Volkswagen Case Study

This report analyzes the Volkswagen emissions scandal, examining the role of ethics in business success. It explores the impact of unethical practices on brand image, profitability, and stakeholder relationships. The report also provides recommendations for Volkswagen to implement ethical practices and regain trust. Desklib provides past papers and solved assignments for students.

ACADEMIC AND
PROFESSIONAL SKILLS

EXECUTIVE SUMMARY
Document has showed the case where Volkswagen was obligated by government related
to the cars which they were selling. The reason behind this was cars of Volkswagen were
emitting more pollution than prescribed legal limits. Along with this, ethics basically stays linked
with the success of an organisation, it can be said that if an organisation is not working in an
ethical manner than organisation may face a range of problems. Considering different skills like
mentoring, collaboration & teamwork, leadership, project management, negotiation & conflict
management, productive meeting management, personal skills, communication, decision
making, time management, flexibility and stress management could help managers and leaders to
take right decisions in correct time. On the other hand, Volkswagen would require to focus on a
range of measures while taking considerations of ethical practices in order to perform well at
marketplace. Volkswagen headed itself to face a range of issues just because of a small device
which was used by them in order to pass the test which was built by governmental automation
authorities.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................2
ANALYSIS......................................................................................................................................2
Roles of ethics in success of an organisation..............................................................................2
Measures to be taken in an organisation to ensure ethical practices...........................................4
CONCLUSION................................................................................................................................5
RECOMMENDATIONS.................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Professional skills can be described as career competencies that are required at work
place for achieving growth and success. It consist several abilities such as collaboration &
teamwork, leadership, mentoring, negotiation & conflict management, project management,
productive meeting management, time management, flexibility, personal skills, communication,
decision making and stress management. However, these skills are essential to maintain effective
relation with co-workers, peers and superiors in order to perform tasks in a team in respect of
generating better outcomes (Davies, 2016). Moreover, effective communication is very
important to conduct collaborative working in organisation which is beneficial for business
institution and employees to gain success. The present report is based on case study of
Volkswagen (VW) that is known as largest auto makers at global level serving its products to
desired customers. It was found by German Labour Front in the years around 1937, almost 81
years ago. Meanwhile, the headquarter of Volkswagen is situated in Wolfs-burg in Germany and
VW having main markets in China which delivers approximately 40% sales and profits. In
addition to this, the Volkswagen translates to “peoples care” in German and present international
advertising slogan of this company is “Volkswagen”, referencing the name's meaning.
Volkswagen provide its products to customers as per their actual needs and desires. This
assignment will focus on case of selected organisations and role of ethics in context of achieving
success in business. It involves ethical principles which are required to be followed by every
organisation while conducting operational activities & procedures in respect of maintain quality
and brand image of a company. It is necessary to carrying out each business activity and process
by obeying ethical norms as it is favourable to attain trust of clients. It will also focus on more
effective as well as efficient measures to be taken by an organisation in respect to make sure
ethical practices in business.
ANALYSIS
Roles of ethics in success of an organisation
According to the given case study, engineers of Volkswagen has a difficulty in order to
build diesel engine that is able of attaining high performance at the time of keeping emissions
while testing was occurring but it allowed the emissions far beyond the legal limits at the tie
driving in roads (Elbaz and Haddoud, 2017). However, it has been analysed that the statement
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made clear that company managers supported the use of this system on various occasions,
despite protests from multiple workers. It is very important for a business institution to follow
required ethical principles and norms in terns of remaining loyal to customers through providing
better quality of products and obey legal rules as well. However, Volkswagen is required to obey
desired ethics which facilitate to reduce problem of government penalties and improve brand
image in market to gain more profit share respectively. There are number of benefits which are
attained by given organisation in respect of improving profitability and goodwill or organisation
in terms of ensuring long term profits for brand. It is important for Volkswagen to consider
ethics as it is profitable to have bright image in market and clients can easily trust in company for
purchasing needed products of the same (de Sousa Jabbour and et. al., 2018).
