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Assignment on

Volkswagen

Course Title: Corporate Environmental Management

Course Code: BUS 3133

Submitted to:

Fahad Feroz (Course instructor)

School of Business Studies

Southeast university

Submitted by:

Name: ID no.

Md. Mohiuddin Tipu 2010210000081 (26th), FIN-B

Date of submission: 18/01/2014

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Acknowledgement

First of all I would like to express my satisfaction to the almighty Allah for rendering me

ability and knowledge to prepare this assignment.

I would like to offer my earnest thanks and gratitude to my respectable teacher Mr. Fahad Feroz,

who has been my instructor for this work.

I believe that the work on this study help me to better understand and increase my knowledge on

the overall aspect of automobile company. Through this assignment I came to know about CSR

activities of automobile companies specially Volkswagen, and also Toyota, Ford, Mercedes-

Benz etc. Hopefully all of this above work which is done through this assignment will be helpful

for my future career.

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About Volkswagen

http://en.wikipedia.org/wiki/File:Volkswagen_logo_2012.svg

Origination of Volkswagen: On May 28, in 1937, the government of Germany--then under the

control of Adolf Hitler of the Nazi trade union, the German Labour Front forms a new state-

owned automobile company, then known as Gesellschaft zur Vorbereitung des Deutschen

Volkswagens mbH. Later that year, it was renamed simply Volkswagenwerk, or "The People's

Car Company."

(http://www.volkswagen.com)

History of Volkswagen: Today, Volkswagen is the largest automaker in Europe. However, it

has not always been this way...

The history of the People's Car, Volkswagen, begins on May 28th 1937 when the Geselschaft

zur Vorbereitung des Deutschen Volkswagen mbH company is created. A year later it is

renamed into Volkswagenwerk GmbH has it's headquarters established in Wolfsburg, a city

especially created for the workers on the Volkswagen plant that are going to mass produce

Hitlers dream car for the average German, designed by Ferdinand Porsche.

But Hitler's plans weren't going to materialize because WWII started and the plant switched

production to armaments and the vehicles under the VW logo went to the army of the Third

Reich. After the war, the plant at Wolfsburg went under Allied control, British to be specific, and

under the supervision of Major Ivan Hirst, Volkswagen began the mass production of the Type 1,

or the Beetle as it would come to be known throughout the world.

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Initial sales abroad were disastrous, but through clever advertising, the Beetle gained popularity

with the young crowd and from 1945 to 1955 numbers reached the 1 million mark. Meanwhile,

sometime at the end of the 40s, Volkswagen also introduced the Type 2, a people carrier, known

as the VW Bully.

Even through the 60s and 70s, the Beetle manages to stay on top of sales, despite the fact that it

was becoming obsolete. Reliability, easy maintenance and reduced fuel consumption made the

car remain a consumer favorite. On February 17th 1972, Volkswagen celebrated selling over 15

million units of the Beetle sold, thus surpassing the Ford Model T as the most popular car in the

World, a title which it still holds to this day.

Despite the success it had with the Beetle, by the beginning of the 70s, Volkswagen AG was in

dire need of new models to replace the aging Beetle. The help came from Audi/Auto Union,

which WV had bought back in the sixties. They brought with them the knowledge for front-

wheel drive vehicles and water- Cooled engines.

In 1974, the first Golf rolls out of the factory's door and becomes an instant hit. Marketed as the

Rabbit in the United States and Canada, it was responsible for putting Volkswagen back on the

map. That same year, a more sporty model, the Scirocco makes its way onto the Volkswagen line

up. For the smaller car market, the German car maker came up with the Polo in 1976, which was

quite popular throughout Western Europe.

The next decade saw Volkswagen trying to improve their products with new generations of all

the older models and expanding their influence by taking over Spanish manufacturer Seat and the

Czech-based Skoda Auto

As the 90s rolled in, VW-owned Audi became a direct competitor for BMW and Mercedes-Benz

with products designed for a more pretentious market. This left a void in the general market

which Volkswagen now tried to fill. The third generation vehicles now came with better quality

and standards. Gradually, new luxury models were introduced, like the Touareg, a premium off-

road vehicle.

