Volkswagen supports projects that promote culture and art, education, science, health and sport. They believe that as a company with global operations they have a duty of responsibility towards the global society that cannot be fulfilled simply by applying charity. In short, Volkswagen’s code of ethics does help the company in meeting the company’s social responsibility. It’s about making life better for everyone, not just a few. From individuals to communities, environment to enterprise.
Volkswagen has been consistent in its efforts of advancing and developing new technologies as well as creating a sustainable environment policy which would promote clean and green environment. In this regards the opportunities provided by digitization are immense. Upgradation of present technologies to serve future challenges is where Volkswagen is working upon and facing an immense challenge to bring about the required changes in the present
It was known that nearly half million of vehicles were effected from this problem in USA, and 11 million in Europe and Asia [4-]. The problem was not a technical issue, it was claimed that VW board of management hide this problem. For that reason, company had lost about 25 billion € of their shares in a short time. The main question is that why VW made this big mistake that it would drag itself into the business. One of the article about the subject claims that, brand manager Wolfgang Bernhard and engineer Rudolf Krebs were working on the new diesel engine to be used in the US [4-].
The German based automotive company Volkswagen (VW) was recently involved in a scandal that went public in 2015 regarding the discrepancies in the NOx (Nitrogen Oxide) emission from the vehicles. This scandal was believed to be the biggest scandal of all times and have come in a critical moment of time when VW was declared the largest automaker in the world for the first season of 2015. Thus it is affirmative that Volkswagen was involved in evaluating business ethics in their organisational practice. This considered paper would discuss the importance of business ethics for Volkswagen and the relevant consequences of the scandal. The Scandal – Ethical lesson The scandal of Volkswagen was by far the biggest of many scandals that automotive history has seen from the Pinto to the Toyota’s self-acceleration, GM’s ignition switches; but all have not impacted the public policy of ethics.
As Tiger Woods found out, your downfall has value in other entertainment markets, most notably the gossip tabloids.” (p25) Volkswagen, much like an athlete who has had a bad season, will be re-evaluated. Their clean-cut image of being a socially responsible company has now been tarnished much like Tiger woods when he committed marital infidelity. Tiger woods was the star of the golf world, just like how Volkswagen was the star of the car world, which is why it was just a matter of time before they were caught. This is why the value of Volkswagen cars will dramatically
According to Volkswagen (2016) the company uses a highly efficient global network to manage its supply chain. The company’s initiative of FAST (Future Automotive Supply Tracks) focuses on digitization; this is used to highlight investments and make efficient use of resources. The system allows suppliers to be involved in the innovation within the group and contribute ideas towards the development of vehicles at an earlier stage. The manufacturing or assembling is done by the combined efforts of robots and employees. The major parts of the operation are done by robots in an effort to reduce wastage, energy and time while the employees would do the quality checks.
Today, the majority of large companies issue a corporate social responsibility report while ten years ago very few did. Also, more than 8,000 businesses around the world have signed the UN Global Compact pledging to show good global citizenship in the areas of human rights, labour standards and environmental protection. One such example of a company is Walmart. Traditionally, they were not a very socially responsible company. They paid their employees poor wages and had a very high employee turnover rate even though their owners are listed as some of the wealthiest people in America.
In this article, written by Darden professor, Luann Lynch, Volkswagen’s determination to position its diesel products in a U.S. market, where only five percent of market was diesel, was too alluring for a company whose lofty goal, under then CEO Martin Winterkorn, was to be the world’s largest seller of automobiles. The U.S. market was viewed as neglected, making it an excellent market for growth for Volkswagen. Volkswagen’s strategy was to position their product in the market as a solution promoting environmental sustainability, then utilize a sense-of-mission-marketing to aid the company in defining their product in social terms, rather than in product terms, to appeal to their target markets (Armstrong & Kotler, 2017). Volkswagen could have been well on its way to dominate the world car market if it was not for the corporate culture Winkerton and his predecessor, Ferdinand Piech, fostered, which was a culture of control, micromanagement, and fear. Lynch describes the environment as containing three factors: pressure, opportunity, and rationalization, which can lead some individuals into unethical behavior (Lynch & Santos, VW Emissions and the 3 Factors That Drive Ethical Breakdown, 2016).
As it turns out, Volkswagen may not be the only carmaker that sold diesel-powered cars which exceeded allowed emissions levels. A report from Transport & Environment drops the bomb, claiming more carmakers sell vehicles which exceed the European limit for air pollution. During the past three years, Transport & Environment (T&E), with the support of the International Council on Clean Transportation (ICCT – the organization that alerted US authorities to its concerns over VW), has exposed several ways carmakers manipulate emissions tests in Europe for both air pollution and CO2 emissions. Automakers are said to charge the car’s battery before a test, deduct 4 percent from each test result and use incorrect laboratory settings for the inertia
VOLKSWAGEN: In line with our discussion and its structure vis-à-vis Ford and Toyota, it is interesting to discuss Volkswagen’s (VW) approach as it pursued an aggressive strategy – largely based on its leadership style and pushed by an acquisitions spree – in a zest to become the largest automotive seller in the world. Leadership: VW was run by Martin Winterkorn, who was very well respected in the industry for his professionalism as well as his unflinching focus on achieving targets as prescribed. At numerous times, he publicly showcased his uncompromising focus on quality, frugality, and reliability. Winterkorn was a tough boss who did not like any failure. He had a lot of charisma.