Cruise: How Does a CEO Mitigate the Risks of Autonomous Vehicles?

Authors
Connie Allsopp, Michael Hadden
Region
North America
Topic
Entrepreneurship
Ethics & Social Justice
Strategy & General Management
Length
3 pages
Keywords
leadership
reputation management
risk-ethics
Innovation
artificial intelligence
Copyright Holder
Society for Case Research
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students

What does a chief executive officer (CEO) of Cruise, a robotaxi company, do when one of the company’s autonomous vehicles (AVs) causes a serious accident? This critical incident details the events on the eve of October 2, 2023, and the ethical risks of AVs on public roadways. It outlines how CEO Kyle Vogt navigated the liability of a moral dilemma while attempting to grow a company in a competitive market. Diverse issues are discussed for readers to gain insights on leadership, and the implementation of innovations as well as broaden their understanding of complex ethical issues. When picketers stormed Cruise’s headquarters to debate AVs on their streets, the field exploded. Suddenly, CEO Vogt, the company spokesperson, resigned. In early 2024, Cruise was faced with a leadership change and a new management team needed to quickly determine viable strategies to regain public trust and focus on safety.

Learning Outcomes

After studying this CI, students will be able to:
1. Analyze how a CEO’s actions in a crisis impacted a company’s reputation as it attempts to expand in a competitive marketplace. (L01)
2. Examine how a company’s rollout of an innovation remains responsive to stakeholders during rapid growth and maintains a good reputation. (L02)
3. Evaluate various ways a company may resolve the ethical issues as dilemmas of driverless AVs increase in the public transportation marketplace. (L03)
4. Recommend a long-term solution to manage a leadership change and effectively shift the organizational culture. (L04)