Volkswagen Diesel Emission Scandal: Ethical & Environmental Analysis

This research report delves into the Volkswagen diesel emission scandal, examining how the company bypassed carbon emission tests and the subsequent environmental consequences. It analyzes the use of 'defeat devices' in Volkswagen's TDI diesel engines, which allowed vehicles to meet emission standards during testing but emit significantly higher levels of NOx in real-world driving conditions. The report also explores similar cases, Volkswagen's response, the extent of the problem, and the resulting legal and financial repercussions. Furthermore, the study assesses the impact of Volkswagen's cheating on the environment, people, and the government, alongside ethical considerations and research methodologies employed to gather relevant data. The research uses surveys to gather information and concludes with key recommendations for preventing similar unethical practices in the future, emphasizing the importance of environmental protection and ethical conduct in the automotive industry. Desklib provides this and other solved assignments for students.

research project
Volkswagen diesel emission scandal

EXECUTIVE SUMMARY
The main focus of this research study is in determining the aspects which should be
considered by the organization for the environment protection (Armstrong, et al. 2015). In
addition to this, the process of passing the carbon emission test by Volkswagen is also
analysed in order to identify the loopholes in the system and also understand suitable
strategies for the effectiveness. Further, the consequences of applying the unethical practices
at the workplaces are also assessed in order to conduct better functioning in the
organization. There are different reasons due to which the unethical practices are conducted
by the Volkswagen in their workplace and it further possesses a huge influence on the
environment.
Hence, the initial phase of the project would be assessing the unethical practices which are
conducted in the Volkswagen for managing the carbon emission. The effects of the carbon
emission on the health of people are also evaluated. At last, the data from the research
would be utilized in future at suitable situations.
Also, the findings from the research would be helpful in developing suitable strategies for the
betterment of the environment through the operations of the company.
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Contents
EXECUTIVE SUMMARY...............................................................................................................1
1.0 INTRODUCTION....................................................................................................................4
2.0 LITERATURE REVIEW..........................................................................................................10
2.1 BACKGROUND................................................................................................................10
2.2 HOW VOLKSWAGEN PASSED THE CARBON EMISSION TEST AND REASON BEHIND THE
PRACTICE..............................................................................................................................11
2.3 SIMILAR CASES...............................................................................................................12
2.4 VOLKSWAGEN DEFEAT DEVICE......................................................................................13
2.5 VOLKSWAGEN RESPONSE..............................................................................................15
2.6 HOW WIDESPREAD ARE THE PROBLEMS FOR THE VOLKSWAGEN?..............................19
2.7 THE SETTLEMENT...........................................................................................................20
2.8 ARE OTHER CARMAKERS IMPLICATED?.........................................................................22
2.9 CONSEQUENCES OF THE UNETHICAL PRACTICE............................................................24
2.10 EXTENT OF VOLKSWAGEN CHEATING ON ENVIRONMENT.........................................24
2.11 EXTENT OF VOLKSWAGEN CHEATING WITH PEOPLE AND GOVERNMENT.................25
2.12 LEGAL AND FINANCIAL REPERCUSSIONS.....................................................................25
2.13 CONCLUSION................................................................................................................26
3.0 RESEARCH METHODOLOGY...............................................................................................27
3.1 INTRODUCTION..............................................................................................................27
3.2 RESEARCH PHILOSOPHY.................................................................................................30
3.3 RESEARCH APPROACH....................................................................................................30
3.4 RESEARCH STRATEGY.....................................................................................................31
3.5 CHOICE OF RESEARCH METHODS..................................................................................31
3.6 RESEARCH SAMPLING....................................................................................................31
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3.7 DATA COLLECTION.........................................................................................................32
3.8 RESEARCH DESIGN AND TYPE........................................................................................32
3.9 SAMPLING PROCESS.......................................................................................................33
3.10 VALIDITY, TIME FRAME, AND RELIABILITY...................................................................33
3.11 DATA ANALYSIS............................................................................................................33
3.12 DATA COLLECTION PROCEDURES................................................................................34
3.13 LIMITATIONS................................................................................................................34
4.0 ETHICAL CONSIDERATIONS................................................................................................35
5.0 FINDINGS AND DISCUSSION...............................................................................................36
5.1 SURVEY ONE...................................................................................................................36
5.2 SURVEY TWO.............................................................................................................45
6.0 CONCLUSION AND KEY RECOMMENDATIONS...................................................................53
REFERENCES.............................................................................................................................55
BIBLIOGRAPHY..........................................................................................................................61
Appendix A...........................................................................................................................61
Appendix B...........................................................................................................................62
Appendix C...........................................................................................................................64
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1.0 INTRODUCTION
This research study has been aiming on understanding the aspects due to which Volkswagen
has cheated the Environmental Protection Agency such that the company has programmed
turbocharged direction injection (TDI) diesel engines so that they could activate the carbon
emission control during the laboratory emission test that makes the vehicles’ NOx output as
per the US standards during the regulatory testing but the vehicles have been emoting 40
times more NOx in the world. The software has been deployed by Volkswagen in around 11
million cars at worldwide level in which only 500 thousand cars are operating in the US from
2009 to 2015 (Hotten, 2015). The study would be helpful in gaining substantial information
and knowledge about the methods through the carbon emission test could be passed
through false practices.
