ipl-logo

The Scandal Of Volkswagen: Volkswagen's Influence Of Business Ethics

1091 Words5 Pages

The German based automotive company Volkswagen (VW) was recently involved in a scandal that went public in 2015 regarding the discrepancies in the NOx (Nitrogen Oxide) emission from the vehicles. This scandal was believed to be the biggest scandal of all times and have come in a critical moment of time when VW was declared the largest automaker in the world for the first season of 2015. Thus it is affirmative that Volkswagen was involved in evaluating business ethics in their organisational practice. This considered paper would discuss the importance of business ethics for Volkswagen and the relevant consequences of the scandal. The Scandal – Ethical lesson The scandal of Volkswagen was by far the biggest of many scandals that automotive history has seen from the Pinto to the Toyota’s self-acceleration, GM’s ignition switches; but all have not impacted the public policy of ethics. Diesel cars are very popular in Europe as compare to the America, due to the high standards of environmental tests. Diesel engines are more eco-friendly as compare to gasoline engines and Volkswagen is considered to be the beast in the industry. The company installed a faulty device that could reduce the torque and the emission of NOx. Due to this cheating by the Volkswagen; drivers are paying more for the gas as compared to the advertisement of fuel-economy and also releasing dangerous chemical in the environment (Schiermeier, 2015). The fallout of the recent scandal would cost Volkswagen

Show More
Related

  • Cocktail Party Economics: A Case Study

    691 Words  | 3 Pages

    (p25) Volkswagen, much like an athlete who has had a bad season, will be re-evaluated. Their clean-cut image of being a socially responsible company has now been tarnished much like Tiger woods when he committed marital infidelity. Tiger woods was the star of the golf world, just like how Volkswagen was the star of the car world, which is why it was just a matter of time before they were caught. This is why the value of Volkswagen cars will dramatically

    Read More

  • Volkswagen: Business Ethics And Bad Behavior

    2157 Words  | 9 Pages

    From the Volkswagen news, I explained briefly what happened so far to this company. At year 2015, Volkswagen became worldwide number 1 car-producer, compare with former champion Toyota. However, the US-American Environmental Protection Agency (EPA) accused Volkswagen of cheating emissions tests in the US and EPA found many VW cars had a “defeat device” or software installed in diesel engines that could use to cheat on emissions tests; when not being tested, the cars emit up to 40 times the allowable levels of nitrogen oxide pollution. This emissions scandal is a disturbing case of systematic corporate fraud that has harmed customers, governments, and the health and well-being of citizens in the societies in which Volkswagen has been given the license to operate.

    Read More

  • Scandal Of Volkswagen Scandals

    954 Words  | 4 Pages

    The Volkswagen emissions scandal began on 18 September 2015 when the United States Environmental Protection Agency (EPA) issued a Notice of Violation of the Clean Air Act to German automaker Volkswagen Group. The company had programmed their model year 2009 through 2015 turbocharged direct injection (TDI) diesel engine so that the United States standards nitrogen oxides (NOx) emissions were met only during laboratory emissions testing. Nitrogen oxides emissions during driving were up to thirty five times higher (Wikipedia, 2015). The Volkswagen scandal has far more concerning consequences than most people think. It will cost the automobile-maker in terms of legal fines, investors and customer backlash, class action suits, possible criminal investigation, and loss of futures sales.

    Read More

  • Chrysler Case Study

    1121 Words  | 5 Pages

    The Chrysler and Daimler merger of 1998 was certainly a power struggle between two companies of different cultures and leadership objectives that led to hardships and ethical dilemmas for many stakeholders involved in the two companies. Ethics based on cultural expectations crated clashing perspectives on both sides of the merger negotiations and transition. This tension was established between Chrysler and Daimler in culturally based standards of leadership styles, ethics perspectives, and decision framing. First, distinctions between the American Chrysler and German Daimler leadership strategies created a hostile situation between these companies.

    Read More

  • Wells Fargo's Ethical Ethics Of Wells Fargo Financial Corporation

    1347 Words  | 6 Pages

    It is essential for individuals and those representing an organization to understand what is an ethical dilemma. Wells Fargo financial corporation was involved in a dramatic ethical issue due to millions of unauthorized bank account openings. As explained in The PLUS Ethical Decision-Making Model, “many organizations battle to develop a simple set of guidelines that make it easier for individual employees, regardless of position or level, to be confident that his/her decisions meet all of the competing standards for effective and ethical decision-making” (n.d). The Wells Fargo scandal is evident prove that employees lacked ethical judgment and management supervision. The seven ethical decision-making steps foster straightforward thinking that

    Read More

  • Ethical Leadership: The Case Of Volkswagen, Wells Fargo

    68 Words  | 1 Pages

    From watching the class recording, what really got me is ethical leadership. Based on the case of Volkswagen, Wells Fargo, Epipen and many others, I think the similarities between these leaders are that they are purely greedy and I feel they have a bit of 'a sociopath ' in them - lack conscience. It amazes me how they do not have a sense of repentance in them at

