Corporate Social Responsibility : An Examination of the Performance of Volkswagen Ag

Corporate Social Responsibility : An Examination of the performance of Volkswagen Ag

Nowadays, corporate social responsibility in every major international company is not just merely an option but rather a necessity, an obligation, a commitment to strive for long term goals and objectives that are commendable to the society. For a highly reputable company like Volkswagen AG, Europe's largest car manufacturing company and third in the world, (OICA : World Motor Vehicle Production 2010), their capability to effectively or ineffectively influence the society is multiplied due to the dominance and competency they have resulted by the superior market share. This essay will analyse the labour and social standard of the company specifically in its treatment towards its employees as well as its approach in handling diversity for which the company is sure to deal with.

The case against Volkswagen AG

No matter how a good Samaritan the company is, it is sure in some ways will cross path with controversies and Volkswagen AG is affiliated as well. The cause celebre for VW that shocked the company itself was when they were exposed of having a history of using slave labour during the 1940s. It all started in the year of 1988 when VW authorised a 10-year $2 million investigation headed by historians Hans Mommsen and Manfred Greiger into the extent of its involvement in the use of slave labour from the prisoners of war (Bullock 2010). A little trip down to the memory lane, it is well know that VW has related ties to the Nazi regime. The “people’s car”, as the legendary VW Beetle is known was designed in 1934 by Ferdinand Porsche after Adolf Hitler had asked the German automobile industry to build a “small suitable car”. Hitler was also pleased with Porsche saying that thanks to “the abilities of the brilliant design engineer Porsche”, it had been possible to