...Global Compact Case Study Final Version 23 March 2007 Better Health and Safety for Suppliers A partnership project between Volkswagen, ILO & GTZ Maria Kristjansdottir Reykjavik University, School of Law mariak02@ru.is Tel: + 354 699 0482 Better Health and Safety for Suppliers Case Abstract This case study focuses on the “Better Health and Safety for Suppliers” project and how Volkswagen AG seeks to strengthen their policy in Health Protection, Promotion and Occupational Safety by promoting social protection, improving safety and health standards and strengthening labour inspection. The project is a partnership project between Volkswagen, the International Labour Organization and the German Corporation for Technical Cooperation. The project entails first facilitating the participation of selected Volkswagen suppliers in Brazil, Mexico and South Africa in audits with respect to Occupational Safety and Health in their workplace. Based on the findings of these initial audits, several recommendations are given and used to generate a checklist for a second review (conducted up to 6 months after the initial audit). A report is then created which documents the audit findings, including any improvements that have taken place at such supplier. When all the suppliers have been assessed, best practices and solutions found across all project countries will be developed and collected into an online network. This network...
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...Global Compact Case Study Final Version 23 March 2007 Better Health and Safety for Suppliers A partnership project between Volkswagen, ILO & GTZ Maria Kristjansdottir Reykjavik University, School of Law mariak02@ru.is Tel: + 354 699 0482 Better Health and Safety for Suppliers Case Abstract This case study focuses on the “Better Health and Safety for Suppliers” project and how Volkswagen AG seeks to strengthen their policy in Health Protection, Promotion and Occupational Safety by promoting social protection, improving safety and health standards and strengthening labour inspection. The project is a partnership project between Volkswagen, the International Labour Organization and the German Corporation for Technical Cooperation. The project entails first facilitating the participation of selected Volkswagen suppliers in Brazil, Mexico and South Africa in audits with respect to Occupational Safety and Health in their workplace. Based on the findings of these initial audits, several recommendations are given and used to generate a checklist for a second review (conducted up to 6 months after the initial audit). A report is then created which documents the audit findings, including any improvements that have taken place at such supplier. When all the suppliers have been assessed, best practices and solutions found across all project countries will be developed and collected into an online network. This network...
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...society and the rewards gained from ethical policies. In preparation for the event you will be provided with two briefs detailing a number of research tasks. Brief 1 is below, Brief 2 is to follow. Brief 1: You are to investigate, through extensive research, the ethical activities of VOLKSWAGEN. Start with the company mission statement, examine their aims and objectives and review the different stakeholders that Volkswagen is associated with. Once you have this research carry out the following tasks detailed below. a) Explain the ethical issues Volkswagen needs to consider in its operational activities (P1) For this task you will need to research the different ethical issues facing organisations, this should include: corporate governance; corporate social responsibility; environment; sustainability; human rights; working conditions; corruption and trading fairly. Once you have explained these issues take a look at Volkswagen’s mission statement and aims and objectives. Describe how Volkswagen is attempting to show stakeholders it’s aware of ethical concerns. b) Explain the implications for the business and stakeholders of Volkswagen operating ethically (P2) For this criteria investigate the...
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...Power is viewed as the potential ability of an individual agent to influence the target within a certain system or context. Literature says that the different power that can be manifested must be mobized in a proper manner to get the desired output. As per the Volkswagen case one of the powers that has come up is the Corporate Power. Corporate power can be assessed by looking at the strength of countervailing forces seeking to limit the influence of corporations. In other words, by looking at the forces that oppose the concentration of power in corporations, we can gain some insight into the power of corporations. The increasing popularity of business ethics and corporate social responsibility over the past 30 years has happened at the same time as the colossal growth of global corporate power. Two of the key causes of the scandal were that the senior executives did not fully understand the intricacies of the products being used; and that speaking out and challenging decisions were implicitly discouraged. There are evidences that show that exercise of coercive/ reward power as well ill use of the legitimate power was there in the organizations. The pressure that was put on the managers at Volkswagen was unusual which led to the crisis perhaps. One of the supervisory members of the company said “We need in future a climate in which problems aren’t hidden but can be openly communicated to superiors”. This shows how senior executives curbed the new ideas or the hidden issues...
