Volkswagen Carbon Emission Scandal

Volkswagen Carbon
Emission Scandal

Introduction
 The given case study has presented
a brief about the occurrence of
carbon emission scandal in
Volkswagen in the year 2015
 The case study analysis has
illustrated the ethical and corporate
governance issues that have
resulted in the occurrence of the
scandal

Description of the Organization & the Key Issues
 Volkswagen is an internationally recognized
German company that is known as ‘People’s
Car’
 It has presence in about 150 countries across
the world
 The company has achieved a distinctive
position owing to selling of unique design
passenger cars
 The brand image negatively impacted due top
use of a defeat devices for escaping carbon
emission test

Continued...
 The tests conducted by the EPA (Environment
Protection Agency) and International Council on
Clean Transportation (ICCT) identified the use of
cheat device used by the company
 The device adopted the use of computer
software for reducing the emission of nitrogen
oxide fumes at the time of conducting emission
test
 The use of such physical device by the company
is a serious ethical concern and has highlighted
its ineffective corporate givernance structure