In the last decade, Volkswagen has been busy trying to set records when it comes to CO2

emissions and fuel-efficient technologies. This applies to their normal engines, running on gas

and diesel, but they are also developing hybrids.

(http://www.autoevolution.com/volkswagen/history)

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Board of Directors: The brand management of Volkswagen as follows-

Prof. Dr. rer. nat. Martin Winterkorn

Member of the Board of Management of Volkswagen AG,

with responsibility for 'Group Research and Development',

Chairman of the Supervisory Board of AUDI AG,

Chairman of the Board of Management of Porsche Automobil Holding SE

Dr. rer. pol. Dipl.-Ing. Wirt.-Ing. Arno Antlitz

Member of the Volkswagen Brand Board of Management

for Controlling and Accounting since January 1, 2010

Dr. Heinz-Jakob Neuer

Member of the Board of Management for the Volkswagen brand

with responsibility for Development since 1 July 2013

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Dr. rer. pol. h. c. Francisco Javier Garca Sanz

Member of the Board of Management for the Volkswagen brand with

Responsibility for Procurement since 30 November 1996

Christian Klingler

Member of the Board of Management of the Volkswagen passenger car brand with

responsibility for Sales and Marketing since August 2008

Prof. Dr.-Ing. Werner Neubauer

Member of the Board of Management for the Volkswagen brand with

responsibility for Components since 1 February 2007

Prof. Dr. rer. pol. Horst Neumann

Member of the Board of Management for the Volkswagen passenger

car brand with responsibility for the Human Resources and Organization division since 1 December 2005

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Dr. Ing. Hubert Waltl

Member of the Board of Management of the Volkswagen Passenger Cars

Brand with responsibility for Production and Logistics since October 1, 2009

(http://www.volkswagen.com)

Headquarter: Volkswagen has become a large international corporation from where it started

and expanded to different worldwide markets and countries. The world headquarters of

Volkswagen are located in its home country in Wolfsburg, Lower Saxony, Germany.

http://en.wikipedia.org/wiki/Volkswagen_Group

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How many countries Volkswagen operate: The Volkswagen Passenger Cars brand is one of

the worlds most successful volume carmakers. The Groups core brand maintains facilities in 14

countries, where it produces vehicles for customers in 153 nations. In 2012, Volkswagen

Passenger Cars delivered 5.74 million vehicles, setting a new record

(http://navigator.volkswagenag.com/index.html?lang=en_GB&deeplink=#brand/volkswagen/models)

Vision and Mission of Volkswagen

Vision- At Volkswagen they dont use the word Vision rather, they word it like this:

Our strategy pursues a clear objective: By 2018 the Volkswagen Group is to be the worlds most

successful and fascinating automobile manufacturer and the leading light when it comes to

sustainability.

Mission- The internal mission statement of the Volkswagen group is not available to the public,

but on November 25, 2010, the Volkswagen Group joined 21 German companies in agreeing to a

"mission statement for responsible actions in business," which serves as a national mission for

the VW group and focuses the Volkswagen leaders on the benefits of responsible business to

consumers. The six principles of this shared mission statement are:

Business must serve the good of the people.

Business that serves the good of the people requires competition.

Business that serves the good of the people is based on merit.

Business that serves the good of the people takes place globally.

Business that serves the good of the people must be sustainable.

Business that serves the good of the people demands responsible.

http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-

Statements/Volkswagen-Group-Mission-Statement.htm

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Product/services of Volkswagen

Product offer by Volkswagen to their customer: The Volkswagen brand with its claim Das

Auto. stands for innovative, high-quality and reliable cars. Volkswagen is represented in all key

market segments with more than 60 different models. It supplies most of its cars to customers in

China, Brazil and Germany. Product lineup of Volkswagen include the followings-

Commercial vehicle

Das WelAuto

Genuine parts

Genuine Accessories

Online services

Current model range:

Beetle

Compact Hatchback

Up!