It has been evident that the automobile industry is considered as one of the biggest
industries at international level. In addition to this, it has played an essential role in the
growth and development of the economy at global level due to the rise in consumer
demands and high revenues. The major benefit of the automobile industry is that it assists
in fostering economic growth of the country such that it is considered as the prime
economic area. There are several kinds of companies in the automobile industry like
manufacturing of cars, marketing and distribution of automobile products, etc. The growth
rate of the business in the automobile industry has been gaining substantial growth and
development in the recent time.
Volkswagen is one of the major leading German multinational automotive manufacturing
companies that have been conducting their operations since 1937. The business operations
and functioning of the organization have been enhanced in the recent time. There are
several products and services which are delivered by the company to different market
segments in all over the world. The company has attained huge growth and market segment
through effective strategies and different range of products and services (Blackwelder, et al.
2016). In addition to this, they have understood the current trends and changes in the
business environment so that they could attain effectiveness in the business functioning.
The major demand in the current business environment is of green operations such that the
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automobile vehicles such as car should be environment-friendly and they must have low
carbon emission.
The green policy in the automobile industry has been helpful in healthy functioning of the
vehicles and it also possesses a substantial influence on the environment as no harm is
made by the vehicles. The prime reason for developing the green policies in the automobile
sector is that the carbon emission from the vehicles would be low which would help in
safeguarding the environment from any kind of harmful effect. The companies in the
automobile industry have been applying the green policies in their operations and
functioning. There are different companies who have applied several kinds of green
initiatives in their functioning. Tesla Motors have been introducing electric vehicles in order
to avoid consumption of fuel like petrol or diesel which further helps in less carbon
emission. In addition to this, there are companies like Nissan, BMW, Renault, and Daimler
along with other automobile manufacturing organizations have developed an initiative
called Green eMotion in Europe (Ewing, 2017). The focus of this initiative is on utilizing the
renewable sources of energy and the energy efficient technologies in the vehicles. This
initiative results in a huge increase in the use of electric vehicles in Europe.
Nissan has also developed a Green program that focuses on minimising the emission of
carbon dioxide so that they could effectively safeguard the air and water. In addition to this,
they also focus on recycling the resources. The General Motors has been first automobile
manufacturer who has manufactured the road-ready electric vehicles. The vehicles of the
General Motors have been manufactured by considering environmental aspects effectively.
Volkswagen has also developed a new fuel economy initiative which focuses on
safeguarding the environment from any damage. Honda has been involved in the green
initiative for a long time. They have been manufacturing the fuel cells, hybrid vehicles, and
super ultra-low emissions vehicles. In addition to this, Ford, Hyundai, Fiat, and Toyota have
also applied the green initiatives in their business for effective functioning and operations.
The major reasons due to which the companies in the automobile industry have been
applying the green initiatives are that the environment should be protected from the carbon
emission due to the vehicles. In addition to this, the manufacturing of the vehicles doesn't
result from a negative impact on the environment (Gates, et al. 2017). The companies have
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been considering the green policies and also applying suitable strategies for managing the
impact on the environment. The prime issue which is faced by the automobile industry is
the carbon emission from the automobile vehicles which possess a drastic influence on the
environment. The carbon emission from the vehicles has been high due to the use of non-
renewable sources which affect the environment such that the global automobile industry
has to consider suitable approaches for avoiding any negative influence on the environment.
