1
MGMT-512
Exam-1: Volkswagen Corporate Failure in 2015
ANALYSIS OF VOLKSWAGEN CORPORATE
GOVERNANCE DEALING WITH EMISSION
SCANDAL
Prepared By:
Name: Nil
Surname: KINIK
ID: 52930
2
Volkswagen which is well-known German car producer became worldwide number one car
producer in 2015. However in September 2015, something went wrong and VW found out
itself in a deep trouble which was named as a scandal and also in media with emission scandal
and became the example of corporate failure. The scandal was occurred as following, the
Environmental Protection Agency (EPA) which is an agency responsible …show more content…
In other words, for VW it does not matter whether its
cars poisoned the planet with 40 times more nitrogen oxide while the main purpose is
becoming the image of world’s leading car maker.
When we looked from the ethics and legal perspective, the VW emission scandal easily finds
place itself in the side of illegal perspective. After diesel emissions scandal, VW profits went
down 20 % however experts stated that Volkswagen was still making a profit so it shows that
customers cared less about the emissions scandal than expected. When the scandal occurred
the expectation was VW would struggle to survive. When we look from the customer side,
we can easily say that poisoning the world is not the main issue in their minds. The main
question mark in their head is about whether this software will affect their car performance or
not. As an action after the scandal, the new CEO and eventually board of directors now
facing a role such as recovering the company’s reputation and financial stability and …show more content…
In the context of corporate governance, VW is a publicly listed company, with headquarters in
Germany, which has a double tier system of corporate governance that involves employee
participation. Major shareholders are the family of founder Ferdinand Porsche with 50.7%,
the federal sate of Lower-Saxony and the state of Qatar with 20% stakes each. Public
shareholders hold less than 10% of the shares. In general, this board organization with main
shareholders, strong stakeholders including employees through workforce representatives is
considered to be a good solution to corporate governance and control issues however it seems
that did not work for
MGMT-512
Exam-1: Volkswagen Corporate Failure in 2015
ANALYSIS OF VOLKSWAGEN CORPORATE
GOVERNANCE DEALING WITH EMISSION
SCANDAL
Prepared By:
Name: Nil
Surname: KINIK
ID: 52930
2
Volkswagen which is well-known German car producer became worldwide number one car
producer in 2015. However in September 2015, something went wrong and VW found out
itself in a deep trouble which was named as a scandal and also in media with emission scandal
and became the example of corporate failure. The scandal was occurred as following, the
Environmental Protection Agency (EPA) which is an agency responsible …show more content…
In other words, for VW it does not matter whether its
cars poisoned the planet with 40 times more nitrogen oxide while the main purpose is
becoming the image of world’s leading car maker.
When we looked from the ethics and legal perspective, the VW emission scandal easily finds
place itself in the side of illegal perspective. After diesel emissions scandal, VW profits went
down 20 % however experts stated that Volkswagen was still making a profit so it shows that
customers cared less about the emissions scandal than expected. When the scandal occurred
the expectation was VW would struggle to survive. When we look from the customer side,
we can easily say that poisoning the world is not the main issue in their minds. The main
question mark in their head is about whether this software will affect their car performance or
not. As an action after the scandal, the new CEO and eventually board of directors now
facing a role such as recovering the company’s reputation and financial stability and …show more content…
In the context of corporate governance, VW is a publicly listed company, with headquarters in
Germany, which has a double tier system of corporate governance that involves employee
participation. Major shareholders are the family of founder Ferdinand Porsche with 50.7%,
the federal sate of Lower-Saxony and the state of Qatar with 20% stakes each. Public
shareholders hold less than 10% of the shares. In general, this board organization with main
shareholders, strong stakeholders including employees through workforce representatives is
considered to be a good solution to corporate governance and control issues however it seems
that did not work for