The Ethics of Governance |Assignment

Running Head: GOVERNANCE AND ETHICS
0
Governance and
Ethics
Case Study: The Volkswagen Emission
Scandal
Student Name:
Student University:

GOVERNANCE AND ETHICS 1
Contents
Introduction................................................................................................................................2
History of the Organization........................................................................................................2
Case Discussion.........................................................................................................................3
Argument....................................................................................................................................4
Ethical Decision Making Approaches and Theories..................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

GOVERNANCE AND ETHICS 2
Introduction
In automobile industry’s business, any unethical action taken that leads to issues like
emission scandal have a great impact on the company’s reputation in the market. It is not
essential for leaders to always be right while making decisions where the company might
move towards corporate misbehaviour that is not acceptable. Under this, the perspectives
need to be considered are the markets and finance or the CSR (corporate social responsibility)
and business sustainability along with business leadership as well (Bansal, et al., 2018). The
issue covered is the company performing unethical practice while giving test of diesel
emission. This impacted highly on the economic system of Germany and Europe. It was
important is achieving profit within a short-time period that is disastrous along with looking
at business damaging the environment (Jung & “Alison” Park, 2016). In this report,
discussion is based on the case study of “Volkswagen (VW) Emission Scandal” with the
purpose of identifying and separating the factors related to organisational behaviour. It is
because of these factors that are responsible for having an adverse effect. The report also
provides an explanation of problems along with analysing the response of the company. It
provides strong recommendations for future by helping leaders to learn and apply them in the
business.
History of the Organization
In automobile industry, Volkswagen (VW) is a major manufacturer with its origin in the
Germany for the mass-production of “people’s car” at low-price. There was a fast expansion
in production of VW where the sales across the globe were strong for exporting in most of
the countries. There was trouble for the company concerning finances that bought change in
corporate philosophy to develop sportier and more contemporary car models. This
development of the company while establishing new designs and models made VW the best-
selling across the globe (Wilson, 2010). In the past, the joint ownership of West German
government with VW made the company denationalized due to the stock sales of 60 per cent
to the public. The company started to produce commercial vehicles and vans along with
passenger cars owing various other automotive companies. However, VW faced the issue of
public relations crisis where EPA (environmental protection agency) of the US (United
States) determined the manufacturing of cars that are diesel-powered containing software
altering the performance of vehicle for passing the emissions tests. In the world, the company