City car Hatchback

Fox

Supermini Hatchback

Estate/Wagon

Polo

Supermini

Hatchback

Saloon/Sedan

Coup

Estate/Wagon

Golf

Small family car

Hatchback

Estate/Wagon

Cabriolet/Convertible

Golf

Plus

Compact MPV MPV - Multi-Purpose Vehicle

Jetta

Small family car Saloon/Sedan

Passat

Large family car

Saloon/Sedan

Estate/Wagon

Alltrack (Crossover Estate/Wagon)

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CC

Large family car Comfort Coup

Scirocco

Compact sports car Coup

Tiguan

Compact crossover SUV SUV

Eos

Compact sports car Convertible

Touran

Compact MPV MPV

Sharan

Large MPV MPV

Touareg

Mid-size luxury crossover

SUV

SUV

Phaeton

Full-size executive car Saloon/Sedan

GTI models

Polo GTI

Supermini Hatchback

Golf GTI

Small family car Hatchback

R models

Golf R

Sports car Hatchback

Scirocco R

Sports car Coup

(http://en.wikipedia.org/wiki/Volkswagen#p-search)

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Best/Good product in the market: Volkswagen has three cars in the top 10 list of best-selling

cars of all time compiled by the website 24/7 Wall St: the Volkswagen Golf, the Volkswagen

Beetle, and the Volkswagen Passat. With these three cars, Volkswagen has the most cars of any

automobile manufacturer in the lists that are still being manufactured. Volkswagens most successful product line, the Golf subcompact, won World Car of the Year 2013.

(http://www.interbrand.com/en/best-global-brands/2013/Volkswagen)

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Green product of Volkswagen:

The e-up! - In the models of the up! family, Volkswagen has developed cars that have

outstanding environmental properties thanks to highly advanced power train technologies. The

latest addition to this family, the e-up! is the first all-electric model from Volkswagen to enter

volume production.

So in terms of environmentally compatible innovation, the e-up! goes even further. As an electric

car, it generates zero local emissions. The new eco up! runs on compressed natural gas1 an eco-

friendly alternative to petrol. But the potential for savings is not the only big thing about the eco

up! That's because with a range of up to 600 kilometers, economizing in the eco up! is also a

whole lot of fun far beyond the city limits.

Overall, the Environmental Commendation shows that the Life Cycle Assessment of the e-up! is

better than that of its predecessors. As with every Environmental Commendation issued by

Volkswagen, the data have been verified and certified by the independent TV NORD

inspection agency. Certification confirms that the Life Cycle Assessment is based on reliable

data and that the methods used to compile it comply with the requirements of ISO standards

14040 and 14044.

(http://en.volkswagen.com/en/company/responsibility/environmental_commendations.html)

(http://emosite.volkswagen.de/esn/up-eco-cheer/?culture=en_COM#upEco)

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Customers of Volkswagen

Primary customer of Volkswagen: The key Customer of Volksawagen is the proffessionals and

businessman, and also people with higher economic classes.

Customer size: Volkswagen wants to expand their customer base by acquiring new, satisfied

customers around the world. In addition, Volkswagen aims to increase satisfaction among its

existing customers. Volkswagen sees the relationship with their customers first. Any business

always has to put customer service first because without the customer there would not be a

business. The customers demand a certain level of respect from Volkswagen or the potential

customer would not buy a car from them. Most companies do not constantly try to pride

themselves on how well they do with customer service. The most desirable level of importance

within Volkswagen is their customer relationships. Customers can tell that Volkswagen cares

about them by how well their vehicles are built and by how well they have service plans laid out.

Customer segmentation of Volkswagen:

1. Young, Single Professionals Ages 18-24: The first customer group selected for Volkswagen

is young single professionals between the ages of 18 and 24. This customer group is entering into

the professional workforce for the first time and has access to a higher level of income than in

college. They now have the opportunity to fulfill functional needs they have for a vehicle and

intend to meet those needs with their new lifestyle (Clayton, 2011a).

