Corporate Governance and Ethics

Running head: CORPORATE GOVERNANCE AND ETHICS
Corporate Governance and Ethics
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1CORPORATE GOVERNANCE AND ETHICS
Executive Summary
The primary purpose of the report is to discuss about the background of the Volkswagen car
emissions scandal. The report throws light on the history of the company Volkswagen and the
arguments in relation to the case. The report also talks about the ethical decision making
approaches and the ethical decision making approach pertaining to the Volkswagen scandal.

2CORPORATE GOVERNANCE AND ETHICS
Table of Contents
Introduction................................................................................................................................3
History of organization..............................................................................................................3
Discussion of Volkswagen scandal............................................................................................4
Arguments of Volkswagen scandal............................................................................................5
Ethical Decision Making Approach...........................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

3CORPORATE GOVERNANCE AND ETHICS
Introduction
Corporate Governance refers to rules along with the practices by taking recourse to
which the board of the directors of a company helps in ensuring the element of the
accountability along with the fairness in a company. It comprises of procedures that helps in
reconciliation of the conflicting interest of the stakeholders on the basis of the duties along
with the privileges. Business ethics is indicative of business policies and practices that
includes the aspect of the corporate governance, bribery along with the corporate social
responsibility. Business ethics helps in ensuring that trust exists in between the consumers
and the market participants of the business (Welch 2019). Concept of the business ethics
started in the year 1960 in the event of corporations becoming aware about the rise of the
consumer-based society that revealed concerns in relation to environment along with the
social causes. Environmental Protection Agency (EPA) has found out about the fact that there
are many VW cars that has the “defeat device” or the software within the diesel engines.
German car giant has been cheating in the emission tests that raised the ethical issue in
relation to the business. EPA found out that there were around 482,000 cars within US who
had the defeat device that can prove to be dangerous for the consumers of the company. This
issue can be said to be significant as the irregularity in relation to the carbon dioxide emission
level has affected around 800,000 cars within Europe. This report throws light on the issue of
the Volkswagen emission scandal and the arguments in relation to the case. The report also
talks about the ethical decision making approach pertaining to the case. The report also talks
about the ethical decision making approach which is appropriate for the case.
History of organization
Volkswagen (VW) is the name of German automaker that was founded on the 28th of
May in the year 1937 by that of German Labour Front. It has its headquarters within