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Through research from sources provided in the course and from academic and scholarly resources outside of the course, evaluate and discuss the following elements: Analyze how the recent leadership CSR challenges of Volkswagen, impact all organizational stakeholders.

As a leader, create new quality management strategies and stakeholder engagement practices you would initiate at VW.

Through research sources, evaluate how leadership in companies have recovered from quality control issues and what recommendations for the future leadership of VW would you make.

The paper should contain the following APA formatted elements: 1. Title Page. 2. Abstract. 3. Body of the essay (Your researched response). 4. Conclusion. 5. References Section.

The requirements below must be met for your paper to be accepted and graded: 1. Write a response between 750 – 1000 words for the body of the essay (The title page, abstract, conclusion and References section are not counted toward the word requirement.) (approximately 4-6 pages) using Microsoft Word in APA style. 2. Address all three elements fully. 3. Use font size 12 and 1 inch margins. 4. Use at least three references from outside the course material (You may use the academic resources included in the Week 8 Bibliography.) One reference must be from EBSCOhost. The course textbook and lectures can be used, but are not counted toward the five reference requirement. 5. References must come from sources such as academic and scholarly journals and essays found in EBSCOhost, CNN, online newspapers such as The Wall Street Journal, government websites, etc. Sources such as Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing. 6. Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style. Provide citations everywhere information from the sources is used for foundational support and for validation of opinions. 7. Use the third person narrative and avoid the use of the first and second person narrative and terms such as; I, me, myself, you, your, yourself, we or us (or related form such as let’s (let us) or we’ll, we’ve (we will / we have) among others). This will prevent the author or other parties from becoming the subject matter and will maintain the focus of the paper on the central theme and subject matter found in the elements. 8. Be informational and avoid being conversational.

Paper For Above Instructions

Abstract

The Volkswagen emissions scandal of the 2010s exposed a disconnect between CSR aspirations and actual leadership behaviors, prompting a crisis in legitimacy among customers, regulators, suppliers, employees, and shareholders. This paper analyzes the CSR leadership challenges faced by VW, articulates proactive quality management and stakeholder engagement strategies for leaders, and reviews how organizations recover from quality failures. Drawing on CSR theory (Porter & Kramer, 2006; Maignan & Ferrell, 2004) and foundational CSR scholarship (Carroll, 1999; Waddock, 2004), alongside contemporaneous reporting on VW’s crisis (Davenport & Ewing, 2015; Lam, 2015; Finley, 2015; BBC News, 2015), the analysis offers actionable recommendations for future VW leadership. The core argument is that sustainable recovery requires transparent governance, credible remediation, stakeholder-inclusive processes, and a strategic integration of CSR into core operations rather than as a peripheral compliance activity.

Introduction

The Volkswagen diesel-emissions scandal highlighted a critical failure of CSR leadership within a global manufacturing giant. While CSR is often framed as a long-term organizational asset, VW’s crisis demonstrated how leadership decisions, culture, and governance can undermine stakeholder trust and long-run performance. This paper evaluates how CSR challenges affected stakeholders across the VW ecosystem and proposes leadership-driven quality management strategies designed to restore legitimacy and resilience. It also examines documented recovery attempts by other firms facing quality-control crises to inform future guidance for VW’s leadership (Porter & Kramer, 2006; Carroll, 1999).

CSR leadership challenges and stakeholder impacts

The emissions scandal immediately disrupted customer confidence, regulatory relations, and employee morale, while tarnishing VW’s brand image. News outlets documented that the company faced recalls, fines, and leadership turnover as stakeholders questioned governance and ethical commitments (Davenport & Ewing, 2015; Finley, 2015). Regulators and environmental groups criticized the manipulation of testing procedures, elevating expectations for corporate transparency, accountability, and remediation (BBC News, 2015). The crisis thus reframed CSR from a voluntary extramural activity into a core governance issue with material financial and reputational consequences. Leading scholars argue that CSR must be embedded in strategy to create shared value, not merely serve as a compliance narrative (Porter & Kramer, 2006). The VW case illustrates the consequences when CSR is decoupled from strategic decision-making and day-to-day operations (Maignan & Ferrell, 2004).

Stakeholders beyond customers and regulators—employees, suppliers, and communities—were also affected. Employee confidence declined as leadership signaled cost-cutting and restructuring in response to the scandal (Finley, 2015). Supplier relationships faced increased scrutiny and risk, while communities near VW plants confronted reputational spillovers and concerns about environmental commitments. These dynamics underscore the need for leaders to design stakeholder engagement that goes beyond rhetoric and translates into measurable improvements in governance, ethics, and performance (Porter & Kramer, 2006; Waddock, 2004).

