CSR is the social responsibility a company talks on board during the expansion of their business. These responsibilities may include environmental protection, helping the surrounding community, or how the employees are being treated. Some companies reach certain size and start to disregard these responsibilities because of the way I can bring extra cost to their company. One of these companies is Volkswagen.
Company Overview
Volkswagen is a German car company, and the largest automaker by worldwide sales from 2016 to 2017, with a net worth of 85 billion in 2018. The Volkswagen group also owns, Audi, SEAT, Skoda, Bentley, Bugatti, Lamborghini Porsche and a few other more minor car companies. Volkswagen in the past has been known for their violation of CSR in the past.
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CSR Analysis
Volkswagen believes that sustainability means sticking to their CSR values. Nowadays, Volkswagen seem to be as environmentally friendly as possible, however about 5 years ago, Volkswagen was involved with in an emission scam.
Through Volkswagen’s advertising, it is obvious they think highly of their social impact. However, one of their latest advertisement was taken down due to racism. It seems that Volkswagen treats the employees drastically different in promotion hierarchy. On one end people are saying that Volkswagen expects everything with minimal pay, while others, with a higher say there’s no pressure and can be fun.
Volkswagen seems to be worse than most when it comes to following the CSR guideline. Firstly, in 2015, Volkswagen released a vehicle that produced too much emission, the reason for this was because the producers of the car said that they didn’t have too much time nor funding to perfect this product. This shows a lack of both worker’s treatment and environmental impact. To top that off, this year, Volkswagens released a racist commercial break they’re social relations. The only remaining category is sustainability, and you have to take the word of the company as no one outside of the company truly knows their future plans.
A way to improve Volkswagen CSR, would most likely show their future plans. This is both risky but may be necessary. This may increase the trust between the company and the civilians, as well as allow their plans to be checked and see if the plans are economically friendly. However, this is unlikely to happen as leaking this sort of information can also backfire, and competitors may use such ideas, however Volkswagen is digging themselves into a bigger hole at the moment.
Conclusion
In the act of engaging in CSR, Volkswagen would gain popularity with both the people and the government. It would create a sort of trust as between the producers and the consumers, which in this case is the general public. This would benefit with the expansion of the Volkswagen company creating more jobs and getting work done quicker. This would’ve stopped the emission scandal, as the creators of the car complained about having enough time/manpower.
Volkswagen at the moment are straying away from CSR practises. They are creating a sort of negative environment for the workers, customers and maybe the environment. Due to these factors even, the smallest error has costed them dearly. Following the practises wouldn’t be too hard for a company as large as Volkswagen, and the long run benefit most definitely outweigh the problems they may face throughout this transition. The transition would award them with a good public figure as well as a reliable company. Doing this around now may help with the economy to get going again as people buying shares in the company may help.
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