“Diesel-Gate” in risk reporting—An analysis of risk communication in annual reports using the example of a disruptive event

Abstract Using the example of VW’s handling of “Diesel-Gate” in its corporate communications (suspected manipulation of vehicle emission test results discovered in 2015), we examine the effects of a disruptive event on corporate risk reporting. To this end, an evaluation in the form of a case study of external corporate communications in VW’s annual reports covering the years 2012–2017 was carried out. Changes can be seen in VW’s communication with shareholders following “Diesel-Gate”, especially with regard to what topics were covered and the emotionality of the language. Among the strategies used for restoring the company’s image, the company took pains to highlight corrective measures designed to avoid similar incidents in the future. The methodology presented in the paper can be applied to the analysis of similar events.