ANNOUNCEMENTS
In recent years, the focus on Environmental, Social, and Governance (ESG) performance has intensified, driven by growing concerns about environmental sustainability and ethical business practices. However, alongside this trend, instances of greenwashing—where companies make deceptive environmental claims—have also increased, highlighting the need for rigorous monitoring and accountability mechanisms. This study examines the case of Volkswagen's "Dieselgate" scandal to explore the disparity between reported ESG commitments and actual corporate practices.
The study begins by providing background information on the rise of ESG considerations and the emergence of greenwashing as a significant challenge for corporate governance. Drawing on literature reviews, the study identifies gaps in the existing research and underscores the importance of investigating real-world corporate behavior in relation to reported ESG standards.
The Volkswagen "Dieselgate" scandal serves as a compelling case study, demonstrating the consequences of corporate misconduct and the complexities of balancing profit motives with ethical considerations. Through documentary analysis and case study methodology, the study delves into Volkswagen's reported ESG commitments before the scandal and assesses the subsequent changes in the company's practices.
Key findings reveal significant discrepancies between Volkswagen's reported ESG performance and its actual conduct, particularly in relation to environmental standards and governance practices. Despite Volkswagen's ambitious goals and public commitments to sustainability, the scandal exposed systemic failures in corporate governance and ethical oversight.
The study concludes with implications for corporate governance, sustainability reporting, and regulatory oversight. It emphasizes the importance of transparency, accountability, and ethical leadership in aligning reported ESG commitments with actual corporate practices. By shedding light on the Volkswagen case, this study contributes to a deeper understanding of the challenges facing companies in meeting ESG standards and navigating the complexities of corporate responsibility in today's business environment.
Key Words: Volkswagen AG (VW), Sustainability, ESG, Annual Report, Greenwashing, Corporate Governance.
