Investigation on Volkswagen Action Plan
20 Pages6612 Words45 Views
Added on 2020-06-06
Investigation on Volkswagen Action Plan
Added on 2020-06-06
ShareRelated Documents
Action Plan
Table of ContentsWhat company has chosen for analysis and why ............................................................................1Description of Events ......................................................................................................................1Main corporate governance/ethical issues..................................................................................1CSR/Ethics..................................................................................................................................2Culture.........................................................................................................................................2Ethical dilemma for the company....................................................................................................3Summary .........................................................................................................................................3Overview of Volkswagen...............................................................................................................4Main Corporate governance issues with the case.......................................................................4The Theoretical, Academic, Professional or Legal Literature/Regulation Volkswagen issues.......5Perception of theoretical, academic, professional and literature sources........................................6Degree of occurrence of similar events in UK.................................................................................7General lessons learnt from the case................................................................................................7Impact of Volkswagen case ............................................................................................................8Justified ethics evaluation................................................................................................................9Conclusion ....................................................................................................................................10REFERENCES..............................................................................................................................12
What company has chosen for analysis and whyThe present investigation is based on the Volkswagen which is operating its business inthe auto-mobile sector. It is one of the leading brand and carry out its business activitiessuccessfully. Further it deals with the commercial and passenger auto mobile with the differentbrand names such as Man, Neoplan, Scania etc. This organization has been selected for theanalysis due to its several issues related to its unethical practices and environmental issues. Thisall lead to directly impact the corporate governance of the business (Aguilera and Jackson,2010). The selected organisation is involved many scandals due to which its negative image iscreated in the market. Further it lead to directly impact the demand of the products and profits.The environmental protection agency has identified that there are many Volkswagen cars thatare being sold in America and had a defeat device and software in diesel engines which candetect at the time when its was tested. Further the German car has admitted that its cheat withemission test in the US. Volkswagen installed the software in more than half of million of itscars that unable to detect pollution. Further there are many unethical practices within theorganisations were carried out. Volkswagen scandal has led to devastating series of criticalconsequence to its stakeholders. The case presented in this paper provide information related toVolkswagen and its scandal that are evolved and become known to public. The ethical dilemmafocuses on the action which can lead to the scandal. Description of Events Main corporate governance/ethical issuesCase & Dilemma Volkswagen installed the software in more than half of million of its cars that unable todetect pollution. While at the test time car was fully compliant with all the federal emission levelbut at the time of driving it changes the fuel pressure which lead to increase pollution in theenvironment (Kowalczuk and et.al., 2011). Few cares such as Audi, Porsche diesel models etcwhich are considered as a emission violations by the environmental protection agency.However, Volkswagen diesel emission fiasco offers a valuable lesson to corporate that the waythey do not carry out unfair practices for earning profit. They were equipped with the softwarewhich are turned on their pollution control system at the time when they were being tested.Volkswagen admitted that its about 11 millions car in all over the world including 8 million in1
Europe are were fitted with software that is defeat devices. Defeat device is not a physical devicebut a computer software which can detect when car is under testing (McCahery, Sautner andStarks, 2016). At the time of testing the computer signals the engine to switch to more efficientsetting so that mistakes cannot be detect in test. Carbon emission is one of the important figurethat make sure that car is to be sole in the USA market or not. Further, tax band is also determineas if higher the carbon figure then customer need to pay high tax. The CEO of the company isinvolved in this case and it is responsible for the action taken by the company. The knowledge hehas rleated to the cheated and device and instead of resticting it continue to followed to gothrough this which is not ethically justified. Before analysing the dilemas there are differentpeople who are involved in this are employees, customers, and EPA environmental testingagency and all the indirect party (Oshry, Hermalin and Weisbach, 2010). However it is not easyto determine why company involved in such type of fraud and the following reasons wereassumed. To compete in the market and earn profit. CSR/EthicsThe diesel gate scandal is increase major ethical issues and the root of this disaster isunsound corporate governance within the Volkswagen. If it is seemed from the ethicalperspective Volkswagen did not cheat customer from ethic perspective but it put various effectson its different stakeholders (Rossouw and et.al., 2010). It is identified that Non toxic fumesinteract with compounds due to which it increases the chance's health issues such as respiratoryproblem and heart diseases. Furthermore, this ongoing pollution directly lead to increase thedeath rate. There are many corporate governance and ethical theories which can be used forcritically analysis the Volkswagen scandal from various approached and perspective (Shum andet.al., 2012). Different types of ethical theories are deontological approaches, stakeholder theory,agency theory etc. CultureFrom the scandal it is revealed that due to bad management and inappropriate corporateculture allow the complex fraudulent system. It is covered by several layer of management.Culture plays significant role in the business. It was reported that there are 9 managers who are involves in the misrepresentation and aftersuspect the were suspended. They all take this unethical scandal as because of the mindset in fewdepartment due to which company unable to comply with rule and regulations. 2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Business Management of Volkswagenlg...
|17
|4322
|70
Ethics Leadership & Decision Making in Volkswagen Scandallg...
|12
|3377
|151
Ethics Leadership and Decision Making Assignmentlg...
|12
|3377
|462
(PDF) Managing the Global Environmentlg...
|8
|1364
|435
Volkswagen Ethical Issue: Assignmentlg...
|4
|1311
|178
Volkswagen Scandal Case: Impact, Role of CEO and Department, Steps for Improvementlg...
|10
|2701
|489