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The existing culture of Volkswagen was one of the reasons why the scandal happened. The former CEO Martin Winterkorn created a very strict climate of fear within the organization, and he did not have the ability to respond well to failure. The bossy nature of Martin was the reason why the working atmosphere of the Volkswagen was affected. It was not a strong culture and is considered a weak culture because it was not in favor of employees and the company as well. This sort of culture was the reason why Volkswagen has to face lawsuits because of cheating and fraud accusations on them. Many managers were fearless regarding this issue and felt proud that they would not get caught up if they would be involved in any fraud or cheating (Barth, 2017).
The issue was persisted too long because after the first scandal the company didn't take that issue seriously and didn't change its corporate culture. Although Volkswagen was aware of the cultural problem, still they didn't focus on that, and when they faced an international scandal, they thought that they need a big change (Barth, 2017).
After the resignation of Martin Winterkorn, executives in Volkswagen stated that the company requires to change their approach and acknowledge the unfit culture surroundings. According to Bernd Osterloh, Volkswagen requires a culture in which problems are shared openly without any fear with supervisors or managers. He stated that employees should be given the right to argue with their supervisors regarding the best possible solutions (Barth, 2017).
The corporate culture should be according to the need of the employees. There must be formal and informal communication consistently at all levels of the company to make a strong relationship between manager and employees. It is essential to take care of employees by giving them respect and honor. As a manager to build a strong culture, it is essential to connect with people at levels of the company and brought consistency.
Barth, M., Bauer, A., Hughes, E., King, A., & Koerner, H. (2017). Volkswagen Public Relations Plan.
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