The paper 'Analysis of Volkswagen Emission Scandal" is a good example of a management case study. Effective stakeholder management is critical to the success of any business. Every organization small or large has stakeholders that are affected by the activities of a business or have an interest in the business operation (Carroll & Buchholtz, 2014). Examples of stakeholders of a firm include customers, suppliers, investors, the government, sponsors, environmentalists, the media and the community among others. Szwajkowski (2000) proposes that a company must ensure that the needs and interests of these stakeholders and met or safeguarded to ensure business success and this is possible through effective stakeholder management.
Volkswagen’ s 2010 emission scandal highlights a case that required effective stakeholder management. This report will describe the Volkswagen 2010 emission scandal and proceed to analyze the issue using two stakeholder management principles. Principle 1: Managers should acknowledge and actively monitor the concerns of all legitimate stakeholders, and should take their interests appropriately into account in decision-making and operations” and Principle 2: Managers should listen to and openly communicate with stakeholders about their respective concerns and contributions, and about the risks that they assume because of their involvement with the corporation (Morsing & Schultz, 2006). Volkswagen Emission Scandal Volkswagen (VW) is one of the German leading carmakers.
The company had enjoyed the strong performance and a good reputation for developing that are fuel-efficient with minimal emission until recently in 2010 when the automaker engaged in a mega emission scandal that has badly damaged the reputation of the automaker. According to Stern (2015), the executives of VW colluded with the company engineers to cheat on emission from its diesel-powered engines.
This saw the company engineers install software that has been dubbed the “ defeat device” that had the capacity to detect when the engines were being subjected to nitrogen emission testing and immediately minimized the amounts of emission from the engines (Rhodes, 2016). As soon as the emission test was over, separate software reverted the process that saw the cars emits up to 40 times of nitrogen above the threshold allowed in the United States (Milne, 2015). This way, VW managed to dubiously pass all the emission tests conducted in the U. S.
affecting more than 11 million VW cars. In the U. S. it is estimated that up to 600,000 VW cars were involved in the scandal (Cavico & Mujtaba, 2016). Some of the VW cars that were involved in the cheat include VW Passat, Golf, Toureg, Jetta and Beetle. The emission scandal has been very costly to VW. Following the discovery of the scandal, VW was forced to recall all the 11 million-plus cars that were affected by the scandal so that they can be redesigned to adhere to the standards (Milne, 2015).
This was a costly process for the automaker as the cars had to come from different parts of the world at the automaker’ s cost. The company has since been fined approximately $15 billion in the U. S. and could rise considering that VW still has a case in court over the issue (DeBord, 2015). Besides, VW has suffered reputation damage that would take it a long time to repair.
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