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Added on  2022-11-23

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BUSINESS ETHICS
[Type the document subtitle]
7/12/2019
Student name
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BUSINESS ETHICS 1
BUSINESS ETHICS
The company has realized the impact of the crisis, for which it planned and implemented the
strategies to mitigate the crisis. After the crisis, the most relevant strategy that could have
worked would be the communication strategy of the company. The company as an immediate
action or communication to the public regarding the crisis was “shock” which was further
continues with the public pledge and statements like fixing the diesel issues as per the news on
18 September 2015. Moreover, through this strategy, the company initiated the website in order
to keep the public updated about the action that the company is taking regarding the disealgate.
The initial post by the company on 23rd of September communicated towards rebuilding the
reputation of the company by including the statements like awareness of executive committee
with regard to the crisis of trust that needs a long time to be rebuilt and need a large amount of
toughness and consistency (Asfaw et al., 2015). Considering the effectiveness of this strategy, it
cannot be said that it was enough to resolve the issue, it was just the initiated step to cool down
the aggression and disappointment among the public regarding the crisis. However, the shock
stage of the company even degraded the trust in the company that the teams were not even aware
of the issue in the manufacturing of cars for years. In 2016, January the company include the
distribution of free two 500 dollar gift cards to its customer to comes back into the market in
order to rebind the invaluable trust of customers into the brand. It can be said that the
compensation packages by the company may have reduced the issue level among the customers
but gaining the trust and customer loyalty again may be the long-term vision for the company.
However, it has not been resulted in consumers rights to be pursued various legal action against
the company in the near future (ijsea, 2019).
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BUSINESS ETHICS 2
Assessing the sustainability report of the company for the next year after the crisis has occurred
includes the together strategy 2025. According to this strategy of the company, it examines the
changes and the changes will lead to the progressive approach of the company through this
sustainability. The change is the key factor as per this strategy, which would include both
positive effective and detrimental effects. That is the opportunity by the company to have new
jobs, fostering regional structures, raising the opportunity for the people to participate and
fostering prosperity (volkswagenag, 2016). However, the detrimental effects included the key
aspect of the crisis that is the resources consumption and emission. As per this strategy, the
inclusion of the commitment of the company to be responsible and sustainable entrepreneurship
could have led to regaining the brand trust and loyalty and improve the image of the company
which h has been hampered due to the crisis. As per the chairperson of Volkswagen the strategy
will work towards the equal opportunities, strengths of solidary values, education, and providing
support to the people in disadvantaged circumstances. Therefore, it is found to be the work of
one of the ethical principle that is utilitarianism approach that is working for the benefit of most
of the people. As per this ethical principle, the company is approaching for the best for
themselves and for the people in general, which will be beneficial to build up the goodwill of the
company (dsef, 2019). Utilitarianism rule of ethics is one of the effective ways to approach to the
strategy, which are the biggest pros for Volkswagen. The critique to it may include the
ineffectiveness to imply the strategy to maximum extent that is the strategy planning provides
clear vision but implementing it could be the biggest challenge for the company. Considering
this challenge the key figures identified are strengthened integrity management (Bombiak, 2018).
This reflects that the company has significantly worked towards the moral and ethical behavior
of the company in order to improve the brand image of the company that has been hampered and
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BUSINESS ETHICS 3
would take a long time to regain. This strategy has also included the developed integrity and law
division that will be working for the ethical practices of the company being the part of the
management of board (researchgate, 2019).
The initial milestones that were set by the company to improve the ethical promotion are the
communication campaign with the anchoring of the selection and development process with
significant integrity. This strategy of the company has also included corporate citizenship
projects, which also reflect the effectiveness of this strategy for mitigating the crisis issue.
Through this the company has considered the SDG’s that the united nations sustainable goals
that will be helpful in creating the authoritative framework in order to work towards the group’s
social commitment (Doppell, 2017). However, the key challenge identified through this feature
of the strategy is the local challenges like local condition, which may be unfavorable for the
company to lead to various projects formats. The company included promoting social mobility
like health and diverse which was included as the part of 230 worldwide projects. In addition to
this, it also identified to be the focus over the regional economic development, greater road
safety, culture and sport. This could be helpful for the company to mitigate the crisis by
increasing the company concern regarding sustainability and responsible for the environment and
public health and safety (theguardian, 2019).
The environmental management through together strategy was also effective for the company to
mitigate the crisis, which included targeting the three major areas by the company that that is a
rapid reduction in carbon footprint, resource consumption, and pollutant emissions through
environmental management (Gencer, 2017). As per the sustainability report of Volkswagen
2016, the company offered various 450 models that would include the output of 120 gram of Co2
and already has the existing versions of 95-gram CO2 emission and VOC emission each vehicle
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