Volkswagen Scam 2009: An Investigation
Added on 2020-05-11
13 Pages3830 Words132 Views
Leadership ManagementProfessional DevelopmentPhilosophyPolitical Science
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RUNNING HEAD: BUSINESS ETHICS1[TYPE THE COMPANY NAME]BUSINESS ETHICS The Volkswagen ScandalSubmitted by:
The Volkswagen Scandal 2Executive Summary The report is regarding the business ethic issue related to Volkswagen that took place in 2009. Business ethics and responsibilities are important for managing the long term impact caused in dealing with the issues. The Employees were affected by the scandal. There were many expulsions in the company. Employees who were found guilty were suspended. This affected a large section of the employees working it Volkswagen. A major section of employees were afraid of suspension. The report describes the nature of the dilemma and provide background information to the factors that lead to the dilemma while focusing over the breach regulations/law, key affected stakeholders and three ethical theories. The report is based on the assumption that the incidence caused due to failure in the organizational machinery. ContentsIntroduction......................................................................................................................................2
The Volkswagen Scandal 3Background......................................................................................................................................2Nature of the dilemma and factors leading to it..............................................................................3Key affected Stakeholders...............................................................................................................4Three ethical theories.......................................................................................................................6Ethical Egoism.............................................................................................................................6Utilitarims....................................................................................................................................6Kant..............................................................................................................................................7Dilemma resolved............................................................................................................................7Implication as per the ethical standards in Australia.......................................................................8Conclusion.......................................................................................................................................9References........................................................................................................................................9Introduction Business ethics are the guiding principles that direct a business to operate in a well and effectiveway. Acting in an ethical way is different from doing right and wrong. Business ethics ensuresan existence of certain level of trust in the consumers. The concept of business ethics arose in theyear 1960 due to awakening of different consumer based societies. Business ethics are beyondthe moral code and attempts to reconcile what company should do to maintain a competitiveadvantage. As a part of compliance and ethic program a majority of companies are focusing
The Volkswagen Scandal 4over the concept of business ethics. The government agencies across the world are takingmeasures to define the process of business this and management. These policies are identified asa based to gain business integrity. Such policies will lead in a positive direction by creatingethical awareness and guaranteeing growth. A competitive business environment is creating apressure over the employees to perform unethically (Alvesson and Sveningsson, 2015). One ofthe examples regarding breach of business ethics is The Volkswagen Scandal. The scandal ismuch talked about and bring forward the concern of government and non- government agencieson the ethical issue (Armour, 2016). Background The Volkswagen Scandal started in the year 2015 when the US Environmental Protectionagencies questioned the credibility of the Automobile Company. The German company wascaught under the violation of the Clear Air Act. The scandal brought the attention ofinternational agencies to the grave issue. The Volkswagen scandal had a long-lasting impact onthe company for deceiving government rules and regulations (Barrett et al 2015). The GermanGiant accepted the allegation it caused due to emission. The government agency received theinformation regarding intentionally using turbo charged direct injection diesel engines. Due tothis, the vehicles were emitting 40 times more NOx output. In order to undue to act, Volkswagencalled back 11 million cars across the world from 2009- 2015. The emission was broughtforward by the 5 scientist from west virginal University There were severe issues in theorganization culture and the consequences raised by the issue(Avolio, Walumbwa andWeber,2009). This brought the attention of local and international agencies across the world tolook into the matter. One of the reasons considered the issue was due to the dysfunction of theOrganizational culture. The organizational culture was under question due to the intensity of thescandal. There was continuous rule breaking deceptiveness in the organization. Theorganizational culture and development has an ever lasting impact on the organizational culture.There were severe gaps in the organizational communication and ethical leadership. Thecontinuous fraudulent behavior at a top-level and ignorant attitude of middle level employee isthe reason behind the failure (Baumgartner, 2009).
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