Repairing corporate legitimacy after crisis : a study on Volkswagen’s effort to win back trust after emissions scandal

The multinational car manufacturer Volkswagen AG was in September 2015 found to have used illegal defeat devices in its diesel vehicles to cheat emissions testing. With the help of the defeat device Volkswagen was able to artificially lower its cars’ emissions during emissions testing and therefore sell them on markets with strict emissions regulation. A thorough investigation unveiled that the firm’s deception had endured for more than a decade and put the firm in the midst of a major crisis, which threatened the company’s legitimacy. Volkswagen reacted to the crisis with an intensive legitimacy management strategy and was able to regain its position as the largest car manufacturer in the world just a few years after the scandal. How is this possible and which legitimacy repairing actions did Volkswagen use in its successful legitimacy management strategy after the crisis? Although Volkswagen is still recovering from the crisis, its initial legitimacy repairing actions and communication can be discovered from the 25 press releases of the firm after the outburst of the crisis. The press releases are analysed with the help of Suchman’s legitimacy management framework, which is based on legitimacy theory. Systematic content analysis is used as the method in this qualitative research. The framework makes it possible to discover legitimacy repairing actions in Volkswagen's communication and extract content and meanings from them. The main findings of this study are that Volkswagen used a wide variety of different actions to repair its legitimacy. The combination of actions was also more important than individual actions alone. Some of the actions were targeted at individual stakeholder groups and Volkswagen’s use of actions developed over time. A concluding discovery of Volkswagen’s legitimacy management is that the legitimacy repairing actions were used in collaboration to build a compelling story of Volkswagen’s transition to sustainable electric mobility in the future. The aim of the transition was to change the way the company would be interpreted in future by its stakeholders, and thus ultimately repair the company’s legitimacy. Finally, this study provides possible future research avenues for legitimacy management of major crisis

Designing a product service system in a social framework: methodological and ethical considerations

Macroscopic social and economic changes in the last few years are forcing business companies and public institutions to redefine their approach to social intervention, focusing on local and highly individualised solutions. This change is also calling for a new design approach. The challenge for designers is not only to be able to provide local and highly individualised solutions, but also to propose strategies to transfer and reproduce the solutions, or part of them, into different local contexts, thus creating economy of scope. This would be possible by using forms of codification and modularisation of the most relevant components in local solutions. The code refers to the organisational knowledge included in local components and the way each component interacts with the others. Like software systems, local product-service systems can be built upon a source code. This paper will illustrate how this process was developed in a concrete case. Through this case the authors analyse the possibility to build something similar to a source code for initiatives based on social interaction and investigate the process of construction of such a code Furthermore, the author discuss differences and analogies between design intervention in a social context and in the normal business context. The question of codification suggests a methodological approach for supporting transferability both in the problem space (dealing with complexity) and in the solution space (dealing with contingency). The analysis of differences and similarities between business- and socially-oriented processes suggests a new role for designers and new opportunities for innovation. Keywords: Product Service Systems, Methodology, Design and Morality, Codification, Transferability</p

A framework for utility data integration in the UK

In this paper we investigate various factors which prevent utility knowledge from being fully exploited and suggest that integration techniques can be applied to improve the quality of utility records. The paper suggests a framework which supports knowledge and data integration. The framework supports utility integration at two levels: the schema and data level. Schema level integration ensures that a single, integrated geospatial data set is available for utility enquiries. Data level integration improves utility data quality by reducing inconsistency, duplication and conflicts. Moreover, the framework is designed to preserve autonomy and distribution of utility data. The ultimate aim of the research is to produce an integrated representation of underground utility infrastructure in order to gain more accurate knowledge of the buried services. It is hoped that this approach will enable us to understand various problems associated with utility data, and to suggest some potential techniques for resolving them

Identifying the impact of the circular economy on the Fast-Moving Consumer Goods Industry Opportunities and challenges for businesses, workers and consumers – mobile phones as an example STUDY

Mobile phones, particularly smartphones, have undergone a period of rapid growth to become virtually indispensable to today's lifestyle. Yet their production, use and disposal can entail a significant environmental burden. This study looks at the opportunities and challenges that arise from implementing circular economy approaches in the mobile phone value chain. A review of the value chain and different circular approaches is complemented by a scenario analysis that aims to quantify the potential impacts of certain circular approaches such as recycling, refurbishment and lifetime extension. The study finds that there is a large untapped potential for recovering materials from both the annual flow of new mobile phones sold in Europe once they reach the end of their life and the accumulated stock of unused, so-called hibernating devices in EU households. Achieving high recycling rates for these devices can offer opportunities to reduce EU dependence on imported materials and make secondary raw materials available on the EU market. As such, policy action would be required to close the collection gap for mobile phone devices. Implementing circular approaches in the mobile phone value chain can furthermore lead to job creation in the refurbishment sector. Extending the lifetime of mobile phones can also provide CO2 mitigation benefits, particularly from displacing the production of new devices

Innovation Openness and Business Models of Shared Machine Shops in Budapest

Shared machine shops are designed for providing space for education, learning practices, however it is also being questioned if they are accessible and for whom, depending on their location, communication practices and the entry-point in knowledge. Nonetheless the narrative of innovation and creativeness being attached to these spaces, the shades, openness or even absence of innovation is of a scholarly quest. Moreover, their function of enabling designers-entrepreneurs with infrastructure, collaborative practices and expertise is at the forefront. This paper looks at the composition of hybrid business models behind the activity of a set of shared machine shops: a fablab, a makerspace, a hackerspace, and printer-vendor company and how it may be linked to the education and innovation practices performed by the members and visitors. In search for if and how they represent dots of change on the landscape of design, this paper examines the facilities and opportunities for young designers, students, and makers to engage with digital technologies in Budapest, in a context where public schools and universities lack the access to fablabs and maker laboratories

Understanding Architecture Erosion: The Practitioners' Perceptive

As software systems evolve, their architecture is meant to adapt accordingly by following the changes in requirements, the environment, and the implementation. However, in practice, the evolving system often deviates from the architecture, causing severe consequences to system maintenance and evolution. This phenomenon of architecture erosion has been studied extensively in research, but not yet been examined from the point of view of developers. In this exploratory study, we look into how developers perceive the notion of architecture erosion, its causes and consequences, as well as tools and practices to identify and control architecture erosion. To this end, we searched through several popular online developer communities for collecting data of discussions related to architecture erosion. Besides, we identified developers involved in these discussions and conducted a survey with 10 participants and held interviews with 4 participants. Our findings show that: (1) developers either focus on the structural manifestation of architecture erosion or on its effect on run-time qualities, maintenance and evolution; (2) alongside technical factors, architecture erosion is caused to a large extent by non-technical factors; (3) despite the lack of dedicated tools for detecting architecture erosion, developers usually identify erosion through a number of symptoms; and (4) there are effective measures that can help to alleviate the impact of architecture erosion.Comment: The 29th IEEE/ACM International Conference on Program Comprehension (ICPC