· than ever, companies are devoting substantial

·        
ITSELF.

1.0 Introduction

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In today’s socially associated environment, the corporate
social responsibility has a vital role in the corporate program globally. CSR
is a specific set of business modules and practices that deal with issues of
society, but in general terms it is basically a philosophy for many people
(Crane, 2013). Nowadays the companies are trying to allocate extensive
resources to many social initiatives, ranging from sustainable development, environmental
protection to various business practices (Du, 2010). The business
organizations are taking voluntary actions with less
legal requirement so that they can convey their message to both inside and
outside the organisation (Berr, 2009). The good CSR
practices creates a positive image in the society which thereby providing good
results to the companies.

But in the case of VW, the company didn’t
follow business ethics and ignores the CSR which lead to declination in terms
of stock value, capital and most importantly in the public view. The main
purpose for this report is to identify, analyse and discuss the problems
associated with business ethics and CSR. Then suggesting the relevant
suggestions and recommendations to overcome these problems.

corporate

social responsibility (CSR) occupies a prominent

place on the global corporate agenda in today’s

socially conscious market environment. More than

ever, companies are devoting substantial resources

to various social initiatives, ranging from commu-

nity outreach and environmental protection, to

socially responsible business practices.

corporate

social responsibility (CSR) occupies a prominent

place on the global corporate agenda in today’s

socially conscious market environment. More than

ever, companies are devoting substantial resources

to various social initiatives, ranging from commu-

nity outreach and environmental protection, to

socially responsible business practices.

corporate

social responsibility (CSR) occupies a prominent

place on the global corporate agenda in today’s

socially conscious market environment. More than

ever, companies are devoting substantial resources

to various social initiatives, ranging from commu-

nity outreach and environmental protection, to

socially responsible business practices.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.0 Analysis of the Critical Problems and
Issues

 

As there are many problems related to
business ethics and CSR as they are the wider terms. In this report, the
analysis of issues and problems starts with the CSR strategies which are not
structured in an effective manner. The unethical issues which were prevailing
at the VW include unethical framework within the company, lack of short term
and long term mission and the unethical business practices to the society.

 

2.1 Issue1 – Unethical practices
within the company:

 

CSR within the company is an essential part
which help the employees in boosting their morale and promote ethical
practices. The unethical practices includes lack of training module and program
for the employees, not compensating them as per the standards and unhealthy
superior-subordinate relationship. In the VW case, there was no formal training
provided to the employees and lack of formation of guidelines “how to be
ethical”
 which create a sense of insecurity among
them (Practices, 2016) However, the
internal unethical practices which were present within the company that
influence the stakeholders and clients.

 

2.2 Issue 2 – External CSR problems
and issues.

CSR is always been an agenda for the
development of any enterprise in today’s era. The responsibility of a company towards
the society is considered as a necessity in order to function properly in the
existing social environment. The Volkswagen failed to maintain a positive relation
with the society that resulted in losing its vision towards their long term
objective. In regards to the VW scandal, the
company purposely set out to plan to avoid emissions control losing with the
aim of providing the company an unfair edge over its competitors which would
help the company to design world class cars. With respect to this aim, the
company was unintentionally harming the planet (Forbes, 2017). Furthermore, it
lead to the decline in reputation with its unethical actions having no future
plans.

                                                                                       

 

 It can
be added that the VW assembled its diesel engines to fake emissions tests. This
corporate misbehaviour is intolerable from any of the viewpoints- CSR,
financial markets and sustainability development (The Globe and
Mail, 2016).
Since every company uses the resources of the society, it is their ethical duty
to take care of the health, needs and wants of customers. Ignoring the ethics
and performing unethical practices will lead the company nowhere in long run. The
Volkswagen committed a big mistake that lead to decline in the prospective
buyers. It resulted in deterioration of goodwill of company too.

 

 

 

 

 

2.3 Issue 3 – lack of vision and
mission

Mission
of a company is the reason for its existence. It defines the purpose for which
the company is being established. It not only includes the accomplishment of
the organisational goals but also takes into consideration the welfare of
society. The Volkswagen mission was to provide world class cars to the society
that will be unbeatable in the market. This mission led was so unrealistic and
difficult to achieve that it resulted in superficial promises. The company was
leading with no true vision and mission. Missions are
considered essential to achieve long term profits and gains. The survival of
company majorly depends upon its mission and objectives set during the
establishment of the company (Altiok, 2011). So for a comeback
in the market, the Volkswagen should establish proper mission and vision that
will help the society in fulfilling their needs.