2. Married Couples with Children: The second customer group selected for Volkswagen is

married couples with children. This customer group is busy with professional and personal life.

They have more responsibilities and concerns than young adults and have a set of functional

needs that go in line with their increased responsibility and family (Clayton, 2011a).

3. Retired Couples 50 years and older: The final customer group selected for Volkswagen is

retired couples aged 50 and older. This customer group has more free time than at any other time

in their adult lives and have the necessary income saved to travel and enjoy the remainder of the

lives. Because of these qualities of their life, this customer group has distinct functional needs for

a vehicle (Clayton, 2011a), (Volkswagen, 2011a).

(http://www.slideshare.net/swamitgupta/volks-wagon-project)

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Competitors of Volkswagen

Today, the modern global automotive industry encompasses the principal manufacturers, General

Motors, Ford, Toyota, Honda, Volkswagen, and DaimlerChrysler, all of which operate in a

global competitive marketplace. It is suggested that the globalization of the automotive industry,

has greatly accelerated during the last half of the 1990's due to the construction of important

overseas facilities and establishment of mergers between giant multinational automakers.

The main competitors of Volkswagen Includes the following automobile industry-

Toyota

Ford

Mercedes-Benz

Products of Toyota: Product lineup of Toyota includes-

1. Vehicles:

Sedans

Sports

Station wagons

Hatchbacks

Mini vans and cab-wagons

Sport utility vehicles

Vans, truck and buses

Mini vehicles

Lexus

Welcab series (vehicles for the disabled and elderly)

2. Spare Parts, Accessories, and Marine Products:

Spare parts:

Maintenance Parts- Spark plugs, oil filters, wiper blades, disc pads, V belts, etc.

Oils & fluids-Engine oil, brake fluid, LLC, etc.

Exterior & functional parts- Bumpers, fender panels, headlights, etc

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Accessories:

AVN products- Navigation systems, rearview monitor, rear-seat displays, etc.

Other accessories- Floor mats, side visors, aerodynamic parts, security products, air purifiers,

aluminum wheels, etc

Marine product

Rental and leasing

Products of Ford: Product lineup of Ford includes the following-

1. Vehicles:

Cars

Crossovers & Suvs Hybrids & EVs

Commercial

Future vehicles

2. Ford accessories:

Interior

Exterior

Electronics

Wheels

Bed Products

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Products of Mercedes-Benz: Mercedes-Benz product line include the following:

1. Passenger cars::

A-Class

B-Class C-Class

CL-Class

CLA-Class

CLS-Class

E-Class

G-Class

GL-Class

GLA-Class

GLK-Class

M-Class

R-Class

S-Class

SL-Class

SLK-Class

SLS AMG

2. Vans

3. Transporter

4. Buses

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Market share situation:

(https://www.google.com.bd/search?q=Market+share+of+top+automobile+industries&client=firefox-

a&hs=anZ&rls=org.mozilla:enUS:official&tbm=isch&tbo=u&source=univ&sa=X&ei=bmzZUrXLI4rmk

AWL6YDoBA&ved=0CFwQsAQ&biw=1360&bih=605#facrc=_&imgdii=_&imgrc=csaLTWCly05TY

M%253A%3BPZ6mYTFqzJlnDM%3Bhttp%253A%252F%252Fcdn1.appleinsider.com%252F2013-06-

marketsharemanu.jpg%3Bhttp%253A%252F%252Fappleinsider.com%252Farticles%252F13%252F07%

252F26%252Fwhy-apple-is-revving-ios-in-the-car-for-an-aggressive-2014-launch%3B600%3B503)

Competitors strength: There is a sudden increase in competition from the other car

manufacturers in all the segments. competitors are launching new products everyday to have a

greater pie of the market share as well as the customer mind. Toyota, Ford, Mercedes-Benz,

BMW etc. are the prime competitors of Volkswagen. The trends and scenarios are constantly

changing in the consumer market. The silver generation with a demand for mobility and financial

strength needs something which appeals to them.

