Business Ethics Report: Volkswagen Diesel Deception and 7Digital PLC

This report provides a comprehensive analysis of business ethics, examining the Volkswagen diesel deception and the 7Digital Group PLC. It begins by defining business ethics and exploring various theoretical ethical approaches, including philosophical, deontological, and utilitarian theories, along with a comparison of absolute and relative ethics. The report then delves into the impact of ethical issues on operational activities, using the Volkswagen case as an example. Task 2 focuses on ethical considerations affecting business objectives, leadership ethics, and the implications of ethics on stakeholders, such as shareholders and employees. The report further analyzes 7Digital Group PLC as a moral representative, suggesting improvements for employee participation and empowerment. Finally, it identifies ethical or moral issues causing negative impacts on businesses, proposes ways to enhance ethical operations, and suggests the generation of an ethical code for the 7Digital company. The report concludes with a summary of key findings and references.

BUSINESS ETHICS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1.1 Various theoretical ethical approaches and their benefits................................................1
1.3 Affects of ethical issues on operational activities............................................................4
TASK 2............................................................................................................................................4
2.1 Ethical consideration that affected business objectives....................................................4
TASK 3............................................................................................................................................7
3.1 Function of 7 Digital groups PLC as a moral representative...........................................7
3.2 Improvement for attaining employees participation and empowerment..........................8
TASK 4............................................................................................................................................9
4.1 Present ethical or moral issues which causes negative impact on business.....................9
4.2 Way in which company can enhance the ethics of their operations while fulfilling the
objectives and ensuring good employer/employee relationships.........................................10
4.3 Generating ethical code for 7 Digital company..............................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
.......................................................................................................................................................15

INTRODUCTION
Business ethics may be defined as the code of conduct both in terms of applied ethics and
professional ethics. It examines the problems and principles that exists in the business
environment. Business ethic is applicable to the overall organization. The base of these ethics
comes from the people involved, statements of organization or even from a legal system. (Ford,
2013). In first two tasks of the present report, “The Volkswagen diesel deception” case has been
discussed altogether while other two tasks help in analysing London stock exchange “7Digital
Group PLC” company.
In this study, all theories which will help in developing various theoretical approaches
that are being made for the purpose of analysing different aspects of growth and development
will be identified (Crane,and Matten,, 2016.). Along with this, various theories of absolute and
relative nature are being discussed altogether. Finally, the ethical issues which can benefit the
organization in terms of growth and development generated by ethical codes will be discussed
under.
1.1 Various theoretical ethical approaches and their benefits
Ethical approaches represent methods used to evaluate certain situations and
recommended ethical courses of actions which are beneficial for organizational growth and
development. Thus various ethical approaches are:-
 Philosophical Ethics: - This theory includes morality that drives the moral obligation or
duties that is good or desirable it enable the end that is to be achieved throughout. It
differs on the nature of point which states that all actions must be promoted and
processed. Eudaemonist theories which holds these ethics consist of some functions or
activities that are appropriate for man to be transformed as a human being. This is
because; they help in emphasizing cultivation of virtue and excellent in the agent as end
of actions which are to be provided effectively and efficiently. (Ford, 2013). This will
enable Volkswagen to develop such systems of teleological ethical standards which will
enable in transforming different methods into functional systems.
 Deontological Ethics: - It holds basic standards set by an action being morally right and
independent to an outcome being positively generated. Morale ethics have been deeply
divided into teleological and deontological theories as they both are different from each
1

other. It states hat all rules and regulations binds morality of an individual in sense that
they should perform task effectively and efficiently. This is why these theories of ethics
are known as duty or obligation systems. In this, ethical aspect all employees must
develop groups and teams which will help them in performing goals and objectives
beneficial for growth and development of business operations.
◦ Utilitarian Theory: - This type of theory holds that at the end, it consists of an
experience or feeling being produced by state of an action. It includes claims that
are beneficial for generating actions of survival and growth as they are used in
evolution of ethics beneficial for the experience of power. This theory needs to
answer the changes that must be charged at the end of results which indicates that
solutions are not always justifiable. The major drawback is that they tend to
differentiate actual and desired ends . This is because; intention of one individual
may include various foreseen consequences which are not always beneficial for
generating positive results (Mahoney, 2013).. This will benefit company in sense that
all employees will provide experience and benefits which will help organization in
developing profits and goals beneficial for long term achievements. 1.2 Comparison
and Differentiation of Absolute and relative ethics
Different theories Absolute or Relative Examination of
theories
Contrast of the theories
Philosophical theory
Absolute theory
signifies that all rights
are applied in
developing a flat run
out which might be
relevant for developing
success of every
department of business.
It is a hypothesis that is
applied on all and it is
centred on final
products Which is not
misleading any quality
part of any activity
because of fact that all
major states have
different inherited
This approach is generally
based on consequences.
2

