Ethical Challenges Facing Volkswagen

This assignment examines the ethical dilemmas faced by Volkswagen, focusing on their responsibilities towards society and the environment. It analyzes the company's past actions and explores strategies to rebuild trust through improved corporate social responsibility, quality control, and an ethical code of conduct. The report highlights the importance of ethical practices for sustainable business growth and societal well-being.

BUSINESS ETHICS

INTRODUCTION
Ethics is the aspects which is helpful for knowing what is right and what is wrong.
Basically it is the study which is done so that the business policies and the practices of the firm
can be understood properly. Hence it can be said as the written or unwritten forms of the codes
of the conducts and the principles that are related to the firm's operations and activities in the
market. In the firms it is very necessary to perform the activities and the tasks in the ethical
manner so that the external environment and also the internal environment of the organisation
does not get affected (Bageac, Furrer and Reynaud, 2011). The business ethics are the moral
values and the moral code of the conducts of the organisation and it considers the value of the
individual perspectives.
Volkswagen is a multinational brand in the industry of auto-mobile. It has many clients
all over the world. The ethical issues and different factors that the firm has faced will be
discussed.
TASK1
1.1) Background and development of the theoretical approach of ethics.
Business ethics is the study through which the organisation can be able to understand
what are the things that are right for the firm and what all are not good for the organisation's
operations and activities. The firm has to maintain their reputation in the market so that they can
effectively sustain and can grow in the competitive environment. To carry out the operations and
activities of the firm it is very necessary for the organisation to perform the ethical aspects in the
business. Many firms are there who are performing their operations so as to attain the profit
shares in maximum numbers, but it is also very necessary for the organisation to concern about
the society and to do various operations in the welfare of the public of the nation, the moral
values and the culture must not be harmed by the firm (Becker, 2012).
Theoretical approaches of ethics are as follows-
1. Deontology- This is one of the most important ethical approach which helps in knowing
the moral roles, duties, responsibilities and the rights that being an firm of the society has
to follow thoroughly. The Volkswagen company has to be very well aware of the duties
and the responsibilities that it has to follow at the time of making several decisions for the
firm as well as for the development of the nation. The respect towards the responsibilities

and duties are very much required by the firm and its employees then only it can be
analysed that the ethical aspects are fulfilled.
2. Moral relativism- The values and the cultures are different according to the people and
their belongings. Similarly the firm also has some different moral values that has to be
very properly followed by each and every employees of the organisation. It will help the
firm to sustain in the market as well as it will help the firm to grow effectively and can be
able to brand itself with the positive aspects of its operations and activities.
The cited firm is very popular in the international market and the products of it is very
much used by many of the customers all around the world. The unethical aspect that the firm has
done made and spoiled all its goodwill in the market (Crane and Matten, 2016). It has affected
the firm in very large scale the operations and the employees of the organisation both get
impacted very badly. The firm could not able to obtain the moral and the deontology approaches
of the ethics which has affected the firm's operations.
1.2) Compare and contrast the absolute and relative ethics
Ethics is the approach through which the firm can be able to judge the path it is following
whether it is right or not. The one who obeys the responsibilities and the duties that has been
allotted to them are those who are strictly following the ethical aspect in their life as well as in
their jobs. The task and the operations that are performed in the organisation must be done in
effective manner along with that the presence of ethics must be there then only the organisation
can be called as the ethical follower unless it will be defeated in the market definitely one day
(De Cremer and et. al, 2011). As the people belongs to different regions, hence their moral
values and norms are different and they can not be changed, these are the traits that they got
through the upbringing and are inherited by their parents. It is not necessary that the values and
the thinking of the people are similar to each other they can be different as the brain do not think
and act the same. Absolute ethics- This is one of the ethical approach through which one can be able to
understand that the behavioural standards are universal, and they can not be changed and
it has to be respected. The people can not disrespect and they can't even avoid it, it has to
be followed very carefully and effectively. It will help the firm to clearly understand the
differences between the right and wrong.

