Business Ethics and Volkswagen

This assignment analyzes the application of business ethics within the Volkswagen company. It explores the importance of ethical conduct for organizations, focusing on Volkswagen's specific practices and challenges. The discussion encompasses ethical codes of conduct, the relationship between employers and employees, and Volkswagen's approach to addressing ethical concerns. Additionally, it highlights the significance of ethical behavior in building strong relationships with stakeholders such as suppliers, customers, and employees.

Business
ethics

INTRODUCTION
Business ethics defined as a form of practical or occupational group ethics that helps the
organization to analyse ethical values and morals problems that are arise in business
environment. Ethics are applied in all prospect of the business activity and it is relevant to the
activity of individual and whole organization. Volkswagen Company is one of the most
successful auto mobile company. This company apply business ethics for their different business
activities (Brenkert, 2010). It helps the company to motivate their employees and workers
towards perform effectively and in a correct manner. This company offers different products and
services to customers. This company design, manufacture commercial vehicles and offers related
services like financing, leasing and accumulation management. This company effectively apply
the business ethics to manage all the activities for business. Ethics provide strong base to
perform all the business activities. Business ethics encourage the company for set full standards
of business concern behaviour based on values. Further Mark and Spencer company has also
been taken.
TASK 1
1.1Ethical approaches and theories for background and development
The Volkswagen company is company is focus towards the affects created by business
functional activities to the business organization environment. Business ethics results for
company in increase the concern towards the customer’s awareness. This company trying to
promote their community morals in order to check the competitive advantage. This provide the
guidance to fulfil the social duties towards the society. Business ethics are related with the
practises of human resources, marketing, management and production activities.
Theorise of business ethics: there some business ethics theories these are as follow
 Self-interest, learned theory: According to this theory the business decisions made on
the basis of law that which is very important for the company. This theory business ethics
used by the Volkswagen company for the business decisions. This company motivate
employees to perform their task and roles in an effective manner so the company can
achieve goals and objectives.
 Duties to principals and people: Kantian ethics is also known as deontological ethical
theory. This theory is concerned with; what people are doing which is not related with the

consequences of their actions. The good points of this theory is that, it emphasis on value
of human being, it also saying that there are some acts which is always wrong and should
never be perform, provides certainty and many more. Utilitarianism theory states there is
something is moral. This theory tells about normative ethics which ask that, specific
action which has been perform by any person is bad or good, moral or immoral. This
company analyse the market and use this theory. This theory helps company to find ideas
to business activities. Company has legal duty to act in financial interest. Ethical duties
help the company to operate the best interest of the community, environment, employees
and stakeholders. This company consider the moral principles for effective business
activities.
 Compassion and consequence: This theory of ethics is based on abstract moral
principles. These principles criticized by the different theorist for decline the questions
for human compassion (Crane and Matten, 2016). The Volkswagen company analyse the
need of their employees. When company provide their employees effective compassion
then they motivate towards their goals and objectives.
1.2Comparison between absolute and relative ethics
There are many approaches of business ethics which could be carried out by organisation.
It is important for Volkswagen company for doing a business society in right way and obey all
duties which are implemented by government. In organisation there are different kinds of people
who are belonging from other culture so it is responsibility of manager and employers to provide
them health and safety environment. Some people are there who belief in ethnic group and their
morals. Along with this they are encourage other people to serve quality of service to customers.
There are two types of ethics i.e. absolute and relative. In absolute ethics in organisation there is
only one truth and code of conduct and everyone must have to obedient. This also tells about that
business entity is following all rules and regulation ethically which is framed by government in
ethical manner. Whereas in relative ethics, there is no universal code of conduct. But there is
single code of conduct which is applied to organisation so that they cannot do human basing at
workplace.
Absolute ethics Relative ethics

