6. Discuss a company which has failed to comply with CSR principles. Explain what the company has done that violates CSR. Include information on the company and its business operations in your discussion.
Volkswagen “VW” Is a German company and is a one of an auto manufacturer. VW is a company that failed to follow Corporate Social Responsibility principles (CSR). Their only objective is to maximize profit. The Volkswagen company represent a full failure in terms of Corporate Social Responsibility (CSR). VW has violated CSR; the company set out to design a trick to control emissions. The aim of this trick is to give the company an unfair feature over its competitors which made it the world’s first car maker. While the company should be environmentally friendly according to the basis of cars, VW was poisoning the planet by Issuance 40 times the legal limit of nitrogen oxide. Volkswagen has a polluted engine, and they did everything they could to hide the fact that its diesel engines were highly polluted, and the head of CSR reject that fact. Because for Volkswagen, CSR is a marketing exercise. (Dans, 2015)
Some of Volkswagen business operations: develops vehicles, produces and sells vehicles especially passenger cars and light commercial vehicles.
VW has produced 11,000,000 diesel cars, and they used to cheat on emissions tests; the cars were not tested, and they release 40 times the legal levels of nitrogen oxide pollution. This scandal has harmed consumers, governments, and the health of the citizens in the communities. VW market value fell by 23% in September 2015, after they admitted they were cheating about the diesel emissions. (3p Contributor , 2016)
The company had a negative impact on brand trust and reputation, customer satisfaction, employee morale and loyalty, and investor confidence. Trust, once lost, is notoriously hard to regain.
VW cars released about 41,000 tonnes of nitrogen oxides into the atmosphere each year. Complying with the Environmental Protection Agency’s standards that the cars need to release 1,000 tonnes of nitrogen oxides each year. Nitrogen oxides affect the ozone, and it pollute the air, which will harm human health like asthma and will harm other living species in the earth. After VW admitting what happened, half of their profits which was about $7.3 billion goes to fix the cars, pay fines and settle customers’ lawsuits. (Mazzoni, 2015)