In the recent decades, managers and organisations are changing their view in managing the organisations. Ethics and the ethical value in making a decision have changed the perspective of organising a business.
The theorists have described that revenue generation and profit making are not only the sole ideas in running a business. Satisfying all stakeholders and contributing to the societal development makes the organisation sustainable for long term.
On this change, the organisations have formed new department by the name department of corporate social responsibility (CSR). Moreover, governments are insisting companies to follow CSR and providing with incentives. However, ethical dilemmas are coming into light. This paper will discuss some theories of CSR and relates with recent Volkswagen ethical dilemma.
Table of Contents
1 Introduction:
2 Volkswagen, CSR and Ethical Dilemma:
3 Corporate Social Responsibility Theory by CarrollS:
4 Decision Making and Managers’ Morality:
5 Conclusion:
Objectives and Topics
This paper examines the integration of Corporate Social Responsibility (CSR) within organizational frameworks, focusing on the ethical implications of business decision-making. The primary research goal is to evaluate the recent ethical dilemma faced by Volkswagen (VW) through the lens of CSR theories and to provide recommendations for leadership and decision-making processes to prevent future ethical misconduct.
- Corporate Social Responsibility (CSR) frameworks and theories
- Carroll’s CSR Pyramid as an analytical tool
- Ethical dilemmas in the automotive manufacturing industry
- The role of managerial morality in decision-making processes
- Strategies for ethical leadership and organizational accountability
Excerpt from the book
2 Volkswagen, CSR and Ethical Dilemma:
Volkswagen (VW) is a German automobile manufacturer operating in multi continents and one amongst the leading car manufacturers. From the vision statement of VW it is found that, VW wanted to be the most attractive employers by 2018 (Volkswagen, 2016). In addition, Volkswagen believes that healthy and skilful team can make an efficient team (Volkswagen, 2016). By these findings, it can be predicted that the company is bound to maintain a healthy working environment, which is an evidence of following corporate social responsibility (Jamali & Mirshak, 2006). Apart from the internal ethical environment VW is actively participating in the social support activities (one of the components in CSR activities) such as education and training centre in India and other countries, awareness programmes on fuel consumption in Australia , conservation of threatened species in China, encouragement to technology innovations at graduate levels and other public awareness programmes (Volkswagen, 2012). Though VW is playing an active role in CSR, in the year 2015 an ethical dilemma has been recorded.
In the world of manufacturing industries, companies and manufacturers have to maintain certain standards in their products in the market (Hotten, 2015). Despite of these standards, VW has violated the permitted carbon emission level of their diesel variant vehicles, which was identified by a small research team at University of Virginia (ABC, 2015). Latter the issue was reported to Environmental Protection Agency (EPA). EPA, in its investigation has discovered a defeat device that cheats the agency in from recognition of excess pollution at checking stage before the car is certified to release in the market (Spence, 2015). To describe in depth, VW has used a device in the vehicle’s exhaust system that neutralise the carbon dioxide elements, but to make the device to be effective more fuel has to be consumed by the vehicle (Spence, 2015).
Summary of Chapters
1 Introduction: This chapter defines ethics and corporate social responsibility, highlighting their significance in modern business and outlining the focus on Volkswagen's recent ethical challenges.
2 Volkswagen, CSR and Ethical Dilemma: This section provides an overview of Volkswagen's CSR activities and details the 2015 emissions scandal involving the use of illegal defeat devices to bypass environmental standards.
3 Corporate Social Responsibility Theory by CarrollS: This chapter introduces Carroll's CSR pyramid, categorizing organizational responsibilities into economic, legal, ethical, and philanthropic segments, and maps them to VW's operations.
4 Decision Making and Managers’ Morality: This section discusses the critical role of managerial moral reasoning and classifies leadership styles into moral, immoral, and amoral categories in the context of the VW case.
5 Conclusion: The final chapter synthesizes findings and suggests that adopting transformational leadership and improved moral decision-making processes can help Volkswagen restore its ethical standing.
Keywords
Corporate Social Responsibility, CSR, Volkswagen, VW, Ethical Dilemma, Carroll's CSR Pyramid, Managerial Morality, Business Ethics, Defeat Device, Carbon Emissions, Environmental Protection Agency, Transformational Leadership, Organizational Accountability, Stakeholder Management, Decision-making
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on the role of Corporate Social Responsibility (CSR) in corporate governance and analyzes how ethical failures occur within large organizations, using the Volkswagen emissions scandal as a primary case study.
What are the central themes discussed in the text?
The main themes include ethical decision-making, the CSR pyramid by Carroll, the distinction between moral and immoral management, and the necessity of organizational transparency in manufacturing.
What is the primary objective of this study?
The objective is to evaluate how CSR theories can be applied to corporate actions and to provide actionable recommendations for improving leadership and ethical decision-making to avoid future controversies.
Which scientific methods or frameworks are utilized?
The author uses a qualitative approach, applying Carroll’s CSR Pyramid and theories of moral management to evaluate empirical evidence regarding Volkswagen’s corporate actions.
What is covered in the main body of the work?
The main body examines the history of CSR, details the specifics of the Volkswagen scandal, provides a theoretical breakdown of responsibilities, and analyzes the influence of management behavior on ethical outcomes.
Which keywords characterize this study?
Key terms include Corporate Social Responsibility, ethical dilemma, VW emissions scandal, Carroll's pyramid, managerial morality, and transformational leadership.
How does the author categorize managers in relation to ethics?
The author, referencing Carroll, categorizes managers into three groups: moral managers (who prioritize ethical values), immoral managers (who prioritize profit over ethics), and amoral managers (who act without consideration for ethics).
Why does the author suggest transformational leadership for Volkswagen?
Transformational leadership is suggested because it fosters a positive, ethical environment, encourages employees to think beyond self-interest, and helps leaders act as role models to restore the organization's lost trust.
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- Viswa Krishna Vyas Tippabhotla (Autor:in), 2016, Corporate and social responsibility. The case of Volkswagen, München, GRIN Verlag, https://www.grin.com/document/323498
