WHY IT HAPPENED?

The communication and the Ethical barriers

Short sightedness (Installation of illegal software) Recently hired wolfgang Bernhard from competitors. Seen
Inadequate Internal controls) Volks wagon wanted to increase its
market share in the united states but it couldnot mee their stricter
as an outsider and face opposition from other corporate
norms. Thus Rather than working on the continuous improvements insiders
they put a gadget “defeat device” to deceive the Environmental Carried the approach of former employees and wanted to
protection agency establish new diesel engine
Unilateral communication-Top-down approach (Objectives and goals Didn’t analyzed the current situation
were decided without taking any input from the workers (Fired Bernharrd and CEO)
Hired winkerton, and it is at this time when cheat software
Pressure from Top Management
For decades, Volkswagen has practiced a management style that
was put on the EA189 and Bernhard technology was
imposes rigid goals and punishes Middle and lower- level employees scrapped
who are unable to keep with the pace. Volks wagon wanted to As a result biggest Large company
increase its market share in the united states but

Management conflict- Tiff with the CEO, Not aware of the

wrongdoings on his part. Illegal softwares are paft of a small group
of rouge engineers

False ads-Positioned their products as harmless and environment

friendly. No consistency in the communication message
 WHY IT HAPPENED?
The communication and the Ethical barriers