Volkswagen is a company known for technological prowess and market innovation. This raises the question of how the company could engage in a plot as plain stupid as trying to trick emissions tests. I share my thoughts on this apparent puzzle in a recent piece that appeared in the business section of the Huffington Post. You can read it at http://www.huffingtonpost.com/mark-pastin/volkswagens-dumb-culture_b_8270264.html.
Ethics Crises
September 8, 2015 — MarkI have an article about how to address an ethics crisis, which includes most business crises, at http://www.huffingtonpost.ca/mark-pastin/business-ethics-crisis-solutions_b_8096754.html.
Comments are always welcomed and answered as possible.
In an Ethics Crisis Assume the Government Will Be Involved
March 7, 2015 — MarkWhen an organization does something viewed as unethical, the public wants someone to do something about it. And that someone is likely to be “the government.” Most organizations are open to some level of government oversight. When the government comes knocking, you can expect to hand over most everything you know about the crisis. Why? Even though some of the material may be covered by legal privilege, the government will find you uncooperative if you “hide” information. Your reasoning about the crisis needs be premised on when the government finds out rather than whether the government finds out.
In a Crisis Investigate Quickly, Objectively and Thoroughly
February 21, 2015 — MarkIn an ethics crisis, you need to know what happened, who did what and who knew about it. An investigation into an ethics crisis cannot follow the usual internal investigation protocol since those running the investigation may be implicated in the crisis or in covering it up. You need an independent investigation. Even if you conduct the investigation under legal privilege, anticipate that the investigation may become public and that you may eventually be required to share the investigation with regulatory or enforcement authorities.
Recognize the Crisis
February 14, 2015 — MarkThe biggest mistake made in an ethics crisis is not recognizing that it is an ethics crisis. Executives tend to overestimate the protection offered by the organization’s reputation and its legal defenses. And they often reason that the organization will not be held accountable for what someone did contrary to the organization’s direction or policy. This is untrue. The sooner you own any crisis, the less newsworthy it is. Early acknowledgement of an ethics crisis is particularly effective in showing that the wrong action is not characteristic of the organization.
Mark Pastin 