Question

what thougthfull response can be given to this comment? aboud Crisis in Business ? please experts?

WW CEO Talks About Diesel Software Crisis et In this video former Volkswagen CEO Martin Winterkorn apologizes to the public and releases a statement after the VW Emissions Scandal came out. In this video he seems sincere and apologetic about what happened with the cheating devices that were performing under acceptable limits when tested, but when on the road releasing 40 times the legal limit of diesel! This relates to our last class when he talked about crisis within an organization and who should come out and speak after a crisis has occurred. Although Mr. Winterkorn says all the right things he actually personally knew this was going on and even went out of his way to cover it up. It seems he is only sorry he got caught. He is currently facing upto 10 years in prison in Germany for fraud. Reply

Answer 1

Solution

When a company is under the crisis,the top leader of the company like the CEO and /or the Managing Director comes out and gives assurance and clarity on the situation and also on the next steps that they are taking to resolving the crisis.

Since they are responsible for creating a direction for their company / businesses,they are the ones who generally come out and give clarity during the turn moil . All the stakeholders of the business i.e., customers,suppliers,government,regulators and the shareholders expect the same from the top voice of the company so the CEO / MD provides the view of the company on the crisis and the steps taken to resolve the same.Issuing clarity is essential for the company to re-instate it's lost trust trust of it's shareholders.

In the Video,Mr Winterkorn issues a apology statement,takes up the responsibility for the crisis,assures to the stakeholders of the company that their trust will not be broken again and also that the at most priority of the company right now is to help the authorities / regulators in investigating the crisis.He also says that the 600,000 employees majority of whom work with out most integrity are not at all responsible for this crisis.

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