Business and Corporation Law - Code of Ethics Issue Analysis Report

This report analyzes a code of ethics issue faced by a junior engineer at VW, who is asked to participate in the design and installation of a 'defeat device'. The report begins by identifying the relevant stakeholders, including customers, the environment, the organization, society, government, investors, and shareholders. It then applies two ethical theories: consequentialism and deontology. The consequentialist analysis examines the consequences of installing the device, concluding that the potential losses (environmental harm, health risks, legal penalties) outweigh the potential advantages. The deontological analysis, which is duty-based, argues that designing and installing the device is unethical because it violates the engineer's duties. The report also considers the impact on future generations and the environment, finding the action detrimental. The engineer's conclusion is not to participate in the design or installation of the defeat device and to inform higher authorities, adhering to ethical principles in action.

Code of ethics issue
Running Head: BUSINESS AND CORPORATION LAW 0
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Student’s Name

Code of ethics issue 1
Ethics is the core of every business and life of an individual, which guides behavior and outlines
a standard course of action. Different ethical theories are there which contain different beliefs
and provide the solution to an ethical issue. The objective of this report is to check and determine
one appropriate course of action after reviewing the actions suggested by different theories.
Before moving the discussion to the ethical theories first, it is necessary to identify the relevant
stakeholder of the situation. These stakeholders include customers, environment, organization,
society, government, investors, and shareholders.
The theory of consequentialists believes that the consequences of an action are the ultimate basis
of judgment regarding the wrongness or correctness of an action. The theory considers those
conducts as ethical which confirms happiness and affirmative results to a maximum number of
people ("Ethics Explainer: What Is Consequentialism? - The Ethics Centre" 2020). To apply this theory to the
given case, again the action of installing the defeat device does not seem ethical. If the device
would be installed then firstly it will harm the environment by not giving true results about
emission level. Secondly, the customer who would purchase the vehicles will be affected by the
pollution as well as the whole society will be at risk of lung infection and other diseases. This
action will breach the emission control law made by the government and would create issues for
the authorities. The company is likely to be suffered from penalties when the issue would come
out and it will negatively affect investors and shareholders. As the consequentialist approach
focus on cost and benefit, here it is clear that potential losses are surely more than the potential
advantages and hence as per this approach defeat device does not seems to be an ethical option.
From the perspective of future generations and the environment too, the action is not good as it
will increase the pollution and emission level and influence the health conditions of future

Code of ethics issue 2
generations where they would not be able to get fresh air. Children of future generations may
experience multiple and long health harms.
Starting the discussion from deontological theory, this is to mention that the same is a duty-based
approach, which believes that everyone must follow the duties ("Ethics Explainer: What Is Deontology?
- The Ethics Centre" 2020). As per this theory, the morality of an action is decided by the action itself
i.e. whether the action is right or wrong irrespective of the results ("BBC - Ethics - Introduction To
Ethics: Duty-Based Ethics" 2020). To apply this approach to the given situation it is clear that
designing and installation of defeat devices do not fall under the duty of engineers. The action is
itself immoral where the person is expected to do a thing that is otherwise and contradictory to
his duties. Hence, subjective action seems unethical under this approach.
As all the approaches suggest the same, I would not take part in the designing or installation of a
defeat device and would further inform the issue to the higher authorities of the company in
order to pursue ethics in action.

Code of ethics issue 3
References
"BBC - Ethics - Introduction To Ethics: Duty-Based Ethics". 2020. Bbc.Co.Uk.
http://www.bbc.co.uk/ethics/introduction/duty_1.shtml.
"Ethics Explainer: What Is Consequentialism? - The Ethics Centre". 2020. THE ETHICS
CENTRE. https://ethics.org.au/ethics-explainer-consequentialism/.
"Ethics Explainer: What Is Deontology? - The Ethics Centre". 2020. THE ETHICS CENTRE.
https://ethics.org.au/ethics-explainer-deontology/.