The auditing firm distances itself from the duo’s work on VW’s China plant. By posting a comment on LinkedIn, the auditor that Volkswagen (VOWG_p.DE) engaged to audit its jointly-owned facility in Xinjiang brought attention to the fact that just two workers were responsible for supervising the project. This is a clear indication of the reputational issues that are associated with carrying out such work in the region.
Loening GmbH was given the task of conducting an audit of Volkswagen’s jointly-owned facility in Xinjiang, which is located in China and is an area where human rights organizations have recorded abuses such as enormous forced labor in detention centers. Beijing refutes abuses of this nature.
The statement, published on their LinkedIn profile on December 8th, stated that two Chinese attorneys carried out the technical audit and that Markus Loening, the founder and managing director of the firm, and one additional employee oversaw the audit. Other than these individuals, “no other team member participated in, supported, or backed this project.”
Our team members have put in a lot of effort to establish ourselves as experienced and renowned specialists in business and human rights. According to the statement, “We remain committed to ensuring that international human rights standards serve as a guide for our work.”
In addition to the cautionary comments made by confident Volkswagen investors the previous week, the statement adds to the fact that they welcomed the audit but stated that it could not be an isolated incident and that it should be the start of a series of efforts to increase openness in the supply chain of the automobile manufacturer in China.
The previous week, Loening said that it had discovered no evidence of forced labor. Nevertheless, the managing director, Loening, noted that the audit had been restricted to the facility, a joint venture with SAIC Motor (600104. SS). He also mentioned that the circumstances in Xinjiang and the difficulties in gathering data for audits were well understood.
On their LinkedIn profiles, six senior workers re-shared the statement that the business had released. With the addition of an additional line, four individuals made it clear that they did not personally endorse the acceptance of the proposal and were not involved in its execution.
Volkswagen refuses to answer any questions. A request for comment was made available to Markus Loening, Loening GmbH, and the workers; however, they did not immediately answer.
