Executive Summary
The case of Volkswagen’s cheating draws people’s attention to such major corporate social responsibility (CSR) issues as the efficacy of self-reporting by companies and the responsibility of customers owning compromised products.
First Concept: Self-Reporting
The way the German carmaker reported some basic features of its products shows that the public cannot rely on companies’ self-reporting because this practice leads to violations and the focus on financial gain. It is clear that the company focused on becoming a leading company in the U.S. market, which made the management less attentive to CSR aspects (Dans, 2015). Top managers, including CSR leaders. were aware of the fact of cheating but chose not to reveal the truth (Neil, 2015). The Volkswagen example should not be seen as an exception because it is a rather common practice.
Numerous scandals involving other carmakers or other companies show that top managers try to conceal some facts and are reluctant to admit their unethical or illegal behavior. For example, Hyundai Motor Co., and another Korean carmaker, Kia Motors Corp., were to pay millions as the penalty for the violation of certain norms (Boston et al., 2015).
Companies provide reports that contain untruthful information to achieve financial gains and create a favorable image (Uvkoff, 2015). Top managers appear to focus on concealing some unpleasant facts rather than try to ensure that their organization uses only responsible practices. Obviously, the reliance on companies’ self-reporting has been compromised as organizations tend to provide reports that include data favorable to their image as well as performance.
Second Concept: Customers’ Responsibility
Another important aspect to take into account is the fact that customers share the companies’ responsibility, which is often forgotten or neglected. Clearly, corporate social responsibility is all about ways companies choose to run their business. At the same time, companies would be likely to avoid any violations if they knew that customers could never buy from them.
Therefore, responsibility has two facets. Customers are often eager to make sure they will not have any legal issues but are reluctant to restrain from buying or giving away products that are associated with some ethical (environmental, social) concern (Gorzelany, 2015). Of course, the company has several ways to regain customers’ trust through paying penalties, repairing affected cars, and so on (Cremer, 2015).
In this way, Volkswagen will show its commitment to the principles of CSR. However, people are likely to use those cars emitting hazardous elements and contaminating the environment. These people will still criticize the carmaker and talk about Volkswagen’s deceit. However, the situation will not change. Companies will provide their self-reports (containing unreliable data), and people will try to avoid paying much attention to details as long as they are satisfied with the product. Therefore, it is clear that customers’ behavior is a critical aspect of CSR, and people should be more responsible when it comes to such controversial issues as environmental pollution, efficiency, and so on.
Conclusion
In sum, it is possible to note that the example of Volkswagen’s irresponsible CSR practices unveils some of the most pertinent issues related to corporate social responsibility because it is critical to reconsider the efficacy of self-reporting and pay more attention to customers’ responsibility. These two aspects can be regarded as two important facets of CSR that are aimed at creating sustainable business practices.
Works Cited
Boston, William, Amy Harder, & Mike Spector. Volkswagen Halts U.S. Sales of Certain Diesel Cars. Wall Street Journal.
Cremer, Andreas. Volkswagen to refit cars affected by the emissions scandal. Reuter’s Business News.
Dans, Enrique. Volkswagen and the Failure of Corporate Social Responsibility. Forbes.
Gorzelany, Jim. Dieselgate: What VW TDI Owners Should Know. Forbes.
Neil, Dan. VW Lost Its Moral Compass in Quest for Growth. The New York Times.
Uvkoff, Liane. 2008: The Year that Drove Volkswagen over the Ethical Cliff. Forbes.