How should Volkswagen handle the emissions scandal in an ethical way

How should Volkswagen handle the emissions scandal in an ethical way

Case Reading

A mucky business; the volkswagen scandal. (2015, Sep 26). The Economist, 416, 23-25.

Boston, W., & Houston-Waesch, M. (2015, Oct 15). Volkswagen suspends another top engineer; berlin orders recall; transport minister says recall of tainted diesel cars is mandatory. Wall Street Journal (Online).

Cremer, A. (2016, April 20). VW to pay each U.S. customer $5,000 to settle dieselgate: Die Welt. Reuters. Retrieved from http://www.reuters.com/article/us-volkswagen-emissions-court-idUSKCN0XH0ZV

Danny, Hakim, Kessler, A. M., & Ewing, J. (2015, Sep 27). As VW pushed to be no. 1, ambitions fueled a scandal. New York Times. De Cremer, D., & de Bettignies, H. (2013). PRAGMATIC BUSINESS ETHICS. Business Strategy Review, 24(2), 64-67.

Ewing, J. (2016, April 21). Volkswagen Reaches Deal in U.S. Over Emissions Scandal. New York Times. Retrieved from http://www.nytimes.com/2016/04/22/business/international/volkswagen-emissions-settlement.html?_r=0

Lane, C. (2015, Oct. 26). Emissions scandal is hurting VW owners trying to Resell. Retrieved from http://www.npr.org/2015/10/26/450238773/emissions-scandal-is-hurting-vw-owners-trying-to-resell.

La Monica, P.,R. (2015, Sep 23). Volkswagen has plunged 50%. will it ever recover? CNN Wire Service.

Tabuchi, H., Apuzzo, M., & Ewing, J. (2017). U.S. Charges 6 Volkswagen Executives in Emissions-Cheating Case. New York Times. Retrieved from https://www.nytimes.com/2017/01/11/business/volkswagen-diesel-vw-settlement-charges-criminal.html?_r=0

Here are some articles on brand equity and brand management.

Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity.Journal of Marketing, 57(1), 1-22.

Helm, S., & Tolsdorf, J. (2013). How does corporate reputation affect customer loyalty in a corporate crisis? Journal of Contingencies & Crisis Management, 21 (3), p144-152.

Develop a report in terms of the following guidelines. A well-written report should have a brief introduction, headings or subheadings, and a brief concluding comment. Note that you should use some keywords as headings or subheadings such as “Brand Equity of VW”, instead of a sentence or a question. Read and cite required articles on Volkswagen’s emissions scandal, as well as additional research you have done, and address the following issues:

Briefly describe Volkswagen’s emissions scandal and provide background on the company and automobile industry.

Do you think Volkswagen’s brand reputation was severely damaged by the emissions scandal? How about its brand equity? Discuss what brand equity is, and how Volkswagen’s brand equity will be impacted.

How should Volkswagen handle the emissions scandal in an ethical way? Discuss the related ethical issues from both consumer and brand manager perspectives.

What can you learn from this case? What suggestions could you offer to executives of other car manufacturers?

NOTE:

Write clearly, simply, and logically. Your paper should be 750–1,500 words long, excluding title pages and references, but quality of writing is more important than length. Use double-spaced, black Verdana or Times Roman font in 12 pt. type size.

Back up your positions or opinions with references to the required readings for this Case and those in the Module Background. In using those references, demonstrate your understanding of the concepts presented. Rather than grading on how much information you find, emphasis will be on the defense of the positions you take on the issues. Also remember that:

The “why” is more important than the “what.”

The defense of your positions on the issues is more important than the positions you take.

Solution preview

Also referred to as diesel gate or emission gates, Volkswagen emissions scandal began in 2015 after the United States Environmental Protection Agency (EPA) found out that they had deliberately programed their turbocharged direct injection (TDI) engines to actuate emission controls during emission testing by laboratories only…………………….

APA

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