There are number of ethical terms & principles such as loyalty, citizenship, comradery,
trustworthiness, integrity, respect, caring, fairness, responsibility and accountability. It is
necessary for organisation to remain loyal and dedicated towards people in respect of putting
efforts to complete their actual needs and wants with desired quality of goods & services
accordingly. Apart from this, the unethical attempt of Volkswagen regarding emission as the
engine developed by company conduct more emission which is far beyond the limit then they
should bot apply such engines in vehicles as per ethics but unfortunately they did so due to
which they have paid a very large amount to government as penalty for the same.
This company also attempt another associated unethical activity of developing a specific
device due to which extra emission of vehicles did not indicate on related tests of vehicles.
Meanwhile, this information spread in media due to which they have paid a huge amount of
penalty and brand image among government as well as customer which impacts negatively on
sales & profitability of organisation. This incident facilitate to ensure that ethical principles plays
an important role to achieve success of business because ethics improve profits & customer bases
whereas unethical attempts reduce goodwill and trust of people (Kannan, 2018). In context of
Volkswagen, they are required to implement strategies and techniques in order to reduce
emissions which facilitate to decrease the pollution in environment. It is necessary for every
company in legal standards to maintain emissions up to desired limit as per legislations of the
country. However, it is significant for society, citizens, environment and organisation itself
because more pure atmosphere is favourable for health of people and brand image of
Volkswagen can be improved by the same.
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At the other hand, ethical norms are provide support establish an ethical culture in an
organisation which facilitate to reduce conflicts and improve relationships between staff
members in order to complete tasks with better outcomes on regular basis. It includes behaviour
with employees, customer and public which is helpful to handle difficult situations easily along
with avoiding complexities of the same. In addition to this, ethics facilitate to make sure about to
have desired tools at work place and strengthen behaviour as per wants along with focussing on
building skills which is favourable for growth of personal as well as professional career.
Meanwhile, the ethics is significant as it is helpful to make correct decision making to attempts
right aspects at work place in order to complete allotted project ion daily basis with effective
outcomes (Roberts, Chang and Gibson, 2017). At the other hand, ethical principles are must to
be followed as it facilitate uniting people & leadership and improving decision making which is
supportive to boost up productivity of Volkswagen accordingly to earn more profits. It will
provide help to make sure about long term gains of given organisation and securing the society
respectively. Volkswagen can boost up their brand image through maintaining ethics a the time
of conducting operations and provides products with better quality in fair manner. Furthermore,
customer base can be improve which is very important to make sure long term profitability of
brand respectively.
Measures to be taken in an organisation to ensure ethical practices
The ethical practices are very important to be established and applied at work place in
order to make an appropriate decision making for carrying out operational activities in proper
way. It is necessary for as an organisation to maintain quality of product and desired features in it
which is actual demands of customer and needed to be completed properly. However, ethical
principles are helpful in number of aspects such as improving goodwill, increasing customer base
and grab more profit share in accurate way (Osei, Osei-Kwame and Osei Amaniampong, 2017).
In addition to this, it is required to take several measures in order to make ethical practices to
obey desired ethics in business operations which results into better profit outcomes. In context of
Volkswagen, they should implement more effective as well as efficient measures in respect of
ensuring ethical practices in which few of them are explained further –
Know you employees: In an organisation it is important to know employees in an ethical
manner or else area that is need to be improved. Herein, if employees have positive behaviour
towards an organisation that it leads to suitable development in maintaining ethical practices
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within an workplace. Herein, in context to Volkswagen manger need to have ethical norms and
regulation for their employees and staff members. Moreover, they need to haver transparency
amount their employees so that an appropriate decision can be taken in order to ensure ethical
practices within organisation as well as attain sustainability for longer period of time.
Demonstrate ethical standards: It is important for an organisation to established ethical
guidelines for their business as well as employees so that ethical standard can be maintained
within an organisation. Herein, the managers of Volkswagen need to ensure that they are
maintaining ethical standard in their business function and operation so that they have positive
attitude within society and environment (Wesselink, Blok and Ringersma, 2017). If they are able
to maintain ethical standards as per the norms and regulation they an organisation will able to
achieve their gaols and objectives as well as attain sustainability for longer duration of time of
time.
