Globalization consists of the most important aspect which helps to integrate different kinds of societies and people through trade. It helps to lead with advanced technology that assists to increase the labor market with positive effects in society (Deng, Wu, and Tan, 2016). In the present study, two different cases will be considered with the implementation of globalization that assists to communicate several benefits with the individual.


1. Discuss whether preset case being socially and ethically aware with reviewed as long term strategy

Volkswagen committed with transparent and responsible activities of corporate social responsibility that striving for economic, social, and environmental goals. With this consideration, they provide equal priority to create enduring value and provide good working conditions to handle the environment and resources with proper care. However, the company unable to meet its standards that creates negative effects. This is because irregularities in the handling of emissions are contrary to each thing for that the selected business standing. They are also regretting that they disappointed their stakeholders. They are continuously focusing on working with own standards again to boost society's confidence (Park and Mithas, 2020). Furthermore, they are comprehensively revising the sustainability concept that ensures risk and development opportunities consider successfully in the area of governance, society, and environment.

Volkswagen created a clear management structure that helps to maintain coordinating sustainability and corporate social responsibility. Frequently, CSR groups and sustainability steering issues because the management of the company not properly work. Concerning this, management needs to focus on executive members so that the group makes decisions with strategic sustainability goals. They are also monitoring the extent to which they are meeting with certain management indicators (Wu, Peng, and Liao, 2018). Hence, they identify key actions area and approve sustainability reports.

There are several duties also include steering groups so that coordinating all sustainability activities helps several stakeholders at the group level. The project team is working on topics across the business area such as stakeholder management, sustainability in supplier relationships, etc. This coordination and working structure also largely established across the brand which is constantly expanding. To promote communication across the group, it can be stated that CSR meetings proved itself as an integral part of the group-wide coordination structure. There are several CSR projects around the world in which Volkswagen initiate their participation. In different kinds of key principles, they are continuously focusing such as projects that are compatible with principles of the group at the same time addressing regional issues. They also demonstrate diversity in the group and social environment can be implemented in positive consideration. Furthermore, they result in close stakeholder dialog with local players who involved in implementation (Park and Mithas, 2020). Project management is the responsibility of local units who are working on the project.

Corporate social responsibility occupied as a prominent place on the global corporate agenda. In this regard, an increasing number of the corporation is engaged to make sustainable results with creating social values. A high profile corporate ethical scandal occurs that capturing the attention of the media and damage public trust as well. This emission scandal disturbing systematic corporate fraud that is harmed government, the health of citizens, customers, societies, etc. (Deng, Wu, and Tan, 2016). Therefore, such kind of corporate issue profoundly that denotes the company is not being socially and ethical awareness.

Volkswagen also pursues environmental, social, and economic objectives with equal measurement. Therefore, three goals combined can also realize with supports from the other two aspects. CSR means that fulfilling responsibilities also obliged towards different stakeholders of a corporation. They are also realizing the importance of sustainability. It can be understood that at the workplace of the chosen business had also a problem with CSR to regulate effective functioning. The majority of people look for CSR activities that are superfluous (Wu, Peng, and Liao, 2018). In the case of the chosen business, it can be stated that people are mostly responsible for different kind of actions that assists to lead with very well paid in return for assuming responsibility. With the help of having a perfect budget, it also allows the developing system to find real aspects of the company’s outcomes.

However, the Volkswagen crisis also highlights the falling of capitalism within the system that considers close attention to the reality of the future. For understanding corporate social responsibility, there is also emphasis required on obligation which is given to the communities. For different kinds of multinational corporations, there are several responsibilities of staff members employing so that take care of the consumer and protecting communities also increase profitability. The core idea for development in the chosen enterprise also combines social issues with economic development in a systematic manner. The chosen business also taking parts in different social activities and they are giving quick responses as per the demand of local government. There ethic is an important standard that can be demonstrated standards that can be deal with market competition easily (Guillot, 2018). Corporate ethics defined as relying on social public opinion and many other traditional habits in a specific atmosphere regarding several principles to measure behaviors of a particular corporation.


