Volkswagen (VW) group emission scandal: implications on corporate social responsibility and the environment

The purpose of this paper to illustrate how a multi-national corporate culture affects a company's values with respect to corporate social responsibility and the environment. The research method is a case study used to provide an up-close and an in-depth understanding of a single case that is set in real world contexts. In 2014, an independent body in Europe discovered emissions discrepancies for the diesel models. In the United States (US), a group of scientists discovered that the emissions far exceeded the legal limits set by standards and confirmed the findings in Europe. When a VW vehicle is on the road, the emission control is switched off. The installation of the 'defeat device' software caused VW's vehicles to emit up to 40 times more nitrogen oxide (a pollutant) than the US legal limit in real world driving. Nitrogen oxides emitted from the defeat device cause respiratory problems and is a form of air pollution causing premature death. In May 2014, the US findings resulted in a notice of violation of the Clean Air Act by the US Environmental Protection Agency (EPA) issued to the company on 18 September 2015. My findings found that VW Group's legitimacy and continued survival can be assured when the implied corporate social responsibility and social contract between the company and society are fulfilled through the activities of the company that is consistent with the community's values. Legitimacy theory is used to predict that VW Group's management will implement policies to maintain and restore corporate legitimacy.