Volkswagen Case Study - Assignment

Volkswagen
Case Study

EXECUTIVE SUMMARY
Volkswagen is a German automaker which is founded in almost 28th may 1937 by
German Labour front by having its headquartered in Wolfsburg. In fact, company have their
largest sale of automobile in 2016. However, main market of this organization is in china that
delivers around 40% of its sales and profit level. Therefore, main objective of this assignment is
to highlight the “Emission Scandal” of Volkswagen and various problems that are faced by an
association at that time. Along with this, proper description of whole scenario will be discussed
in the project for analysing the depth of this most famous scandal that influence overall success
and development of an enterprise. This means that whole project is revolving around the scandal
news and assess the situation by considering three major elements such as; viewpoint of
customers, public relations and the industry.

EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
ANALYSIS......................................................................................................................................5
CONCLUSION................................................................................................................................9
RECOMMENDATION...................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Ethics is a branch of philosophy which involves systematizing, defending and
recommending concepts of right and wrong conduct. It’s a matter of value which covers the
branch of philosophy known as axiology. Basically, this term obtain to resolve the questions of
human morality by explaining the term as good, evil, right, virtue, vice, justice and crime.
(Rhodes, 2016). Mainly, word Ethics is derived from Ancient Greek word “Ethikos” that means
“relating to one’s character” that it comes from root word ethos which shows the character or
moral nature. According to Rushworth Kidder says that an appropriate definition of ethics
includes distinct phrase such as “the science of idea human character or moral obligation”. On
the other hand, Richard William Paul and Linda Elder states that ethics is consider as a cluster of
concepts and principles which assist an individual; which nature of a person helps or harm
sentient creatures.
This project is going to revolve around the case study of Volkswagen Emission Scandal
that begins in around September 2015 at that time when United States Environmental Protection
Agency issued a notice of ruining the clean Air act to the German maker of automobile
Volkswagen group. However, agency have identified that Volkswagen had intentionally planned
Turbocharged direct injection diesel engines for activating the emissions regulations only while
laboratory emissions testing that caused the cars output for meeting the US standards while
regulatory testing. Thus, Volkswagen publicly admitted this that around 600,000 cars made for
US market which has been fitted with defeat device. Moreover, it has been understood that
almost 11 million cars have been defeat devices fitted in it. As a result, it has been understood
that image of an organization get destroyed by them at global platform and in automobile
industry (Cavico and Mujtaba, 2016).
Apart from Volkswagen there are some other carmakers are also identified who have
joined the diesel emission row such as; Mercedes-Benz, Honda, Mazda and Mitsubishi’s cars are
highlighted in regulatory tests that these cars are also emitting significantly more Nox pollution
on road. In the case of automobile sector, the reputation of companies is considered as highly
significant as it is related with the products which are used by consumer as their luxury. For
example; on road testing, some of the Honda models emitted six times the legal limits of Nox
pollution whereas few unnamed cars model emitted around 20 times the Nox pollution which
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