The Global Financial Crisis of 2007
Added on 2020-06-03
10 Pages2479 Words57 Views
Political Science
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THE GLOBAL FINANCIAL CRISIS OF2007
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11. Brief Overview of the organization........................................................................................12 Presenting the aspects of corporate governance by placing emphasis on the principles whichare setting down by OECD..........................................................................................................43 Effects of corporate recklessness and negligence on shareholders and employees and itsimpact on finance and share price of Volkswegan......................................................................5CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONThe beginning of subprime mortgage crisis in US, banking crisis with collapse ofLehman Brothers and bail-out of banks lead to global financial crisis in 2007/08. It had drasticimpact on the corporate world and economy. Volkswagen Inc is one of the leading automotivecompany which is engage in designing various passenger vehicle, commercial vehicles andautomotive parts. Its corporate governance mechanism constitutes of set of rules and policiestowards all the stakeholders such as employees, shareholders, customers and others. However,during the period of crisis, company did not comply with the rules. The aim of the paper is tounderstand corporate governance with clearly set principles by OECD (Organization forEconomic Cooperation and Development). OECD is the regulatory body that is highlycommitted towards protecting economic and social wellbeing through setting various policies.Moreover, it will critically investigate the impact of Volkswagen recklessness and negligence onstakeholders. 1. Brief Overview of the organizationVolkswagen Inc is the leading automotive company headquartered in Herndon, Virginia,US. Englewood Cliffs and New Jersey established the company in 1955. It is primarilyaccountable for five marques including Bentley, Lamborghini, Bugatti, Audi and VolkswagenCars. A public limited company primarily listed on FSE (Frankfurt Stock Exchange) as EuroStock 50 constituent. However, secondary listing of the firm is on the Luxemburg and SIX SwissStock Exchange. It manufactures automobiles and related automotive parts and its productportfolio includes commercial vehicle, passenger vehicle, engines, turbo-machinery, motorcycleand other products however service operations includes dealer, leasing, consumer financingbanking, insurance and fleet management. VW credit Inc provides credit and financial servicesto the customers (Volkswagen, 2017). In the automotive industry, Volkswagen has the largestmarket share in Europe. Currently, it operates through 626,715 employees. According toOrganization International des Constructers automobiles, after Toyota, Volkswagen is the secondlargest automaker firm by the volume of production. 1 | P a g e
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