The Volkswagen Group broke the trust of its customers and damaged its long-standing brand through high tech unethical practices. “The modern car is nothing more than a mobile computer that combines processors, sensors, backbones, and data links” (Grier, 2015). In a push to sell more diesel vehicles in the United States and exploit their technological engineering, Volkswagen Group created and outfitted vehicles with a computer software device that would know when a vehicle was being tested for emissions and would then manipulate test results to show lower emission. While the Volkswagen Diesel Scandal first came to light in September 2015 after the Environmental Protection Agency found the nefarious software during vehicle testing, the Volkswagen Group has once again come under scrutiny for utilizing humans and monkeys in diesel fume testing as of January 2018. Through legal, ethical and biblical perspectives, the Volkswagen Group’s business practices will be analyzed.
Legal Perspective Managers and employees from both the legal and engineering department could have prevented the emissions fraud incident when it became clear that Volkswagen’s diesel engine technology could not meet the standards of the Clean Air Act of 1970. When confronted with the real-time data that showed Volkswagen Group could not produce a new and low emissions engine, executives, lawyers and engineers should have taken this information and been upfront with their shareholders, costumers and the
The article described details about the infamous Pinto fire case. The problem presents an insider account of the context and decision environment that the company cannot recall of defective vehicles. Therefore, the company give a cognitive script analysis of factors that seem like an explanation lead to decisions to improve this problem as well as a definitive study in unethical company behavior. 1. Multiple ethical selves –people are socialized to behave differently in different situations.
This proves that throughout the case, Cendant Corporation wasn’t acting fully ethical nor with the desired fiduciary actions to their investors and the auditing team in this case being Ernst&Young. Aside from the trust being broken apart between both, there was never a sign of an internal control inside Cedant. Therefore, there shows that the corporate governance for Cendant Corporation didn’t have signs of existence as well. Most frauds that were occurring before the implementation of the SOX-2002, had top management such as in Cendant that didn’t have care for the ethical performances as much as in today’s corporate world with more regulations in hand by the government. At the end, Cendant had filings against them concerning their corporate governance
Case Study #1 Case 1: In the past, Monsanto has had many ethical issues like high performance standards that can cause employees to make unethical and illegal decisions and not owning up to hazards around them. However, Monsanto has been striving to enforce their code of ethics and has spent more time trying to become more socially responsible to the environment. For Monsanto to create an ethical culture, he would have to be proactive in anticipating, planning and acting to avoid potential ethical crisis’ (Thorne, Ferrell, & Ferrell, 2008).
Noah Berlatsky. Farmington Hills, MI: Greenhaven Press, 2015. Current Controversies. Rpt. from "Animal Testing Is Bad Science: Point/Counterpoint."
I’m here today to talk about a controversial issue that has been around for a period of time, animal testing. Animal testing using animals in experiments with different chemical substances in everything from medical to cosmetic to determine their safety as well as effectiveness . It’s a problem that has existed since the 3rd and 4th centuries BCE with its merciless methods and painful ways of abusing animals for human demands, but now it’s time for it to stop. Our technology has developed significantly since; therefore, such medieval methods of torturing animals are no longer necessary. Researches have shown that each year, over 100 million animals are tortured and killed in American laboratories alone, including dogs, cats and more; this shows how far out of hand animal testing have gotten.
The selected corporation is Volkswagen (VW), a German car manufacturer headquartered in Wolfsburg, Lower Saxony, Germany. Established in 1937, Volkswagen is the top-selling and namesake marque of the Volkswagen Group, the holding company created in 1975 for the growing company, and is now the second-largest automaker in the world (Wikipedia, 2016). Volkswagen’s corporate website is http://www.vw.com/. According to the International Ethical Business Registry, there has been a dramatic increase in the ethical expectations of businesses and professions over the past ten years. Increasingly, customers, clients and employees are deliberately seeking out those who define the basic ground rules of their operations on a daily basis.
Animal testing simply means the use of non-human animals in experiments, which indeed arouse great controversy in recent years. More and more people think that human being’s benefits can’t outweigh animals’
1. What factors in the WorldCom case support the conclusion that CEO Bernie Ebbers Knew about the financial statement fraud? What factors support his defense that he did not know about the fraud? Bernie Ebbers Knew about the financial statement fraud because he was the one who encourage others to go into financial fraud because of the stock prices were going down, which was affecting his marginal loan. For that reason, he was trying to sell his stock, but the board of Directors lent him $341 million, along with 2% interest rate.
1. I think what needs to be the focus on is Bernie Ebbers ambitions and greed to be one of the world’s most powerful individuals in the communication industry was ultimately his downfall. Ebber ability to falsely represent a transformational leadership style and his ability to persuade others to follow him was his strength. His country boy cowboy style and appealing personality made a bigger than life character. He was deemed someone that can do no wrong, in short, he was idealized by those who knew him.
In this Enron Scandal ,several moral issues and values are being discussed .The moral issues is the misconduct of code of ethics by management level of a corporation , violation of code of professional ,ethical dilemma that faced by a management level when involved own interest . The first moral issues that discussed in Enron Scandal is misconduct code of ethics by management level of a corporation .In this case ,the mastermind of this scandal is the company CEO , Mr .
The selected corporation is the Volkswagen, a German car manufacturer headquartered in Wolfsburg, Lower Saxony, Germany. The Volkswagen’s corporate website is http://www.vw.com/. According to the International Ethical Business Registry, there has been a dramatic increase in the ethical expectations of businesses and professions over the past ten years. Increasingly, customers, clients and employees are deliberately seeking out those who define the basic ground rules of their operations on a day to day. Volkswagen is no different, hence it created its own code of ethics in order to improve the company’s operation all over the world.
1. If you were Monsanto’s CEO, how would you best balance the conflicting needs of the variety of stakeholder groups that Monsanto must successfully engage? Monsanto has improved in terms of its corporate responsibility; however it does not maintain the most ethical culture possible. Monsanto is in a difficult position, as it produces products that many people do not understand or trust. The corporation also does much business in very poor countries where it is very easy for critics to accuse Monsanto of taking advantage of people who do not know any better.
New technologies that people had never imagined a decade, or even some decades ago, are now expanding and changing all our lives. Taking smartphones as an example, people in old time had never imagined that small, tiny box could enable people to bring smart computer to everywhere. Yet, smartphones are now completely embedded into our lives and changed how we communicate. Technology lets us live simply, more conveniently, and more easily, but at the same time, it creates complex debates and controversies of ethical problems. In this world, where humans cannot live without the benefits of technology, it is impossible to ignore ethical problems.
The analysis will be made on a basis of combination with the pre-understanding of crisis management theory and the empirical data, by answering the three research questions respectively as follows: What are the reasons that force Toyota coming to the troublesome crisis? Crises pose certain risks to an company – potentially affecting critical aspects like reputation, image, brand equity, credibility, publicity, financial viability, legitimacy, community standing, etc. (Smudde, 2001). In auto industry vehicle recalls happen all the time and everywhere.
Although many customers are disappointed in the way Toyota has dealt with these issues, it is obvious that their demand has dropped, however Toyota is still a popular brand and people are continuing to purchase their vehicles, some of which know the circumstances. Therefore Toyota’s unethical practice hasn’t affected their brand power. I have included some statistics of their market share and how sales decreased because of these unethical issues with the