VOLKSWAGEN DIESEL SCANDAL
Bethany Hammond
Athens State University
Professor Chamberlain
Fall 2017
Table of Contents
I. Crisis Management……………………………………………………....Page 3
a) Principles of Crisis Leadership…………………………………… 3
b) Dealing with a Crisis……………………………………………… 3
c) How a Leader Should React to a Crisis…………………………… 4
II. Communication Styles…………………………………………………………... 4
a) Internal Stakeholders…………………………………………… 4-5
b) External Stakeholders……………………………………………... 5
III. What is Volkswagen?.............................................................................................5
a) History of Volkswagen……………………………………………. 5
IV. The Crisis………………………………………………………………………… 5 a) V. Actions of the
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They handle the media, internal company meetings, and several other related meetings. Third, set up a notification system (Bernstein, J., 2016). Fourth, one must have a holding statement available (Bernstein, J., 2016). They are used after the event occurred and to let the community know that they are aware of the issue. Know your internal and external stakeholders. After the crisis happened, one must assess the situation, create messages to be sent to the stakeholders informing them on what they need to know (Bernstein, J., 2016). The final step is performing a post-crisis analysis (Bernstein, J., 2016).
How a Leader Should React to a Crisis A good leader should hold a meeting to figure out what went wrong and calm everyone down (Baldoni, J., 2011). Then, the leader needs to act within a reasonable amount of time (Baldoni, J., 2011). The leader must address the crisis and how it will affect the company (Baldoni, J., 2011). Leader are there to control the response (Baldoni, J., 2011). Always keep one’s composure in control (Baldoni, J., 2011).
II. Communication Styles
Internal Stakeholders Internal stakeholders are those who are directly related to company like employees (Markwell, S. & Leigh-Hunt, N., 2016). Preparation for a crisis is important in dealing with one. A good way for leaders to prepare their employees is to have small work groups (Klann, G. 2003). This will encourage those who are shy to speak up
Volkswagen is one of the largest automakers in the world and it has a global reputation as a high-quality German auto brand. Social responsibility is included in VW’s corporate culture and it seems that Volkswagen made some advances in Corporate Social Responsibility because the corporation was ranked 11th 2015 in the Global CSR Rep Track 100, which listed companies by reputation (Reputation Institute, 2015).However, the company has been threatened by an emission scandal which broke in September 2015, when the Environmental Protection Agency (EPA) disclosed that Volkswagen had installed defeat devices on diesel cars which were sold in the US. These devices equipped on VW cars cheated regulators in such a way that it could detect
The first key group of stakeholders are the employees. These include both managers and regular employees at all levels of the organization. The managers are in charge of overseeing certain departments within the corporation. Managers must also work to implement the company strategy and work towards accomplishing the company’s
Every leader is different and does things in a unique way that seperates them from their group. Some will take action immediately and others will take the time to think about a decision. There is no right or wrong approach as long as they keep in mind of who they are leading and what they are doing. Leaders are there to guide and motivate people, take control of a situation when no one else will, coach others and so much more. They know how to take risks and explore, they seek continous improvement and build great teams. When solving a
The objective of this case is to understand the importance of crisis management. This case is intended to make the reader consider not only financial implications at the time of the event but the effects on the long term strategies of the organization. Also, the case urges participants to think about the consequences not only on the customer but on those within the organization as well.
This systemic approach will engage the whole organization in efforts to avert the elongation of this crisis and at its best make sure to implement proactive and reactive management for the short-run and long-run. Since the company wasn’t properly prepared in advance of this crisis, different
A company always needs to issue information to another organization or a group of people it is imperative the company knows their audience. When information regarding a accident or disaster, it's important for the company know their audience. For instance, the San Esteban Mining Company needed to know how to respond to each of the audience (families, employees, and the stakeholders) in the case of the Chilean copper mine in South America. It was on Thursday, August 5, 2010, a shaft collapsed in the Chilean copper mine trapping 33 miners 2,300 feet below ground. Immediately a rescue
The individuals or groups that will be communicating inside and outside the organization during this crisis situation
After the crisis emerged, the company needs to establish a crisis communication team first. The team must consist of directors from various departments and high-level executives, especially CEO and crisis management experts. In this team, it is crucial to have a leader who could mobilize resources, make a decision and be responsible for all decisions. Everyone in the team is responsible for a unique issue.