It considered universal moral standard which
has to be applied by organisation.
This is based on single moral standard.
There is a different between right and wrong
situation at work place.
But is done differentiate any situation on the
basis of right and wrong.
Rules and regulations which has been framed by manager are accordingly with both
approaches and these should be used in right way. These approaches will be beneficial for
organisation to deliver quality of services and keep them happy for a long period of time.
1.3 Effects of ethical issues on operational activities of business
Ethical issues are the set of motivation values that are want to be understand while
carrying out the business (George, 2011). Volkswagen company operates their business in
society so it is important to the company the structure is made to be around moral values.
Therefore, when the company conducting their business operations then they are also allocating
task to managers in providing better services to society. It helps the company to improve
relationship with their customers.
In order in market the company need to maintain its customers. Quality of products is one
of the effective way to maintain their existing customers and also helps in acquire the new
customers. Bad quality products affect the business in the long run as the customer’s satisfaction
and bad relationship with them. Sometimes the company face the many issues related with the
ethics. Issues related with the ethics affect the working of the company and the business
activities of the company. Applying the business ethics, it is important for the company that they
evaluate and effectively analyse the business organization ethics. Business organization ethics
affect the operations of the business and the different activities of the business.
In order to survive in the market, the company need to be follow the business ethics in a
correct manner so it can not affect the business operations. Bad effects of the business ethics can
be harmful for the sales of the products and services. It affects the relationship with the
customers and new customers. The negative response of the customers can affect the business
activities of the company for long run operations.

TASK 2
2.1 Business organisation ethics that are affected by ethical consideration
The basic objective of Volkswagen is that “to become the most successful, fascinating and
sustainable automobile manufacturer”. This objective can affect to ethical consideration in
different ways such as;
Pressure – Pressure from top management was intense. The code of conduct of
organisation in which employees was trained ostensible in ethics, it seemed as irrelevant when it
contrasted with management autocratic leadership styles.
Rationalisation – Engineer of cited firm had installed “defeat devices” which allow them
to cheat on newly enacted emission standards. It can also impact on their business objectives
which become difficult for them to hit their targets.
Business ethical consideration are important for every organization. These business ethics
help the organization to reach their goals and objectives. It is important for the Volkswagen
company that they must be able to meet the stakeholder’s expectations and be profitable if they
are operated ethically (Doh and et.al., 2013). The business activities should be emphasising on
ethical considerations like expectations of the stakeholder and the profitability then it can change
the effectiveness of the company. When the business of the company is ethical then it can be
easy to reach their business goals and objectives and also be successful company. The Mark and
Spencer company consider the business ethics for their objectives (Fassin and Buelens, 2011).
There are some business objectives which are affected by the ethics these are as follow:
 Social and ethical responsibilities: The company has to make their products and
services that are safe for the environment and friendly to the customers. It is the objective
of all the business organization to make their business activities more successful and
effective.
 Profitability: the main and the most important objectives of all the organization is make
the profit through effective use of their available resources. Companies has to remind that
customer satisfaction is also most important thing for their success.
 Meet the stallholder expectations: It is important for the organization to their
stakeholders like suppliers, employees and the communities who are the supporters and
have the interested in organization business activities. Organization has to meet their all
expectations and make them satisfy.

 Treatment of the customers: The Company should deliver the goods and services which
can satisfy the customers need and wants. The company has to provide the stranded
goods at lowest cost, services after the sale and show ethical behaviour towards them.
2.2 Difficulties to operate the business stakeholders ethically
Volkswagen know the importance of their stakeholders and relationship with them. The
stakeholders have a great impact on each and every business organization and their business
activities. No business can be operating without the stakeholders. The stakeholders play the very
important and effective roles in the development of the organization. The roles play by the
stakeholders make the organization achievable towards their goals and objectives. There are
different types of stakeholders which are involved in the organizations (Ferrell and Fraedrich,
2015).
The implications and difficulties for the organization and its stakeholders to operate
ethically are mentioned bellow:
Market place advantage: The organizations follow the business ethics for their business
activities and conducted the reputable ways has the opportunities for taking over the market
dominations. It is important for organization to know about the factors which affect their
stakeholders and interest of their investors to do business with the organization because the union
has business ethics.
Investment and growth: if organization follow the business ethics effectively and
operate effectively then both the organization and stakeholders are affected. Because of having
business ethics, the organization be reputed. It helps the organization to make many people
interested to invest in their business activities (Hartman and et.al., 2014).
Employees performance: When the organization follow the business ethics in its
business activities then it is important to ensure that employees well-being. As the result the
employees of organization feel secure and they try to perform their roles and responsibilities by
their soul and heart. So they can show their dedication towards their roles and give better
performance.
Development: When the organization operate their business activities by using the
business ethics then both stakeholders and organization work together that is helpful for the
organizational development and performance.

