Blog / The cost of silence

The Cost of Silence

Emma Clarke

10 April 2026

When the Volkswagen emissions scandal came to light in 2015, the issue wasn’t limited to manipulated software. Investigations pointed to something deeper: a workplace culture where fear and intimidation reportedly made it difficult for employees to question decisions or speak up.

Data from internal amnesty efforts later suggested that awareness of irregularities extended beyond a small technical group. Dozens of front-line and mid-level employees acknowledged they had known about issues tied to emissions practices. Some had reportedly raised concerns years earlier, only to see them dismissed or ignored.

In environments where psychological safety is absent, silence becomes a form of self-protection.

When People Don’t Feel Safe to Speak Up

Concerns remain unspoken.
Ethical warning signs go unchallenged.
Small issues quietly escalate into major crises.

Psychological safety isn’t about making work comfortable or lowering expectations. It’s about creating an environment where anyone—regardless of role or seniority—can raise concerns without fear of retaliation, embarrassment, or harm to their career.

At Volkswagen, the consequences of silence were severe: lasting reputational damage, billions in financial penalties, and a significant erosion of public trust.

The global cost of the scandal has been estimated at $30–40 billion.
In the United States alone, settlements reached roughly $25 billion, including buybacks and compensation.
Beyond financial losses, the human impact was substantial, affecting employee morale and well-being long after the headlines faded.

The Leadership Lesson

If people are afraid to speak up, leaders aren’t hearing the truth - they’re hearing what feels safe to say.

Strong organisations don’t rely on fear to drive performance. They rely on trust, open dialogue, and leaders who actively invite challenge and dissent.

A Question Worth Asking

If someone in your organisation identified a serious ethical or safety concern today, would they feel safe raising it?

Because culture isn’t tested when things are going well, it’s revealed in moments of risk.

Gaining visibility into what’s really happening beneath the surface is critical. When leaders understand the gap between perception and reality, they can act before small signals become major failures.

If this topic resonates and you’d like to explore how to better understand and strengthen your organisation’s culture, feel free to get in touch or request a demo.