Quality management strategies and stakeholder engagement

As a VW leader, I would implement an end-to-end quality management framework that integrates ethical governance, risk management, and stakeholder feedback into product development and operations. A key pillar would be a robust quality management system (QMS) aligned with ISO 9001 principles, augmented by a CSR-focused governance layer that requires explicit accountability for environmental and social outcomes (Porter & Kramer, 2006). I would establish cross-functional quality councils that include representation from regulatory affairs, legal, manufacturing, supply chain, and sustainability teams, ensuring decision-making considers stakeholder implications alongside cost and performance goals. The link between strategy and CSR emphasizes that competitive advantage can arise from responsible practices that reduce risk and enhance legitimacy (Porter & Kramer, 2006).

Engagement with stakeholders would be formalized through transparent reporting, regular dialogue with regulators and communities, and ongoing supplier collaboration focused on ethical sourcing and emissions-compliance improvements. Maignan and Ferrell (2004) highlight the importance of stakeholder-centric marketing and accountability; VW’s leadership should extend CSR beyond communications to actionable supplier and product initiatives, including traceability, emissions reductions, and continuous improvement metrics. A data-driven approach—tracking remediation progress, recalls, and customer satisfaction—would be essential for rebuilding trust and demonstrating credible commitment to ethical standards.

Recovery-oriented leadership would also incorporate crisis-learning mechanisms: post-crisis audits, independent oversight, and a clear plan to address governance gaps that allowed the misconduct. Research on organizational recovery emphasizes the critical role of transparency and timely corrective actions in restoring legitimacy (Davenport & Ewing, 2015; Lam, 2015). The leadership team should model ethical behavior and establish a “tone at the top” that reinforces accountability, learning, and consistent stakeholder communication.

Lessons from other firms and recommendations for VW

Case studies of other organizations recovering from quality-control failures underscore the importance of credible remediation, governance reforms, and stakeholder-inclusive strategy. The literature on corporate social responsibility and governance argues that leaders must integrate CSR into core strategy, rather than treating it as a separate program (Porter & Kramer, 2006; Carroll, 1999). VW can draw on these lessons by implementing governance reforms that increase board accountability, publishing independent audit findings, and linking executive compensation to measurable CSR and quality metrics. These measures can help restore shareholder value by reducing risk exposure and rebuilding consumer trust (Davenport & Ewing, 2015; Finley, 2015).

Practically, VW should adopt an iterative learning process: (1) codify ethical standards within the QMS, (2) set transparent, time-bound targets for emissions reductions and quality improvements, (3) broaden stakeholder dialogues to include frontline workers and community representatives, and (4) align leadership incentives with long-term CSR and quality outcomes. This approach aligns with broader CSR scholarship that suggests sustainable competitive advantage emerges when CSR is embedded in strategy and governance, not merely communicated as a stand-alone initiative (Porter & Kramer, 2006; Maignan & Ferrell, 2004).

Conclusion

The VW emissions crisis demonstrates how CSR leadership failures can cascade into broad stakeholder harm and financial risk. By integrating CSR into core strategy, enhancing governance, and implementing a transparent, stakeholder-centered quality management framework, VW can rebuild legitimacy and resilience. Drawing on established CSR theory and peer-case learning, future leadership should emphasize credible remediation, governance reforms, and ongoing stakeholder engagement to transform a crisis into a catalyst for enduring organizational improvement. The path forward requires disciplined execution, transparent reporting, and a genuine commitment to ethical standards that align with both shareholder interests and broader societal expectations (Porter & Kramer, 2006; Carroll, 1999).

References

  • Davenport, C., & Ewing, J. (2015). VW Is Said to Cheat on Diesel Emissions; U.S. to Order Big Recall. The New York Times. Retrieved March 27, 2016, from https://www.nytimes.com/
  • Duffer, R. (2015). Volkswagen diesel scandal: What you need to know. Chicago Tribune. Retrieved March 27, 2016, from https://www.chicagotribune.com/
  • Lam, B. (2015). The Academic Paper That Broke the Volkswagen Scandal. The Atlantic. Retrieved March 27, 2016, from https://www.theatlantic.com/
  • Finley, K. (2015). Volkswagen CEO Warns Employees of Massive Cutbacks. Wired. Retrieved March 30, 2016, from https://www.wired.com/
  • BBC News. (2015). Volkswagen emissions scandal: What happened. BBC News. Retrieved 2015, from https://www.bbc.com/news/business-
  • Porter, M. E., & Kramer, M. R. (2006). Strategy & Society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78-92.
  • Maignan, I., & Ferrell, O. (2004). Corporate social responsibility and marketing: A framework for future research. Journal of the Academy of Marketing Science, 32(1), 3-13.
  • Carroll, A. B. (1999). Corporate social responsibility: Evolution of a definitional construct. Business & Society, 38(3), 268-295.
  • Waddock, S. (2004). Corporate citizenship: The power of 1,000 little things. Academy of Management Executive, 18(2), 11-16.
  • The Wall Street Journal. (2015). Volkswagen’s Emissions Scandal: The Financial and Reputational Toll. The Wall Street Journal.

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