A Brief Review on Sensemaking Corporate Social Responsibility, Reflexive Organisational Change and Moral Transpose, the Case of Volkswagen ‘Diesel Dupe’ Crisis | Chapter 9 | Insights into Economics and Management Vol. 9

 Corporate scandals of monstrous proportions have occurred all around the world. The Enron Scandal, the Nike Sweatshop Scandal, and the recent Johnson & Johnson baby talc scandal in 2018 are just a few examples of business scandals that have altered the business world and reignited the value of business ethics. Indeed, supranational and national efforts such as the Global Reporting Initiatives have responded to these crises by requiring more stringent corporate reporting in order to increase transparency and corporate accountability. Despite their best efforts, corporations continue to shamelessly disregard legislation. The Volkswagen "diesel dupe" scandal serves as a sharp reminder of current standards' fundamental flaws. Despite Volkswagen's strict adherence to those severe reporting rules, they violated ethics to the core, resulting in a tsunami of vehicle recalls as well as significant social, political, and legal consequences. Volkswagen's deception device was a form of "creative destruction" that called into question the utility of corporate reporting on a fundamental level. Corporate social responsibility has come a long way, and is currently manifested in the form of positivistic reporting patterns. Corporations are judged on their environmental, social, and economic performance, which they display flamboyantly in order to gain support and legitimacy from stakeholders. A pragmatic approach to corporate social responsibility, on the other hand, is self-defeating. It weakens and dilutes a company's ability to reason, communicate, and respond to external factors. Corporations, on the other hand, brag about their business competence and triple bottom line. This paper examines the inherent flaws of a positivistic corporate reporting approach to social responsibility using Volkswagen as a case study. In business enterprises, a positivistic approach like this cannot foster a truthful, honest, and open attitude. Instead, this research shows how a genuine sensemaking corporate social responsibility instills reflexive organizational change and moral transpose in businesses. This paper focuses on Volkswagen's reflexive organizational restructuring and moral transposition in the face of the diesel catastrophe. This study is unique in that it incorporates an appropriate model to highlight these significant reflexive organizational changes and moral transformations in Volkswagen, considerably enhancing existing literatures in corporate social responsibility. The current authors examine the issues of sensemaking CSR on reflexive organization change and their moral transpose in this research.

Author (s) Details

Tan Seng Teck
Faculty of Business, Communication and Law (FOBCAL), INTI International University, Malaysia.

Selvamalar Ayadurai
Talenpac, PLT, Malaysia.

William Chua
IPE School of Management, Paris, France.

Tan Peng Liang
Faculty of Business, Communication and Law (FOBCAL), INTI International University, Malaysia.

Shahryar Sorooshian
Department of business administration, University of Gothenburg, Sweden.

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