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MGF5020: Business Ethics In A Global Environment

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Monash Universtiy


Business Ethics In A Global Environment (MGF5020: Business Ethics In A Global Environment)


Added on  2020-02-19

MGF5020: Business Ethics In A Global Environment


Monash Universtiy


Business Ethics In A Global Environment (MGF5020: Business Ethics In A Global Environment)

   Added on 2020-02-19

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Running head: BUSINESS ETHICSBusiness EthicsName of the Student Name of the University Author note
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1BUSINESS ETHICSIntroductionThere are many scandals that have been going around in the international businessworld. The organizations such as Volkswagen, Worldcon, Enron, Fords are taking decisionswhich can be highly distrustful and have raised ethical questions. These scandals have alsocontributed to the serious loss of trust and confidence for those organizations and within thebusiness integrity. In the contemporary business world, the organizations tend to increasetheir profits and value which is also the primary reason behind seeking more ways to do that.However, in the process of doing that, many organizations are making decisions that can beharmful (Zhou, 2016). The recent scandal of Volkswagen indicates that the business ethicsare still significant to the business world and should immediately be addressed in the way ofincreasing the profits of the organization. The carbon emission cheating of Volkswagen hasencouraged attention of the entire business world in recent times. The public and mediadebate regarding the Volkswagen scandal have already got so much attention, that it is quiteeasy to mark the scandal as unethical or wrong (Siano et al., 2017). This essay addresses theethical dilemmas of the scandal in the light of various ethical theories. The ethical theoriesinclude deontology, utilitarianism and egoism theory. After the detailed analysis, therecommendation and personal reflection has been presented in this essay. BackgroundThe case of ethical dilemma about Volkswagen had affected the historical journey ofthe organization and its newly appointed CEO. The organization can be traced back in the30’s where it first started the journey. In the year 2014, there was a regular on road testing inCalifornia by the CARB or California Air resources. This road testing had led theorganization in investing Volkswagen for violating the federal and state vehicle emissionrules (Balbi, 2015). Furthermore, the researchers had tested the emission form two of the
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2BUSINESS ETHICSVolkswagen models. The examination has also revealed that those models were equippedwith 2-liter turbocharged 4-cylinder diesel engine. Later it was also found that these modelswere emitting around forty times of the permitted level of NOx or nitrogen oxide and dioxide.Later the organization accepted their fault and admitted that millions off their car modelswere set with ‘defeat device’ (Preston, 2015). It was also disclosed that around 11 millions ofthe diesel cars where around eight millions cars were in Europe, had been equipped with aspecial software which has helped the organization to cheat in the emission test. Thecredibility of the organization has been affected with this scandal to a great extent. The entirebusiness world was not ready to accept the fact that this scandal has happened without theknowledge of the top executives of the organization (Nemeth & Carvalho, 2017). Thereforethe contemporary CEO has resigned taking the entire responsibility of the scandal. Thisscandal has been one of the biggest leadership and ethical challenge in the recent times. Thisincident has raised several questions regarding the ethical theories that the organizationshould adhere to. ExplanationDeontologyThe view of Deontology belongs to the group of normative theories. This theory ismostly focused on the moral actions and the choices of the individual, however in this case itis the organization itself. This theory also judges the morality of the action on the basis of thepre-determined rules. According to this theory, on the basis of the deontological ethics theremay raise different moral obligations from any of the internal or external sources such asreligious law, cultural or personal values or ethical naturalism. These choices can beforbidden, morally required or permitted. Kantianism is also a significant part of thedeontology. As stated by Chakrabarty & Bass (2015), Kantianism has argued that one act can
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