Ethical code of conduct: It is necessary for an organisation to develop ethical code of
conduct in order to make ethical performance a strategic priority. It basically help an
organisation to set out clear goals and objectives, standards and expectation as it is necessary
performance of business. Herein, a respective organisation need to focus on ethical performance
that help in taking ethical decision which is beneficial for an organisation. Moreover, with the
adoption of ethical code of conduct an organisation can set out is gaols in an effective manner as
well employees can perform their roles and responsibility according within organisation (Ren
and Chadee, 2017).
CONCLUSION
From the above mentioned report, it has been concluded that professional skills helps an
organisation to achieve their goals and objectives effectively. Along with this, it contain various
abilities such as teamwork and collaboration, leadership, project management, stress
management, decision-making and many more. Also, these skill aid in maintaining an effective
relations peers, superiors and co-workers for performing well in assigned task in order to gain
best results. In context to this, communication plays crucial role, this is because collaborative
working provides various benefits to business institute and employees for enhancing their growth
and success. It also covered role of ethics as it helps an organisation for expanding their business
at global level. Along with this, the motive of organisation is to provide good quality of product
and services in market for attracting customers and fulfilling a need and requirement of
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customers. This will helps companies for increasing sales and reputation of company at market
place.
RECOMMENDATIONS
Considering above discussion regarding role of ethics in order to achieve success of
business through improving goodwill as well as profitability, several suggestions to given
company are described here. It has been recommended to Volkswagen to follow ethical norms
such as loyalty, trustworthiness, integrity, respect, fairness and responsibility at the time of
manufacturing products to satisfy actual requirements of clients. It is necessary for Volkswagen
to thoroughly determine real needs, wants and desires of people in respect of producing
appropriate quality as well as desired featured product according to taste & preferences of
customer. However, it has been suggested to selected organisation that they should remain loyal
to people which provide help to attain trust of clients on brand which facilitate to make sure long
term profitability of company as customers become loyal to brand. Moreover, fair providing of
products and conducting practice honestly render support to avoid government issues.
At the other hand, it has been recommended to Volkswagen that they are required to
apply ethical practices in order to make sure about following ethics in organisation to run
business properly. It involves several practices such as demonstrate ethical standards, know the
staff members and ethical code of conduct which render support to conduct every activity and
procedures in correct way that helps to avoid government penalties and maintain strong brand
image in market, it will facilitate to attain competitive advantage in respect of grabbing more
profit share of market respectively. In addition to this, it is suggested to Volkswagen to
understand their staff members very well in terms of ensuring that they are obeying ethical
principles or not. Furthermore, it is helpful to establish effective environment at work place
which facilitate to improve regular productivity of overall organisation. It has been
recommended to Volkswagen that they should strictly obey legislations and related guidelines
which are helpful to ensure ethical practices in company.
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REFERENCES
Book and journals
Davies, A., 2016. Best practice in corporate governance: Building reputation and sustainable
success. Routledge.
Elbaz, A. M. and Haddoud, M. Y., 2017. The role of wisdom leadership in increasing job
performance: Evidence from the Egyptian tourism sector. Tourism management, 63,
pp.66-76.
de Sousa Jabbour, A. B. L. and et. al., 2018. When titans meet–Can industry 4.0 revolutionise the
environmentally-sustainable manufacturing wave? The role of critical success
factors. Technological Forecasting and Social Change, 132, pp.18-25.
Kannan, D., 2018. Role of multiple stakeholders and the critical success factor theory for the
sustainable supplier selection process. International Journal of Production
Economics, 195, pp.391-418.
Roberts, L. D., Chang, V. and Gibson, D., 2017. Ethical considerations in adopting a university-
and system-wide approach to data and learning analytics. In Big data and learning
analytics in higher education (pp. 89-108). Springer, Cham.
Osei, H. V., Osei-Kwame, D. and Osei Amaniampong, L., 2017. The effects of individual
mechanisms on work self-efficacy of nurses: the mediating role of organisational
commitment. International Journal of Healthcare Management, 10(4), pp.219-237.
Wesselink, R., Blok, V. and Ringersma, J., 2017. Pro-environmental behaviour in the workplace
and the role of managers and organisation. Journal of cleaner production, 168, pp.1679-
1687.
Ren, S. and Chadee, D., 2017. Ethical leadership, self-efficacy and job satisfaction in China: the
moderating role of guanxi. Personnel Review, 46(2), pp.371-388.
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