Organizational Leadership Failure of Volkswagen: A Case Study

Organizational Leadership Failure of Volkswagen: A Case Study
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Table of Contents
Introduction3
Background3
Issues4
Poor Leadership4
Faulty Organizational Culture4
Analysis5
Poor Leadership5
Faulty Organizational Culture6
Recommendations6
Evaluation8
Conclusion8
References9
Appendices10
Introduction
Volkswagen is a German company that caters to the automobile needs of several millions of customers worldwide. This company goes together with Toyota and BMW as part of the roster of leading automobile companies in the world. However, the company has faced a severe scandal that has negatively affected consumers. The Environmental Protection Agency requires car manufacturers to abide by its established standards. The standard that applies to this case study involves carbon emission. Reports show that Volkswagen has falsified its results for the carbon emission test. The company claimed to comply with the given regulations, which, according to reports, is false. Because of this falsification, the company withdrew its products from the market. This paper aims to determine the issues revolving around the Volkswagen Emission Scandal. The author of this paper will also present the analysis of these issues, particularly on their implications.
Background
This paper involves the case of Volkswagen, who has provided false information in its carbon emission requirements. This issue has destroyed its reputation for not following the regulations set forth by the authorities. The incorporation of the so-called “cheat devices” to deceive the regulatory board for pollution standards started in the year 2005. Then, the company decides to push through with the marketing strategies for “clean diesel” in the year 2008. It was in the year 2014 when the personnel of the company gave false information to the regulators. The Environmental Protection Agency ensures that automobile manufacturers are complying with the standards. It was in the year 2015 when EPA issued a violation notice against the company for not complying with its regulatory rules. According to EPA, Volkswagen made some significant alterations in the levels of the toxic chemicals their products emit. This act is to increase its profitability. Martin Winterkorn, the CEO of the company at that time, mentioned that he was not aware of any faults on his part. He even claimed that the issue was due to the mistakes of a few employees. However, he resigned in the year 2015 because of this issue. In the year 2016, the government concludes that the company has made serious violations with the Clean Air Act. The company then took all the responsibility of covering all the damages to both consumers and the government (McCormick, 2018, p. 1-22).
Issues
There are two significant reasons why the company has faced such a scandal. These factors include poor leadership and a faulty culture within the organization. It was the fault of the executives why the company has faced such a shameful situation. It is because they failed to imbibe moral and ethical standards within the working environment. It should have been the responsibility of the leaders to ...