Corporate governance and ethical principles establish a framework for supervising and managing the company. These include business policies and guidelines for ethically managing the business among other things. At Volkswagen Group, the supervisory board monitors and advises the Board of Management with regard to the supervision and the monitoring of the company. It directly involves all those decisions which are fundamental for the company(Daines, 2008).
The strategic orientation of Volkswagen AG is closely consulted by the board of management and the supervisory board of the company. The progress made in implementing the strategy is regularly assessed by the two boards. Compliance with all the international rules ofthe automotive industry, the fair treatment of the competitors and the business partners are among the guiding principles, which are followed by the board of Volkswagen AG(Hetzner, 2016).
The commitment of the company has always gone beyond the internal and the statutory requirements. Ethical principles and the voluntary obligations form an important part of the corporate culture at Volkswagen AG. At Volkswagen AG, the board has established a recognized and distinct group wide compliance management system for a number of years. In the year 2015, the compliance continued to play an important role in the governance principles of the company(Robertson, 2013).
The main role of the board at Volkswagen AG is to oversee the management and the governance of the entire organization, and they are tasked with the assessment and analysis of the performance of the senior management of the organization. The board of directors comprises of a number of the directors, which is deemed appropriate for the company in light of the articles of association. The screening process for the composition of the board is performed by the nominating committee, and they make these decisions with input from the CEO and the Chairman of the company (Lee, 2008).
A preventive compliance approach is followed by the management at Volkswagen AG through which all the potential breaches are identified before they actually occur and then immediate preventive measures aretaken to raise the awareness among the employees and also to educate them(Robertson, 2013). The Group security and the internal audit regularly perform investigations for monitoring the compliance of the company and detecting any suspicion of infringements.
Volkswagen AG follows a strict code of conduct to guide and implement the ethical principles of the organization. The code of conduct has been communicated to the employees of all the brand companies and this forms a key component of the compliance training at Volkswagen AG. Each employee of the company is required to ensure that their demeanor in the eyes of the public does not change or damage their reputation(Editorial, 2015). The company respects and recognizes the human rights and supports the observance of these rights. The company also acts in accordance with the applicable requirements of the International Labor Organizations.
The company guarantees equal opportunity and fairtreatment of its employees free from any discrimination. All the employees are chosen, hired, and supported based on their skills and qualifications………………
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