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Martin Wintercorn is likely to receive two years pay and a retirement compensation of more than £22 million.(Bradshaw and Yeomans, 2015) This is the same person who first tried to cover up the scandal by stating the company did not deceive but encountered a “technical problem.”(Ewing, 2015) The Chairman of the Generaland Groups Works Council of Volkswagen AG has suggested a new CEO who has a deep knowledge of technology needs to be appointed. He stated, “We need changes in our corporate culture. For the future we need a climate in which problems are not concealed, but rather are openly communicated to management.”(Ewing, 2015) A new CEO will bring a new lease of life into the organization and lead to a change in business strategy, competitive position, and business environment. A change in the governance process such as shareholder process, open election of directors, and wide inclusion of membership may also prove to be beneficial to the new company. If Volkswagen decides to rebrand, it should try to develop a company that is ‘greener’ and has a higher corporate social responsibility level. Studies reveal that “greenwashing,” when a company tries to portray itself as more environmentally oriented than it actually is, has become increasingly common in recent years.(Ewing, 2015) The reputation of a company has become an increasingly bigger factor when it comes to consumer decisions. An updated website illustrating all of their practices and an annual report would greatly improve the company’s image. Clear financial statements are necessary to show the public where the money comes from and goes within the company. It would be helpful to use social marketing as part of an overall strategy to increase transparency within the company.References:
Bradshaw, J. and Yeomans, J. (2015). VW Scandal: Porsche Boss Named New Volkswagen Chief Executive- As it Happened.The Telegraph.Ewing, J. (2015). Volkswagen Says 11 Million Cars Worldwide Are Affected in Diesel Deception. The New York Times. [online] Available at: -diesel-carscandal.html [Accessed 26 Sep. 2017].