How should a company respond when it has a worldwide crisis that could result in civil, regulatory, and reputational liability, if not criminal liability? Should there be a uniform worldwide response? Should the response have any consistency? Can a company take inconsistent positions in different countries? What would be the effect on customers or potential customers if the response favors customers in one country yet disfavors customers in other countries? Should said company consider the potential reputational fallout? Would customers ever trust the country again?
These are just some of the questions that come to mind following a recent Wall Street Journal article that details the various global responses put forward by Volkswagen in its emissions-testing scandal response. The company has settled with U.S. regulators in quick manner. Yet it’s actively fighting regulators in other countries. Has VW set itself up to settle along the lines of the American settlement, or can it simply pick and choose where it will make restitution to its customers, dealers, and other stakeholders?
