Significantly, ethics account for the strong relations that ensure the creation of a positive society. Ethics are a code of principles that determine the resolutions in an organization or a society (Tai and Chuang, 2014 p.17). Business organizations should have ethics that guide the declarations of the organization and strive for the positive environment (Schwartz, 2017 p.111). Corporations should not only assimilate principles in the internal structure of the organization but also extends the application of the principles to the outside environment that offers the inputs used in the organization (Lindgreen and Swaen, 2010 p. 13). Considerably, most business organizations ignore e principles and value the agenda of revenues. The assimilation of ethics should be not a matter of debate but an essential constituent of the organization erection. Moreover, the management of the organization should attempt the integration of ethics for a healthy community (Hopkins, 2012 p.114). The report seeks to front the need for sustainability of governance for the Volkswagen Organization.
The Volkswagen Corporate is a global manufacturing company based in Germany. The Volkswagen Corporate manufacture automotive and is one well established automotive manufacturing organization in the world. The Volkswagen group has been reported to have improved sales for the last years due to effective management and good societal relations. Significantly, the Volkswagen group has for the past years had the largest percentage of market share in Europe (Ihlen, 2011 p.72). The policy of the Volkswagen group of ensuring the acquisition of skillful employees has significantly increased the sales (Schrempf-Stirling, Palazzo, and Phillips, 2016 p. 704). Moreover, the effort of ensuring enabling business environment through mobilization of well internal and external relations has earned the group so far a good reputation. The participation of Volkswagen group in social undertakings such as educating lineups regarding on the use of fuel, encouraging the protection of endangered species and the promotion of technology has accounted for the progression of the Organization globally (Dans, 2015 p.102). The need to maintain ethics and the sustainability of the management is crucial for the success of the Volkswagen group.
The dawn of corporate social responsibility has been recognized by the need for business organizations to participate in social affairs actively. The past perception of corporations being revenue-oriented has been eliminated through the introduction of corporate social responsibility that advocates for giving back to the society (Hung Chen, 2011 p.85). Regarding the definition of corporate social responsibility as addressed by different scholars, corporate social responsibility is the exercise of attaining the anticipations of the society, for instance, commercial, legal and moral principles. Consequently, the operations of business organization should consider the strategy of corporate social responsibility that demands social progress for both teams and the society (Lindgreen and Swaen, 2010 p.5). The classification of corporate accountabilities into ethical, economic, legal and discretionary by Caroll requires corporations to create awareness on matters of social accountability and formulate optimal approachability. The classification of the roles is explained regarding the Volkswagen group.
Essentially, the economic role details the main objective of a business organization of earning revenue. The profits earned are engaged in the enhancement of the internal enabling business environment and adding value to the organization. Undertakings such as ensuring dividends to the shareholders, better remuneration systems and offering employment opportunities sum the economic role of the business organization (Schwartz, 2017 p. 113). Certainly, the Volkswagen group has been highlighted as one of the global employers due to favorable remuneration systems and increased number of shareholders due to good disbursement of dividends.
The legal aspect of corporate bodies to observe the business regulations in different countries and states is essential for the establishment of organizations. The organizations need to adhere to set business regulation policies, for instance, the need for authorization documents. The Volkswagen group has several international branches and all observe the defined business regulations in the various countries and states.
The ethical role entails the observation of anticipated social principles. Business organizations should observe the expected code of ethics in the society by doing what is regarded right by the ethics, for instance, ignoring harms and injuries to the society (Grant, 2016 p.79. Significantly, Volkswagen has adhered to the ethical role by ensuring that the automotive have regulators of fuel the consumed to minimize chances of harm to the society.
Finally, the discretionary role requires organizations to be involved in various social contributions. Financial assistance to the society, educational programs and promotions explain the discretionary role of companies (Grant, 2016 p.82). The Volkswagen has been involved in educating lineups regarding on the use of fuel, encouraging the protection of endangered species and the promotion of technology.
The corporate social responsibility approach requires business organizations to assimilate the economic, discretionary, legal and ethical roles to enhance improvements in the society. Substantially, the Volkswagen has observed the recommended roles in ensuring the progression in the society (Crete, 2015 p.17). The disbursement of dividends to shareholders, the observation of legal and ethical roles accounts for the reputation. Moreover, the involvement in social affairs that ensure positive relations in the society is a success factor for the Volkswagen.
Transparency and accountability of management is the surpassing policy of the Volkswagen Corporate (Lange and Washburn, 2012 p.309). The application of transparency and accountability to the several branches across the globe is the progressing objective of the Volkswagen. However, the implementation is a gradual process since the Corporate has several employees, brands and manufacturing stations.
