Prevention of the Emissions Scandal

Prevention of the Emissions Scandal

In  September of 2015 Volkswagen recalled around 500,000 diesel cars and  the company lost around $16.9 billion dollars of the company’s market  value (Jung and Bin, 2017). According to Jung and Bin (20117) 11 million  of their diesel cars contained a device that would change emission  levels during diesel-exhaust tests. When this scandal hit the media,  Volkswagen had a huge economic damage occur and they lost many  shareholders in the stock market. Diesel vehicles are typically known  for the benefits they have with durability, repair cost, and fuel  efficiency. So, when Volkswagen designed a car that was supposed to be  the top of the line the sales sky rocketed which helped with  Volkswagen’s ratings in the market. The Volkswagen scandal really hurt  their reputation, and by the CEO of the company not being honest it made  the consumers frustrated with the company and destroyed their  credibility.

According to the bible “The Lord detests lying lips, but he delights in  people who are trustworthy” (Proverbs 12:22, New International  Version). As an employee or manager in the legal office or the  engineering department I would have done a couple of things differently  to prevent this problem. First if I was an employee and I noticed  something was off or didn’t seem quite right I would have immediately  reported the incident to the managers or executive team. This would have  escalated the issue to the senior executives that way everyone is  informed of the situation.

As  a manager you have a couple of options that could have taken place in  order to prevent this incident. I would have designed an ethics and  compliance training program, made my team take the course, led by  example, created a strong culture to enforce policies, and designed a  strict hiring policy. When designing the ethics and compliance training  program I would have made is mandatory for my team to take. In addition  to this I would made my team sign a paper showing that they took the  course. This would hold them accountable for their actions if any  mischief or foul play were to of taken place. Next, I would lead by  example. I would hold my team accountable for their actions and make  actions have rewards and consequences. This would go in hand with  creating a strong culture to enforce policies and procedures. Rules and  laws are created for a reason. No acceptation. So, by holding my  employees up to high standards you can set the expectation that foul  play is not permitted. Lastly, I would create a strict hiring process to  ensure you are hiring the most trust worthy candidates. In order to  achieve this goal, I would design mandatory behavioral and personality  test that will need to be taken prior to interviewing and do an  extensive background check. By making candidates take a behavioral test  you are able to gauge what type of personality they may have, that could  lead up to foul play. There were several actions that Volkswagen could  have taken to help gain credibility in the media but instead they  decided not to admit their actions were wrong and deceiving. In result  to their actions that they made they lost valuable customers and ruined  their credibility in the market. As a manager I would of done several  things differently to prevent this incident, held true to my morals and  the way God would of wanted me to take action.

Damage Control and Honesty from the CEO

The CEO of Volkswagen was given an impossible situation to handle when  the media broke free that the company and deceived so many people.  “Corporate fraud committed under climate mitigation pressure is becoming  more frequently observed in line with the ever-increasing environmental  standards and relevant regulation enforcements” (Li, McMurray, Xue,  Liu, Sy, and 2018). However, the bible say’s “whoever walks in integrity  walks securely, but he who makes his ways crooked will be found out”  (Proverbs 10:9. New International Version). Lying is never the answer,  you will get caught. To live in a Godly way, you have to admit the  mistakes made by you or your employees. Being honest helps with your  credibility, the company’s credibility and ensures that we are making  choices the way God would want us to.

When  the media broke free about the scandal, as the CEO over the diesel  division I would have first gathered all of the facts. I would have done  as much research as possible, brought on a team of investigators to  look into the incident, and immediately terminated those involved. As a  final step I would have held a press conference to speak openly about  the incident that occurred, and recalled all vehicles involved. During  this press conference I would have gone over what we as a company are  doing to handle all of the recalled vehicles, what we intend to do to  accommodate those customers affected by the incident, and gone public  about the termination of employees involved in the incident. By showing  the public that we are taking matters very seriously could help save the  company’s reputation. To prevent future incidents from occurring strong  policy and procedures needs to be written and enforced. When the legal  team is telling engineers not move forward with the incident and they do  so anyways this needs to be escalated up to the proper executive. If  the executives choose not to solve the incident than it needs to be  reported so legal action can take place. When preventing future  incidents than Volkswagen has to be up front and honest with the  situation at hand. There are no exceptions to cheating to getting a  head. You are ultimately hurting the company even more and aren’t living  in the way of god. Investigations need to be occurring but at random  time periods to ensure that the company is abiding by the rules. The  findings of the investigations need to be made public. When rebuilding  Volkswagen’s reputation, you need to be up front and honest about  everything going on internally. It is important to live by the way of  God, keep your morals, report anything unethical that is occurring, and  remember that the customers are what drives the sales of the business.  You will drastically hurt yourself in the market if they feel that they  are being lied and manipulated. Since Volkswagen has made poor choices  around their scandal they now need to do damage control and be  transparent with their customers and make everything public.

 

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