Volkswagen Diesel Fraud Case (thesis)

Abstract

To understand how Volkswagen became involved in such a far reaching and long-lasting deception, this paper uses panarchy theory to understand the complex system and growth of Volkswagen in the US. Panarchy theory, which provides a framework for understanding complexities in economic, ecological, and social systems (Holling 2001), helps unravel the timeline of the Volkswagen case and provide new insights into Volkswagen's future. Panarchy theory also provides an organizational tool for applying specific business theories and accounting framework that may help us better the Volkswagen case. Applying panarchy theory to the Volkswagen case reveals the extent to which the future of Volkswagen and similar organizations depends on developing the proper response pattern to failure. Specifically, panarchy theory suggests that frequently allowing and responding to small failures can prevent big catastrophes. This paper provides suggestions of possible responses to failures in each stage of an organization's growth cycle. [From Introduction]