Efficiency and quality is at the heart of German engineering. This much seemed to be true until last week. Germany and the world watched in shock when Volkswagen announced that some of its cars had been programmed to circumvent EPA testing.
Recalls and mistakes are something that the world has come to expect from companies like Toyota. But few people, including the CEO of Volkswagen, ever expected to hear this kind of news from a German auto manufacturer.
Though the scandal is far from over, Volkswagen has handed this crisis well. The company immediately chose to take the high road. It has offered its vehement apologies–twice. It has also promised a full investigation into the extent of the damage.
Even Martin Winterkorn, the CEO, stepped down from his role in the immediate aftermath of the scandal. He announced that he was unaware of wrongdoing on his part, but he preferred to act in the best interests of Volkswagen regardless of whose fault the issues are.
Startups and small businesses can learn a lot from how VW has managed this PR crisis.
Lessons Learned From the Crisis
The most important thing that any business can do to survive a proven crisis of this magnitude is to avoid finger-pointing. It must accept responsibility for its collective actions. Winterkorn’s announcement cemented the company’s claim that although the devices were happening under his watch, he never authorized the devices to be installed on the cars.
The fact that Volkswagen did not try to shrug off the responsibility that it has towards both drivers and the environment may allow to it recover quickly.
The amount of transparency that both Volkswagen and the German government have called for is another an important lesson to learn for any small business. Volkswagen is not attempting to get in front of this scandal; instead, the company, and German Chancellor Angela Merkel, would prefer to investigate the issue to avoid any future surprises.
Working to get ahead of the damage has its place in crisis management. But, if it looks as though Volkswagen is using its investigations to cover up further damage, this will only further damage the brand’s credibility.
What is also important is that Volkswagen has apologized publicly for the company’s actions. But it did not just issue a standard form apology–it has apologized twice and meant it.
VW Scandal in China
The company’s solid apologies have helped it out of PR crises in the past. In 2013, VW China was accused of selling cars equipped with faulty gearboxes. China is an instrumental market for Volkswagen; its cars have dominated the streets from Beijing to Shanghai for decades.
When the 2013 scandal broke, it was handled masterfully by Catherine Peng. Peng had been the VP of PR & Communications at Volkswagen Group China for only two months. She was also on Advertising Age’s “Women to Watch China 2014” list for how well she handled the crisis.
Peng’s message to businesses working both in China and around the world is that an apology is the best policy. She says that when a company apologizes sincerely and quickly, it is easier to fix the problem and get back to business.
A Business Owes Its Customers
The final lesson that Volkswagen offers to other businesses is how important it is to remain grounded. People have high expectations of companies. The more successful your business is, whether it is big or small, the more customers expect of you.
So when mistakes happen, and mistakes do happen, you should emerge from the scandal both cautious and humble. A business owes its success not just to its policy makers and employees, but to its customers as well. It is not enough to admit that the customer has been wronged; it is also important to show the customer that your businesses mission is not to exploit customers, the environment, or anyone else.
It’s true that Volkswagen owes a lot of people a lot of apologies. Volkswagen owes an apology to its American customers, to the planet, and to the country of Qatar, which lost billions of dollars when Volkswagen’s worth dropped by 25 billion in one day.
The Road Ahead
There is more damage to come. Volkswagen will owe millions in fines, spend more on recalls, and even be taken to court. But because Volkswagen took immediate accountability for the mistakes, remained humble, and offered sincere apologies, the world’s second-largest auto manufacturer will make it through this crisis. These are the biggest lessons anyone can learn from Volkswagen today.
The post What VW Can Teach Us About Managing a PR Crisis appeared first on AllBusiness.com.
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