Possible For recovering For Volkswagen products to steel reliable after the emission scandal Volkswagen soon turned into the objective of administrative examinations in various nations Prosecutors from the United States South Korea France Italy Canada Germany and the UK attempted to discover what number of individuals knew about the trickery that happened inside the partnership German daily paper even marked this embarrassment as the most costly demonstration of idiocy in the historical backdrop of the auto industry As news of the outrage started to release Volkswagen s stock cost promptly started to fall Volkswagen conceded that 11 million autos worldwide had been fitted with the annihilation gadget At that point on November 2 2015 the EPA likewise found a similar thrashing gadgets on extra Volkswagen Audi and even Porsche models Be that as it may the greatest catastrophe of this whole outrage is the arrival of colossal measures of nitrogen oxide into the environment NOx gases cause brown haze corrosive rain and the development of the ground level ozone which are related with unfriendly wellbeing impacts for example irritation of the aviation routes and respiratory issues including asthma bronchitis emphysema and so forth Abnormal amounts of NOx likewise make harm vegetation including lessened development The EU likewise distributed a stock report in 2011 that expressed the lion's share of NOx emanations originates from the street transport part at 40 Realize that the natural harm of this embarrassment will have a significantly all the more enduring and unfathomable effect on the ecosystem The Volkswagen Group is now faced with a problem of establishing credibility to its consumers and stakeholders There are no set guidelines on what to do when a company's reputation is damaged
However three possible solutions include having Volkswagen restart under a new name join an independent verification agency and or set up a bond Volkswagen should implement as many measures as possible to restore credibility to its company The worst case scenario would be a lack of action that may spark a consumer boycott This would lead to a decrease in sales and the eventual collapse of this company Rebranding In the last 60 years Volkswagen has become a global brand and it is the biggest car company in the world While some believe that the scandal will be forgotten soon other Volkswagen directors have discussed the possibility of restarting the company under a new name If the company restarts under a new name this may improve brand image to have a company that is smaller and more efficient than the current Volkswagen Group Rebranding will make it easier for the company to speed up efficiency programs and potentially save the company Rebranding can be expensive and risky but it may reduce the negative publicity that was caused by the scandal It is important that the rebranding not only focuses on exterior changes but also changes in other aspects of the company The Volkswagen group is headed by the group chief executive Matthias Mueller The management board includes 9 bosses led by Herbert Diess the Volkswagen car chief 28 The management board oversees the supervisory board which is composed of 20 members including key investors led by Berthold Huber interim chairman 29 Most shockingly Martin Wintercorn is likely to receive two years pay and a pension of more than 22 million 30 This is the same man who first tried to cover up the scandal by claiming the company did not lie but faced a technical problem 31 Bernd Osterloh the Chairman of the General and 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 32 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 chooses to rebrand it should try to develop a company that is more green and has better corporate social responsibility practices Studies show that greenwashing when a company tries to portray itself as more environmentally minded than it actually is has become increasingly prevalent in recent years 33 The reputation of a company has become an increasingly bigger factor when it comes to consumer decisions The new company should try to work with organizations such as the Federal Trade Commission to focus on sustainability work and collaborate with suppliers universities and other scientific institutions to embed its corporate social responsibility practices in every sector of the new company For example in order to compensate for the previous emissions employees could change the way they travel or business trips could be replaced with internet conferences The new company should focus on reducing energy consumption reducing carbon emissions saving water and reducing waste The new company should also design ex post evaluations to test the efficiency of new programs The new company may also engage with local communities or NGOs to show the public that they care about society and sustainability After all NGOs are powerful vigilantes best suited to hunt down new information They are often the ones who go out to scream and yell to get the public's attention about sustainability issues 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
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