Corporate Social Responsibility In Volkswagen Marketing Essay

Volkswagen is the German automobile manufacture, which is also the largest car manufacture in Europe and enjoys a high reputation in the world for its excellent performance and rigorous producing process. Volkswagen was listed in the Fortune global 500, and its economic power and brand effect is obvious to see. Such a large corporation ought to shoulder the corresponding responsibilities for society because social responsibilities and profit seeking are closely linked, there is no player in the market earn huge profits without undertaking any social responsibilities or donating to the society. At Volkswagen, corporate social responsibility is seen as a significance towards sustainable development. we also believe that to achieve a meaningful long-term existence, Volkswagen must also perform its obligations to society, so as to become a good corporate citizen in the global. The enterprise-tops in Volkswagen emphasize the far-reaching influence on social and environmental responsibilities which can bring sustainable development as well as much profit.

Content

Company’s attitudes to responsibilities and ethics.

Volkswagen persue environmental, economic and social objectives in equal measures, that is to say, these three goals combined with each other and no one can realize without the supports of other two. Corporate responsibility means that fulfilling the responsibilities or obligations towards the stakeholders of a corporation. What is more, the corporate responsibility tends to distinguish between the stakeholders’ expectations and the obligation of a corporation (Lockheed, 2004). The tops of Volkswagen realize the importance of sustainability. While the corporate social responsibility can be understood in terms of corporate responsibility, which put much emphasis on the obligation given to communities, charitable cause and environmental stewardship and so on (Johnson & Johnson, 2002). For multinational corporations, they should shoulder the responsibilities of employing employees, taking care of the losses and benefits of consumers and protecting communities and local environment at the same time of gaining profits as well as protecting the rights of shareholders. Under the vision of the sustainability, the business practices and depletion of resources must not compromise the ability of future generations to satisfy their own needs. Many corporations use CSR as a strategic way to gain public support for their presence in global markets (Fry et al., 1982). Volkswagen actively take part in the social activities and quick respond to the demand or regulation of local governments. Volkswagen pay attention to its responsibilities no matter in Germany or any other foreign countries so as to grasp the opportunities of the long-term future. The core idea of development in Volkswagen combines ecological, social issues with economic development, which radically protect the environment and realize the sustainable development. The corporate ethics is an important standard which can determine whether a corporation can survive in market competition. Corporate ethics refers to relying on the social public opinion, traditional habits and inner belief in specific social atmosphere, regarding ethical principles, moral criterion and moral activities as standard to measure the behaviors of a corporation. Volkswagen abides by the laws and regulations in Germany and any other countries, and advocates a fair competition with rivals. Environment-friendly, social progress and governance are three essentials to measure the level of sustainability of a corporation. During the time of depressing bailout in 2008, Calvert Sustainability Research Department that is famous for sustainable and responsible investments, singled out Toyota Motor Corporation, Ford Motor Company and Volkswagen for praise in its latest recognition for automakers with excellent environmental, social and governance practice, these automobile manufactures have no choices but to strictly comply with toughening fuel economy regulations which tightly controls the car displacement and carbon emission, to some extent, reflects the corporate ethics. Corporations are using CSR tactics to win the war for talent and market share (Bhattacharya et al., 2008). For Volkswagen, makes full use of innovation and make fuel-efficient, cleanest cars to meet the demand of environment as well as praise for its attractive appearance and high safety which enjoys a high reputation in the world.

