Posted: March 22nd, 2023
The class discussion changed my opinion that Volkswagen could not survive or regain its economic and social reputation after the 2015 scandal. The VW study proved me wrong by highlighting that corporations are designed to navigate all shortcomings through various approaches. From the discussion, I learned that VW could regain its reputation by dismantling the current organization, rebranding it, and restarting its operations using a new name. The study also provided that VW can rebuild and nurture an ethical business culture by partnering with companies that advocate for a sustainable future or posting a massive bond as a financial assurance to the public that it is a changed organization.
However, the class discussion coincided with my personal views that if Volkswagen is allowed to recall its entire faulty brand and fix them, it would be possible to repair them to the extent of operating as per the required global standards of nitrogen oxide emissions. The study indicates that each brand can be fixed in two simple approaches. The first one is a software update that takes less than 30 minutes, and the second practical way includes installing a wire mesh near the engine’s air filter to help reduce the amount of nitrogen emitted in the air.
However, I strongly disagree with the discussion’s perspective that Volkswagen would still be economically stable if it had taken responsibility for designing faulty cars by publicly stating the problem at hand and recalling all their vehicles for proper fixing. While the approach would have been intelligent and kept the social reputation of VW, it would not have inhibited dealers and other interest groups from filing a lawsuit on allegations of false advertising and consumer fraud accusations. In addition, the company’s executives would still be in court, pleading not guilty against the US justice department and EPA for market manipulation, which went on for seven years and caused significant damages to the business platform and the American environment.
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