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Company profit ( According to the latest financial report)

According to the financial report, 2012 Volkswagen operatig income was- 3.64 billion

Comparison of operating profit (2012) with previous year(2011):

How the Company is performing: Volkswagen sales revenue in 2011 was 94690million which

is increased to 109942 million in 2012. As far as, Volkswagen operating profit also increases

from 2011 to 2012 it can be said that the company is going at a way to fulfill its vision.

3.55

3.6

3.65

3.7

3.75

3.8

3.85

2011 2012

All

in

B

illi

on

Volkswagen

Operarating Profit

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CSR activities performed/performing by Volkswagen

For Volkswagen, delivering on its corporate social responsibility (CSR) is the company's way of

contributing to sustainable development. Today, the principle of sustainability is universally

accepted across the globe. In short, this principle is a pledge to prevent the prospects of future

generations being diminished as a result of the way we do business and consume resources. A

sustainable approach requires ecological, financial and social objectives to be aligned.

As a global organisation, Volkswagen is committed to fulfilling its corporate responsibility and

draws on all its innovative strength in order to make an effective contribution to sustainable

mobility. The company does this by developing vehicle technology that is as clean and as

efficient as possible. Volkswagen's corporate actions also take into account the company's

responsibility to safeguard employment and ensure profitability in equal measure.As a good

corporate citizen, Volkswagen has been committed to its social responsibilities since day one. At

the Group's various sites around the world, social development, cultural initiatives and education

are supported to the same degree as projects with the aim of developing regional structures and

promoting good health, as well as projects relating to sport and nature conservation

Some CSR activities of Volkswagen are as follows-

Work2Work:

The Work2Work personnel concept launched in 2001 is a programme for employees who are

unable to continue working in their original post due to restrictions of various kinds.

Work2Work offers them a job that suits their qualifications and abilities appropriate work that adds value. In this way, value appreciation becomes value creation.

(http://www.volkswagen-karriere.de/en/what_we_stand_for/our_values/social_responsibility.html)

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"Think Blue. Factory." the Volkswagen programme for ensuring ecological production:

Volkswagen has set its sights on becoming the most innovative and sustainable volume carmaker

in the automotive world by 2018. To achieve this goal, it has set up the initiative Think Blue.,

which aims to make products and production even more environmentally friendly.

"Think Blue. Factory." is the name of the programme with which Volkswagen aims to lead the

way when it comes to having an ecological conscience. The brand has set its plants a number of

objectives in this regard: By 2018, the plants are to reduce the amount of energy consumed for

each vehicle and for each manufactured component by 25%, to reduce waste production by 25%,

to release 25% newer emissions from solvents, to consume 25% less water and to cut CO2

emissions by 25%. The consumption figures from 2010 form the basis for these reductions. All

sites and central offices are working together on bringing about these reductions, taking a

uniform approach not simply in the sense that each plant is doing its bit to reach the 25%

target, but also in that the sites are collaborating to swap and develop ideas.

(http://en.volkswagen.com/en/company/responsibility/think-blue.html)

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Volkswagen strengthens its social commitment to South Africa:

Over the years, a number of projects and programmes have been initiated to upgrade the

environment at the Uitenhage site and to give people prospects for a better life. The range of

themes extends from the fight against AIDS, to education and employment initiatives under the

banner of the Black Economic Empowerment strategy, to promoting football and other types of

sport.

Support in the fight against AIDS- As one of the projects forming part of its commitment to

the country, Volkswagen provided two million euro for a new youth centre at its site in

Uitenhage. This investment was designed to cover the construction costs and running costs of the

facility for four years. The centre is part of the LoveLife Foundation, and the fight against AIDS

is a key focus. LoveLife runs 19 multi-functional youth centres all over South Africa. These

centres include medical facilities, consultation rooms, a library, sports and recreational facilities

and a local radio station.

