Research Paper Help on Sustainability Strategy at Volkswagen

Sustainability Strategy at Volkswagen

According to Willard (2012), sustainable strategies ensure companies gain competitive advantage in their areas of business. This is as a result of the extensive and far-reaching benefits that accrue from the investments in social and environmental development. As a result, Volkswagen is pursuing a well-defined strategy that encompasses economic growth, environmental protection and resources conservation, and people empowerment. The strategy is being implemented through activities, such as investments in electric mobility, enabling it to consolidate its claim as the leader in the technology through vehicles, such as e-golf. Further, it has invested in training of employees and development of resource efficient plants.

The factors Volkswagen is measuring and reporting are salient to stakeholders. For example, the improvement of operations should be 25% more environmental friendly, and resource-efficient production plants in line with the best standards. Further, reduction of carbon dioxide emission from vehicles to below 130g/km is an achievement both stakeholders, and shareholder would appreciate (Volkswagen, 2014).

The firm has focused more on the stakeholders rather than shareholders. This can be deduced from the significant investments in programs that are neither aimed at maximizing revenue nor profits. These programs include investment in fuel efficiency research and enhancement of electric mobility through the improvement of temperature management in their electrical vehicles line. Further, it has invested in resource conservation. This includes reforestation in Brazil and maintenance of small reservoirs in power generation (Volkswagen, 2014).

The metrics utilized therefore indicate that Volkswagen is on track towards sustainability in a number of ways. First, it has invested in the development of society through activities, such as education, vocational training, and creation of good working conditions for its employees. Further, it has invested in good customer service, thus encouraging future business. Lastly, the company has significantly invested in environmental conservation. This is beneficial in mitigation of risks that would emanate from adverse environmental conditions capable of adversely affecting its business continuity. Consequently, it has gained recognition, such as the Brazilian awards due to efforts in taking the first position in the Dow Jones index (Willard, 2012).


Volkswagen. (2014). Sustainability Report. Retrieved on 27th March 2015 from: Http://Www.Volkswagenag.Com/Content/Vwcorp/Info_Center/En/Publications/2014/05/Group_Sustainability_Report_2013.Bin.Html/Binarystorageitem/File/Volkswagen_Sustainabilityreport_2013.Pdf

Willard, B. (2012). The New Sustainability Advantage: Seven Business Case Benefits of a Triple Bottom Line. Gabriola Island, B.C: New Society Publishers.