Volkswagen Scandal Case: Impact, Role of CEO and Future Plans

RUNNING HEAD: Volkswagen Scandal Case 1
Volkswagen
Volkswagen Scandal Case
(Student Name)
10/7/2018

Volkswagen Scandal Case 2
Executive Summary
The company Volkswagen is one of the biggest companies in the industry of automobile. In
September 2015, the agency of Environment Protection had revealed that Volkswagen was
unethically underreporting the emission of their vehicles. It was found that the company
intentionally has programmed the software to control the emission during the times of
emission testing of the laboratory. It affected the environment at a huge level. The image of
the company was also ruined. The share price of the company also fallen down because of
such scandal case. The company has appointed new CEO to handle the issue and to cope up
from the challenges they are still facing. There are certain strategies that should be adopted
by the CEO of the company to resolve the problem such as rebranding and so on.

Volkswagen Scandal Case 3
Table of Contents
Executive Summary...............................................................................................................................2
Introduction...........................................................................................................................................4
Key Issues: Volkswagen Scandal Case..................................................................................................4
Impact of Issues.....................................................................................................................................5
Role of CEO and Leadership Power......................................................................................................6
Future Plans for Volkswagen.................................................................................................................7
Recommendation.................................................................................................................................10
Conclusion...........................................................................................................................................10
References...........................................................................................................................................12

Volkswagen Scandal Case 4
Introduction
Since the industrial revolution in the UK in 1800’s, the environment is the main victim of
human actions. Human is the main reason for environment pollution. There are certain steps
which have been taken by the government. It is done when the scientists realized that human
beings exploiting the environment and eventually managed to enforce environmental
regulation on the nation to save the environment. The main ingredient that affected the
environment is greenhouse pollutant and carbon monoxide from car emit nitro oxide and
other particulates from fuel combustion which is unhealthy for the environment. The
government enforced regulations to reduce the pollution and can protect the environment
(Hallstrom, Carlsson and Borjesson, 2015).
In 2015, the Volkswagen pleaded guilty in the case of emission of diesel cars. The company
violated the emission rate that has been allowed since 2009, by deception laboratories
through programming an emission control which was activated only in laboratories test but
not in street driving (Krall and Peng, 2015). The excess amount of emission in the
environment affected the health of the human being in US and Europe. To protect the
environment, multiple financial sanctions on the company have been applied as an alternative
solution by the government (Moravcsik, 2017).
In the following part, there will be a detailed discussion on the role of the CEO in dealing
with the crises of Volkswagen and the steps taken by CEO to gain the trust of the consumer.
In the end, the suitable recommendation will be provided.
Key Issues: Volkswagen Scandal Case
Volkswagen is one of the biggest car manufacturer companies in the world. It was indicated
that Volkswagen has installed software in its vehicles of diesel. It were sold since 2009, in the