TASK 3
3.1 The role of morel agent in company
In Mark and Spencer Company the morel agent plays different and important roles.
Moral agent defines as the person who have the ability of production ethical decision and put
them into strict action. It is the responsibility of the organization towards the public to act
ethically. The role play by the moral agent helps the organization to make their business
activities more effective and successful. There is some important role of morel agent these are as
follow:
 Power to act: The morel agent has its collective power to act in the organization. The
morel agent also has the social control to make ethical decisions. The organization can
make the decision about the wages for its workers and the morel agent help to make these
decisions. Morel agent select the suppliers on the basis geographical area and available
on best low price.
 Effects: All the business concern decisions of the organization whether ethical or not can
be impact the customers (Hoffman, 2014). Starting with the employees and customers
and extending to the large ownership. The morel agent helps the organization to make the
effective polices which help to avoid the negative impact on the customers. The decision
made by the agent ensure that it impacts the customers in a positive way.
 Viability: The roles of the morel agent can affect viability of the organization like the
organization that supports the environmentally friendly suppliers might not last long if
the competition selects the low cost provider to cut the prices. Morel agent has to make
the difficult decision of comparison to remain plan less (Murphy, 2010).
 Responsibility: All members of the organization are responsible for the effects on its
initiatives. The top level of management has approach to information that the low level
employees do not perform their roles. The more agent helps the organization to improve
the performance of employees.
3.2 The improvement of performance for achieving employee involvement and empowerment
Mark and Spencer company give the importance to employee’s empowerment. The
employee’s involvement is philosophical system practised by the organization that help them to
give their employees interest in decision that instantly impact their jobs and their roles. The

employee’s empowerment is an incarnate composition that allows the non-managerial employees
to make independent decisions. Each employee has the distinct ability to perform the same task
and job and it is reciprocally unshared to another. The advantage can be same. The key benefit
for organisation of the worker’s empowerment and involvement increased the morel and more
productivity, build the effective relationship and creative thinking.
There is some importance of development of employee empowerment these are as
follow:
 Improved morel: Involving the employees in the decision making process and polices
change process directly affect their jobs and roles. But is empowering the employees to
be more independent. It greatly improves the morel at the large level. When the
organisation treats their employees as an asset and their inputs is give the considerations,
confidants increase among every team member of the organisation.
 Increased productivity: Employees involvement and empowerment helps the
organisation to increase the productivity (Pies, Beckmann and Hielscher, 2010).
Employees are making large contribution in organisation so that they can earn large
amount of profit. Along with this they are also making growth in economic condition.
 Innovation: Workers empowerment support the organisation for new innovation.
Employees are also giving their new ideas in which they can attain the growth and
sustainability in competitive market.
 Job enlargement – In this, it increases job tasks and responsibilities of employees to
create a position more challenging. The tasks are divided at same level which is related
with the current position of employees. It may be result into greater workforce flexibility.
 Training – It is responsibility of manager to conduct proper training session for existing
and new employees. Through this they will properly understand company rules and
regulations, what are their roles and responsibilities in order to achieve organisational
objectives.
 Team cohesion – It is degree in which individual want to contribute something in group
for achieving objectives. Forming, performing, storming and norming stages are included
in team cohesion which help individual to increase their skills and knowledge regarding
particular task.