The LoveLife programmes are run by voluntary national youth welfare organisation

Groundbreakers, together with around 4000 schools, 500 state clinics and over 150 local non-

government organisations in South Africa. Volkswagen is using this project to extend its work

against AIDS in South Africa.

"Volkswagen is taking its role in the new South Africa extremely seriously", said Dr Martin

Winterkorn, Chairman of the Board at Volkswagen, on a recent visit to Uitenhage. "Not only do

we provide around 6000 qualified, secure workplaces in the region at our plant, but we are also

very involved in the community. We are particularly interested in the welfare of young people in

this country. The youth centre and our other initiatives help us to contribute to a better future for

the children of South Africa", continued Winterkorn.

(http://en.volkswagen.com/en/company/responsibility/responsibility/social_commitment.html)

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Volkswagen Workforce Initiative "A Chance to Play" Supports Disadvantaged

Children and Youth in Brazil: The Volkswagen Group Works Council and the child rights

agency "terre des hommes" are helping to improve future prospects for children and youth

in poor districts of Brazil with the "A chance to play" initiative. The project was officially

launched today in the country hosting the 2014 soccer World Cup. "A chance to play"

supports sports, learning and training projects for several thousand girls and boys. The

program's patrons include musician Peter Maffay and former professional soccer player

Giovane Elber.

Volkswagen CSR Supports Disadvantaged Children and Youth in Brazil

(http://optimistworld.com/volkswagen-csr-chance-to-play-brazil/)

Social projects:

Volkswagen sees itself as a partner for its locations and regions. Consequently, we initiate and

support a number of diverse projects: entrepreneur competitions, education initiatives and many

projects for street children in Central and South America, such as "One hour for the future" - in

cooperation with terre des hommes.

(http://www.volkswagen-karriere.de/en/what_we_stand_for/our_values/social_responsibility.html)

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Achievement of Volkswagen after performing CSR activities

Volkswagen wins GreenTec Award:

Think Blue. Factory under this name, Volkswagen pools its measures to achieve a lasting and continuous improvement in the environmental compatibility of its production processes. The

ambitious goal: to achieve a 25% reduction in energy consumption, waste, airborne emissions,

water consumption and CO2 emissions per vehicle produced by 2018.

The GreenTec Award acknowledges, for example, the use of geothermal energy at the Emden

location. Thanks to alternative energy sources, the need for an additional thermal power station

with a capacity of 12,000 megawatt hours was avoided: a new hall for the body shop was built

on around 5,000 piles, 3,000 of which are used to reduce water temperature at a depth of 20

metres. The water is then used for cooling the welding equipment, which in turn heats it up so

that it can then be fed into the hall heating system.

The GreenTec Award, in nine categories, is presented every year for environmental commitment

and green technologies by VKP engineering GmbH, Berlin, in collaboration with partners from

business, science, politics and the media. The winner is decided by a panel and by online voting.

(http://en.volkswagen.com/en/company/news.html)

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Volkswagen wins 2011 PR award in CSR communications category:

Recognition for cross-media campaign on CSR commitment in South Africa

The Volkswagen Group has been honored with the 2011 International German PR Award in the

CSR communications category for its international cross-media campaign 1:0 for Volkswagen

Corporate Social Responsibility in South Africa. The award was presented in Wiesbaden last

Friday by the German Public Relations Association (DPRG) and F.A.Z.-Institut. It is the German

PR industrys most prestigious award and is based on selections made by a jury of 38

representatives from science and industry.

The award recognizes a cross-media campaign organized by Volkswagen on the occasion of the

2010 FIFA World Cup informing politicians, the general public and employees about the

companys broad-ranging social commitment in South Africa. In the jurys opinion this

campaign accompanying the World Cup with its broad range of instruments and events scored

a direct hit.

