How Surprising: Another Volkswagen Indiscretion

Volkswagen’s continual dishonesty is barely surprising anymore. Even after the emissions scandal, they have insisted on deleting data routinely despite Department of Justice requests for them to stop. They dismissed a whistleblower who tried to make VW’s consistent lack of cooperation with investigators public. You would think that diminishing trust and sales would encourage VW to attempt changing their culture of deceit, but it appears that it’s difficult to teach an old dog new tricks. Read more at Fortune Magazine.

Photo Information: Jens Meyer/Associated Press via Mashable

A Tale of Two Corporations

GM CEO & Chairwoman Mary Barra

GM’s CEO and Chairwoman, Mary Barra, provides a completely alternative way to handle scandal when compared to the recent VW emissions disgrace. When faced with a grave safety crisis that cost 124 lives, 2.6 million recalled vehicles, and over $900 billion, Barra focused on apologizing to the public, owning up to faults and rectifying cultural issues within GM that allowed the safety issues to go ignored. Contrastingly, VW has been doing everything it can to sweep details and news of their wrongdoing under the proverbial rug. Read more about Barra's appointment as GM chairwoman at The New York Times. 

Photo Credit: Bill Pugliano/Getty Images

Response to BBC Scandal

This story is harrowing. The Jimmy Savile sexual assault scandal at the BBC is one of the worst ways a harmful workplace culture can manifest itself. The report described in this article cites a culture at the BBC that “discouraged young women from filing complaints” about “sexual misconduct or harassment in particular.” Just as upsetting is the idea presented in the report that the atmosphere for whistle blowers is even worse now than it was when Savile was there. What explains the gross negligence at the BBC? Was it a culture of indifference, a lack of knowledge or a lack of belief? Considering the ample evidence amassed (over 400 witnesses to Savile’s abuses were interviewed to compile the report), it’s easy to believe that the truth was willfully ignored by those who didn’t have the courage to stand up to the worst of the worst kind of workplace bully. You can read more about the scandal at The New York Times.

Response to VW's Press Conference on 12/10

Some credit can be given to Volkswagen for admitting that their emissions cheating scandal was the result of “a chain of errors that were allowed to happen” by a “climate of fear” created by management. However, the focus should be on that culture of intimidation, rather than the notion that the cheating was allowed to happen due to poor organizational management between R&D and implementation of new technologies. While that is certainly a contributing factor, the heart of the scandal is why employees didn’t come forward and blow the whistle sooner, and what cultural elements existed at VW to encourage immoral behavior. VW still has a lot to answer for, and business leaders should be taking notice of the possible results of a psychologically unsafe workplace. See more on the press conference at the New York Times.

Is Your Corporate Culture a Ticking Time Bomb?

Corporate cultures that discourage employees from reporting wrongdoing are ticking time bombs. Situations like the Volkswagen scandal should be keeping senior executives up at night – what if there are legal and ethical breaches in their organizations that they’re not aware of? What if the employees in the know are too afraid to bring issues to their attention for fear of retaliation? Questions like these prove that creating a psychologically healthy workplace isn’t just in the best interest of employees – it’s another form of risk-management for CEOs who want to avoid becoming the next VW. Whistle blowers will only feel comfortable coming forward with essential information if the workplace culture is based on trust and encouragement. Here are two great reads on the VW scandal: Volkswagen says Whistle-Blower Pushed It to Admit Broader Cheating and VW Lost its Moral Compass in the Quest for Growth.