The topic of leadership evokes curiosity about our leaders and their approaches in decision making, leadership styles and the effectiveness of their leadership. At time leaders are critiqued for their actions or views on different business affairs. In today’s working environment leaders set the tone, vision, and goals of any organization. Leadership has a huge impact on the culture of an organization and how people communicate within the organization (Northouse, 2009). The actions of leaders should inspire and positively impact their followers. The approach of leaders in handling adversities highlights many features of their character.
The topic of leadership is historically one of the most widely researched when it comes to explorations of organizational behavior. The success of any institution or organization is pegged on the quality of its leadership because it is the determining factor on the pattern and speed at which it achieves its growth goals. Leaders are responsible for steering an organization toward its goal by mobilizing resources (both human and material) and maximizing their efficiency. The key deliverables for many leaders include employee well-being, teamwork, adherence to organizational processes and procedures, innovation, crisis
On September 9, 2016, a veteran engineer of Volkswagen AG by the name of James Robert Liang pleaded guilty to charges of conspiracy to defraud the government, committing wire fraud, and violating the U.S. Clean Air Act. While working in Germany in 2006, Liang was part of a team charged with producing a new fuel-efficient diesel engine that satisfied new U.S. regulations on vehicle emissions. He and his team eventually came to the conclusion that their engine could not satisfy these new regulations while maintaining consumer expectations of engine performance. Their solution to this dilemma was to implement illegal software (known as a “defeat device”) into newly produced vehicles sold in the U.S. The purpose of this software was to detect any emissions test being performed on a vehicle and alter the results to show cleaner emissions on the onboard computer. Nearly 500,000 vehicles with this defeat device were sold in the U.S.; by 2008, consumers began to experience issues in their vehicles (not knowing it was due to the emission test software), and Liang worked to refine the device even further. The entirety of the scandal eventually came into the public spotlight in 2015 (Guess, 2016, p.1). The subsequent paragraphs of this essay will first discuss Kantian duty ethics and rule utilitarianism, and focus on analyzing the moral implications of Liang’s actions in reference to these moral theories.
In this report the research delivers the literature review and outline on the internal communication that affects the organisation behaviour, with particular emphasis on the how internal communication relates to the company P and G.
What is a crisis management? It is an unexpected crisis that happens on the company that will affect the trust and loyalty of the stakeholder. It can be extremely costly because it will affect the company reputation and brand. For example like financial failure from poor business management, workplace violence, fires, cybercrime, computer viruses, product tampering or union strikes and other external issue like damaged economy that causes from London bombings, terrorists attacks on 11 September and others. The SHRM 2005 report indicates that only 56% organizations created or revised their disaster preparedness plans but 45% did not after the terrorist attacked on
As we all know, leadership is very important. However, its effects are not always visible. In crises, high quality leadership tends to be both visible and decisive for a positive outcome. Leadership requirements and expectations change over time, responsibilities and roles must be review at regular intervals. In all nations and countries today, good leadership is important on day-to-day bases. Leadership involves working together with employees, their organizations and other parties to achieve results. Most leadership functions and roles vary according to level, framework conditions, and type of responsibility, competence requirements, and degree of autonomy. After doing research we have come to realize that different cultures have
Volkswagen has lost its reputation due to the recent emissions scandal. Volkswagen needs to recover its brand reputation and rebuild the relationships within its value chain, while pursuing its strategic goals (improving fuel economy with lesser emissions), in order to remain competitive in the automotive industry. To prevent future scandals, effective corporate governance needs to be implemented at Volkswagen.