TASK 4
4.1 Research for current ethical issues that affecting the selected business
The Mark and Spencer company apply the different research for find out the issues
related to the ethics. Ethical issues cover a mixture of issues like employees pay rates and
related problems of the work place (Shaw, 2016). The organisation chooses those ethical issues
which can helps them to solve the other problems of the work place. Problems related to the
work place can be affect the performance of the employees and workers. The organisation
choosing those issues and problems which helps it for the consumers related police. There are
some ethical issues which are faced by the organisation these are as follow.
 Accounting practises ethics problems: The organisation face the problems related to
the accounting practises from the public trade companies. When the organisation prepares
the accounts then it is important to prepare according to the financial reporting
requirements. It helps the organisation to consumers against any fraud.
 Social networking ethics problems: the comment regarding the working of the
organisation by the social networking affect the business of the organisation and
activities. The ethical and legal issues by the social networking consequences in the work
place affects the business of the organisation. Polices regarding the employees helps the
organisation to avoid these consequences.
 Paying employees equally: It is important for the organisation that they maintain the
equality between the ever employee. Maintaining the professional workplace relationship
between the employees can help the organisation for continuing the challenges for
employer. Maintaining the relationship become more difficult when when the
organisation chooses to projects for their performance (Thorne, Ferrell and Ferrell, 2010).
When the organisation paying their employees unequal then it affects their performance.
So it can become for the organisation that they pay their employees equally on the
performance bases.
4.2 Business could have developed the ethics of transaction gathering impersonal objectives and
assure good employees and employer relationship
Every organisation is concerned about their business activities the impact of their
activities environment (Trevino and Nelson, 2010). Like every organisation Ethical concern are

the huge consumer’s awareness and it results in many entities boost their social standards to
confirm the contending reward. Business ethics helps the organisation to grasp the corporate
social responsibilities and the ethics related to the practises, marketing, human resource
management and the production work. The organisation needs to look at the various form of
ethical issues. It is important for their firm to consider and the expansion of the moral values
which influences the business behaviour. It is significant for the organisation to learn the
appropriate practises for the ethics issues. The organisation can research the social implications
of the business ethics for a wide range of the business activities which can affect the performance
of the organisation. Ethical issues affect the internal and outside environment of the organisation
and it can affect the performance of the employees. The practises of the ethical issues include the
employment practises. Advertising, environmental awareness and introduction of new
technologies. Ethics of cited firm can be improved in financial transaction by making proper
records of books. It responsibility of higher authority to appoint highly professional person so
that they will maintain all the records of finance in order to meet with their objectives. On other
side, the use of social media can also be used in appropriate manner. The information which has
to be convey organisation should be properly convey with the help of social media. This does not
create any confusion among employees and organisation.
The organisation has to examine how the employee’s ethics impacts on the morel
relationship between the employers and the employees, it also considering the contractual
responsibilities of the both parties (Trevino and Nelson, 2010). These paratactic helps the
organisation to find out the new opportunities to research how the business can response to the
ethical concern. The different activities of the employees affect the organisation.
For the effective learn of ethical issues require the
 Understand the various ethical perspective in business
 Interpret the various objectives of business from the ethical view
 Understand the ethics in work place relationship
 Be effective towards the current ethical issues in the business
4.3 Design s suitable ethical code
There are many types of ethical code of conduct which should be design by manager in
order to behave ethically with all. It is responsibility of manager to analyse these code of conduct

on regular basis so that they can take appropriate action if any deficiency if found. Below
mention are some ethical code of conduct which has to be considered by higher authority.
Compliance with laws and regulation – Employers should comply with all rules and
regulations which are framed by higher authority and government in order to protect the rights of
individual.
Relationship between clients, suppliers or customers – Manager has to give freedom to
their employees regarding to take any decision. Through this they can feel core values in
organisation. Along with this appropriate communication process should be used when they are
communicating with suppliers. Through this they can maintain sturdy relation with them.
Conflicts of interest – Manager has to give space to their employees so that they can
perform their duty with interest. If any conflicts have been arising, then they should be resolve in
proper manner by do not using their position as illegal.
Gifts or favour – If any gift is offer by supplier, then employer should accept that gift
from them or do not take any decision on their favour. If they are doing this, then it shows that
they are not behaving ethically with all suppliers also.
Outside activities, directorship – Company is encouraging to employees also to
participate in charitable work who are working for community so that it will become easy for
them to retain in market for a long period of time. Along with this, programmes which are
conducted by government should be participated by employees which will increase their
knowledge regarding their rights at workplace.
CONCLUSION
From the above report it has been concluded that the Volkswagen company apply the
business ethics in their company. The main objective of the companies to make the profit
through effective use for their available resources. Business ethics helps the organisation to make
effective relationship with its stakeholders. Stakeholders are the suppliers, employees and the
workers. They all are important for organisation. Business ethics helps the organisation to serve
the products and services to the customers. It helps to avoid the harmful competitive strategies
and implement the suitable and effective strategies.

REFERENCES