Afterthe scandal of stem emissions, it was necessary for Volkswagen’sCEO Martin Winterkon to offer his resignation. This is because thatscandal had threatened to damage the brand identity of the company.When a company experiences unexpected threats that might drive thecompany out of business, it is necessary to take fast drasticactions. These actions are mainly the duties of public relationsdepartment of the company. It is worth noting that without aneffective public relations system, a company is more likely to loseshareholders’ and customers’ confidence. Therefore, theresignation of Winterkon implied that the company was responding tothe scandals. In addition, the CEO is fully answerable to any companyissues including scandals. Consequently, lacking any information orconcrete proof that denies the scandals, shows his incompetence.
However,Volkswagen prides itself for producing products that are friendly tothe environment and that are safe. This is a core value that oftenattracts consumer confidence and other economic partners. By exposingthe scandal to the public, the managers and employees of VolkswagenCompany are likely to be charged for unethical dealings. Retaininghealthy ethical standards is a critical factor that contributes tobusiness and personal growth and success. The employers as well asthe managers charged with the emission scandal will likely haveemployment opportunities. This is because their careers will bebearing a mark of unethical values to prospective employers.
Moreimportantly, the company can be able to retain their currentcustomers as well as shareholder confidence. This is by offering Mr.Diess who was a former CEO of BMW and is attributed to rebranding hisformer company to top heights. Rebranding remains the next prudentcourse of action that Volkswagen can take to salvage its threatenedmarket position.