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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 gas
1
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
A
l
l

i
n

B
i
l
l
i
o
n

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.