2. Range of corporate example, framework, and theories to what extent diversification of activities lieu to being focused on its core activities

Diversification is the process of business in which enlarging or varying different range of products or field of operations. In this consideration, different aspects of diversification are art with existing entities branching into different kinds of business opportunities. In Volkswagen's decision taken to diversify a challenging decision for the chosen entity, it can lead to gain rewards with risks (Wu, Peng, and Liao, 2018). There are the following theories explained that helps to diversify different activities that are focused on its core activities:

Cognitive Diversity Hypothesis: According to the present case study of Volkswagen, it can be stated that diversity has no relationship with group performances. However, there are some aspects shows a relationship with the group performances. When there is a negative relationship, it can be stated that the group consists of poor group performance. There is less diversity means that effective performances successfully develop which shows creative outcomes. As per the different findings, cognitive theory focus on differences among several team members in term of characteristics, expertise, perspectives, experience, etc. (Park and Mithas, 2020). Furthermore, there are different kinds of physical diversity characteristics such as race, gender, sex, age, etc. positively influence the performances of staff members. This is because team members are contributing unique cognitive attributes based on experience as per stemming from the demographic background.

Social cognitive theory: Social cognitive theory refers to another theory which seeks to demonstrate the diversity that can result in term of negative outcomes within the group (Deng, Wu, and Tan, 2016). This theory suggests that people are generally focused on simplifying and cope with a different kinds of information in Volkswagen. These categories are also allowed to quickly and easily compartmentalize data so that people are also often categorized by their visible characteristics based on race, gender, age, etc. This theory applied to a larger group of people in which overgeneralization of different characteristics developed within the group. Stereotypes are also related which refer to discrimination (Tracey and Florian, 2016). In the job-related context, there is categorization within employment is often illegal in which approach is inconsistent with the valuing diversity approach.

Schema theory: Schema theory defines as the encoding of information of each individual based on demographic characteristics. There are units of information and knowledge experienced by individuals who are generally stored to have patterns and interrelationships. Therefore, in Volkswagen creating schemas can be used as an evaluation of self and others. Therefore, prior perceived knowledge or belief embodied individuals categorize people, events, and objects (Zweibelson,  2016). Therefore, the use of these categories evaluates in terms of encountered people to make the perfect decision regarding interaction with them. Based on this theory, it can be stated that staff members of the chosen business develop schemas about co-workers based on race, gender, and other diversity of traits. They are generally formed about different organizational policies, work for climate and leadership. Schemas formed in terms of positive and negative that will affect the attitude and behaviors of staff members towards one another (Baylis, Wirtz and Gray, 2018).

Justification suppression model: This model explains circumstances in which prejudices several people might act on different aspects. The process through which people perceive characteristics as the two-step process in that certain group or individual helps to lead with effectiveness (Guillot, 2018). Furthermore, conflicting emotions are motivated to suppress rather than act upon it. This theory suggests in Volkswagen that all people have some sort that they are also learning from an early age. Prejudices are often reinforced to intimate others. Different individuals use different kinds of methods to justify this kind of prejudices. In this aspect of prejudiced, the individual will also look for reasons to acting on prejudiced beliefs. Research shows that there are different ways also considered an important way with social norms that will not be received negatively (Lane and Maxfield, 2018).

Social identity theory: Social identity theory is another kind of aspect that creates a negative outcome. This theory also suggests that contact with others in Volkswagen can be demonstrated to categorize which can be belonging within the group. To tend to look for different members, it can be stated that different group members involved who perceived with having a similar attitude, behavior, and characteristics (Albino, Friedman and William, 2016). Researchers are also considering interaction with different people from in-group to out-group.


From the present study, it can be stated that strategy is one of the complex problems within the organization. In this consideration, the present study based on Volkswagen which failed to implement globalization creatively. Furthermore, it summarized about long term strategy that helps to deal with more creative aspects within the business. At last, it concluded about different theories of diversification which can be successfully implemented within the business.



Albino, D. K., Friedman, K. and William, G., 2016. Military strategy in a complex world. arXiv preprint arXiv:1602.05670.

Baylis, J., Wirtz, J. and Gray, C. eds., 2018. Strategy in the contemporary world. Oxford University Press, USA.

Deng, Y., Wu, J. and Tan, Y. J., 2016. Optimal attack strategy of complex networks based on tabu search. Physica A: Statistical Mechanics and its Applications. 442. pp.74-81.

Guillot, W. M., 2018. 2017 National Security Strategy Perspective. Strategic Studies Quarterly. 12(1). pp.22-24.

Lane, D. and Maxfield, R., 2018. Foresight, complexity, and strategy. In The economy as an evolving complex system II (pp. 169-198). CRC Press.


Tracey, B. and Florian, K. eds., 2016. Educational research and innovation governing education in a complex world. OECD Publishing.

Wu, G., Peng, C. and Liao, T. W., 2018. Research on edges immunization strategy for complex network based on SIS-CA model. Procedia Manufacturing. 17. pp.1065-1072.

Zweibelson, B., 2016. Rose-tinted lenses: how American functionalist strategy inhibits our appreciation of complex conflicts. Defence Studies. 16(1). pp.68-88.


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