Positively and negatively social activities from media coverage and the according impacts

Media courage is a platform which is convenient for consumers to get the information of the social and economic situation of corporation. Media coverage is quite important for the development of Volkswagen, which can constantly release the social and environment-related news for consumers that let us know their sustainable policy. For any firms, giving a high priority to CSR is no longer viewed as represent an unproductive cost, but, increasingly, as a means of enhancing reputation and credibility (Holme, R. and Watts, P., 2000). Volkswagen is one of the largest automobile manufactures in the world and its annual sales is huge which has a impressing effect in some region. Volkswagen does not forget to return society at the same time of gaining profits. This automobile giant establishes non-profit charity to encourage consumers to donate their junk and salvage autos that accumulate capitals to give those who need urgent helps. Volkswagen launched the scheme of “Volkswagen pro Ehrenamt” which started in 2007 and aimed to support and increase the awareness of charitable activities, particular in the plants, there is a great emphasis on helping people to help themselves. This project stresses on broadening horizon and encourage employees involvement in voluntary activities, which has a positive impact on the development of corporation as well as the professional careers of all employees. From this activity, we have a wider understanding of donation, Volkswagen’ donation is not limited by the capital and goods, time is another important factor to donate which can offer the service of training foreign employees and promote the development of Volkswagen. Moreover, Volkswagen make a large donation into the field of fighting against AIDS, promoting education as well as facilitating sports and employment in south Africa.Volkswagen plays a socially responsible organization in South Africa, and establishes the training schools of maintenance for young people which enriches the expertise of fixing the cars and also enhance the sales and images of brand. Volkswagen of South Africa represents the largest direct investment from Germany in the country, which drags the local economy and bring many employment opportunities for local citizens.

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Paying too much attention to environment protection, such as signing Kyoto pact, may generate more significant economic losses to multinational corporations (Bulkeley, 2001). But In China, Volkswagen still spare no effort to contribute to the society and environment which fully fulfill corporate responsibilities despite the economic losses. “Green all the way” was the slogan of the automobile exhibition of Volkswagen in Changchun. For every visitors to the Exposition who signed his name,Volkswagen would donate RMB1 on their behalf to China’s environmental protection efforts, by further developing this way can totally present the Volkswagen’s strong desire to contribute to environmental protection cause but also shows the company’s faith in the ecological performance of products and technology. Volkswagen fully realize the fact that profit seeking, environment protection and charitable donation are tightly connected, donation directly improve the level of environment which can increase the reputation as well as bring much tangible or intangible profits. From the activities of Volkswagen in China, South Africa and somewhere else, Volkswagen successfully shape the figure of multinational corporation and make the solid foundation of profit-seeking in the long run.

Innovation is another factor which help multinational corporation survive in ferocious competition and keep sustainable development. That is to say, companies tend to make full use of innovation to realize the destination of sustainability and environment protection. The press release from Volkswagen official website, Volkswagen will continue on the investment growth in Brazil and expand its ecological and social commitment in 2012. Volkswagen develops the state-of-the-art filler-less painting process combining with an innovate method, which can collect overspray results in energy saving of 30 percentage per unit, while water consumption is totally cut by 20 percent. At the same time, Volkswagen is simultaneously intensifying its role as a pioneer in protecting the environment and preserving resources, and is planning to build a second hydropower plant in order to deal with the electricity issues in a green way. Volkswagen announces that it will be investing 3.4 billion in Brazil during the period to 2016 in new products and and the research of new technologies, Volkswagen’ s six plants in the Brazil are developing and expanding renewable energies which is a invention of environmentally-friendly. In recent years, the negative news of Volkswagen come out ceaselessly. Unfortunately, Volkswagen hand gone a period of dark side owning to the new release of Golf 7 owning to fuel consumption which totally contradicted to the policy of environmental-friendly, and the environmental activists were up in arms at the fuel consumption of the new Golf, claiming the exceeded gas emission. The protest must have come as a rude shock to the car manufacturer and give a wake-up call to the giant. What is more, Greenpeace claimed that the automobile giant has not made fuel-efficient and fuel saving cars, and Greenpeace also pointed out that Volkswagen “was using its strong political muscle to lobby against key environment laws” despite claiming that wanted to be “the most Eco-friendly car manufacture in the world”, which not only destroy the environment due to the large displacement but also relate to the unfair competition owning to the illegal lobby. From above mentioned, these large displacement cars manufactured by Volkswagen, to some extent, damage the reputation of Volkswagen and destroy its long-term policy of sustainable development as well as violate the goal of CSR. Volkswagen emphasize the importance of corporate social responsibilities owning to the far-reaching benefits, the giant make donation to the charity as well as promote the development of education and medical service which to large extent is welcomed by local governments and favored by residents. Unfortunately, the way of sustainable development is filled with twists and turns. Volkswagen’ s long term policy of sustainable and environmental-friendly development is totally violated by the new release of Golf 7

