Volkswagen Emission Gate: An In depth Analysis

This presentation provides an in-depth analysis of the Volkswagen Emission Gate scandal, focusing on the unethical practices and their consequences. It explores the situation, key players, specific unethical influences, and the influence of tactics on leadership strategy. The presentation also discusses the outcome of the scandal and provides recommendations for Volkswagen.

Volkswagen Emission Gate
-An In depth Analysis
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INTRODUCTION
 The modern business world is significantly competitive
and the intense competition is seen to be the result of
the increased number of entries of into the market.
 The global business context is influenced by the
competition in such a manner that they are forced to
inherit strategies which are unethical and at the same
time notably risky as well.
 The damage that the incorporation of these strategies
are capable of producing, is seen to be in terms of the
decrement in the reputation of the company, reduction
in the influence over the customers and decrement in
the generation of the profit and the evaporation of the
effective business image of the organization (Mačaitytė
& Virbašiūtė, 2018).

COMPANY OVERVIEW
 Volkswagen is a German company that operates in
the automotive industry and is a market leader in
the industry.
 The company was founded in the year 1937 by the
German labour front and is currently having the
headquarter in Wolfsburg region of Germany
(Volkswagen.Com, 2019).
 The excellence of operations of 117400 numbers
of employees is significantly important in the
generation of 76.729 billion euro in the year 2017
as the revenue of the company along with 4.353
billion euro as the net income of the company in
the same year (Volkswagen.Com, 2019).

OVERVIEW OF THE
LEADER
 Volkswagen emission gate scandal is one of
the major criticism that the mentioned
company faced in recent years and the
unethical conduction of the operations led by
the CEO, Martin Winterkorn, to avoid the
strict environmental legislation was observed
to be reason responsible for the criticism.
 Martin Winterkorn was the former chairman
of the board of directors of Volkswagen AG
which was the parent company of the
Volkswagen group (Volkswagenag.Com,
2019).

SITUATION
o The legislative branch of the united states federal government undertook a
major step for controlling the pollution and creating a better and sustainable
environment for the people of it in the year 1963 with the creation of the
clean air act (Usa.Gov, 2019).
o The implementation and monitoring of the law was conducted with the
effective administration of the united states environmental protection agency
along with the state and local government.
o The German company was seen to intentionally program turbocharged direct
injection diesel engines in order to activate their e mission controls during the
time of the laboratory emission testing (Mansouri, 2016).

KEY PLAYERS
The key players in the case were:
The federal government of the country.
United states environmental protection agency.
California air resources board.
International council on clean transportation.

SPECIFIC UNETHICAL INFLUENCES
 The implementation of the clean air act forced the
business organizations to limit the disposal of them
and make sure that they contribute to the
sustainable environment.
 The organization intentionally tried to limit the
emission of the vehicles so that they be able to
overcome the impact of the mentioned act (Zhang,
Veijalainen & Kotkov, 2016).
 The organization was observed to program the
turbocharged direct injection diesel engines which
they used to activate the emissions of their
vehicles (Volkswagen.Com, 2019).

INFLUENCE OF THE TACTICS ON THE LEADERSHIP
STRATEGY
 The chief executive officer of the
organization was the responsible person for
the case.
 The CEO of the organization was seen to
put strong emphasis on the operations of the
subordinates and was seen to trigger the
unethical conduct of programming the
turbocharged direct injection diesel engines
through the employees of the department of
the research and development (Siano et al.,
2017).

USAGE OF THE POWER
o The employees of the organization were
notably influenced by the operations of
the chief executive officer.
o That was pretty visible with the
undertaking of implementation of the
turbocharged direct injection diesel
engines into the vehicles of the company
in the united states region (Blackwelder
et al., 2016).

OUTCOME
• The company was ordered by the united
states federal judge to pay 2.8 billion US
dollars as the criminal fine in the year
2017 (Uscourts.Gov, 2019).
• The immediate impact of the case was seen
to be in the form of the significant fall in
the stock prices of the company.
• The company was seen to plan for
rectification of the emission issues and
also allocated 16.2 billion euro in the
month of April, 2016 (Volkswagen.Com,
2019).

RECOMMENDATIONS
Volkswagen was a renowned company for the significant creation
of the brand and along with that, the incorporation of the
innovative solutions from the part of the company in their products
and services were of great significance in spreading the business
worldwide.
I would have more focused on the ethical conduction of the
operations and would have invested on the creation of the required
infrastructure for the management of the emissions so that the
products of the company are able to satisfy the guidelines of the
mentioned act.

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