The purpose of this research is to examine the crisis management and crisis communication of the German car company Volkswagen (VW) in its recent emissions scandal. This study aims to analyse the applied crisis management and communication strategies of Volkswagen by evaluating the crisis´ impact on each stakeholder group. To accomplish this, the research adopts a single case study design, and it considers a significant amount of qualitative, secondary data.
The research first notes that Volkswagen failed in its crisis management prevention tactics, as it was unable to detect the crisis at an early stage. Moreover, the study reveals that VW implemented several immediate crisis management measures for a quick turnaround management. Instead of concentrating on a specific crisis response theory, it is evident that VW made use of different crisis response strategies. VW took full responsibility for the crisis, promising transparency, but it also shifted the blame onto a small group of employees, suggesting that the company was also the victim of human error.
Finally, the study reveals the significant impact of the crisis on each stakeholder group, which reveals that VW struggled to regain stakeholder trust and did not keep its promise of transparency. Thus, the study concludes by presenting future recommendations for Volkswagen in order to rebuild trust and avoid similar crises from occurring in the future.
Table of Contents
1.INTRODUCTION
1.1 THE BACKGROUND OF UNCERTAINTY AND OCCURRENCE OF CRISES
1.2 VW AND THE EMISSION CRISIS
2.DEFINITION OF CRISES
2.1 CRISES AND CORPORATE CRISES
2.2 DIFFERENT TYPES OF CORPORATE CRISES:
3. CSR, CRISIS MANAGEMENT & CRISIS COMMUNICATION
3.1 CORPORATE SOCIAL RESPONSIBILITY & STAKEHOLDER MANAGEMENT
3.2 THE PROCESS OF CRISIS MANAGEMENT:
3.3 CRISIS COMMUNICATION & CRISIS RESPONSE STRATEGIES
4. METHODOLOGY
4.1 MOTIVATION:
4.2 RESEARCH PHILOSOPHY:
4.3 RESEARCH DESIGN:
4.4 DATA COLLECTION:
4.5 DATA ANALYSIS:
4.6 ETHICS:
4.7 LIMITATIONS:
5. DISCUSSION AND FINDINGS - THE VW CRISIS
5.1. BACKGROUND OF VW’S “EMISSION ISSUE”
5.2 THE EMERGENCE OF THE CRISIS:
5.2.1 May - December 2014:
5.2.2 September 03, 2015
5.2.3 September 18, 2015
5.3 ANALYSIS OF VOLKSWAGEN PRESS RELEASES AFTER THE EMERGENCE OF THE CRISIS
5.4 VW´S CRISIS MANAGEMENT FROM A STAKEHOLDER PERSPECTIVE
5.4.1 Capital Market
5.4.2 Society
5.4.3 Customers
5.4.4 Partners
6. CONCLUSION AND FINAL DISCUSSION
Research Objectives and Themes
The primary objective of this thesis is to critically evaluate how Volkswagen managed its emissions scandal by comparing theoretical frameworks of crisis management, corporate social responsibility, and stakeholder communication against the company's actual performance and strategic responses.
- Analysis of crisis management strategies during the emergence of the VW scandal.
- Evaluation of crisis communication and its effectiveness in maintaining stakeholder trust.
- Assessment of stakeholder engagement and the impact of the crisis on different target groups.
- Comparative study of theoretical crisis response strategies versus corporate practice.
- Development of future-oriented recommendations for organizational crisis preparedness.
Excerpt from the book
5.2 The emergence of the Crisis:
It was in May 2014, where the International Council on Clean Transportation (ICCT) and the University of West Virginia published their study of emission values of light-duty vehicles. Herein, they muckraked that the nitrogen oxide exhausts of VW diesel engines were up to 35 times higher than allowed by US law, when the vehicle was tested under real conditions using a “portable emissions measurement system” (ICCT; CAFEE, 2014).
Instead of taking these first warnings seriously, VW classified these issues as a “technical problem” and called back 500,000 vehicles in December, 2014 to retool them with a new software update (Volkswagen AG, 2016c, p. 51). However, the California Air Resources Board (CARB) then noticed that this software update did not improve the increased nitrogen oxides emissions under real conditions (Volkswagen AG, 2016c).
