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| Type | Working Paper |
| Scope | Discipline-based scholarship |
| Title | A Cybernetic Perspective on Escalation: Lessons from the Volkswagen Emissions Scandal |
| Organization Unit | |
| Authors |
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| Language |
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| Institution | University of Zurich |
| Series Name | SSRN |
| Number | 4191411 |
| ISSN | 1556-5068 |
| Number of Pages | 41 |
| Date | 2023 |
| Abstract Text | This paper examines how and why initially well-intentioned organizations can find themselves ethically adrift. Drawing on a qualitative analysis of the Volkswagen emissions scandal, we investigate what planted the seed of deception, why the company’s deceptive behavior changed from one stage to the next, and which factors catalyzed these shifts. Furthermore, we scrutinize the management’s response to the disclosure of their misconduct. We employ a cybernetic perspective, envisioning the dynamics of deception as a multi-stage, goal-directed process, in which shifts in behavior are driven by a need to resolve discrepancies between past and anticipated future states. Our analysis reveals two dominant dysfunctional feedback loops underlying the company’s ethical descent. We conclude by discussing the theoretical implications of this case study and derive propositions about the emergence of such dysfunctional feedback loops, as well as strategies that may help to de-escalate such situations by strengthening ethical feedback loops. |
| Free access at | DOI |
| Digital Object Identifier | 10.2139/ssrn.4191411 |
| Other Identification Number | merlin-id:24228 |
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| Keywords | Deception, organizational wrongdoing, escalation, unethical behavior, behavioral ethics, cybernetic perspective, Volkswagen |