Financial and Social Goals | Volkswagen Case

Running head: BUSINESS ETHICS
BUSINESS ETHICS
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BUSINESS ETHICS
Executive summary
The aim of the report is to highlight the effect of maintaining the financial goals and the
social goals simultaneously. The report analyses the Volkswagen case from which it can be
observed that the organisations often indulge in fraudulent social practices and by using the
loophole of the ethical standards they used to gain financial advantages. In conclusion part of
the report it is stated that the organisations can not achieve both the financial and social goals
and often in trying to do so they engaged in fraudulent activities as done by Volkswagen.

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BUSINESS ETHICS
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Conclusion..................................................................................................................................7
Reference....................................................................................................................................9

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BUSINESS ETHICS
Introduction
With the increase of financial scandals in the modern business world the need of
implementing ethical codes in the financial activities of the large organisations become
essential and indispensable. It is difficult to achieve both financial goals and social goals at
the same time. Organizations have to concentrate more in achieving a financial goal rather
than social goals as the main motive to form a business is to fulfil the financial objectives to
maintain its existence in the market. With the increase of complexities in the business world
and the rising demand of satisfying the social needs the organizations have to give
importance to maintain business ethics in order to fulfil the social responsibility and to
maintain a balance between the financial and social goals. In order to stay relevant in the
modern competitive business world it become inevitable to apply a code of corporate ethics
which will help the business to achieve sustainable growth.
Discussion
In the case of Volkswagen emission’s scandal and the disruption of the corporate
sovereignty it has been observed that even the corporate ethical codes can not prevent the
occurrence of corporate scandals and it further raise the practices like lying, cheating
fraudulent and illegal activities. The business organizations to fulfil their own interest
wrongly utilize the ethical codes and only concentrate in satisfying their financial goals. It
reflects that the public companies can not maintain financial goals and social responsibility
simultaneously. This case also highlighted the fact that individuals or institutions on behalf of