Assignment 4-4-2017.docx - Dieselgate Heavy Fumes...

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Human Resource Management
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Chapter 16 / Exercise 2
Human Resource Management
Valentine/Meglich/Jackson/Mathis
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“Dieselgate – Heavy Fumes Exhausting the Volkswagen Group” Marcus Schuetz 1) How well did Volkswagen respond to the scandal? Would you have advised Volkswagen to do anything differently? A) Volkswagen did not have a prodromal stage as part of its crisis. Right before USEPA pressed charges on the company, the author mentions that, Volkswagen was ranked by the Reputation Institute as one of the top ten in “Global CSR Reputation Winner”, particularly the “Governance Best Practices”. At the acute crisis stage, Volkswagen issued a voluntary recall of over 500,000 cars in the USA, but falsely stated that the reason was due to technical problems. Although hesitant at first, the CEO, Martin Winterkorn, submitted his resignation. The firm entered the Chronic Crisis Stage as more and more of it’s fraudulent activities were revealed to the public. Investigations were conducted even as the company’s market value dropped drastically. At the Crisis Resolution Stage, Volkswagen released a formal apology
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Human Resource Management
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Chapter 16 / Exercise 2
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Valentine/Meglich/Jackson/Mathis
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