Question

", describe the ways in which Volkswagen did not fulfill the requirements of effective corporate governance. In one or two paragraphs, discuss how the board of directors sidestepped its obligations to protect shareholder interests? In one or two paragraphs, discuss how Volkswagen could better select its board of directors to avoid mistakes such as the emissions scandal?"

Answer 1

Answer: Volkswagen Emission scandal

Explanation: The Supervisory Board should be “responsible for monitoring the Management and approving important corporate decisions , however “investors and governance experts say the emissions scandal shows that it lacks the independence and authority to do this” .

1nternal Controls

Many officials at Volkswagen were unaware of any wrongdoing, although this suggests the company can be salvaged and there are people at the top that can help turn this back around. It does also highlight the need for serious improvement in terms of the firm's internal controls. For issues on a scale as large as this, there should be a sound whistle blowing system in place to alert the correct people of such instances, so action can be taken before any issue further escalates