Volkswagen Case Study: Analysis of the Emission Scandal

This case study examines the Volkswagen emission scandal, focusing on its impact on the company's reputation, stakeholder relations, and the need for ethical and sustainable business practices. The assignment analyzes the facts of the scandal, highlighting the company's deceptive practices regarding emission tests and the resulting damage to its brand image and customer trust. The solution emphasizes the importance of acknowledging the wrongdoing, rebuilding trust through transparent communication, and implementing robust corporate social responsibility initiatives. The assignment also explores the PISCO model, which helps in problem-solving by analyzing the problem, inputs, solutions, choices, and operations. The study underscores the importance of proactive measures to ensure financial sustainability and effective leadership in addressing the crisis and restoring the company's standing in the automotive industry. The case study also includes a list of references for further research.

RUNNING HEAD: VOLKSWAGEN CASE STUDY
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1VOLKSWAGEN CASE STUDY
Impact on the Problem:
The issue that has been stated in the case study particularly relates with the sustainability and the
corporate social responsibilities of the company of Volkswagen. The automaker companies all
over the world felt particular hardships in dealing with the announcements of the EPA regarding
the emission rate of fuel by the automobiles (Blackwelder, Coleman, Colunga-Santoyo, Harrison
& Wozniak, 2016). The act of deceiving the test and showing less amount of emotion came as a
boomerang for the company. with the coming forth of the knowledge about this deceiving, the
company’s ethical and social responsibilities were questioned. This led to a significant impact on
the company regarding its stakeholders.
Before the scandal, Volkswagen was the second most reputed and leading automobile
company just after Toyota. This scandal hampered heavily the brand image and the brand
loyalty of Volkswagen (Garriga, & Melé, 2014). Moreover, since the company has already been
caught deceiving, it now came under more strict vigilance in terms of rules and regulations.
Factors needed to solve the problem:
The foremost thing that the company needs at present for amending their problem of
decaying reputation is first to acknowledge the fault. The next step will be to build up strong
sustainable policies underlying all the social corporate responsibilities. The sustainable plan must
include the proper steps and guidance and a concrete model about how the stakeholders will be
benefitted from the plan and how they will aim at giving back to the community. improving
resilience to achieve the financial sustainability is also required and effective leadership in this
case can be stressed up (Cochran & Wood, 2013)..

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Reference List:
Blackwelder, B., Coleman, K., Colunga-Santoyo, S., Harrison, J. S., & Wozniak, D. (2016). The
Volkswagen Scandal.
Garriga, E., & Melé, D. (2014). Corporate social responsibility theories: Mapping the territory.
Journal of business ethics, 53(1-2), 51-71.
Cochran, P. L., & Wood, R. A. (2013). Corporate social responsibility and financial
performance. Academy of management Journal, 27(1), 42-56.