What had been a question of values and ethics has now become an issue of corporate policy. Corporate Social Responsibility (CSR) has been globally accepted by the firms in the twenty first century, in order to fulfil their moral obligations to the society that is giving to them profits and gains. One can get several examples these days where big multi-national firms (MNEs) are lending a hand towards the betterment of the society. For example: Volkswagen India initiated a programme in Maharashtra's draught stricken community by offering to expand their water reserves. This would help the local population get easy water access for their personal consumption and for irrigating their fields (Menon, 2013). Exploring the theme further, as a writer, I would be focussing chiefly on the unique features of Volkswagen's CSR policy.
In paragraphs to follow, we will be discussing the various aspects of the CSR activity by Volkswagen, which all when combined together form the complete CSR policy of the company.
- Ecological Aspect:
Volkswagen is especially dedicated towards environmental preservation and preservation of the endangered species of the ecology. According to a report published by Volkswagen (2012), the corporate, in collaboration with other initiatives, helps
- Take measures for protecting endangered species
- Promote biotopes in a manner of compensation
- Initiate programmes to train and educate for environment
- Initiate ecological research reports
- Working towards spreading biodiversity by evaluating ecological risks at the sites and working towards eliminating them.
Some of the examples can be stated to accentuate the seriousness of what Volkswagen is doing to save ecology. "Drive Clever, Save fuel" is their tagline in Australia where the corporate teaches and trains the drivers and companies in locality to drive in a manner that the fuel consumption is reduced. The results have been dramatic. The commuters recorded a reduction in fuel consumption by 19 percent. Not only is this pocket friendly for the driver's, it also conserves fuel and hence conserving natural resources (Volkswagenag.com, 2012, pp 8).
Thus, it may be said that Volkswagen is an ecologically aware corporate that is working towards spreading biodiversity and saving ecology.
- Work-force's aspect:
In most corporate which are socially responsible, the first aspect of CSR begin at home itself, that is, through maintaining the interests of the work-force. Volkswagen is one of the much loved corporate in this sense since it provides the maximum job security to its employees. In order to ensure that the employees retain their jobs even through production fluctuations, the company has provided them the option for flexible hours. Also known as the Auto 5000, its main objective was to provide the employees with flexible working hours, while cutting down their weekly wages by some percent. Thus, while the employees retained their jobs, the cost to company also reduced. Further, more than 95 percent of the employees within Volkswagen are covered under Collective Bargaining Agreements, hence safeguarding their interests at work place and ensuring a professional and safe working environment (Zimmerli, Richter and Holzinger, 2007).
- Globalisation Aspect:
It is a general notion that globalisation has led to the exploitation of natural and workforce resources because the MNCs set up plants in developing nations where the workforce is cheap and environmental regulations are lax. However, Volkswagen made it its policy to set up plants in developing nations so as to harbour further growth in these nations, helping the nation grow. In order to ensure that the workforce was not exploited (by cheaper wages) and the environment was protected, Volkswagen established an Environmental Policy Statement (May 1995) and Corporate Declaration on Social Rights and Industrial Relations (2002), which were to be adhered by all within the corporate strictly. This was amongst the first ground-breaking statement by an automobile giant within the industry and was much applauded worldwide.
- Miscellaneous:
Apart from the aspects mentioned above, Volkswagen is extremely active in preserving the local culture of the sites where it operates. Several initiatives have been launched by the company to help with the museums such as Natural Museum of Nature and Science in Tokyo (Volkswagenag.com, 2012, pp 11-12).
The corporate also donates as and when required, though it is not a big part of their policy. Nevertheless, during reformation of Japan after Tsunami and earthquake, Volkswagen and Audi together donated 2 million Euros for humanitarian aid.
Another example of CSR by Volkswagen is their "Volkswagen Experience" initiative, which focuses on teaching the drivers about road safety and how to recover in dangerous road situations.
Reference List
Menon, J., 2013. Volkswagen India Initiates CSR In Drought Declared Gulani Village At Khed In Pune. The Automotive Horizon, [online] Available at:< http://automotivehorizon.sulekha.com/volkswagen-india-initiates-csr-in-draught-declared_newsitem_6967>[Accessed 11 March 2014].
Volkswagen AG, n.d. CSR Projects. [online] Volkswagen AG. Available at:< http://www.volkswagenag.com/content/vwcorp/content/en/sustainability_and_responsibility/CSR_worldwide.html>[Accessed 11 March 2014].
Volkswagen AG, 2013. Progress Report Volkswagen AG 2011/2012. [pdf] Volkswagen AG. Available at:<http://www.volkswagenag.com/content/vwcorp/info_center/en/publications/2013/02/Progress_Report_Volkswagen_AG_2011_2012.bin.html/binarystorageitem/file/COP+Biodiversit%C3%A4t_EN_14+01+2013.pdf>[Accessed 11 March 2014].
Volkswagen AG, 2012. Responsibility knows no boundaries. [pdf] Volkswagen AG. Available at:<http://www.volkswagenag.com/content/vwcorp/info_center/en/publications/2013/01/Responsibility_knows_no_bounds.bin.html/binarystorageitem/file/VW_CSR_Weltweit_engl_eBook_DS.pdf>[Accessed 11 March 2014].
Zimmerli, W.C., Richter, K. And Holzinger, M., 2007. Corporate Ethics and Corporate Governance. Wolfsburg: Springer.
