volkswagen presentation

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<b>INDIVIDUAL ASSIGNMENT</b>

Introduction to management

Lecturer: Phạm Hồng Anh________________________________________________

<b> Name:</b> Trần Vũ Thu Trang

<b> Student ID:</b> HS171181

<b> Class: </b>MKT1714

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<b>5.The role of the leader in the case6.Lessons are drawn from this case7.Conclusion</b>

<b>8.References</b>

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In the history of economic development, there are many scandals related to the ethics of companies from small to large. Such scandals can be caused by an individual or they can be caused by a whole group. In 2015, the global auto industry was rocked by the biggest Volkswagen emissions cheating scandal in history. This is one of the major ethical scandals affecting the whole world.

<b>2. The background of the casea. What happened:</b>

Volkswagen (VW) is a German carenterprisemounted in 1937, running in 153 international locationsglobal with a sales of US $278B in 2018. It’s presently the second-biggestcarmanufacturerin the back of Toyota. In 2015 Volkswagen have becomethe most significant car producerwithinside the world, surpassing Toyota in theprimary position.

Despite being acclaimed for excessive requirements of company social duty and environmental sustainability, all through September of 2015 a look at led via way of means of John German observed VW had breached the Clean Air Act. VW installed ‘defeat gadgets of their’ diesel motors containing software programsthat changed the carsoverall performancewith aview to cheat on emission tests. These gadgets enabled emission controls whilst the automobile becomes in a lab setting, even thoughwhilst on avenue situations the tool could transfer

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off enhancing the gasfinancial systemeven as nitrous oxide emissions extendedas much as

30-fortyinstances the regulated limit (Mathiesen & Neslen, 2015).

<b>b. Who were involved?</b>

As the result of the emissions scandal, various stakeholders had been impacted, inner stakeholders encompass shareholders, personnel, and automobilesellers. In addition, outside stakeholders impacted this by moraldifficultyalso encompass the surroundings, society, and authorities. Employees remained involved over task protection as reputations have been tarnished even amongindividuals who had no involvement despite the fact that 10 senior executives

had been suspended with the possibility of dealing withcrook charges. When the emission dishonestturned unveiled the VW percentagefee was reducedby 31% with billions of dollarswiped in percentagecostclosely affecting shareholders. Car sellershad beenin additiontormented by the aftermath as sellers suffered from gradualincome and low-income margins.Discretionary financeshad been given to sellersprimarily based totally on income volume, as a way to stabilize the gradualincome.

Furthermore, outside stakeholders had been impacted because the pollutants as a result of Volkswagen threatened people’s fitness and the surroundings. As VW diesel automobiles produced nitrogen oxide 30-fortyinstances the regulated restrict it gathered to over 35 million kgof nitrogen oxide in surplus. Exposure to nitrogen oxide can motivaterespirationdisorder, and coronary heartdisorder and causeuntimely death. Researchers estimate that the nitrogenoxide produced through VW automobiles will threaten 60 lives in thesubsequent 10 to twenty years prematurely. Further pollutants to the surroundings will produce 210, 000 respiration-associated issues. The boom of nitrogen oxide inside thesurroundingsmay alsocause acidrains that are unfavorable in the direction of the herbal surroundings

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The VW emissions cheating scandal is expected to have a negative impact on jobs in the German car industry and on the image of the world's top exporter. Marcel Fratzscher, director ofthe German Institute for Economic Research (DIW), believes the damage to VW's reputation will not only be in the US but also around the world.

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Volkswagen's emissions cheating scandal has tarnished the image of European countries, which are confident of being at the forefront of the fight to protect the environment against global climate change. bridge. Not only that, it will lead to many job cuts at VW and other partssuppliers globally as many models are suspended from the market and the investigation process can drag on. long. In addition, the consequences of the Volkswagen case also began to cause a domino effect when the stock prices of many major car manufacturers in the world plummeted, leading to many auto parts manufacturers being "infested" ." According to Mr. Fratscher, this scandal will also partly adversely affect the "Made in Germany" brand, which is famous for quality and ensures Germany maintains its position as the leading auto exporter inthe world market. gender. The VW incident will therefore undermine global consumer confidence not only in the automaker but also in other German exporters.

<b>3. The ethical issues</b>

Volkswagen has been accused of violating the emission-associatedguidelines in its automobiles. The agency has established an emission software program on 10 five million of its diesel automobiles. These are acknowledged as ‘defeat devices’ has a tendency to discoverin theevent that they have been tested. It manipulates the overall performance and modifications the effectsin step withthe bounds set via way of means of the Environmental Protection Agency. However, beloweveryday driving, the software programreceives switched to any other

mode which alters the exhaust fuel line recirculation, injection timing, and gasoline pressure. This version emits nitrogen oxide to pollute the surroundings and purpose lung cancer. The

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emission is bettervia way of means of the federal restrictionvia way of means forty times(Atiyeh, 2019). Earlier, Volkswagen has been actingadvertising sports for its diesel automobiles at a large degree boasting the low degree of emissions. EPA has determined that Audi, Jetta, Beetle, Passat, and golfing are a number of the fashionsthat have this emission softwareprogram that consists ofeleven million automobiles in nationswhich include US, UK, Italy,France, Canada, Germany, and differentnations. Volkswagen has admitted that it has cheated the EPA law with the defeat devices.