The award was presented to Volkswagen representatives Dr. Carsten Krebs, active in the

communications department at Volkswagen of South Africa at the time of the campaign, and

Michael Scholing-Darby, Head of Political Communications at Group External Relations.

Volkswagens numerous projects and initiatives in South Africa, some of which have been

running for decades, focus on education, employment, health and sport. The aim is to improve

equal opportunities and to encourage the development of socially deprived communities. In

addition, the Volkswagen workforce also helps disadvantaged children and teenagers with the

One Hour for the Future and A Chance to Play initiatives.

Corporate social responsibility is firmly anchored in the corporate strategy of the Volkswagen

Group, which also received the German CSR Award in early April for its achievements in this

field.

(http://www.volkswagenag.com/content/vwcorp/info_center/en/news/2011/10/pr_communication.html)

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Volkswagen to Receive World Environment Centers 30th Anniversary Gold Medal Award

for Sustainable Development in 2014:

Washington, D.C., December 19, 2013 /3BL Media/ - The World Environment Center (WEC) is

announcing that its 30th Annual Gold Medal for International Corporate Achievement in

Sustainable Development will be awarded to the Volkswagen Group. The company is being

recognized for its comprehensive commitments to environmental sustainability operations, most

notably through its holistic sustainable business model, Think Blue. Volkswagen will accept the

Gold Medal Award on Thursday, May 15, 2014, during the Gold Medal Presentation Ceremony

in Washington, D.C.

Volkswagens Gold Medal submission was evaluated through a global competition with

companies in multiple business sectors by WECs independent Gold Medal Jury chaired by Dr.

Joel Abrams, Professor Emeritus at the University of Pittsburgh. The Jury determined that

Volkswagen earned the award on the merits of its long-term dedication to integrating

sustainability into its business products and operations.

Think Blue is Volkswagens holistic vision toward attaining a sustainable and ecofriendly

business model throughout the companys global operations and, to date, focuses on a range of

clean diesel vehicles, sustainability contracts with suppliers, efficiency training throughout

Volkswagens global workforce, and LEED-certified facilities.

On behalf of the independent Gold Medal Jury, I extend my congratulations to Volkswagen for

its longstanding commitment to sustainable business throughout its operations, facilities,

workforce and products, stated Dr. Abrams.

The World Environment Centers Gold Medal for International Corporate Achievement in

Sustainable Development was established in 1985 to recognize significant industry initiatives in

global environmental excellence and sustainable development. Recent recipients of the WEC

Gold Medal Award are: Unilever (2013), IBM (2012), Nestl (2011), Wal-Mart Stores (2010),

The Coca-Cola Company (2009), and Marks & Spencer (2008).

(http://3blmedia.com/News/CSR/Volkswagen-Receive-World-Environment-Center%E2%80%99s-30th-

Anniversary-Gold-Medal-Award-Sustainable)

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Criticism faced by Volkswagen after performing CSR activity

Unfortunately, Volkswagen hand gone a period of dark side owning to the new release of Golf 7

owning to fuel consumption which totally contradicted to the policy of environmental-friendly,

and the environmental activists were up in arms at the fuel consumption of the new Golf,

claiming the exceeded gas emission. The protest must have come as a rude shock to the car

manufacturer and give a wake-up call to the giant. What is more, Greenpeace claimed that the

automobile giant has not made fuel-efficient and fuel saving cars, and Greenpeace also pointed

out that Volkswagen "was using its strong political muscle to lobby against key environment

laws" despite claiming that wanted to be "the most Eco-friendly car manufacture in the world",

which not only destroy the environment due to the large displacement but also relate to the unfair

competition owning to the illegal lobby. From above mentioned, these large displacement cars

manufactured by Volkswagen, to some extent, damage the reputation of Volkswagen and destroy

its long-term policy of sustainable development as well as violate the goal of CSR.