features.
Deontological or
Duty
Implicit This restricts philosophical
theory as it keeps rightness
and unsoundness of action
and not outcome. It
depends on ethical aspects
of various activities
beneficial for developing
effective products and
services.
Functional theory Relative - Relativist
and subjective:
Bentham and Mill’s
Utilitarianism
The theory expresses
that the activity
which gets prominent
level of fulfilment for
an individual is best.
It proved advantageous
to the bigger section of
the society.
Moral Egoism Absolute theory its focus
in on personal and group
integration because of fact
that all steps are valuable
for growth and
development of business
activities. Again, it states
about self-intrigue while
keeping other’s Conditions
into consideration such
that both can be benefited
altogether.
3

1.3 Affects of ethical issues on operational activities
Ethical issues concerning operational activities – From the past records of
Volkswagen, it can be analysed that it has committed various actions which created ethical
problems for the society. This way its brand name got affected although the services provided by
firm were highly effective. Some of the issues are discussed below in detail which help in getting
a clear idea about the way Volkswagen is involved in creating ethically non acceptable actions:
 Customers dissatisfaction– It was absorbed that company failed in achieving what it
actually promised to its clients. This is because of fact that necessary product fails in
fulfilling demand of consumers. (Ford, 2013). This increased dissatisfaction among the
clients and number of complaints as well.
 Used technology to deceive people – In order to increase the total sales, cited company
adopted the strategy of misleading clients by providing them with false information.
Customers were confused and got attracted to the incorrect message and took their
buying decision.
 Least concern for surrounding– Another ethical issue is that surroundings are never
taken into consideration Operations of the cited company created harm to the natural
surrounding which is a major concern. It affected the brand image of organisation.
TASK 2
2.1 Ethical consideration that affected business objectives
Ethical considerations can be addressed at individual and society levels. Ethics searches
for reasons for acting or refraining from acting; for approving or not approving conduct
delivering response about rules and regulations. The principles and standards are set
which carries the business operations and is taken in accordance of business. They are
best demonstrated through act of fairness, compassion and responsibility. The key for business
owners and executives is ensuring that all employees must undertake these ethics (Wright, 2011).
The best way to educate the employees in terms of ethics is to provide them training. The
organisation should arrange training sessions for employees.
 Desire to become a successful auto mobile manufacturer, Volkswagen uses leadership
ethics. This is because; in this right aspect; employees may have an effect on morale and
loyalty of workers. The leaders use ethical tag to determine discipline procedures and
4

acceptable behaviour of worker within organization ). When leaders have high ethical
standards then it encourages employees to work more effectively and efficiently in order
to become popular in generating such types of products and services which are beneficial
for large amount of consumers.
 Captivation is an important benefit of an organization that helps them in developing
optimistic and healthy firm ethics which are helpful in improving the morale and ethics of
individuals. Thus it helps in providing productivity and financial services which are
beneficial for improving the efficiency of individual employees working there. Along
with this, certain other aspects need to be analysed like increase in employee retention.
This will help in reducing the cost of employee’s replacement (Ford, 2013).
◦ Sustainable auto mobile manufacturing unit helps in generating effective sales and
developing business products that attempts to satisfy the needs of humans. But it is to
be done in a suitable manner Such that environment beneficial for future growth and
development can be developed. Ford, 2011). According to Volkswagen, it is
beneficial for its worker to generate such type of products and services which will
help new customers to get attracted by quality, price and features of auto mobile
Which will help in developing environment beneficial for developing goals and
objectives.
2.2 Implication of ethics on business and its stakeholders
Different stakeholders that operate ethically are those individuals who are generating
benefits for developing products and services offered by company in sustaining their operations
for a long time. There are various elements which are necessary for implementing different
activities of business. These include:-
Shareholders: - A shareholder is a person who buys one or more shares of a company
legally and becomes one of the owner. He can purchase the share of stock in both public and
private business firm. These include various elements that are important for carrying out
operations on long term basis. These are:-
 They might be benefited by private individuals and institutions based on their shares
being provided in security market. This will help Volkswagen in developing large
volume of sales that will help them in increasing its share price. This will benefit
5

