Volkswagen Triple Bottom Line & Corporate Social Responsibility

1. Introduction of Company
 This international company is known worldwide for its production of the Beetle,
sustained by a series of films featuring the car as the central ‘character’ that
commenced with The Love Bug (1973) and revived in a new Beetle design in
1998 by J. Meys. Volkswagen's origins lay in Ferdinand Porsche's designs for
small cars in the early 1930s, the most significant of which was his design for a
‘people's car’—the KdF‐Wagen—for the Reichsverband des Automobilindustrie
(State Union of the Automobile Industry). Its engineering qualities included a
rear‐mounted air‐cooled engine. The distinctive ‘streamlined’ shape of the car
owed something to precedent, particularly in the USA, and was designed by
Austrian car bodywork designer Erwin Komenda. Although the first models came
off the production line at Wolfsburg in 1938 the car was not put into mass
production on a large scale until after the Second World War, during which
Volkswagen manufactured over 100,000 military vehicles. Volkswagen
automobile production began in earnest under the British in Germany in 1945,
with exports commencing in 1949, the year in which the company returned to
German control. Economic and durable, the car sold well in both Europe and the
United States, in the latter providing a striking alternative to the large, petrol‐
hungry cars produced by General Motors, Ford, and Chrysler.

Other significant designs in this early period included the two‐seater Karmann
Ghia Coupé (1955; see Karmann, Wilhelm) and the Transporter and Microbus
(1956). The latter was to become associated with the ‘hippy’ movement and
others opposed to commercial values associated with the fashionable style
values of the annual model change. Despite being Germany's largest automobile
producer the company underwent a difficult period until the 1974 launch of the
hatchbacked VW Golf, designed by Giorgetto Giugaro in tune with practical
needs of the urban consumer, and which underwent many model updates and
changes. Other models by Giugiaro included the Passat estate car (1973) and
Scirocco sports car (1974). The VW Polo (1975) was styled by the Italian car
body company Bertone. In 1998 the VW Lupo, another neatly styled, economical
car, was launched. Now a leading manufacturing force with subsidiaries in North
and South America, Volkswagen has taken over many other companies over the
past 50 years including Audi (1965) and NSU (1969) in Germany, SEAT (1982)
in Spain, Skoda (1990) in the Czech Republic, and Rolls‐Royce (1998) in Britain.
High‐quality design has been an important ingredient of the company's
international success (“Volkswagen” 1).

a. Corporate Social Responsibility

 Volkswagen supports projects which promote culture and art, education, science,
health and sport. Why? Because we believe that as a company with global
operations we have a duty of responsibility towards our global society which can't
be fulfilled simply by applying charity. On the contrary, it takes individual and
above all long-term commitment.
 As far as Volkswagen Group is concerned, bearing its social responsibility has
long been at the heart of our corporate culture. The 1970s, for example, saw the
establishment at our sites in Brazil of a corporatefoundation to promote education
and health in those regions. A few short years later, the Community Trust was
founded in South Africa with similar goals. These foundations now look back over
many successful years.
These two exemplary Volkswagen Group projects typify the philosophy and
fundamental beliefs of our social commitment. There are two core elementsat
work here:
1) Continuity, not superficial following of fashion. 2) Working to create
sustainable structural developments at our sites as sources of economic and
social stimulus and opportunities for stakeholders.

b. Triple Bottom Line

c. Ethical Considerations

2. Triple Bottom Line/Corporate Social Responsibility

a. Philanthropy ( Charities and Donations)

b. Environmental
 Our guidelines relating to responsibility and sustainability bring together the
challenges of the 21st century, in particular resource conservation and climate
protection, together with intra- and intergenerational justice.
The projects we select reflect a philosophy and fundamental conviction based
on two core elements: these are applying continuity rather than just following
the latest fashion, and working to create sustainable structural developments at
our sites as sources of economic and social stimulus and opportunities for
stakeholders.
In concrete terms all CSR projects which Volkswagen initiates and supports
internationally must satisfy a number of key guidelines, ensuring that:
 They are in accordance with the Group’s principles while addressing specific
local or regional issues.


 They express the diversity within the Group as well as in the social environment
within which the projects take place.


