S2E6 | Rebuilding Trust: Stephanie Davis Brings Ethics and Compliance to Volkswagen After Emissions Crisis

“It was the opportunity of a lifetime to come in and really build something from the ground up. In some ways I’ve had a very easy time of it as the compliance officer because there’s not many chief compliance officers that can point to a $30 billion issue and say, ‘Look, this is why we need a better compliance program.’ In those ways I’ve had a much easier go of it than someone who doesn’t have that to point to.”

“We want to make sure you see our presence. For an organization that’s never had a large ethics and compliance team before, we just try to get out there and really be a part of the organization, so it’s a normal part of the business to see compliance at a meeting, than to say. ‘Oh my God, why is compliance here?’”

On this episode of the Principled podcast, Ben DiPietro, editor of LRN’s E&C Pulse newsletter, interviews Stephanie Davis, chief ethics and compliance officer for Volkswagen Group of America. Davis joined Volkswagen right after the company’s diesel crisis, and is building the ethics and compliance program for the world’s largest automaker. 

In a company that did not have a compliance officer prior to her role, Davis made an effort to get to know all business unit leaders and to understand their business goals and individualized risks. Volkswagen is trying to rebuild trust with its customers through a commitment to improving emissions and by committing to being carbon-neutral. Davis explains how the company is driving diversity and inclusion, and how ethics is directing decisions around the use of AI and machine learning.

What You’ll Learn on This Episode 

[0:53] Davis describes her journey to becoming chief ethics and compliance officer for Volkswagen of America. 
[3:30] Where is she in her efforts to build the ethics and compliance program, what changes she has implemented, and what’s next on her to-do list? 
[5:30] What is her relationship with other business units, and how has it changed since she came aboard as CECO?
[7:20] What is the relationship E&C has developed with the board and the executive team? 
[8:16] What has VW done to repair and rebuild trust after the diesel crisis, and how far along is the company in that effort? 
[9:26] Davis started her career in an academic role, so what aspects from that part of her career helped her in her current role? 
[11:12] How does Volkswagen define diversity and inclusion? What is the company doing in that area, how is E&C measuring progress? 
[12:53] What types of guidelines are in place for the ethical use of artificial intelligence and machine learning? How big of a risk area is this? 

Find this episode of Principled on Apple Podcasts, Google Podcasts, Stitcher, SoundCloud, Podyssey, or anywhere you listen to podcasts.