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Authors:
Sarah Hudson (Rennes School of Business)
Published in:
2019
Version:
11-Mar-2019
Revision date:
13-May-2019
Length:
9 pages
Data source:
Published sources

Abstract

This case covers the events leading up to and following the dieselgate scandal in 2015 involving Volkswagen. It looks at the strategic, economic, environmental and political reasons that European carmakers opted for diesel automobile technology. It outlines the negative health and environmental impacts of diesel, and how there is a current consensus that this fuel needs to be phased out. The case provides a description of how VW cheated on the vehicle emissions tests to show lower NOx and CO2 emissions than actually occurred in real road conditions. The reasons for this decision in terms of opportunity and pressure are present in the case, as well as some examples of how VW managers rationalized the decision. It discusses the economic and reputational impacts on VW. The second part of the case shows elements of the organizational culture at VW pre-2015, and provides details on where VW is going in the future in terms of its ethical culture, with some of the steps the firm has taken to ensure future ethical culture.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Topics

Ethical culture; Business & society; CSR; Automobile industry; Dieselgate

Setting

The events covered by this item took place in 2015-2019.

Geographical setting

Region:
World/global
Countries:
United States; Germany; France; United Kingdom

Featured company

Company name:
Volkswagen
Employees:
10000+
Turnover:
EUR 235000000000
Type:
Privately held
Industry:
Automobile industry
Other keywords:
FTSE 100; Multinational

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