The Volkswagen Corporate has further elaborated sustainability as the assimilation of efforts to achieve environmental, social and economic objectives in a style that presents alike preferences. The need to ensure long-term value, facilitate favorable and conducive working environment and to conserve environment is the core agenda for the Volkswagen in attaining sustainability. However, the incapability of the Volkswagen to resolve the emission challenge has impacted negatively to the business (Gong, 2016 p.176). The management is deploying policies that are aimed at minimizing the emissions to observe the discretionary role of managing harms and injuries to the society. The management is determined to exploring strategies that ensure the management of risk before intensification and formulate development plans that suit the society and environment. The implementation of the strategies will account for the corporate social responsibility for the Volkswagen group and improve the confidence of clients besides the reputation of the Organization.
Volkswagen has assimilated an administration panel and coordination committee that facilitates ethics and sustained the governance. Considerably, the increased rate of competition across the global economy necessitates the essence of a good corporate image that is essential for the growth of the business (Gong, 2015 p.177). The assimilation of ethics is the responsibility of the top administration and should consider the ethical role of the organization. The formulation of strategies and lineups by the administration should attempt the integration of ethics and the adherence of legal, discretionary, economic and ethical responsibilities of the Volkswagen group. Consequently, it is the role of the administration to discover approaches that ensure the controlling of risk before escalation and frame development plans that suit the society and environment. The application of the strategies will offer the explanation for the corporate social responsibility for the Volkswagen group and rally the confidence of clients besides the status of the corporate.
The smooth flow of business is reflected through the key indicators of performance. Certainly, the key indicators of performance facilitate the existence of the organization, and therefore, it is the accountability of the administration to devise the indicators that require motivation, for instance the remuneration systems (Toledo, 2012 p. 4414). The establishment of incentive strategies for all employees enhances sustainability. Employees get motivated through the introduction of the incentive policies and therefore, the performance of the organization is sustained. The assimilation of such policies should be a priority of the administration but be enjoyed by all employees. Certainly, the Volkswagen administration has established an incentive policy to employees that increase performance and sustainability (Blackwelder et al. 2016 p.34). Moreover, the Volkswagen administration has enhanced a bonus scheme for target production. The organization has secured a bonus scheme when a certain production has to be achieved. Consequently, the scheme ensures sustainability since the employees are the beneficiaries of the scheme.
Volkswagen has further facilitated sustainability through communication sensitive issues that are related to financial matters of the organization (Buiga, 2012 p. 394). The reporting of organizational policies and set principles related to social affairs and environmental matters enhances the sustainability of the Volkswagen. The communication of related risks and results, the welfare of employees, the involvement against corruption and fight for human rights accounts for the corporate social responsibility for the organization. The admission of such sensitive information for such a large organization promotes the reputation of the corporate and enhances the sustainability of the organization (Grant, 2016 p.97). The revelation of organizational strategies increases the confidence of the stakeholders and thus sustainability is guaranteed.
The establishment of the non-administrative panel has escalated the level of credibility of the Volkswagen. Business organizations are filled by corrupt managers especially the top administration. The flow of incentives and bonuses is prone to failures especially if in the hands of the corrupt members (Lange and Washburn, 2012 p.304). Consequently, the Volkswagen non-administrative panel oversees the flow of incentives and bonuses to the employees among other compliance roles. The panel ensures the sustainability of the corporation through ensuring the policies are compiled to. The panel further oversees matters such as the abuse of power that limit the performance of the employees.
Volkswagen applies a set of principles and guidelines to be followed during the crisis. The framework of the code of morals entails the procedures to be followed during ethical and legal dilemmas. The code of morals is composed of values such as respect, client preference, performance, accountability and sustainability (Whittall et al. 2015 p.25). The various members of the organization should observe the ethics regardless of the rank. The code of morals that define the channels to be employed during ethical and legal dilemmas enhances the sustainability of the Volkswagen group.
The administration of the stakeholders is the strength of the Volkswagen corporate that sustains the organization (Dans, 2015 p.122). Stakeholders are the central pillars of business and therefore, the administration of the stakeholders is vital for the success of the business. The Volkswagen group adheres to the prospects of the stakeholders through interacting. The strategy of deploying dialogue to handling the crisis of the stakeholders enhances the group sustainability.
Conclusion
The view of business organizations as being revenue-oriented has been substituted through globalization that requires the observation of morals. In the context of corporate morals and governance, morals are integrated policies within the organization that define the responsibilities of an organization to the society. Substantially, the corporate obligation morals and management is a central part of business organizations and therefore, the organizations need to sustain morals that ensure good relations in the society. The birth of corporate social responsibility has been recognized by the need for business organizations to participate in social affairs actively. The past perception of organizations being revenue-oriented has been eliminated through the introduction of corporate social responsibility that advocates for giving back to the society. Transparency and accountability of management is the surpassing policy of the Volkswagen Corporate. The application of transparency and accountability to the several branches across the globe is the progressing objective of the Volkswagen.
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