Due to a known flaw in sure of its cars, General Motors (GM) has been under intense public criticism. GM has a long history of providing dependable, safe vehicles, but in recent years, they have been under much attention because of several faulty models. A criminal inquiry into the delays in recalling GM’s cars owing to a known issue was recently focused on the automaker. At least 13 unfortunate fatalities have been associated with this fault, which has resulted in widespread recalls of GM cars to fix it. Due to this research, GM has been under intense public pressure to solve these issues, and the bad news has significantly decreased customer trust and stock prices. This article examines how GM’s senior management handled this situation and offers suggestions for how they may have better-addressed stakeholder needs and communicated in a productive, moral, and culturally aware way. (Fuglsang, & Hansen, 2022).
Understanding the approaches and advancements GM used to fulfill the demands of both internal and external stakeholders is crucial when analyzing how GM handled this problem. The individuals responsible for developing and producing the cars, top management, and the team in charge of the recall procedure are only a few of GM’s main internal stakeholders. These external stakeholders include the company’s regulators, customers who may become consumers, and detractors. To meet the interests of both internal and external stakeholders, GM’s priority should have been to regain the public’s confidence in the company’s capacity to create high-quality cars and its dedication to appropriately resolving any future safety issues.
To do this, GM’s senior management had to interact with internal and external stakeholders effectively. It was necessary to create effective tactics and changes to solve the issues with the message recipient. This entails disseminating precise, timely information to people affected by the problem and anyone needing clarification about GM’s capacity to continue producing safe and dependable automobiles. To do this, GM has to seek to boost openness on their recall process and repair efforts in addition to putting proactive procedures into place to guarantee that any potential future flaws are rapidly identified and fixed. This would include speaking with customers directly to understand better what could have led to the fault or what improvements are required to guarantee the cars continue to operate safely.
GM has also implemented plans and enhancements to resolve issues with its message receiver. Improving the dissemination of information to its stakeholders has been a significant priority. To do this, GM has increased its use of print advertisements and broadened its communication channels to include social media, private emails, and direct mail. Thanks to this, they may reach a more extensive client base and interact with their stakeholders more effectively. The business also did in-depth consumer surveys, and the results were utilized to improve audience targeting and guide messaging.
When resolving this situation, GM’s senior management had to consider the demands of both its internal and external stakeholders. They also had to act ethically. This entails putting in place regulations that guarantee quick and accurate judgments are made, regardless of any possible financial consequences. To do this, GM’s higher management had to pay attention to the worries of safety advocates and consider any possible enhancements or modifications to product design and materials that may lower the dangers of these cars. This entails treating all recalls seriously, guaranteeing prompt and accurate repairs, and reviewing earlier procedures to look for any further safety hazards that may need to be addressed. To address ethical difficulties, GM has created a thorough Code of Conduct that serves as a corporate moral compass for workers. This code incorporates principles like respect for others, dedication to achievement, and accountability to communities and the environment. Additionally, GM has several processes to ensure the business complies with the law. A zero-tolerance policy for corruption, adherence to the UN Global Compact, and support and reporting duties to look into any possible wrongdoings are all included in this.
Additionally, GM’s senior management had to create and implement efficient best practices for creating and delivering communications to internal and external stakeholders. This involves approaching the problem proactively rather than reactively. This entails being open and honest with prospective consumers, especially about any possible issues with their automobiles, and timely updates about any recalls or fixes made as a consequence of this problem. The leadership of GM also needed to play a visible part in the process and show that they were committed to solving the problem and averting any further ones. This can include creating a thorough strategy to deal with the situation and communicating systems and actions both within and outside. (Johnson et al., 2022).
Examining the social and cultural effects that applying these recommendations on internal and external stakeholders could have is crucial given the significance of good communication in this context. This includes accounting for any possible PR problems that could result from GM’s handling of the situation. To do this, GM had to make sure that its messaging addressed any relevant social and political problems and was attentive to the needs of its stakeholders and consumers. This can include gathering in-depth details on the flaw and any feasible fixes or improvements that might be made to solve the problem and regaining any lost faith that may have resulted from the spot.
Finally, it is crucial to look at how systems theory and best practices were used while creating these recommendations to assess the success of these changes and the role that leadership should play. The strategy GM used to resolve this issue and win back the confidence of its stakeholders, including consumers and other stakeholders, needed to be thorough and consider all possible problems. This can include putting in place the proper feedback loops and trying to promote a culture of open dialogue and openness. Additionally, GM’s leadership needs to take the initiative to rectify the problem and attempt to win back any confidence that may have been lost due to the flaw. (Kasych, et al., 2020).
In general, GM’s management of this matter emphasizes the need to efficiently meet the demands of internal and external stakeholders and communicate ethically and effectively. Upper management at GM needed to create a thorough strategy to deal with the problem while considering the possible effects of the flaw on their consumers and other stakeholders. This strategy required considering the message recipient, increasing transparency, and taking ethical issues into account to ensure the appropriate judgments were born on time. It also called for using best practices for creating and delivering communications and conveying the message in a way sensitive to cultural differences. Additionally, GM’s executive management had to ensure that the proper procedures and systems were in place to restore consumer confidence in the business and prevent similar problems from happening. By considering these factors, GM can ensure that it meets its consumers’ requirements in the future and communicates clearly and morally. (Kumar, et al., 2021).
References
Fuglsang, L., & Hansen, A. V. (2022). Framing improvements of public innovation in a living lab context: Processual learning, restrained space, and democratic engagement. Research Policy, 51(1), 104390.
Johnson, P. C., Everingham, C., & Everingham, P. (2022). The juggernaut effect: community resistance and the politics of urban motor-racing events. Annals of Leisure Research, 25(1), 93-115.
Kasych, A., Vrbka, J., Rowland, Z., & Glukhova, V. (2020). Modern Human Resource Management Models: Values, Development Approaches, Transformation. Quality-Access to Success, 21(179).
Kumar, A., Sharma, S., Goyal, N., Singh, A., Cheng, X., & Singh, P. (2021). Secure and energy-efficient brilliant building architecture with emerging technology IoT. Computer Communications, 176, 207-217.
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