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...How should a worldwide auto maker regain trust after brands disaster? A case study on Volkswagen Group Daniel HARMAN 620019565 dh325; Jeffery YIM 620022358 jy28; Ka Ying MAN 640042125 km499; Wing Tim MAN 650052933 wm259; YuPeng Huang 650003422 yh379; Zhihan GUO 650058943 zg234 Outline Emissions scandal of Volkswagen Group and its importance Reasons for comprehending the scandal Analysis of the case Implications for international enterprises Recommendation References Emissions scandal of Volkswagen Group and its significance Emissions scandal of Volkswagen Group ● ● ● Pass emissions tests by cheating Have to recall 11 million of carsestimated cost would be €6.5 billion Share price dropped from €162.40 on Sep 18 to €106 on Sep 22 Volkswagen AG VOW.DE (XETRA) in Euro Source: Reuters (2015) Reasons for comprehending the case Source: Volkswagen (2014) Volkswagen Sustainability 2014 At A Glance, p34 Reasons for comprehending the scandal ● United States is the second largest auto market ● Volkswagen Group is the largest auto maker ● Many international firms face brand crisis and should know how to renounce Analysis of the case Institution based view The leading perspective in international business suggests that ● Firms’ performance is determined by the institutional frameworks to a great extent. Institutional transitions ● Fundamental and comprehensive change introduced to the rules of game ...
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...Corporate Governance, 2001, Volume:1 Issue:2 Page:16 - 22 WHAT DO WE MEAN BY CORPORATE SOCIAL RESPONSIBILITY? Lance Moir Cranfield School of Management Lance Moir Cranfield School of Management Cranfield University Cranfield Bedford England MK43 0AL Tel: +44 (0) 1234 754374 Fax: +44 (0) 1234 752554 E-mail: l.moir@cranfield.ac.uk WHAT DO WE MEAN BY CORPORATE SOCIAL RESPONSIBILITY? There is an increasing focus by firms on examining their social responsibilities. For example, Business in the Community published ‘Winning with Integrity’ in November 2000. This has as part of its objectives ‘to produce materials and resources on how companies should measure and report their impact on society’ (Business Impact, 2000). It lists twenty such initiatives in various areas of furthering corporate social responsibility, not including its own report. Similarly, the World Business Council for Sustainable Development (WBCSD, 1999) seeks to develop a clear understanding of corporate social responsibility, including a matrix of corporate social responsibility indicators. But what is meant by Corporate Social Responsibility (‘CSR’)? Responsibility for what and to whom and who is calling for firms to be socially responsible? This article examines the broad development of the ideas behind CSR within the literature and some of the current attempts to define the social responsibilities of business. It starts by examining the debate about the nature of corporate social responsibility...
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...Porsche Agrees Sale to Qatar; Merger with VW May Complete Before 2011 17 Aug 09 http://www.ihsglobalinsight.com/SDA/SDADetail17491.htm The merger between Porsche and VW may be completed ahead of schedule, according to VW Group CFO Hans Dieter Poetsch, but questions are emerging about corporate governance over the process. IHS Global Insight Perspective Significance Qatar Holding will acquire a 10% voting stake in Porsche and 17% in eventual parent group VW Group as a result of its 7-billion-euro investment in the German giant. Implications VW and Porsche are still to enact their own capital increases, VW's will happen in the first half of 2010, whilst Porsche's plans are less concrete, but necessary to pay down the debt pile with which it is struggling. Outlook Questions over corporate governance have already been raised as the power to appoint record and reputation tarnished from the scandals of a few years ago, VW will confidence in its integrity with external investors. Porsche take a 17% voting stake in the Volkswagen (VW) Group as it acquires share options held by Porsche of the last remaining key parts of the merger, tentatively agreed last week (see Germany: 13 August 2009: VW, Porsche Tentatively Agree Merger Details; May Resurrect Auto Union Name). VW will purchase 42% of Porsche for around 3.3 billion euro by 2011, initiating a capital increase of 4 billion euro in preference shares in the first half of next year to fund the ...
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...Individual Case Analysis - Porsche 1) What are the most important general environment factors to be considered for the industry and the company and what is their effect (positive-negative-neutral)? What is your evidence for the importance of these factors? • Technology – Neutral – Though Porsche is a high end car with a high desirability it is not a market leader in technology. It is not behind the market either. It does have very advanced engine and tractions systems, and Porsche’s patented Doppelkupplung, or double clutch. None of which is necessarily ground breaking. They did however purchase Volkswagen Groups and were able to acquire new technology which puts them at more of an advantage. • Demographic – Positive - Porsche is a luxury brand and is dedicated to selling high end products to those with the means of purchasing it. Porsche has acquired the majority of Volkswagen Group to gain market share in the lower-end luxury brands as well and to synergy in its own brand. Even with the poor economy, Porsche is excelling in sales to the upper class. 2) What are the most important of the five industry forces affecting the industry and the company and what is their effect (high-moderate-low)? What is your evidence for the importance of these forces? Is the industry attractive for new entrants and incumbents? • Intensity of Rivalry Amongst Competitors – High – There are numerous competitors of similar market size which increases rivalry. This is a slow growth industry...
