Business Case Studies,Corporate Governance & Business Ethics Case Study, Flour Corp's Business Ethics Practices: Creating Six Sigma Standards in Staying Corruption-Free

Code : GOV0023

Year : 2006

Industry : Automobile

Region : Germany

Teaching Note: Not Available

Structured Assignment : Not Available

Abstract: German carmakers, Porsche and Volkswagen, have enjoyed a long history of close alliances and have collaborated on various projects. Volkswagen supplies about 30% of the automobile parts Porsche uses. But when the luxury sports carmaker, Porsche acquired 20% stake in mass-market carmaker Volkswagen, it created apprehensions in the minds of shareholders of both the companies. Porsche's investors were apprehensive about the deal that ties Porsche to a company, which has been struggling financially. On the other hand, Volkswagen shareholders worried about the delay in the company's restructuring process and future of the company. In question was the role of Volkswagen's non-executive chairman, Ferdinand Pich, who also happens to be the grandson of Ferdinand Porsche (founder of Porsche) and a major shareholder of Porsche