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The culture of arrogance and superiority at Volkswagen has significantly influenced its brand and corporate strategies, often negatively. This culture, cultivated by CEOs since the mid-1990s, led to a hubris-filled organization with a 'dominate the world' mindset. This attitude was particularly directed towards Americans, creating a contradiction with the brand's external relationships. The rupture between Volkswagen's brand and culture became evident during the company's major scandal. This situation underscores the importance of leadership in shaping corporate culture and brand strategy. A leader who fosters a positive culture can revive a brand and bring employees along in a culture change, as seen in Ford's turnaround. Conversely, a culture of arrogance can lead to scandals and damage the brand, as seen in Volkswagen's case.
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As is true with many corporate scandals, VW insiders identify CEOs that stretch back to the mid-1990s through the beginning of the crisis as the root cause of these cultural issues. "Critics charge with cultivating a culture of arrogance and superiority." One former employee recalls, "VW was an organization full of hubris, you know, dominate the world and walk-on-water type of thinking." This attitude was especially directed towards Americans, former employees say. This was "a contradiction to the relationship the brand had built with on the outside." Volkswagen's rupture of "brand" and "culture" was on display for all to see during the scandal. The lesson to takeaway here is the importance of leadership. Ford's epic turnaround was due to a leader who committed to and revived the brand, bringing employees along in a dramatic culture change. On the other hand, Volkswagen faced a major scandal as a result of leadership who boasted of the brand while creating a culture of arrogance and...
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Have you ever wondered what’s behind the success of some of the world’s most iconic brands? How they manage to resonate so deeply with consumers, main...
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