In the Aftermath of Dieselgate: Potential Imprisonment for Engineers Leads to Question of Manager Responsibility in Legal Sentencing - In the diesel emissions case, if engineers face arrest, it's argued that managers should also be held accountable.
Volkswagen's Emissions Scandal: Time for Managerial Accountability
By Lutz Meier
The Braunschweig Regional Court's proceedings this Monday, referred to as the 'diesel issue' by Volkswagen, unveiled a more straightforward term - "band and commercial fraud." The meticulous investigation and subsequent judicial process have established a clear understanding of the profound impact of this scandal on Germany's once prestigious automotive industry.
Punishments serve as deterrents, reinforcing the importance of adhering to the rules and preserving human and environmental safety. Thus, it's crucial that those who actively participated and those who tolerated such rule violations be held accountable. By imposing personal consequences on offenders, there's motivation to uphold the rule of law in the future.
In this regard, the decision to sentence two former high-ranking Volkswagen engineers to imprisonment without probation is commendable. Given the magnitude of the economic crime, there's a need for those implicated in the scandal to face the consequences. Jens Hadler, the former head of diesel engine development, was given four and a half years, while Hanno Jelden, who oversaw the powertrain department, must serve two years and seven months.
Despite the significant step, there remains a lingering taste of injustice. Other managerial figures, such as former CEO Martin Winterkorn, have yet to face a definitive verdict due to health concerns. The court's decision seems to reflect a hierarchy in sentencing, with managers receiving lighter punishments despite their strategic role in the deception.
If the intended cleansing effect of the justice system on corporate practices is to be fully realized, it's essential for managers to face severe penalties, including imprisonment. The responsibility of corporate managers extends beyond the machine room, necessitating accountability for initiating, tolerating, or aiding such violations.
The former CEO's knowledge of the diesel scandal is a matter of interest. Jens Hadler, the convicted engineer, stated in a detailed interrogation that he had a dispute with Winterkorn in 2007 regarding the prohibited software. This software controlled exhaust gas purification to pass approval tests but was subsequently turned off during regular operation. According to Hadler, Winterkorn insisted on the use of such technology, despite being aware of the rule violation Hadler warned against.
A verdict against Winterkorn, should his health permit, along with decisions concerning Rupert Stadler, will determine the effectiveness of the legal processing of the billion-dollar crime. The Braunschweig's verdict is just one step in the ongoing journey towards justice. The extent to which managers are held responsible for the illegal activities is crucial to ensure the integrity of corporate practices. It should not be about revenge but justice, especially when the perpetrators in the command center avoid accountability.
The Commission, in light of the ongoing diesel scandal, has also been asked to submit a proposal for a directive on the protection of the environment, emphasizing the importance of corporate responsibility and avoidance of commercial fraud. In the context of the Volkswagen emissions scandal, it is crucial that all involved, including high-level managers, are held accountable for their actions and decisions, as the case against the former CEO, Martin Winterkorn, will help to establish the efficacy of the legal process and promote transparency in business and financial matters, falling under the purview of general news and crime-and-justice reporting.