 Relative ethics- This ethical aspect defines that there is no such truth regarding the
universal code of conduct. It says that there is only one code of conduct that has to be
followed by each and every person. It does not indicates does not helps in identifying the
variances between the right and the wrong (De George 2011). It defines that the there is
no such difference in right and wrong both are same.
1.3)Ethical issues affecting firm's operations
If firm is adapting the aspects of the ethical elements then definitely the firm will be able
to carry out its operations in the effective manner and also in the ethical way concerning about
the welfare of the society as well. There are certain times where in the objectives of attaining the
profit the firms does not perform their acts in the ethical manner they just focus upon the
maximising the ratio of the profit of the firm, this may affect the dignity of the organisation as
because if the firm will not adapt the ethical applications and responsibilities then the firm can be
kicked or boycotted by the people of the society. There are some of the issues related to the
ethical aspects such as the-
1. Employment rules and regulations- It is very essential for the organisation to prepare
proper certain rules and regulations that has to be very effectively executed and followed
by each and every person related to the organisation. The rules and the policies will be
very helpful for the employees as well as the organisation in order to carry out their
operations in an effective manner. As for the firm to attain the goals and the aims it is
very necessary to perform the actions in the ethical manner which can only be done on
the basis of the drawn policies and rules (Fassin, Van Rossem and Buelens, 2011). The
firm also need to concern about the employees while preparing the norms and the policies
as because the rule can be many time very rigid and typical to understand and to follow
as well.
2. Equal opportunities- The issue that the employees of the firm faces that they are not able
to get the equal opportunities for the several rights and the responsibilities. Due to the dis
balanced distribution of the right can be one of the major issue that can be found in the
organisation. Therefore to resolve this issue the organisation has to develop the different
strategies through which the employees can be able to get the opportunities in various
aspects. It is very necessary that lies in the part of the firm that they never should make
differences between the employees in the gender, colour, age, and the region from where

the employees have come. The ethical environment has to be created in the workplace, so
that the employees can comfortability perform their task otherwise the morale of them get
down and it will directly affect the operations of the firm (Ford and Richardson, 2013).
This can also affect the productivity and profitability of the organisation.
3. Diversity- It is also one of the issue that the biased act are performed in the organisation
which can create the problems in the organisation and also it is against the ethical
principles.
TASK 2
2.1)Objectives of business affected by ethical consideration
Business objectives refers to all the objectives that can cause the organization to grow
and develop on the grounds of developing the organizations that can cater to individuals and all
the basic needs which are to be considered successful for effective development of business
organizations. The business objectives are the main components that can create an harnessing
growth and development of organization. The ethical values refers to the aspects which help the
firms to attain the goals and objectives which are considered essential to an organization. There
are various ethical standards which are to be considered along with all the values that can help
the organizations to grow and develop on the grounds of individual development and prosperity.
And for this every individual should cater to all the necessary operations of the activities that can
help the firm on daily basis.
 Profitability refers to the basic and important aspect that helps the organization to
compete in the marketing environment. It aims at providing the operations of the
organizations to develop and foster growth. The customer's demand for the products and
services indicates that all activities adopted by Volkswagen are being carried out with
the main motive of providing foster growth and development (Grassl and Habisch,
2011).
 Corporate Social Activities play an important role that help the individuals of the
organizations to develop all the activities that are required by the CSR during regular
product and service development. These can be related to all the factors of Volkswagen
being developed on the grounds of providing material products and services and to
hamper growth and development for better aspects of improvements.

 Sales Growth means that all the aspects of sales are being developed by the products and
service development of the organization with the aim of providing 3 types of sales
forecast. All the main sales forecasting elements are indulged with the aim of providing
managerial and political measures and they help in developmental processes (Hartman
and et. al, 2014).
2.2) Implications for business and its stakeholders as to perform ethically.
Business stakeholders refers to all those persons who are being interacted in the business
during the course of its operations and its main benefit can be related to the development of
organization. Following implications can take place in an ethical manner-
 Marketplace Advantages refers to all those activities that can be incubated for the benefit
of providing market of products and services that can be considered essential in the law
of ethics being provided by the organizations .The marketplace advantages are the
advantages of providing quality products at available prices with all the basic
requirements that can cater to all the external affairs of the enterprises (Hoffman,
Frederick and Schwartz, 2014).
 Investment and growth refers to all the activities that can hamper the organizations to
grow and develop on the grounds by which each and every employee can attain positive
results and can able to bring changes in investment policies that are suitable for all the
employees who want to grow and develop.
 Employee Performances means that all the employees are catered to growth and
development on the level of performance being provided by them with the help of
organizational developmental activities that can impact a lot of positive and needful
activities that can be the basic necessity of product and company development.
 Business goals refers to all the goals of the business that helps the individuals to develop
a sense of responsibility for developing the goals for which every individual works and
follows ethical code of conducts being followed in the organization (Mahoney, 2013).
 Development refers to all the methods by which an enterprise grows and develops on the
grounds of providing products and services at the affordable prices by which every
company sets the basic objectives of improvement.

