity may formulate the
identified corporate social responsibility projects recently within its ambit and scope
straightly through its outsider CSR & Affairs division as per the Corporate social
responsibility direction.
 Controlling process and activities through CSR: Accurate Allocation versus expenditure
according to the approved budget. Evaluation of Actual and planned progress Reporting framework: Reporting of corporate social responsibility activities and
functions shall be in conformity with the appearance prescribed by the vide notification,
ministry of corporate and government.
Analytical approach: it is very important and significant approach of solving issues in an
effective manner. In the company, there are certain issues are available which is face by manger
of the VW AG. With the use of this method, company break down their problems such as
conflict, misunderstanding, demand of the products, unavailability of parts, defecting making,
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high skilled employees requirements, quality raw material, latest technology and fuel efficient
cars. All these issues are impacts the company reputation and goodwill in the marketplace as
well as customer mind also (Savary and et. al., 2012). In this corporate social responsibility and
business ethics are plays vital role in reducing all issues in an effective manner. Both are
significant in giving quality and additional feature in the parts of car. It is essential for the
company to enlarge their business activities and functions in an effective or efficient manner.
CONCLUSION
As per the above information, it can be concluded that Sustainable Management is very
essential and vital part of the company in preset and Futures. With the use of this, company can
mange their all work and function in an effective or efficient manner. In order to fulfil society
and their buyers requirements business entity follow corporate social responsibility and business
ethics. All these are vital in achieving long term objectives and goals in specific time period. But
both are also have negative effects on business activities and operations because both are
expansive for applying this. All companies are not aware about the CSR and Business ethics so it
said as a negative impact on organisation. Conceptual, Theoretical and Analytical approach help
the enterprise in regards to divide their issues in different departments. So all problems are
classified, manager can easily sort out this and improve their profitability and productivity.
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<https://www.investopedia.com/terms/i/impact-investing.asp>.
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