Large Market Share, Even Larger Csr; Volkswagen Ag
Communications in Business 100
Critical Essay
Volkswagen AG
Volkswagen AG: Large market share, even larger Corporate Social Responsibility.
Volkswagen leads the European continent, as it’s most predominant car manufacturer. Volkswagen AG is the holding company for VW group that comprises of Automotive and Financial Services. VW also owns a garage full of luxury carmakers like AUDI, Lamborghini, Bentley, and Bugatti. Other brands include SEAT and Škoda and in 2009 VW acquired a 49.9% stake in Porsche as the first step in combining the two into an integrated car company. (Hoover’s Inc. 2011). These 10 brands under Volkswagen AG’s umbrella make up a global market share of more than 11%. In recent years, engagement with the community and ensuring sustainable development has become very necessary for VW to survive as a corporate entity in the 11 European countries and an additional seven countries in the Americas, Asia and Africa in which 47 plants operate (Datamonitor 2006). Corporate Social Responsibility and Corporate Public Policy has become gradually more evident in day-to-day life due to a growing convenience of affluence and education, rising expectations and increased awareness on the public’s behalf, because of these changing aspects of the social environment, businesses are constantly being scrutinized by the public, the government, special interest groups and employees and are now expected to go well beyond the scope of minimum statutory requirements. Community Involvement and social development has become increasingly important to the Volkswagen AG as seen in its reports as well as assurances made by KPMG (2002) and PwC. The social contract and the Iron Law of responsibility allows businesses such as VW to operate within in society with a great level of success but with Volkswagen’s significant market share in the automotive industry and substantial capital resources there also comes well-defined expectations and responsibilities. Because
Critical Essay
Volkswagen AG
Volkswagen AG: Large market share, even larger Corporate Social Responsibility.
Volkswagen leads the European continent, as it’s most predominant car manufacturer. Volkswagen AG is the holding company for VW group that comprises of Automotive and Financial Services. VW also owns a garage full of luxury carmakers like AUDI, Lamborghini, Bentley, and Bugatti. Other brands include SEAT and Škoda and in 2009 VW acquired a 49.9% stake in Porsche as the first step in combining the two into an integrated car company. (Hoover’s Inc. 2011). These 10 brands under Volkswagen AG’s umbrella make up a global market share of more than 11%. In recent years, engagement with the community and ensuring sustainable development has become very necessary for VW to survive as a corporate entity in the 11 European countries and an additional seven countries in the Americas, Asia and Africa in which 47 plants operate (Datamonitor 2006). Corporate Social Responsibility and Corporate Public Policy has become gradually more evident in day-to-day life due to a growing convenience of affluence and education, rising expectations and increased awareness on the public’s behalf, because of these changing aspects of the social environment, businesses are constantly being scrutinized by the public, the government, special interest groups and employees and are now expected to go well beyond the scope of minimum statutory requirements. Community Involvement and social development has become increasingly important to the Volkswagen AG as seen in its reports as well as assurances made by KPMG (2002) and PwC. The social contract and the Iron Law of responsibility allows businesses such as VW to operate within in society with a great level of success but with Volkswagen’s significant market share in the automotive industry and substantial capital resources there also comes well-defined expectations and responsibilities. Because