Managing the social or environmental impacts from the activities

Throughout the literature, it is generally agreed that corporate social responsibility is essential to business survival and success(Trapp, 2009). With the increasingly development of Volkswagen, there exists many activities causing positive and negative impacts during the overseas expansion of Volkswagen. Volkswagen strictly stick to the principle of combining the economic progress with sustainability, that is to say, the theory of sustainability and social responsibility has deeply embedded into the enterprise culture. Volkswagen should unswervingly do charitable activities which can quickly shape the image of corporation and increase the popularity in new markets so as to capture the market share , such as donating capitals to the cause of education in local area, contributing capitals to those who lives in poverty-stricken areas and so on. Innovation and sustainability are the backbone of Volkswagen, and this is also the reason why Volkswagen can survive in such a fierce competition. Volkswagen tends to intensify the efforts to design and invent new types of automobiles which are fuel-saving and environment-friendly and accord with the policy of sustainability, although it may experience many setbacks during the process of implementation. Media is the window of a multinational corporation which can make a good understanding for consumers to know about the financial situation, social and environmental activities, Volkswagen should periodically publish financial and environmental disclosures so as to make a good understanding of consumers, potential consumers and the government. To some extent, the implementation of these activities may pull the distance between corporation and consumers as well as accept the supervision of the public. Moreover, Volkswagen tends to intensify the efforts to the investments on media , which is vital to its reputation as well as is beneficial to expansion in new region.

The future of social corporate responsibility in Volkswagen

The social corporate responsibility is and always be existed in the normal operation of corporation. Some corporate responsibilities may evolve because of the progress of society. Faced with the mega-trend, such as decarbonization and demographic growth, that is to say, multinational companies find themselves operating in new atmosphere that meet new challenges both in terms of the content of responsibilities and the resolutions of management(Michael, B., Alan, M., 2012). The future for Volkswagen is full of commercial opportunities and risks. Population explosion in the next 50 years means that there exists a largely potential market for exploitation. Volkswagen fully recognize the current situation, and actively exploit the overseas markets as well as remain the same enthusiasm towards the existing markets because of the increasing demand of automobiles. Owning to the concept of environmental protection and business ethnic, Volkswagen must make full use of innovation to invent new types of fuel efficient automobiles in order to increase the market share and reduce the gas emission as well. Moreover, due to the uneven distribution of property, the economic gap between the developing and developed countries are increasing tremendously, and the poverty is significantly apparent in some developing countries or rural regions which need the financial supports from multinational corporations, that is to say, Volkswagen should continue to do some donations to the local projects which enhance the regional welfare and to the people who have an urgent need, to some extent, during the implementation of these actions can partly shoulder the burdens of government, which can give Volkswagen the favored policies and easily enter into the huge market.

Conclusion

Volkswagen is the European largest automobile manufacture which is famous for its excellent products as well as shoulder the according social responsibilities. Volkswagen and its subsidiaries always do the charitable activities in developing countries and investment locations that, to some extent, enhance the welfare of residents and shoulder the burdens of the government as well, which make a good foundation for the entry of Volkswagen. What is more, Volkswagen spare no efforts to develop in a way of sustainable and environment friendly with innovation. Volkswagen have done many social activities, and every activity may present its social responsibilities accordingly and make an understanding of corporate social responsibility. The future of CSR in Volkswagen is full of opportunities and risks, because the the level of implementation of CSR directly affect the profit of a corporation.