Corporate social responsibility (CSR) can be defined as the business practices that are based on ethical values, in order to meet the legal requirements, as well as respect for people, communities, marketplace and environment (what is corporate social responsibility, 2002). They are many different ways to determinate CSR, but the main purpose of the CSR can be explain as the management of stakeholder are giving concern toward the responsibility and the irresponsibility acts that related to the environmental, ethical and social phenomena in a way that create corporate benefit (Vaaland et al., 2008, p.931).
Therefore, instant of making profits, the company also holds the responsibility to the impact of their production toward the people and the environment as well as the economy. As an international active vehicle manufacturer, Volkswagen took the sustainable environment protection as part of their responsibility. These responsibilities start from doing the future technology research, development and manufacturer of their products. For example, Volkswagen will check all their production areas in order to achieve the greatest possible environmental capability. (Das Auto, 2011).
The increased of the identification and loyalty with a company due to the CSR activities (Bhattacharya and Sen, 2004; Curras-Perez et al., 2009; Marin et al., 2009; Rego et al, 2010), indicates that CSR has been increasingly perceived as a strategy of corporate concern for deepening both employee and consumer commitment and relationships with organizations over time.
This will not only increase the customers’ brand loyalty, but also the employees’ loyalty toward the company. The CSR provided for the employees’ safety such as hazardous substances at the workplace might cause the serious health problem to the employees concerned. In order to protect the employees, the investigations of the hazardous substances in the air at the workplaces are required.
The main measurement of hazardous substances involved the measurement of welding smoke in bodywork manufacturer, coolant lubricants in metal processing, solvent measurements in the paint shop and diesel engine emissions in halls where vehicles are drive. The safety Chemistry Measuring of Volkswagen AG has been approve according to the ISO 17025 since 1999 and thus bears the quality seal to assess the workplace related situation of hazardous substances in the air (Das Auto, 2011). The accreditation of the Safety Chemistry measuring point is used to make sure the sustainable health and safety at work.
The integrate of ethic and corporate social responsibility (CSR) into organization strategy (Sharp and Zaitman, 2010), can be consider as a key aspect for the technology intensive firm, as innovation have been prove that they is a influence of CSR toward the organization performance (McWilliams and Siegel, 2000). The effect of this integrate will create human capital, and other intangibles such as reputation as well as culture. (Surroca et al, 2010). In order to compete in a rapidly changing business world, more and more organization has become socially responsibility to increase their reputation and brand image.
Volkswagen is giving financial contribution to enhance its corporate social responsibility to South Africa. Firstly, Volkswagen are giving a support in the fight against AIDS by provide two million euro for the new youth centre at its site in Uitenhage. The centre is part of the LoveLife Foundation, is the main focus of this centre is fight against AIDS. The LoveLife programmers’ are running by a group of voluntary national youth welfare organization Groundbreaks (Das Auto-, 2011).
Secondly, Volkswagen offer education and provide protection for the disadvantaged children. “Eine Stunde fur die Zukunft” and associated initiative “A chance to play” are both street children project that are successfully helping the disadvantage children as well as young adult. The success of both of the programmed are due to the contribute of the Volkswagen staff and Volkswagen Works Council.
The programmed “Eine Stunde Fur die Zukunft” was created to raise fund for the disadvantaged children and young adult in the area of Volkswagen plant sites all around the world (Das Auto, 2011). Through having both of the projects above, the disadvantage children are getting the chances to receive the protection and opportunity to have an education in order to developed their professional prospects.