TASK 3
3.1) Role as moral agents.
Role of firm in the Volkswagen can be defined as the process by which every employee
of the organization needs to analyse all the decisions and can help in foster growth and
development of the activities that emphasis on the development of all the plans, policies, needs
and resources with respect to employees performance and all the aspects that can create a well
defined way of providing all the relevant materials that can help in developmental activities at
best level (McMurrian and Matulich, 2016).
 Wages and incentives of the organization refers to all the activities that can help in
developing standards set to perform all the managerial and personal goals of the
organization with respect to all the plans, policies, methods, planning procedures,etc.
When an economy is facing redemption of the employees then all the individuals needs to
be considered as the major driving force by which individuals can generate wages and
incentives on the part of providing all the managerial aspects of growth and
developments.
 Personal growth of the employees helps the organization to grow and develop on the
grounds of providing benefit to the organization that exerts managerial and operational
effect on development of the employees on the basis of providing salary, incentives,
bonuses, etc.
 CSR Activities refers to all the activities that can be implemented on the grounds of all
the responsibilities that can be assured to provide corporate responsibility to all the
employees of the organizations.
It is very important for Volkswagen to hold the trust of the people as due to the emission
scandal brand image of company has affected very badly, hence to get it back company need to
work very hard. So company is now willing to practice the CSR programs where it will avail
more and better services to the customers of the society along with that they are planning to
introduce new vehicle in which electrical supported and is very suitable for environment, it is
totally ecological friendly.
As a moral agent VW AG is contributing very effectively for the welfare of the society.
As past negative affect has very badly influenced the public therefore now each and every offer
that is availed by company is very well tested and is ethically right. This is very essential for

organisation to take in proper consideration about the ethical aspect as because not following
them will one day affect the entire work of it and will ruin it very adversely.
Advantages and disadvantages of being a moral agent
Advantage Disadvantage
 It become very supportive for carrying
out ethical practices in company.
 It is very helpful as it lead in attracting
more customers towards the use of
company's products.
 Brand image can also be retained in a
positive way.
 Many rules and regulations are to be
very strictly followed that some times
bind them to perform their operations.
 Many responsibilities are there that has
to be performed, otherwise company
can take another direction that may
lead to failure of the firm in
competitive market.
 It will lead to a situation where all the
activities has to be carried out in a
restricted manner.
3.2) Development of mechanisms.
The employees of the organization are considered to be the most important element as
they help in growth and development of the organizations at the sustainable developmental
strategies. All the strategies caters to all the methods by which each and every organization
helps the employees to understand all the techniques of providing management the best suitable
employees who want to grow and develop on the grounds operating at the sustainable
developmental level of economy (Pae and Choi, 2011). This is being violated in the ,law code of
conduct abiding all the rules and policies that can be incubated at the developmental stage of
products and services such that each and every product or service which is being developed on
the grounds of generating and creating a sense of responsibility for the employees can cater to
their needs and regulate the framework for growth and development stage.
Development mechanism
 Employment involvement- One of the major aspect that has to be considered by
Volkswagen is to involve each and every employee of the firm in several aspects of the