    Read More

  • The Ethical Ethics Of Volkswagen

    1343 Words  | 6 Pages

    Introduction On the 18th of September 2015, Volkswagen, one of the world’s leading automobile company got caught cheating the emission tests and installing the defeat device in 11 million cars, which produced up to 40 times more toxic fumes than permitted. The study suggested that the impact of the scandal would result in high casualties over time, and VW was charged with fines up to 20 billion dollars that dwarfed the previous record. [5] This report will identify the cause and present the main ethical issues presented through the incident and discuss areas in the incident where the ethical guidelines of engineers have been violated. The cause of the incident attributes to the combination of firm’s decision owing to the underrating punishment and prioritizing economic interesting and the compliance of the employees. Findings

    Read More

  • The Volkswagen Emission Clean Air Act (VW)

    915 Words  | 4 Pages

    The Volkswagen Emissions Unveiled Volkswagen (VW) was found in violation Clean Air Act (CAA) on September 18, 2015 by the United States Environmental Protection Agency (EPA). The EPA issued VW and its counterparts - , Audi AG, and Volkswagen Group of America a notice of violation (NOV) due to flagrancy of their actions. The NOV explained that four-cylinder Volkswagen and Audi diesel cars from model years 2009-2015 were equipped with software that falsified EPA emissions standards for certain air pollutants. California is also issuing an In-Use Compliance letter to Volkswagen, and EPA and the California Air Resources Board (CARB) have both initiated investigations based on Volkswagen’s alleged actions (Yosemite.epa.gov, ret. 10/13/15 @ 9:00am).

    Read More

  • Making Ethical Decisions

    226 Words  | 1 Pages

    I consider you have done a good exposure of the subject this week. Likewise, I agree with your arguments. There is no doubt that regardless where we work we would face individuals who are extremely hard to work with. Actions, decisions, and cultural formation are factors that impact the behavior of such individuals to name a few. Each person has a different worldview and they use it to make ethical decisions.

    Read More

  • Volkswagen Positioning Strategy

    799 Words  | 4 Pages

    However, Toyota still sells more vehicles each year but the gap has narrowed down to less than 1.5 million cars. Though Toyotas reputation is going down after a series of recalls, low quality for Volkswagen remains an issue in the U.S market. Volkswagen needs to strengthen its market in the United States to expand its market share. Stefan Jacoby, VWs U.S chief persuaded the board to build a U.S plant. The board later approved the plant and allocated $1 billion for the construction of the plant scheduled to open in 2011.

    Read More

  • Examples Of Business Ethics Of Nestle

    2901 Words  | 12 Pages

    Business ethics also referred to as corporate ethics can be considered as either a form of applied ethics or professional ethics. Its purpose is to analyse ethical principles and also moral as well as the ethical problems that might arise in a business environment. Business ethic is applicable to all parts of business conduct and also takes into consideration the conduct of individuals and the business organizations as a whole. Business ethics can be divided into normative and descriptive discipline. For the purpose of this assignment, the Nestle Company has been chosen.

    Read More

  • Cause Of Congestion In Canada

    1152 Words  | 5 Pages

    It is a well-known fact that car produced air pollution. According to the new study by researchers, “25% of cars and trucks are causing about 90% of pollution from the vehicle fleet.” (Richard, 2015) That is a crucial problem for human beings. If congestion is not solved, the air pollution will get worse.

    Read More

  • Importance Of Ethics And Integrity In The Workplace

    1324 Words  | 6 Pages

    Introduction Nowadays, ethics and integrity has played a vital role in our daily lives especially in the workplace. Ethics is defined as being concerned with judgements involved in the moral decision, whether it is good or bad, true and fair (Velasquez 1999); whereas, integrity is defined as the honesty and having strong moral principles in reporting. The purpose of this assignment is to find out and understand how importance of ethics and integrity has played in the business and workplace. Responses and Evidences Why compliance with Ethics and Integrity?

    Read More

  • Toyota Crisis Management Case Study

    1537 Words  | 7 Pages

    However, the Toyota massive recalls show a very different situation and involves more serious consequences. We have seen that almost 9 million of Toyota vehicles around the world had to be recalled within a few months, and the potentially defective quality involved were mainly focused on unintended acceleration problems, which were closely related to the most important thing for drivers – safety driving. It’s thus hard to believe that there was nothing wrong with Toyota’s “quality” cars. The massive recalls were indeed a disaster for Toyota: not only means that they had to pay for the extensively financial losses due to repairing costs, market and stock share dropping down, production suspending, civil penalty, and other relevant expenses for dealing with the troublesome issues; but also it has heavily hit to Toyota’s intangible assets – its brand image and reputation of quality, which have been ethically shaped over time

    Read More

  • The Importance Of Business Ethics In International Business

    1039 Words  | 5 Pages

    The earlier opinion stated that a business cannot be ethical, but this opinion is not used anymore in the modern business. Today business has belief that they must be responsible for social since they live and operate within a social structure. The key factors that make business ethics is important at the quarter of the 20th century are corporate social responsibility, corporate governance, and globalized economy. The culture of an organization, or else we can call it as the philosophy of an organization which is related with ethics have a great relationship with the performance of a business in long and short term. As a business is manage by human being, the people who manage a business

    Read More

More about The Scandal Of Volkswagen: Volkswagen's Influence Of Business Ethics

Open Document