Case Study Volkswagen Ag

Volkswagen AG is a German automotive manufacturing company. It is one of the world’s leading automobile manufacturers and the largest carmaker in Europe. It was established in 1937. The headquarters is in Wolfsburg. In 2011, the Volkswagen Group delivered 8.3 million vehicles worldwide. The Volkswagen Group operates 62 production plants in 22 countries in Europe, the Americas, Asia and Africa. It is the second-largest automaker in the world. Around the world, more than 400,000 employees produce almost 36,600 vehicles or are involved in vehicle-related services each working day. The Volkswagen Group sells its vehicles in more than 153 countries. This Group is combined of nine brands from seven European countries: Volkswagen, Audi, Bentley, Bugatti,

Also, the CEO’s carelessness, lack of organizing, coordinating, directing, and tardy attitude has resulted to this entire problem. This has also affected their globalization. In detail, it can be said that new opportunities from other countries has decreased. The sustainability of their source of material has diminished, gathering cheap employees from other countries for less cost of production will be tougher, and it would be more necessity to merge with other company. The firm has lost their competitive advantage in the market. Also, minimized intellectual property. Another mistake that the company has done is that they were not able to manage their knowledge properly, organize and implement

But, none of the employees stood up with the problem, which depicts that there is a gap in communication and relationship between the employees and leaders. Also, managers were unable to take this situation under prime consideration that has led them to such a massive complication. Whistleblowers are essential in an organization to stop any fraudulent, illegal, or any ethical activities and activities could be interrupted or the outcome to be lessened. Also, based on social contract theory, that is the view that persons' moral and political obligations are dependent upon a contract among them to form the society in which they live. The main thing about this is that the company is trying to violate some of the rights of the consumer. Right to safety by manufacturing vehicles that cause various air pollution and many problems to the driver, mainly are unsafe to be used and right to information is disrupted by not providing accurate information to public and authorities. If the product fails to promise the claims of the company, the customers will lose the trust in the company. The rights taken away from the consumer by the company. When these rights are taken away, the consumers start losing trust from the company, which affects during long-term. Something that the company has