Introduction
All organizations have a responsibility that goes beyond meeting their client’s needs. The business should offer sustainability by ensuring the economic, social and environmental wellbeing of current and future customers. However, Volkswagen went against this responsibility by fitting defeat devices in their diesel motor vehicles. The defeat device detected when the car was undergoing emissions tests and turned all the full emission controls during that period and turned off during every day driving (Jacobs & Kalbers, 2019). The defeat devices led to high emissions, which are dangerous to the environment. Car emissions contain greenhouse gases, which trap heat in the atmosphere, leading to a rise in temperatures. Studies indicate that greenhouse gases are the leading cause of climate change (EPA, 2021). This paper discusses how a manager would have prevented and responded to the scandal.
Prevention of the Volkswagen Emission Scandal
The announcement by the Environmental Protection Agency (EPA) in 2015 about its finding of the device that Volkswagen had fitted in their cars to cheat the emissions tests led to severe consequences for the company. The organization recalled the faulty vehicles, paid fines and refunded some money to the owners of the purchased vehicles, which amounted to approximately $32 billion (Hotten, 2015). It also lost customer loyalty, and its sales dropped, affecting the shareholders and employees. The scandals also destroyed the organization’s reputation (Strauss & Hübner, 2021). As a manager in the engineering department, I would have prevented the scandal from happening by ensuring that the vehicles produced emitted the required amount by EPA. Doing things in the right way is a virtue a business should maintain whether one gets caught or not. Volkswagen apologized and reacted to the scandal because they got caught. However, if the EPA never realized the cheating, the company would have continued to use the defeat devices to date. The Bible teaches people to be honest in their activities, including business. Volkswagen was not only dishonest to the government but to its customers who thought that they had bought vehicles with low emissions. The emissions would have had effects on the respiratory system. It is the moral and ethical obligation of a business to ensure that the products that do not cause harm to the customers. I would have also been proactive in ensuring that I check every device produced in the department to ensure that every product meets the quality and standards before releasing them into the market.
Handling the Scandal
The CEO of Volkswagen at that time, Martin Winterkorn, apologized for the defeat devices and later resigned claiming that the organization needed a fresh start (Lippe, 2015). Mathias Muller took over the CEO position. However, the CEO indicated that there was no wrongdoing on his part because he was not aware of it. However, the head of the organization is responsible for everything that goes on in an organization. Therefore, it is their duty to know what is going around and not just sit in their offices. As the CEO of the diesel division, I would take responsibility for the action and apologize to the public. I would also recall the faulty vehicles and provide refunds to the affected customers. I would also set aside funds to go towards the conservation of the environment and engage in activities that prove the company’s social responsibility to the community and environment. I would have also interacted with customers on social media platforms to address their issues and offer transparency in the investigation to ensure the company does not lose the customers’ loyalty. I would also have implemented systems that checked for product quality because they leave the company to avoid such incidents from happening again. I would also have developed a crisis management plan that provides instruction on handling crises to ensure the effective handling of future crises.
Conclusion
Volkswagen experienced a scandal after the EPA reported that it had been installing defeat devices that cheated emission testing. The scandal could have occurred if only the company had done everything by the books. The company paid heavily for its actions by experiencing reduced sales due to customer disappointment, hefty fines, and damage to its reputation. The company has experienced some of the consequences to date and have not been able to recover from loses it incurred entirely. The organization tried to respond to the issue as best as it could, but it was not effective enough to shield the organization from the scandal’s impact.
References
Hotten, R. (2015). Volkswagen: The Scandal Explained. BBC News.
Jacobs, D., & Kalbers, L. P. (2019). The Volkswagen diesel emissions scandal and accountability. The CPA Journal, 89(7), 16-21.
Lippe, P. (2015). Volkswagen: Where Were the Lawyers? The New Normal.
United States Environmental Protection Agency. (2021). Climate Changes Indicator: Greenhouse Gases. United States Environmental Protection Agency.
Strauss, M., & Hübner A. (2021). EU Fines Volkswagen, BMW $1 Billion for Emissions Cartel. Reuters.
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