Volkswagen’s commitment to innovation and brand equity drove its rivals to develop technologies that would allow them to cheat the system while maintaining positive brand equity. Management of the company had created a culture which prioritized financial growth over the triple bottom line. It was focused on maintaining brand equity as well as significant financial margins through its activities (Michael and al. (2018). Employees began to neglect environmental sustainability and sustainable development. This case illustrates the negative impact that unsustainable environmental practices have on the company’s growth. Volkswagen had been regarded as the most eco-friendly automaker before the scandal of dieselgate. Incorporated in a culture of dishonesty, the management claimed that they were promoting sustainability and using the defeat device to hide emission levels to improve their image. The corporation was subsequently discredit by customers due to its brand damage from the findings of the environmental protection agency.
An extensive public relations campaign is necessary to help the institution regain its reputation. To gain public support, the corporation must hire specialists and public relations agents. The institution will be able to demonstrate its commitment to the triple bottom line by investing in public relations efforts such as financing non-profits who have made investments in environmental protection. It is important that the institution initiate a series of CSR programs in order to show its customers it is not only profit driven but also sensitive to social issues. Thames (2018) CSRE will help to restore the brand’s damaged value and increase consumer loyalty.
This incident will increase federal agencies’ scrutiny of businesses making environmental claims. Volkswagen may use its innovative talents to avoid regulations that have been exposed in the Volkswagen scandal. Therefore, the federal government may take more stringent steps to make sure that the company does not create cover-ups for unsustainable activities or exploit loopholes. To dissuade these individuals from engaging in unethical conduct, the government will enforce stricter supervision (Schuetz 2016, 2016).