Academic and Professional Skills: Volkswagen Case Study

This report provides a comprehensive analysis of the Volkswagen emissions scandal, examining the ethical breaches related to the "defeat device" installed in their vehicles. The report explores the adverse impacts on various stakeholders, including customers, employees, and the company's overall market value and reputation. It delves into the lack of ethical considerations, misuse of funds, and misuse of power within the company, which led to significant consequences. The report further offers recommendations for Volkswagen to rebuild trust, regain market share, and ensure compliance with ethical standards and regulations. These recommendations include following rules and regulations, introducing new features, and fostering a culture of transparency and accountability. The analysis emphasizes the critical role of academic and professional skills in preventing unethical practices and promoting responsible business conduct.

ACADEMIC AND
PROFESSIONAL SKILLS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Analyses.................................................................................................................................3
CONCLUSION................................................................................................................................6
RECOMMENDATION...................................................................................................................7
REFERENCE...................................................................................................................................9

INTRODUCTION
Academic and professional skills are very crucial part of the business organisation. There
are numerous skills and qualities which are required to have in the organisation. Academic skills
is the set of those qualities and traits which are learned by the individual in their school and
higher universities, colleges. Such skills comprises of presentation skills, writing,
communication. Whereas professional skills are the ones which needs more than specialised and
expertise knowledge (York, Gibson and Rankin, 2015). It depicts the certain professional ethics
and norms like being punctual, engaged in problem solving approaches, working within the
deadlines. Furthermore, one of most crucial professional skill is to provide the ethical working
environment in which the employees and other people will feel safe and secure. The skill
development is old concept and the regular changes in the businesses and management places
emphasis on the business organisation and management of the company to learn the initial
learning courses. Therefore, such skills plays a very important part in the business organisation.
When an individual will have full knowledge regarding the assessment of academic and
professional skills then they will be able to work effectively and efficiently at the workplace.
This report will consider the case study of Volkswagen. This is the auto mobile company
which has started its business operations from the year 1937. The company is headquarter at
Germany and serve its products and services globally. The case of Volkswagen will take into
consideration that during the September 2015, the Environmental Protection Agency claimed
that the company has properly fitted the engine control unit that is regarded as defeat device.
This has been came to in the eyes when the cars has been went for testing during the emission by
diesel engines. Apart from this, during the normal driving, the car was subject to release 40 times
more pollution as allowed by the law because emission control software was shut off (Waddell,
Robinson and Wehbi, 2018).
TASK
Analyses.
In the case study of Volkswagen, the company was subject to violated the several
environmental laws and regulations. For this purpose, the company has to called off 482,000
cars. All these cars were installed with defeat devices. The detection of software has taken place
when the car went for emission testing. Later the company also admitted of using defeat devices.

This will going to affect the company and related people adversely. It has created a hustle and
bustle in the auto mobile industry (Rasmawan, 2018). This is because all this was done
intentionally by the employees of the company in order to minimise the cost maximise the
profitability. This unethical behaviour of the Volkswagen has negatively impacted and affected
the group of different stakeholders. The unethical behaviour rises and still sustains because
people within the organisations are afraid and hesitate to bring the real cause and culprit. This
will increase the culture of fear and kept on maximising the poor practices. The stakeholders are
the people who are associated with the organisation and have strong interest in the operations
and functions of the system. The following are impact on stakeholder is discussed below:
Customers: Customers are the people or individuals for whom the products are
manufactured and produced by the companies. They are the people who are accountable for
leading the company to the greater heights. In Auto mobile industry, customers have different
needs and requirements like some want high quality products with exclusive designs and styles.
These customers are even ready to pay higher prices for better quality, performance, design and
style. So when the Volkswagen scandal case came into the eyes of the customers, they were left
with no words (Parmar, Tomar and Verma, 2015). This is because they were not able to believe
that brand and companies with such strong market value can play with the feeling and finances
of the customers. The customers money are wasted and there is hardly any resale value of such
products. They were very frustrated and anger in them lead the companies value and profitability
to lower level. The customers were protesting and asking for justice because they were suffered
from huge financial harm. Furthermore, the loyalty of the customers were lost and they were
against buying diesel vehicle in future which has affected the entire auto mobile industry. One of
the customers was left in dark and feeling like betrayed of spending millions in diesel cars
assuming that the car of Volkswagen were clean burning and highly fuel efficient.
Employees: The employees or workforce are the individuals who are working with
organisation in order to satisfy their needs and requirements of the customers. When the scandal
case of Volkswagen came into the eyes of the public and government then this has adversely
affected the employees of the company. Those who were involved in the case were lost their job
and also suffered from huge penalties and imprisonment and those who were not having any idea
of such case or scandal were fearing for their job security and future with the company. 9
managers of the company were suspended for being involved in the case, this action was taken

