Governance and Business Ethics in Volkswagen Report 2022

Running head: GOVERNANCE AND BUSINESS ETHICS IN VOLKSWAGEN
GOVERNANCE AND BUSINESS ETHICS IN VOLKSWAGEN
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GOVERNANCE AND BUSINESS ETHICS IN VOLKSWAGEN
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Executive Summary
The significant object of the report is to analyze the ethical concerns in the business activities
and operations of Volkswagen. Such ethical issues concern the installation of defeat device
software that can enable the cars to pass the emission tests conducted after their manufacture
through fraudulence. This raised several questions regarding the business ethics of the
organization. However, such bad reputation can be managed by the organization by following
certain recommendations that have been provided.

GOVERNANCE AND BUSINESS ETHICS IN VOLKSWAGEN
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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Overview of the Company.....................................................................................................3
Case Analysis.........................................................................................................................4
Ethical concerns in the Case..................................................................................................5
Utility.................................................................................................................................6
Rights.................................................................................................................................7
Virtue..................................................................................................................................7
Ethical Decision making Approach.......................................................................................8
Theory of Utilitarianism.....................................................................................................8
Theory of Kantianism........................................................................................................8
Remedial Plan........................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

GOVERNANCE AND BUSINESS ETHICS IN VOLKSWAGEN
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Introduction
The concept of Corporate Governance concerns the set of rules and regulations that
govern the operations and functions of a business organization. Efficient and good corporate
governance ensures that the activities of the organization are aligned with the ethics and
values entailed within its scope (Tricker and Tricker 2015). Such ethics further ensure that
the interests of the organization as well as its internal and external stakeholders are protected
(Boatright 2017). Volkswagen is a German automotive company specialized in the
production of various types of vehicles and parts. The organization was established in the
year 1937 and since then it has grown and developed to become one of the globally
recognized brands in the industry. With its global presence and brand identity, it is also
essential that the organization maintains and fulfills its responsibilities towards the various
stakeholders. However, several issues concerning the ethics of business operatio0ns have
been recognized in the organizational scope of Volkswagen. Such issues pertain to the
company’s responsibilities towards the environment and its CSR activities. One such issue
identified was forging in emission tests and creating wrong conceptions about the
performance of the vehicles produced by them. The report will further analyze such ethical
and governance issues in the organization to evaluate the nature of CSR activities undertaken
by Volkswagen.
Discussion
Overview of the Company
The term ‘Volkswagen’ directly translates to ‘people’s car’ in the German language.
This states that the brand produces cars that appeal to its target customers and ensures their
satisfaction. The company originally managed its operations through Deustsche Arbeitsfront,
the German Labor Front (Volkswagenag.com 2019). The original design of the Volkswagen