“Why should I care about the shareholders, who I see once a year at the general meeting. It is much more important that I care about the employees; I see them every day.” – Attributed to the CEO of Volkswagen in 1983.
In 2015, it became apparent that the car maker, Volkswagen, had for years been using illegal software installed in 11 million of its cars worldwide to help the company satisfy emissions standards required by US state testing agencies. When news of this broke, the company faced a global backlash.
Can some blame for this deceit be directed towards the company’s governance structure? Based on your analysis of the crisis, explain whether you think suitable steps have been taken to prevent future scandals of this type.
Notes: The Individual Essay calls on students to investigate a corporate crisis, and whether governance contributed the organisation’s culpability. Students also need to assess the organisation’s response.
Emphasis is placed on careful background study.
Sample Solution