operations and functions of company. This is the concept where company need to make
direct participation of staffs in the mission and vision of the company.
 Employee empowerment- This is another very important concept where the company
shares the management practices, rewards and power to its employees. It is one of the
best mechanism through which the company can motivate its workforce.
Volkswagen has grasped the method for procuring incessant change agents aptitudes that
will build up the devotion and trust of workers in the different sections of the association, and
this will moreover better partake in the operations of association. All these engagement in the
association depicts about the appreciation about the parts and commitments of delegates, and
they even feel more related to the association's movement. Thusly they would better perceive
how to take an intrigue that vibe various in operation of the association. Company is delegating
the work and responsibilities to its manpower so that they can be able to attract their attention
and level of motivation towards the task and assigned work.
TASK4
4.1)Cultural ethical issues
The cultural ethics is the subject that deals with the integrity morality and the moral
principles. The aspects of the ethics basically defines as the values and the moral principles of
the society, it is also very beneficial for the proper governing of the society. Volkswagen is the
firm which is very well known by every person in the market as because it has been serving the
clients in the number of countries world wide. But due to one of the unethical operation that its
engineers done has affected the goodwill of the organisation (Peloza and Shang, 2011).
The emission scandal was one of the great aspect in the tenure of the company which has
shake the entire world as it has used such technology that hides the effect of the fuels but it
harms the health and also the environment, hence the organisation was not supported and
adapted the ethical principles and got affected by their own dishonesty towards the work.
Volkswagen company committed a very big scandal which has affected the entire nation
and its population along with that the environmental aspects were also not been followed by
them. This has affected the operations and functions of it. It has also affected the loyalty factor
that has been created by it for past years. There are many policies and norms that are related to
the environmental safety that was not adapted and followed by company. Management took

some actions that changed the company's image in market. The unethical practice that was
performed by company has polluted the environment and many people suffered from this. It had
happened just because Volkswagen does not followed the ethical aspects along with that such
local techniques were used which lead to emission of poisonous gases in surrounding that at last
created the situation where entire nation boycotted the product of it.
4.2)Improving perspectives to attain the objectives
To make a proper improvement in the ethics in Volkswagen. It is essential to attain the
objectives and the relations of an employees and the employers working in the organisation. That
can be attained by some of the following things which are as follows: Corporate social responsibilities- the firm has to apply the corporate social
responsibilities which will them to get an help in getting the trust and the loyalty of an
customers as well as the people who are residing in the society. Volkswagen has to make
an proper plan to work according by keeping in mind about the ethical factors in their
mind which would help them in performing well and they have to think about the
societies welfare. C. S. R is important to be followed by the company as that would help
them in doing their according the societies welfare which would help them in getting
value in the society.
 Quality- Volkswagen can provide the best quality to their customers and the people of the
society which will help them in getting an proper growth (Ulrich and Sarasin, 2012).
They should plan for providing the better qualities to the people which would make them
special and different from their competitors. As people like to get the best quality
products as that will make them attract to the products and the services also so it is
essential to have an better quality products in the organisation (Weiss, 2014). And mainly
that would help them in attracting the society and they would not also feel bad as the firm
will provide the products in keeping the ethics.
4.3)Ethical code of conduct
The firm has to prepare certain principles and several code of conduct so that the
operations of the firm can be very effectively performed in the organisation. They can consider
the following aspects-

 Conflict management- It is very necessary for the organisation to manage the internal as
well as the external conflicts that are arising. It will help in the smooth functioning and
proper flow of the firm's operations
 Policies and rules- The organisation's top level management has to very effectively make
the policies so that the operations of the firm can not harm any one in the society (Wright
and Bennett, 2011). It is also very necessary that the rules and the policies must contain
the ethical aspects and the moral values.
 Health and safety and environmental protection- The employees health and safety aspect
must be considered by the organisation, the tools and the machineries that are used by the
organisation must not harm the employees proper training has to be provided then only
the employees are to be allotted the work related to the machinery.
CONCLUSION
From the above report of the business ethics it is been concluded that it is important for
the firm to work according to the ethics which will make them increase their value among the
people and the society which will help them in proper growth. In this report the ethical issues
which are been faced by Volkswagen are been concluded in it. And the roles of an organisation
and it s moral agents is been mainly studied in it. It the factors by which the firm is been affected
majorly is been concluded as to make an proper plans and to get an results to solve it so that the
firm can work properly.

REFERENCES