 They originate from an intense stakeholder dialogue with local players, those
actively involved in project realisation, and
 their project management takes place locally and is the responsibility of the
units active at that location.
 c. Labor Practices (Employees)
 Work is just one part of life. The term "work/life balance" overtly takes
up this notion. Enabling its employees to find the right balance
between work and private life is a permanent challenge for any
successful company. Both staff and company benefit to an equal
extent. The right balance encourages employee satisfaction, providing
for reduced absenteeism and increased productivity.

 The Volkswagen Group employs numerous projects to support its staff,

for example in reconciling time spent with the family with time spent
at work. Both in production and in the field of services, we offer a
variety of different part-time and shift models. But childless employees
also have their own individual ideas about harmony between work and
private life, and want their employer to take their interests into
account. Creative employment solutions with flexible, individual
working time models have been available for all members of staff for
many years.

 To help parents achieve that often difficult balance between work and
family, some factories are able to offer special child care facilities,
which can prove to be especially useful. That creates motivation to re-
enter the workforce.

d. Diesel Emissions Scandal

 Volkswagen's situation has taken another turn for the worse as the company has
admitted its 3.0-liter TDI V-6 engine also employs an emissions cheating device.
The admission came 18 days after Volkswagen issued an explicit denial of EPA
allegations that the V-6 diesels are also cheating on emissions.
The admission adds another 85,000 vehicles to the total, a number 8.5 times
larger than the EPA had alleged. The original complaint fingered 10,000 vehicles
from the 2014 and 2015 model years, as well as an unknown number of 2016
models. Volkswagen admitted 75,000 additional vehicles from the 2009 to 2013
model years also employed cheat software.
In response to the initial allegation, Volkswagen put a stop-sale on all affected
new and used Audi, Porsche, and Volkswagen cars and SUVs. The stop-sale
has been extended to include every diesel V-6 vehicle since 2009. These include
the Audi A6, A7, A8, Q5, and Q7; the Porsche Cayenne; and the Volkswagen
Touareg.
According to the Notice of Violation of the Clean Air Act issued by the EPA,
vehicles equipped with the 3.0-liter TDI V-6 engine emit up to nine times the
nitrogen oxide allowed by law.
Volkswagen initially denied the allegations. "Volkswagen AG wishes to
emphasize that no software has been installed in the 3-liter V6 diesel power units
to alter emissions characteristics in a forbidden manner," the automaker said in a
statement.
Following the admission, Audi officials clarified to Automotive News that the
vehicles contained "auxiliary emissions control software" that is legal in Europe
but was not disclosed to U.S. regulators. As with the four-cylinder engine, the
software detects an emissions test in progress and enables "temperature
conditioning" mode, which turns on the emissions system. In normal driving, the
emissions system is deactivated. Audi officials told Reuters the fix would likely be
a relatively inexpensive software update. At press time, a fix had been proposed
to regulators but not publicly announced.
A fix for the cheating four-cylinder diesel models had been submitted to
California's Air Resources Board for review, but details had not been announced
publicly at press time.
The newly revealed cheating could add up to $3.2 billion in additional fines to the
potential $18 billion in fines Volkswagen is already facing in the U.S.
The scandal has also claimed the career of Ulrich Hackenberg, the Audi board
member responsible for technical development and the driving force behind
Volkswagen Group's modular vehicle platforms, which underpin nearly all of the
group's new vehicles. Hackenberg was also behind the group's push toward
electrification. He officially retired in December after reportedly being suspended
in September. Nine total executives have been suspended so far.
The company notes that the cars don't pose a safety risk for drivers. Volkswagen
has set aside an additional 2 billion euros to fix the problem and is in contact with
regulatory agencies discussing solutions to the problem.
Newly minted Volkswagen chairman Hans Dieter Poetsch, speaking at a press
conference, cited three causes for the diesel scandal: a tolerance for breaking
the rules in some parts of the company, individual failures, and flawed processes
(Scott 1).
References

"Volkswagen." . : , 2004-01-01. Oxford Reference. 2005-01-01. Date Accessed 12 Mar.

2016
<http://www.oxfordreference.com/view/10.1093/oi/authority.20110803120158815>.

Evans, Scott. "Volkswagen Scandal Worsens As V-6 Diesel Engines Are Implicated."
Motor Trend 68.3 (2016): 18. Academic Search Complete. Web. 12 Mar. 2016.