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Explain, in detail, what could have been done to avoid this type of Volkswagen crisis.

Explain, in detail, what could have been done to avoid this type of Volkswagen crisis.

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Volkswagen crisis stems from the knowingly hiding the unethical conduct. Hence, to avoid such kind of the crisis, there should be implementation of strict corporate governance and business ethics in the organization. in this regard, the first initiative will be to give training to employees to deliver ethical conduct and it should be transmitted by the management side from the top. When top management shows commitment towards the ethical values, then organization and its employees follow. The second initiative will be to promote the whistle blowers with a promise to keep their details to be confidential. It should also be the part of performance appraisal process. The third initiative will be to setup operational risk management framework, where the double layer quality check will be applied to prevent such cases of scams taking place in the company. These initiatives, will help prevent such type of crisis.

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