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...Volkswagen Table of Contents Executive Summary p.3 Global Business Environment p.5 Key Competition p.8 Technology p.10 Legal and Regulation p.13 Culture and Society p.15 Sustainability p.18 Stakeholders p.22 5year Operating Performance p.26 Conclusion p.28 Work Cited p.34 Executive Summary Volkswagen is a German automobile manufacturer founded in 1937 by the Nazi Trade Union. In the mid 1930’s, with the German economy in a depression and the German auto industry composed of mostly luxury vehicles, the Germany people couldn’t afford any of the cars. This opened a new market for the “peoples’ car” in Germany. Volkswagen, which means “peoples’ car” in German, wanted to produce good quality cars that were affordable to the people. The car for the people was a blue ocean market in Germany, and the company quickly grew. Despite WWII and the effects it had on Germany and its economy, Volkswagen survived and soon became a symbol of hope for the German future. In 1969, Volkswagen merged with what is now called Audi, to grow and expand the company. As Volkswagen grew and became more profitable they continued to expand globally and acquire new companies becoming the Volkswagen Group. The Volkswagen Group consists of Volkswagen, Audi, Bentley, Lamborghini, Bugatti, Ducati, Porsche, Suzuki, Skoda, SEAT, Scania, and MAN. This once small German car company for the people is now comprised of several...
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...Ishan Walia 860931111 Dr. Jasso Section 122 EXAM 1 1) On Moral Development a) Lawrence Kohlberg, a professor at both University of Chicago and Harvard, was the creator of the famous “theory of stages of moral development.” This theory consisted of six stages which evaluated the moral reasoning of a person. The theory is divided into three levels, each of which has two stages within them. The levels consist of preconvention level, conventional level and post conventional level. The preconvention level consists of stages one and two. This level focuses on the individual themselves, and according to Kohlberg begins to develop between at and early age (Pegasus page 1). first stage is known as the “punishment and obedience” stage. Here people are put in scenarios where they are trying to avoid punishment both mentally and physically. Here what people ask themselves is “what must I do to not get punished.” An example of this stage can be illustrated by a Nazi soldier during the time of the holocaust. Here the soldier is ordered to kill his friend who happens to be of Jewish faith, now the soldier needs to decide whether he needs to kill his friend to avoid punishment or to stand up for his friend and not kill him and receive punishment. The next stage is called the “instrumental relativist” stage and is where people see the ideal, “treat others how they would treat you.” In this stage a person is to do whatever it takes to survive or get ahead, as they feel anyone in their...
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...Chipotle's CSR: Mission or Marketing? Megan Rehkemper Webster Abstract Companies with CSR stated standards tend to make the headlines when their actual business practices are contrary to those standards. Chipotle, one of the fastest growing chain restaurants, is no stranger to this controversy. The company has made great strides in offering “Food with Integrity” yet it still lacks in credibility. This paper will analyze Chipotle’s CSR and how its standards have led many to question the company’s core values. Chipotle's CSR: Mission or Marketing? The heightened media attention on CSR is at least partially in response to society’s interest in socially conscious businesses. Consumers are willing to pay a premium price for environmentally-friendly brands. At the same time, there is much skepticism as to whether companies are intentionally or accidently misleading consumers. Chipotle, one of the fastest growing fast-casual restaurant chains in the world, declares it serves “Food with Integrity”. What does that mean? The company’s reputation has taken some hits in recent years due to lack of transparency. Lessons have been learned along the way yet there is still a credibility gap. Many wonder if Chipotle is telling the public a feel-good story or the truth. This paper will take a look at the company’s CSR: intent vs. execution vs. depiction. Genetically Modified Organisms GMO’s are plants or animals who have been inserted with a gene from an unrelated species...