company in targeting more customers and enhancing outputs beneficial for growth and
development. Different implications are:-
 It will be an advantage for business enterprise to increase the value of share in case its
performance increases. This will be beneficial for the enterprise as it helps in grabbing
attention of large market audience that will purchase the products and services of
business Based on suitability and profitability of its market share.
 It is important for business to make correct decisions such that it will help in attracting
shareholders . As they will invest in company if their goals and objectives are meeting
requirements of consumers. Thus company needs to develop such factors which will help
them in developing policies and procedures beneficial for organizational growth and
development. Employees: - It will be beneficial for company to provide various benefits
in generation of workers consideration. Employee’s consideration will help in
increasing long term growth and development of business organization . But to enhance
its growth in more countries, firm must ensure that all its operations in different parts of
world must be analysed so that growth and development of products and services can
take place effectively and efficiently Various implications are:-
 Provide labour force means that company must provide proper benefits to employees
within organization such that they can work effectively and efficiently in achieving goals
and objectives of marketing enterprise.
 Satisfactory working conditions means that for any product or service to be developed
successfully, an employee must develop effective system of working which will help
organization To develop customers in the way that systems can be developed
accordingly.
Competitors: - For an organization, its competitors play an important role in generating
healthy and suitable products beneficial for customers of target market. Thus, enterprise which
has already been established needs to develop such management systems which will help in
generating positive results that will enhance their existing employees to get attracted. But, in this
process, they need to analyse all such features of business operations which are already in
existence and need to be developed as per competition prevailing in organization. Various
factors are:-
6

 The success of some businesses can be affected by success and performance of other
enterprises.
 If an organization fails or changes its strategies dramatically then it automatically
indicates other firms to change their policies. In this process Volkswagen needs to
develop such parameters which will help company in generating competitive edge over
other rivalry firms of market. .
TASK 3
3.1 Function of 7 Digital groups PLC as a moral representative
A moral representative is a person who is able to take any ethical decision and putting
them into force.
Various advantages of company includes different factors and forces which will help in
generating characteristics which are different from Volkswagen firm.
 Dealing with suppliers is an advantage of Digital group because of fact that all
customers who are in touch with enterprise are getting satisfactory products and
services which are not being generated by Volkswagen company because its
prices and policies regarding these are different.
 Public Image:- It is an advantage that company is developing products and
services beneficial for customers rather than Volkswagen that is not benefiting
requirements of all its customers.
7Digital group PLC is a company which has preserved high ethical values and treated all
its workers and shareholders with set standard. The company have set a perfect example of moral
representative who takes decisions knowingly what is right and what is not. 7Digital group PLC
follows policies which give high respect to the human rights and has been able to set proper
condition in supplier's factories (Crane, 2016).
The policies and strategies adopted by company is followed on ethical values at every
stage. 7Digital group PLC proves to be a market leaders in terms of maintaining quality and
ethics while productivity always stay high (Rutherford and et. al., 2012). The company formed
and constituted system such as six sigma and lean production which helped them in following all
the laws of the environment with some other ethics which increased their functional abilities.
7

