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Volkswagon Leadership

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Subject
Business
School
Faulkner University
Type
Homework
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Running head: LEADERSHIP IN HARD TIMES 1
Leadership in Hard Times
Name
Uni
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Running head: LEADERSHIP IN HARD TIMES 2
Introduction
The aim of this paper is to analyze the difficult leadership situation the company Volkswagon, an
automotive firm, is experiencing as a consequence of the recent diesel scandal. Further, this
paper also illustrates a development plan to enhance the performance of the organization,
leadership and teams using the five practices of exemplary leadership as developed by Kouzes
and Posner.
Leadership plays a significant role on the morale of employees and the long term survival of a
company. In the recent past a lot of emphasis has been made on ethical corporate leadership
culture in light of several unethical leadership practices that have resulted in a loss of reputation
and in worst cases bankruptcy. As such it is important to have a core set of practices to assist in
the planning stage for leading in difficult times in order to attain objectives including shareholder
wealth maximization and social responsibility.
Analysis of Volkswagon’s leadership issues
Lack of communication and unethical leadership culture
In 2015, Volkswagon’s fraudulent activity in relation to manipulating emission tests using a
defeat device was exposed. Then CEO, Dr. Martin Winterkorn’s leadership style and culture
played a vital role in this scandal that resulted in severe financial damage and a loss of reputation
for the organization as a whole. The CEO was known for his authoritarian leadership style which
involved his team members working in an environment of fear. As a consequence the team
members which consisted of qualified German engineers were commanded to invent software
that would enable Volkswagon’s diesel vehicles to pass the emissions test. In reality, these
vehicles were not environmentally friendly as it was revealed that emission levels did not meet

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Running head: LEADERSHIP IN HARD TIMES Leadership in Hard Times Name Uni Course Prof. Date 1 Running head: LEADERSHIP IN HARD TIMES 2 Introduction The aim of this paper is to analyze the difficult leadership situation the company Volkswagon, an automotive firm, is experiencing as a consequence of the recent diesel scandal. Further, this paper also illustrates a development plan to enhance the performance of the organization, leadership and teams using the five practices of exemplary leadership as developed by Kouzes and Posner. Leadership plays a significant role on the morale of employees and the long term survival of a company. In the recent past a lot of emphasis has been made on ethical corporate leadership culture in light of several unethical leadership practices that have resulted in a loss of reputation and in worst cases bankruptcy. As such it is important to have a core set of practices to assist in the planning stage for leading in difficult times in order to attain objectives including shareholder wealth maximization and social responsibility. Analysis of Volkswagon’s leadership issues Lack of communication and unethical leadership culture In 2015, Volkswagon’s fraudulent activity in relation to manipulating emission tests using a defeat device was exposed. Then CEO, Dr. Martin Winterkorn’s leadership style and culture played a vital role in this scandal that resulted in severe financial damage and a loss of reputation for the organization as a whole. ...
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