by chairman of the company because of the unethical mindset in some of the departments which
fails to stay within the law. Apart from this, 50 other staff members were involved in this scandal
and also they confessed that they were involved in the scandal. This has lead to breach of trust
and confidence and ultimately affect the terms and conditions of employment. Employees who
wee not part of the scandal were also seen negatively and this has affected them a lot because
they were not able to prove themselves right (Stark, 2018). This has created poor working
atmosphere and employees were no more motivated to work with the Volkswagen.
Ethics is necessary for each and every organisation because through it they able to
operate their business in legal as well as effective manner. In a company ethics is consider as
standard and principles which guide an organisation in operate in effective manner so that all
activities will done ethically. If an organisation not adopt ethical practices in their day to day
operation then they may face several issues such as loss of licence, fine of huge amount, legal
action and many more. There are some of the major unethical practices which has been taken
place in the Volkswagen and from it one of the major practices that affect them very badly is the
case related to defeat device which is installed by respective company. The major purpose of
installing this device is that they want to show their car or vehicles produce very less pollution or
carbon emission. This case impact on respective company working or operations in negative
manner as well as due to this they also loss their loyal customers, stakeholder, clients and so on
which impact on their shares and growth. Along with this respective company shares price,
market value, goodwill, profitability and customers base decreased drastically. There are several
ethical issues which are consider in this case, from which some major of them are given below:-
 Lack of ethics consideration: There were large number of problem of lack of
knowledge regarding rules and regulation which are related to automotive industry. There
are various rules, regulations and principles which are developed by government for auto-
mobiles sectors. In respect of Volkswagen when they are fixing defeat device for
showing that their vehicles didn't generate high carbon emission they ignore several
ethical practices which result in decrease in respective company market value.
 Not consider customers feeling: It is one of the major condition when company not
consider ethical practices related to feeling of customers. In this case organisation
generally focus in gaining high profitability ratio and market shares. In respect of
Volkswagen while they are fixing defeat device in their vehicles they consider factors or

feeling of customers. Which is related to they didn't consider situation that what happen
when customers know about their illegal practices which they conduct only to gain high
profit and goodwill.
 Misuse of funds and no transparency: It is describe as a situation when a company
conduct work without considering its pros and corns. In this case company use fund of
customers or investors only to gain profits and market shares they didn't consider that
practices which they are conducting is illegal. In respect of Volkswagen case study they
use funds of investors, shareholders and customers without provide detail about defeat
device they are going to fix in vehicles.
 Misuse of position and power: In is define as a situation when senior or superior
authority misuse their power and position in order to gain high profitability ratio and
market shares. In respect of Volkswagen their senior authority and manager didn't
disclose full description about defeat device to their shareholder, employees and service
users. They also inform them that they are using or installing respective device in order to
enhance profitability ratio and market shares.
These are some major illegal practices which are conducted by Volkswagen in order to
gain more profit and market shares. But this will impact them in negative manner reduce their
market existence, profit, customers base, goodwill, market shares. So after this they need to
conduct various practices as well as activities in order to regain and rebuild it. This situation is
occur due to high competition at a marketplace because now each and every company want to
gain high competitive advancement. For which they adopt different different type of technology
as well as in this respect company's forget to consider legal practices or legislation like
Volkswagen. Along with this it will result in negative situation such as respective company,
which highly impact on their market shares, goodwill, customers and many more in negative
manner. So it is essential for each and every to always consider legal practices while conduct
work as well as developing products and services.
CONCLUSION
From the above report it has been summarised that academic and professional skills plays
a vital role in leading ethical and unethical practices at workplace. When the individual has
gained sufficient amount of skills which are necessary to operate in the overall business

environment. The unethical practices have significant impact on the different stakeholders. The
customers are affected adversely and suffered from their health and other problems. Whereas the
employees have also suffered a lot because they were not satisfied with the unethical
environment of working but the fear and threat associated with their life has forced them to
continue the misappropriate actions in the company. It is very crucial to have proper academic
and professional skills in practice because by this, the employee will have clear idea of the right
and wrong actions which are to be performed by them.
RECOMMENDATION
By analysing situation of Volkswagen case study, there are several recommendation that
are provided to them so that they can regain their goodwill as well as market shares in effective
manner. Some major recommendation which can be adopted by respective company are given
below:-
 Follow rules and regulation: It is essential for Volkswagen manager and leader to
conduct market analysis and then develop rules and regulation accordingly which will
help in conducting work in legal manner. It is also their responsibilities that they must
ensure that those regulations as well as policies are followed by each and every
employees in day to day activities. Along with this during conducting production or
manufacturing of vehicles because through it they able to conduct their work in legal
manner.
 Introduce new features: In order to rebuild trust and attract customers respective
company must adopt strategy which is related to introducing new products and services
so that they able to catch the eye of customers. For this they must adopt new and advance
technology which encourage customers to visit store and buy it. Along with this they
must also come up with new services as well as they must also keep transparency in all
these activities. This is so because through it they able to build as well as regain trust of
potential service user and shareholders.
 Price and after sales service: For gaining market attention respective company may
adopt strategy in which they introduce vehicle which is cost effective as well as they
must also provide more attractive additional after sales service. Through which they catch
customers attention and encourage them to purchase products. Along with this will

conducting all these activities they must consider all the legal practices as well as keep
transparency with employees, shareholder and customers.
By adopting these recommendations management of Volkswagen able to conduct their
work in effective manner as well as it will also help them in regaining and rebuilding company's
goodwill and market shares.

REFERENCE
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