Volkswagen Emission Scandal Analysis
Added on 2020-07-23
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Action Plan
Table of ContentsINTRODUCTION...........................................................................................................................1Corporate Governance issues...........................................................................................................1Theories of Corporate Governance..................................................................................................2Literature Review.............................................................................................................................2Issues identified and addressed........................................................................................................3CONCLUSION................................................................................................................................3
INTRODUCTIONAuto-mobile is a very big sector and Volkswagen is one of the major firm that is dealingin this industry. It has its headquarters in Wolfsburg, Lower Saxony and Germany. It deals inboth commercial and passenger auto mobiles under different brand name such as Man, Neoplan,Scania etc. It was founded in 1937 by Deutsche (Shum and et.al., 2012). It was a growing branduntil it was involved with a great scandal associated with the fraud the company did with itspollution emission test. This is the prime reason behind choosing it for presenting the report.Various governance issues related to this organisation will be discussed further along with thetheories that are associated with the same. Thereafter a review of literature will be done to putmore light on the problems encountered.Corporate Governance issuesSince the referred to organisation is dealing in a product type that has high demand in themarket it needs to ensure that the services of companies product do not harm the customers orenvironment in any manner. Volkswagen is involved in different issues which has directlyeffected the brand image to a great extent. Once a company is engaged in any sort of misconductits revenue and demand gets highly affected. Distinct major issues with which the refereedorganisation is involved with are as follows:Environmental issuesIt is the biggest issue with the company was involved with. It was found that the vehiclesof this brand were creating much pollution to the surroundings and when it was calculated by theresearcher a fact came out according to which the vehicles of this brand were creating morepollution than what but actually discloses (Kowalczuk and et.al., 2011). It emits tons of toxicnitrogen oxides which is very harmful fr the atmosphere.Ethical issuesWhenever any business is being carried out its leaders must not forget the ethics onwhich companies operate. Volkswagen in order to earn higher profits forgo their actualresponsibility towards the society. It developed a software that can cheat the pollution testingdevice which was against the ethics of business (Shum and et.al., 2012). It affected the buyersgreen customer of the brand to a great extent and hence may of them returned their cars to thecompany. On the other hand it shows a misconduct by the professional body to which was1
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