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...PROFILE Volkswagen Group: Marketing Strategy Analysis and Profile Andrew Clayton, Brennen Charles, Brandon Ferrell and Whitney Wilcher MKG 480 Marketing Management Ball State University Muncie, IN 47306 Professor John Vann Dec. 9, 2011 TABLE OF CONTENTS Background ………………………….………………………………………………………………………. 3 Product Market Matrix …………….………………………………………………………………………. 4 Values ………….……………………………….……………………………………………………………. 8 Mission Statement…….….…………………….…………………………………………………..………. 12 Objectives …….….….………………….……………………………………………………………..……. 13 Porter’s Five Forces …..……………….……………………………………………………………..……. 15 Sustainability …..…………...………….……………………………………………………………..……. 20 Boston Consulting Group Growth/Share Matrix ……………...…………………………………..……. 25 Directional Policy Matrix ……………...…………………………...………………………………..……. 31 Positioning ………………………….…...…………………………...………………………………..……. 34 Marketing Mix ……………………..…...…………………………...………………………………..……. 38 References ……………………..…..........…………………………...………………………………..……. 43 2 BACKGROUND Volkswagen group is a automotive conglomerate consisting of several brands of vehicles for a range of customer groups at a range of prices. It is one of the top automotive manufacturer’s in the world and is the top automotive manufacturer in Europe (Volkswagen, 2011a). Beginning in the late 1930s, Volkswagen created tanks and driving equipment for Nazi Germany during World War II. After the war, Great Britain had the choice to either destroy the Volkswagen plant or...
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...Volkswagen Research “The Volkswagen emissions scandal explained” http://www.theguardian.com/business/ng-interactive/2015/sep/23/volkswagen-emissions-scandal-explained-diesel-cars * “Volkswagen has been cheating in emission tests by making its cars appear far less polluting than they are. The US Environmental Protection Agency discovered that 482,000 VW diesel cars on American roads were emitting up to 40 times more toxic fumes than permitted - and VW has since admitted the cheat affects 11m cars worldwide.” * “…far more harmful NOx emissions, including nitrogen dioxide, have been pumped into the air than was thought – on one analysis, between 250,000 to 1m extra tonnes every year. The hidden damage from these VW vehicles could equate to all of the UK’s NOx emissions from all power stations, vehicles, industry and agriculture.” * “VW’s “defeat device” is not a physical device but a programme in the engine software that lets the car perceive if it is being driven under test conditions - and only then pull out all the anti-pollution stops.” * ““Clean diesel” engines cut emissions through techniques such as adjusting air-fuel ratios and exhaust flows, and in some (though not most VWs) injecting a urea-based solution to render NOx harmless. When running normally, requiring greater performance, VW’s controls would not operate in the same way.” * “How does the defeat device know it's being tested? The EPA tests have known practices and profiles. In many...
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...However, the stakeholder theory by Edward Freeman asserted that businesses have responsibilities towards all of their stakeholders, which comprised of responsibilities in the area of philanthropy, ethical, economic and legal (see figure 1) (Stieb 2009). Corporate Social Responsibility (CSR) refers to business practices that aim to solve environment, social and economic issues (Osagie et al. 2016, 233). Besides that, global corporate citizens should engage in activities that align with the triple bottom line theory of people, planet, and profit and the principle of UNGC (Payne 2013; Ten Principle...
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...N . 4 06 10 12 14 Board of Management/Supervisory Board Report of the Supervisory Board The Board of Management Letter to our Shareholders Group values Financial Communication 18 Volkswagen share 24 Value-based management 26 Corporate Governance 30 40 46 50 53 58 60 66 Management Report Business development Net assets, financial position and earnings performance Volkswagen AG (condensed, according to German Commercial Code) Research and development Business processes Legal matters Risk report Outlook contents 40 ▼ net assets, financial position and earnings performance Sales revenue at prior year level Despite the negative effect of exchange rate movements, the Volkswagen Group generated sales revenue at the level of the previous year. However, earnings reflected unfavourable underlying conditions and special items. 12 ▼ letter to our shareholders Change and progress Our efforts are targeted at the goal of continuously enhancing the value of the Company as you, our shareholders, perceive it. 12 ▼ 14 ▼ 18 ▼ volkswagen share An attractive investment Despite difficult market conditions, the Volkswagen share has been attractive for analysts and investors. 18 ▼ 30 ▼ 40 ▼ 50 ▼ 14 ▼ 30 ▼ 50 ▼ group values Values create value >> Volkswagen is on the move – from a collection of strong...
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