The fact that VW did not take these first warnings seriously fits the theory of several academics that the early detection of a crisis often poses the first problem for managers (Scherer, 1989, p. 17; Krystek & Moldenhauer, 2007; Fink, 2013). At least by now, where the company was already in the latent company crisis, as it was obvious that a crisis will occur soon (Krystek, 1987), VW´s internal risk and preventive crisis management should have turned on and develop instruments to stop the outbreak of a crisis.
Summary of Chapters
1.INTRODUCTION: This chapter introduces the context of the Volkswagen emissions scandal and outlines the dissertation's aim to evaluate the company's crisis management and communication practices.
2.DEFINITION OF CRISES: This chapter provides a theoretical foundation by discussing various definitions of corporate crises and classifying them based on seriousness and origin.
3. CSR, CRISIS MANAGEMENT & CRISIS COMMUNICATION: This chapter explores the role of CSR and stakeholder management, and reviews established models for crisis management and communication, specifically focusing on the Situational Crisis Communication Theory (SCCT).
4. METHODOLOGY: This chapter details the research philosophy, design, and qualitative methodology, explaining the use of secondary data and a single case study approach to analyze the VW crisis.
5. DISCUSSION AND FINDINGS - THE VW CRISIS: This chapter analyzes the timeline of the emissions crisis, evaluates VW's official press releases through the lens of Coombs' SCCT, and examines the impact of the scandal on specific stakeholder groups.
6. CONCLUSION AND FINAL DISCUSSION: This chapter summarizes the key findings, identifies systemic failures in VW's crisis management, and provides strategic recommendations for future improvement.
Keywords
Crisis Management, Crisis Communication, Corporate Crises, Corporate Social Responsibility, Stakeholder Engagement, Volkswagen, Emission Issue, Defeat Device, Stakeholder Management, SCCT, Business Ethics, Reputational Risk, Environmental Standards, Sustainability, Corporate Strategy.
Frequently Asked Questions
What is the core focus of this research?
The research focuses on evaluating the crisis management and communication strategies employed by Volkswagen during its emissions scandal, specifically analyzing how the company handled the emergence of the crisis and interacted with its various stakeholder groups.
What are the central themes discussed in the work?
The work centers on the intersection of CSR, stakeholder management, and crisis response, contrasting academic theories of crisis communication with the practical, often criticized, actions taken by Volkswagen.
What is the primary research question?
The primary objective is to determine how Volkswagen behaved when solving its emissions crisis by comparing theoretical crisis management frameworks against the company's actual practice and response strategies.
Which scientific methods are utilized?
The study adopts a qualitative single case study design, employing a longitudinal time horizon and utilizing a wide range of secondary data, including official press releases, annual reports, and media coverage, analyzed through a system of coding.
What is covered in the main body?
The main body covers the theoretical definitions of corporate crises, the role of CSR and stakeholder management, an analysis of the emergence of the VW scandal, and a detailed evaluation of VW's press releases and impacts on stakeholders like the capital market, society, customers, and partners.
How is this research characterized by its keywords?
The research is characterized by the integration of communication strategies (SCCT) and management models applied to the specific context of corporate environmental scandals, emphasizing reputation, transparency, and stakeholder trust.
How did Volkswagen's initial response affect its reputation?
Volkswagen's initial response was characterized by a lack of transparency and an attempt to treat the issue as a "technical problem," which significantly exacerbated the crisis, eroded stakeholder trust, and led to severe global criticism.
What were the major differences in Volkswagen's approach to different customer groups?
The research highlights an unequal treatment where American customers received significant financial compensation and buy-back options, whereas European customers were largely left with only a software repair, leading to accusations of unfair practice and legal challenges.
Why does the author critique Volkswagen's stakeholder categorization?
The author argues that Volkswagen's broad categorization, particularly placing employees solely under "Partners" rather than "Human Capital" or "Capital Market," fails to acknowledge the critical importance of human resources in achieving competitive advantage and managing organizational change.
- Citar trabajo
- Marco Hölzel (Autor), 2017, Crisis Management, CSR, and Crisis Communication in the Volkswagen Emissions Scandal, Múnich, GRIN Verlag, https://www.grin.com/document/417476
