How Deep was Green? A Close Analysis of Sustainability and Value Orientation in VW Prior to the 2015 Emissions Scandal

Abstract

This paper discusses sustainability and its application from the business perspective, with a particular focus on Volkswagen, a leading automaker in the world.  Given its long history of aligning itself to the sustainability agenda by portraying itself as a sustainable automaker and revelations to the contrary following the 2015 carbon emissions scandal, it makes VW an ideal choice for this study whose broad focus is sustainability in the business world.  In this respect, this study looks at sustainability from the holistic perspective of sustainable business management (taking into account corporate social and environmental social obligations besides the traditional economic sustainability inclined to revenue and profit generation) and value orientation in VW prior to the 2015 carbon emissions scandal to understand the depth of the automaker’s green agenda.  Therefore, the objective of this study is to analyse sustainability and value orientation in Volkswagen prior to the 2015 carbon emissions scandal to understand the depth of the automaker’s green agenda.  

From the literature review, it is evident that VW’s sustainability or green agenda prior to the 2015 carbon emissions scandal was not as deep as portrayed by the automaker. As demonstrated in the Black Sapote Strategy analogy devised by the author, VW intentionally advanced a brown agenda (the use of Brown Agenda should be understood as activities that counter the green agenda and have a negative impact on the environment) which it coated with a thin green layer characterised by deceptive commitments to the sustainability agenda, including self-proclamation as a global environmental leader.  These actions by VW violated the principles of sustainability, given that they were focused on destroying social and environmental value which do not only undermine the ability of corporations like VW to generate future products and profits but also the future generations’ ability to meet their needs.  From the literature review and the analysis thereof, it is evident that the value orientation of Volkswagen prior to the 2015 carbon emissions scandal was hinged on stakeholder’s theory, a radical one for that matter, whose interest was to generate revenue and profits for its stakeholders “at all costs”.