Corporate Scandals and Whistleblowing: A Study on Social Responsibility

SOCIAL RESPONSABILITY
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Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
PART-1............................................................................................................................................2
High profile corporate scandals in recent eras.......................................................................2
PART-2............................................................................................................................................4
PART 3............................................................................................................................................7
REFLECTION........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Social accountability is an ethical suggests & framework that an entity, be in an
individual or company, has an obligation to work for benefits of society or community at huge.
It refers to the duty and accountability of a person and organizations to perform so as to maintain
a balance between ecosystems and economy. This concept means that companies and
individuals have a role to act in best interests of their society as well as environment as a whole.
The current study is based on three tasks as part 1, 2 and 3. Part 1 highlights high profile
corporate scandals in recent years and also explains extent to which scandals can be happen due
to failures of education systems. Part 2 justified appropriate theories and examples to critically
examine phenomenon of whistle blowing. Both parts will be written in an essay format and parts
3 will written in form of reflective that defines individual learning about overall business social
responsibility.
MAIN BODY
PART-1
High profile corporate scandals in recent eras
Corporate scandal includes actual or alleged unethical behaviour or practice by
individual acting within or on behalf of companies. Many recent corporate scandals & collapses
have included inappropriate or false accounting of some sort. There are varied types of scandals
happen in corporate sector that affect businesses.
Volkswagen emissions scandal-
This company is known as leading automaker firm in the world founded in 1937 by
German government. They design, produce and distribute commercial as well as passenger
vehicles, engines, turbo machinery and motorcycle and also offers related services including
leasing and financing. Organization management deal with difficult situation emissions scandal
impact on its brand image within market place negatively. In simple words, Volkswagen
emissions scandal is considered as one of the big corporate sector scandal began in September
when US environment protection agency issued a notice of violation of clean air act (Che,
Katayama and Lee, 2020). It occurs because United State EPA announced that authority
believed company had cheated emissions tests. It turned out that firm had been fitting what some
sector commentators described as defeat devices to their products like diesel cars which included
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software that cannot detect when electronic vehicles were undergoing laboratory testing and
switch on controls to reduce nitrogen emissions.
While laboratory testing procedure some of its workers do not perform ethically they are
not focusing on testing practices which in return outcome as scandal. This scandal shows that
how individual are unaware about their morale accountability and behaviour which is relay very
essential to consider while doing specific job within organization. This complex situation within
company affects up to 11 million electric vehicles or cars that decrease sales and revenue of
business rather than before (Rhodes, 2016). It can be said that unethical practices or act of staff
may be the reason behind this scandal they do not detect the defect while laboratory testing. Due
to poor education or may be ineffective education system employees are unable to learn how to
behave and work ethically that is important for business and individual growth. EPA served
legal notice of violation on Volkswagen group alleging that approximately 480,000 Audi and
Volkswagen automobiles equipped with 2L TDI engine and sold in nation had an emission
compliance regarding defeat device installed.
Uber scandal-
It is an American international ride hailing organization offering their services that
include peer to peer ridesharing with skilled employees. In current years, there have been varied
accusation of sexual harassment at company and questions over their stop at nothing method to
expansion. Latter allegedly consider it utilize illegal technology to evade poach drivers, law
enforcement from their competitors & spy on consumers. However, it was typically accusations
in context of company bro culture that assured to be one of the biggest corporate scandals and
led to CEO resignation in 2017 (Carrie, 2017). Allegations included complaints that senior
authority members of staff had made sexist pokes and jokes as well as visited a brothel in Seoul.
Even though few were not proven, claims impacted price of Uber’s shares which were
traded privately at that time. All the issues were created because of ethnical and ineffective
behaviour of seniors that impact negative impact on organization business performance and
practices. Complaints related to workplace discrimination in company make negative image
within market place all it happen because of their workers or seniors who are using their power
negatively and do not treat other person in ethical manner. Due to poor and failures of education
systems workers in organization was not able to aware about their social accountabilities and
ethical practices. It can be said that failure of education systems impact on learning and abilities
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