The company sets an example and became a role model in front of all the other car producers of
the world. Ways which will assist in understanding of pros and cons of different stages are:
7 Digital group PLC Advantages Disadvantages
Dealing with suppliers Company is able to maintain
its relationship with supplier
and get qualitative products.
Some suppliers use ethical
concerns as a weakness and
exploit it by charging high
prices.
Public image The public sees 7Digital
group PLC as a brand which
represents quality and ethics.
Company has to ensure products
and activities which are ethical
which increases cost.
Treating employees right
way
It will motivate and boost
their performance
It is an added cost and time
consumption is high.
3.2 Improvement for attaining employees participation and empowerment
Number of strategies which are being implemented by 7Digital group PLC for the
purpose of heighten worker’s curiosity and action in an organization. Director should know the
importance of their employees and know that it is an important aspect to gain commitment
towards goals and objectives of business products and services (Hartman, 2014). By this
problem, they need to use and initiate different types of incentives and other motivational
schemes which are helpful for the employees of business firms as they help in enhancing their
skills and abilities which will help in developing framework beneficial for growth and
development of business enterprises. There are certain strategies which are used by 7Digital
group PLC, these are as follows: Job Expansion: The horizontal transfer of position of an employee which takes place in
order to add new jobs or tasks which makes the job complicated and multiplicative for the
enhancement of new policies and methods (Weiss, 2014). It will motivate the employees
8

to learn more effectively and perform better projects which will help in generating more
outputs beneficial for organization. Training and development: - These are different types of learning events which are being
conducted for improving the skills and abilities of employees which are beneficial for
personal growth and development. It avoids lowering down the performance of an
employee and improves their working ability. Collection flow: - The workers are provided with required information on time which
will ensure that all decisions should be made according to benefits of employees. Thus,
information should be either in qualitative or quantitative form. Quantitative data will
help company in generating questionnaires, interviews and observations along with
feedback (Peloza, and Shang, 2011). Thus, all employees need to develop such type of
information which will help in generating better results available at different levels of
organizational requirements. Thus various information systems need to be analysed such
that all functions are achieved for purpose of developing goals and objectives. .
Quantitative approach will help in generating effective and efficient results which will
increase the sales and results beneficial for keeping a systematic record of all employees
who have been involved in developing organization. Team spirit – The action that boosts the system's activities and efficiencies to a higher
level (Grassy,. and Chablis, 2011).Team of workers are always better than a single
individual It will be beneficial for individuals to work in groups as their skills and
capabilities will increase and resources will be effectively utilised.
 Balancing opportunities and returns: 7Digital group PLC director should make sure that
each and every employee should be provided with equal chances and rewards should be
given as per their performances.
TASK 4
4.1 Present ethical or moral issues which causes negative impact on business
Various ethical issues that have negative impact on 7Digital group PLC and its functional
abilities are: Economic process: Many issues have been seen regarding manufacturing facilities of
various business firms in different parts of the world. It faces tough competition from
9

different manufacturing units as it could lead to cost wars and exerting pressure that will
lower down the cost of the products and will cut short the profit margin (De George,
2011). This will enhance their growth and development in future environmental
conditions. Situation policies: Different policies are imposed around the world by different
authorities and governments which help them in developing various legislations
beneficial for personal growth and development. The latest Paris agreement is one such
example which states that state and enterprises should try to cut down carbon material to
fit standards (Bageac, 2011). In this issue, major factors which are restricting
organization from its growth and development must be identified for the purpose of
achieving sustainable considerations beneficial for employees and consumers of
enterprise. Responsibility of the business towards society: Company should keep on solving social
issues which are aimed at the fulfilment of moral work. It becomes very important for the
company to make a good image or position in the mind of the people so that they could
increase their sale. This creates trust among consumers of company and thus, they
purchase products and services beneficial in generating sustainable developmental
opportunities.
 Dishonesty: Various levels have been introduced on the basis of which countries have
ranked in terms of level of corruption made. USA and United Kingdom; have got the
place on top 20 countries with least corruption but 7Digital group PLC production takes
place in Asia where the level of corruption is very high.
4.2 Way in which company can enhance the ethics of their operations while fulfilling the
objectives and ensuring good employer/employee relationships
Various employer and employee relations are:-
Personal Attitudes
A predisposition or tendency to react positively and negatively towards a certain idea,
object, person or situation refers to personal attitude. It enhances choice of actions of individual
and responses to issues and rewards. Thus, 7 Digital group PLC needs to develop a positive
attitude and perception of all its customers towards such type of products and services which will
aim at developing methods and techniques beneficial for the attainment of large number of
10