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.
To assist them in making the right choices for their business needs, by minimizing fleet costs and providing world class customer service Volkswagen wants to be the no.1 car seller in volumes overtaking Toyota by 2018. They call this vision as Mach18 .Their vision is to make this world a mobile, sustainable place with access to all the citizens. Their brands all work together in different segments to define Volkswagen group, as it stands today. 5. THE SCANDAL
KOÇ UNIVERSITY GRADUATE SCHOOL OF BUSINESS DEPARTMENT OF BUSINESS ADMINISTRATION KALENDER AKGÜL MGMT 512: Corporate Governance Exam-I SUPERVISOR Aymelek KOZİKOĞLU ISTANBUL 2017 1 | P a g e ABSTRACT Volkswagen gas emission problem is of the major scandal in automotive industry in 2015. This paper defines the reason of scandal as a corporate governance case. The reason of problem, decision of VW management, and problem solving method is defined in this article. 2 | P a g e Table of Contents ABSTRACT ......................................................................................................................................................
As stated by Volkswagen group (2016) the company operates many plants worldwide where production is done for that respective local market and different model are produced in different plants. These strategic decisions were taken by the company because the cost is lowered when special parts and cars have to be shipped shorter distance, additionally; each plant producing a different model reduces the assembly cost to the company. Materials are purchased from suppliers worldwide they are stored until they are needed in the production line. The “Just In Time” (JIT) approach is used to handle all raw material purchase. According to Volkswagen (2016) the company uses a highly efficient global network to manage its supply chain.
The question here, is not why they did it, this is rather clear. If one looks at VW AG sales ' revenues, which in 2014 (the year of the falsification) have almost doubled those of 2010, reaching 202 EUR billions it is not a hard guess. This is the highest revenue level ever reached by the company. By May 2015, profit was still remarkable, estimated at 3.3 EUR billions. But the scandal only started in September.
The Strategy for VW it is focusing on positioning the Volkswagen Group as a global economic and environmental leader among automobile manufacturers. To achieve the goals the company has defined the most important objectives that it needs to meet to be the most competitive car manufacturer in the world and the goal is to make Volkswagen the most successful, fascinating and sustainable automaker in the world. • Volkswagen intends to deploy intelligent innovations and technologies to become a world leader in customer satisfaction and quality. We see high customer satisfaction as one of the key requirements for the Company 's long-term success. • By reducing the sales price and reintroduce the brand into those countries where its position is weak; the U.S.,
Introduction Ethical business behavior is about being upfront in dealing with people involved in the business, such as customers, partners, employees, and other stakeholders. However, it is a commonly accepted fact in contemporary business environment that ethical business behavior had become largely relativistic and normative. In this essay, I will go over five select quotes from five different authors in an effort to understand different facets of business ethics that I feel important to look into and define ethics in business settings. Quote 1: Business, like poker, is a form of competition. In this competition, the rules are different from what they are in ordinary social dealings.
Volkswagen has to step up in its Group Anti-Corruption System in the Internal Audit Committee to ensure strict compliance, true and fair reports of the company. This measure will help reduce the impact of negligence and audit risk. Due to the emission scandal, Switzerland has banned several models of Volkswagen cars into the country. As such, sales are not able to be made and revenue will decline if countries worldwide were to also impose similar bans. Volkswagen could better ensure that proper industry standards are being met first and would suit the requirement of authorities before the approval of sales.
For the sense of business according to Joseph (2013), ethics are constructed and decided by each business and underpins decision that an employee makes. When it comes to the business’ environment, a well-constructed ethics is a key for a considerate and responsible decision making in a business (Bennett, 2014). Business Ethics is very important inside the company, it will show the moral standards that a company or business have whether it is right or wrong and good or bad. Every etiquette that a business has, will reflect on what kind of company or business you are. Thus, every company or business must show the proper and right etiquettes it should have, so that the customers will have that kind of trust and a good feedback on your company.