(http://www.ukessays.com/essays/marketing/corporate-social-responsibility-in-volkswagen-

marketing-essay.php#ixzz2qY5g4GAh)

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CSR activities done by Volkswagen competitors

Toyota- From the development of sustainable vehicles and making manufacturing plants

sustainable to vehicle recycling, "eco-driving" educational programs and reforestation, Toyota is

actively engaged in a wide variety of programs to improve the society and environment .

An overview of Toyotas CSR activities they are performing as follows-

(http://www.toyota-global.com/sustainability/csr_initiatives/principle/)

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Ford: Some CSR activities by Ford as follows below-

Ford's Drive One 4 UR School program has contributed more than $5 million to

high schools nationwide since 2007. (PRNewsFoto/Ford Motor Company): Ford

Motor Company has contributed more than $5 million to support high school

extracurricular activities nationwide through its successful test-drive program of the

company's fuel-efficient products

Ford Establishes Greenhouse Gas Reduction Plan

Ford Becomes the First Automaker to Join CDP Water Disclosure

Ford Donates 16 Trucks to Charitable Organizations, Just in Time for the Holidays

"Ford & ISO 14001" Provides Roadmap to Environmental Savings

(http://www.csrwire.com/members/12932-ford-motor-company)

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CSR activities performing by Mercedes-Benz: Some of the CSR activities that Mercedes-Benz

is performing as follows-

(http://www.mercedes-benzsa.co.za/sustainable-development/corporate-social-responsibility)

Sange Child and Youth Care Centre funded by Marcedes-benz Southafrica is a sanctuary for the

homeless children of Mdantsane, South Africas second largest township, and its surrounding

areas. The centre was founded in 2010 and aims to provide developmental welfare services to

children in need of care and protection, as well as those infected and affected by HIV/AIDS. In

addition, the centre focusses on family preservation programmes, and providing social relief.

Devoted to Education Development in China:

Daimler and Mercedes-Benz are dedicated to support educational needs in China. Over the years,

they have been actively working with top tertiary institutions, such as offering scholarship

programs as well as providing exchange and career development opportunities to develop

students with potential. Further attention was also paid to education and all-round development

needs for underprivileged children in rural areas.

(http://www.mercedes-benz.com.cn/content/china/mpc/mpc_china_website/)

31

Conclusion & Recommendation

Volkswagen is the core brand in the portfolio of Europe's largest automotive manufacturer,

whose portfolio now houses more than eight other international marquees. VW still dominates

the Volkswagen Group, accounting for well over half of total sales. The brand has proved far

more long-lived than its origins as a concept car for the Third Reich might have suggested.

Reintroduced after World War II by Germany's post-war occupying authority, it was

subsequently adopted as a symbol of the counter-culture revolution of the 1960s. Since then, VW

has successfully modified its appeal to become arguably the most "classless" car of the modern

age, with a broad appeal to all levels of society, underpinned by a reputation for fine engineering

and consistently effective advertising, which features regularly among the winners at awards

ceremonies around the globe. As a result, it remains well and truly the "people's car" it was

originally designed to be.

The followings are my personal suggestions for Volkswagen to improve their brand image-

Volkswagen could introduce more fuel-efficient models that also emit much less CO2

across all its automotive brand, therefore meeting new customer needs for environment

friendly cars and increasing brand reputation. Also, the increasing demand on buses gives

Volkswagen the chance to increase their revenue.

Volkswagen perform less effectively in few geographic areas in the world such as in the

US market were Volkswagen gained only about 5% market share as they failed to attract

male buyers, so Volkswagen should particularly focus on these areas.

Volkswagens sport cars that release high amount of CO2 and also considered fuel

inefficient which will affect the brand reputation, so it needs to be improved to strengthen

their brand image.

Volkswagen passenger cars is very expensive to buy for lower and also middle class

people, so Volkswagen should produce car that the general people can afford to buy their

product.

Advertisements through televisions can influence many categories of people. So

Volkswagen should try to concentrate on this segment. We dont see or find much of the

Volkswage advertisements in T.V.

Volkswagen should try to increase the number of Service centers.