Case Study : Corporate Governance And Culture Essay

728 Words May 19th, 2016 3 Pages
Gap 3: Corporate Governance and Culture.

Within VW it is not clear who approved the fitting of the “defeat device” software and had awareness of its usage at this stage. It has been insinuated that the illicit software could have been connected since 2008, just before VW presented its new creation of “clean diesel” cars to the US market. A number of executives, managers and engineers have been provisionally suspended by VW as part of its own internal examination, involving some board-level executives at VW branches. Apart from the NOx emissions scandal, VW engineers have confessed to making up certain carbon-dioxide and fuel consumption numbers. The engineers declared to have influenced the data as a result of supposed “unreasonable demands” of VW former CEO, Dr. Martin Winterkorn. The investigation still has to uncover if some of the 20 directors on VW managerial board had awareness or participation in the emissions scandal (Australian Institute of Company Directors (AICD), 2016).

VW’s corporate culture and governance may have contributed to the emissions scandal firstly because it highlighted significant disparities between German and Anglo-Saxon governance systems. Also, it has exposed the following issues with VW’s governance and corporate culture (Australian Institute of Company Directors (AICD), 2016):

• VW’s governance structure offers bigger stability for shareholders and creditors by letting the company to have a longer-term strategy and operations.
• The…

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