<b>4. Issues solution</b>

Volkswagen's senior leaders have spoken in turn after the company confirmed the incident information. Volkswagen Chief Executive Officer(CEO) Martin Winterkorn expressed his "deepapology" for breaking public trust and promised Volkswagen would cooperate fully with the authorities. In addition, the company also conducted an internal investigation to shed light on t

he fraud. "We do not and will never condone any breach of internal regulations or the law,"CEO Winterkorn said in the statement.

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Not only that, after CEO Winterkorn accepted all responsibility and resigned, Mr. Mueller took his place and took the necessary actions to address the immediate emergency of the company. His number one priority at the moment will be support for customers affected by the diesel emissions cheating scandal. Mr. Müller said that Volkswagen is actively finding a technical solution to this problem and is expectedto implement it from January 2016, underthe supervision of Kraftfahrtbundesamt (KBA) - Germany's motor transport authorityMüller's next priority is to complete the investigation. Volkswagen must find the truth in emissions cheating allegations and learn from it. Next is the introduction of the new apparatus structure of the VolkswagenGroup. Volkswagen will focus on reorganizing the way the group is run and managed. Mueller believes that the necessary changes in the way it communicates in a spirit of openness andcooperation, as well as how to handle mistakes, will help Volkswagen mature and stand more firmly in the market. In the end, it was he who adjusted the 2018 strategy of making Volkswagen the world's largest carmaker into the 2025 Strategy. According to Mr. Müller, it is nota matter of selling 100,000 cars more or less than competitors, but growth in quality.

<b>5. The role of the leader in the case</b>

Volkswagen CEO Martin Winterkorn took obligation and resigned over the emissions scandal. Volkswagen Chief govt Martin Winterkorn resigned on Wednesday, taking obligation forthe German carmaker’s rigging of US emissions exams in the largest scandal in its 78-year history. "Volkswagen wishes a sparkling begin - additionally in phrases of personnel. I am clearing the manner for this sparkling begin with my resignation.'', Martin Winterkorn stated ina statement, following a marathon assembly with the govt committee of the VW board. Theworld’s largest carmaker has admitted to US regulators that it programmed computer systems in its automobiles to locate after they had been being examined and adjust the going for walks in their diesel engines to hide their proper emissions.

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Mueller, a former head product strategist, is likewise a control board member of Porsche SE,and so near the Piech-Porsche own circle of relatives that controls Volkswagen. Winterkorn,who throughout his 8 years in rate oversaw a doubling in Volkswagen’s income and a nearlytripling in profit, stated he turned into taken aback that misconduct on this sort of huge scalewas feasible for the company, including that he turned into now no longer privy to any wrongdoing on his very own part. Matthias Mueller - CEO of sports car company Porsche became the new CEO of Volkswagen in that context after CEO Martin Winterkorn resigned. Mueller has outlined strategies to create opportunities for the world's leading car corporation to overcome the crisis and return to the leading position in the automotive market. It can be seen that Mr. Mueller's role is extremely important in this situation. He has taken steps to change the Group's leadership model by implementing an "important makeover process" and at the same time correcting the corporate culture and management of the company because he believes that Volkswagen needs to change the way it communicates and deals with misconduct. "We need a culture of openness and cooperation," he said. All the strategies he proposed were implemented and successfully helped Volkswagen to reverse the trend, out of the slump. So the role of Mueller is decisive in this case.

<b>6. Lessons are drawn from this case</b>

From the Volkswagen emissions cheating scandal, we can draw lessons that we can apply toourselves. The first lesson is that Not thinking through the possible consequences of your actions can lead to bad decisions. All the people working at Volkswagen responsible for this massive fraud did not consider the possibility of being caught by the authorities, or at least didnot carefully consider the possibility of implementing this strategy. Because of being too sub

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jective and not planning for the adverse results that they will encounter, when the company is found to be cheating, the company has not had effective solutions to the problem.The next lesson we can learn is knowing where to look. It is important to understand your company inside and out. At Volkswagen, one would assume that the company connects with officials from testing agencies and government agencies in each country every time a new caris released. Thanks to this interaction with officials, an employee who adheres to the abovewill talk to the engineers and learn about how the tests are being conducted. Of course, theywill likely be aware of any potential for corruption, misrepresentation or manipulation. Additionally, it is expected that the compliance officer involved in the process will understand thecar, engine, and testing process and be able to ask enough questions to uncover the secret. Due to the sheer complexity of the engines, it can be difficult for them to spot problems on their own, but it is quite reasonable to expect that they can identify problems by looking at the tests in and afterward.

The final lesson to be learned is that it's cheaper to invest in strategic thinking than to pay for strategic failure. There is no guarantee of avoiding strategic failure. However, it is entirelypossible not to have a strategic failure on the same scale as Volkswagen experienced. It requires that at all levels of decision-making, decision-makers be trained in strategic thinking, which involves the ability to logically detect and compare alternatives as well as foresee the consequences of such alternatives. Decision-makers at Volkswagen directly responsible for 'diesel' have demonstrated that a lack of strategic thinking combined with irresponsibly, value-based behavior can lead to dire consequences. for themselves, their company, and even the entire industry.

<b>7. Conclusion</b>

In short, Volkswagen's emissions cheating scandal is a prime example of corporate social responsibility failure. To create an unfair advantage over other competitors, this group has applied measures to cheat emissions standards, and "win" the position of an environmentally friendly car manufacturer, while doing so. VW's car economy emits 40 times more emissions than allowed standards. The consequence is to pay a very expensive price. This is also a warning for all businesses to properly perform their social responsibilities.

<b>8. References </b>

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