The industry has been developing the policies which would help in minimising the
greenhouse gases, development of the highly efficient fossil fuel automobiles, and also
enhancing the automobiles by working on the sustainable mobility.
The issue of carbon emission arise due to the use of oil in the vehicles as huge amount of
CO2 is released due to the consumption of the oil. The companies in the automobile industry
have been regularly working on enhancing the internal combustion engine, introducing new
technologies like electric mobility, and strong policies for reducing greenhouse gases. The
following challenges were also faced by Volkswagen during their business operations and
functioning (Gates, et al. 2016). The company plans to enhance their functioning in order to
manufacture vehicles which are compatible with the environment and doesn’t possess any
negative impact.
This research study has been conducted to assess the applications of unethical practices by
Volkswagen in the business operations of USA. The company had introduced thousands of
cars in the USA during the year 2009 which worked on the diesel engine. The Volkswagen
emission scandal comes to light in 2015 when the United States Environmental protection
Agency (EPA) issued a notice against Volkswagen regarding the violation of Clean Air Act. It
was observed that Volkswagen was using programmed software called turbocharged direct
injection diesel engines which manages the carbon emission only during the laboratory test
while on the real-world drive it emits 40 times more carbon emission in the world. The
regulators in different countries further assess the vehicles of Volkswagen and find the same
issue which results in a negative impact on the business operations of the company. The
image of the company demolished and result in a decrease in the brand loyalty among the
consumers (Balto, 2017). There are several consequences on the basis of health as well as
environmental would be observed during 2009-2015 due to the excessive carbon emission.
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Approximately 100 premature deaths would be occurred due to the excessive pollution. In
addition, the health of the public would be influenced due to the carbon emission like
respiratory issues along with asthma, emphysema, and bronchitis. In addition to this, the
environmental consequences could be assessed in form of acid rain and smog by the NOx.
The unethical practice of using defect device in the engine result a huge impact on the
environment and people. This study would be helpful in gaining substantial information and
knowledge about the reasons due to which Volkswagen cheated the people and
environment. In addition, it would be utilized further in avoiding any kind of situation in the
future.
AIM
The prime aim of the research study is to assess how the automobile company Volkswagen
has passed the carbon emission test. It has been evident that the scandal of Volkswagen
regarding the carbon emission test has been huge as it possesses a huge impact on the
people as well as the environment. The findings from the study would be effectively utilized
in order to avoid any kind of malpractice by the organizations towards the environment or
another area. The research would be conducted in the time period of 10 weeks and the
location for the research study in the US. A research survey would be conducted in the
research for gaining substantial information and knowledge about the key areas. A
questionnaire would be developed in two phases such that in the first phase the customers
who use the vehicles of Volkswagen are considered for the survey while in the second phase
the experts in automobile industry would be considered (Bowler, 2015). The questionnaire
of each phase would possess ten questions so that required information for the study could
be gathered and collected effectively. The collected information through the survey would
be presented in form of graphics. However, an important question must be answered
before collecting the data which is - How could the carbon emission be minimised in the
environment?
OBJECTIVES
There are certain objectives which have been outlined below that further helps in acquiring
the answers to the research questions.
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 Objective 1 – To analyse the process through which Volkswagen has passed the
carbon emission test.
 Objective 2 – To effectively assess the consequences that would occur due to the
applications of the unethical practices.
 Objective 3 – To analyse the reasons and scenarios due to which the practices had
been applied.
 Objective 4 – To assess the extent up to which the Volkswagen had been cheating
on the environment through their unethical practices.
 Objective 5 – To analyse the impact on the environment through the applications of
the unethical practices.
RESEARCH QUESTIONS
The research questions have been developed in order to access the required information
and knowledge about the research study. There are five major research questions which
would be helpful in accomplishing the required objectives. The questions are:
Q1. At what extent the carbon emission from the vehicles affect the environment?
Q2. The emission of the NOx affects the human beings at what level?
Q3. What methods could be applied for managing the carbon emission?
Q4. Explain the methods through which the automobile companies should monitor
regarding the environmental laws?
Q5. What kinds of challenges are faced by the people through the carbon emission on their
health?
HYPOTHESES
H0 – The respondents who have been participating in the research possess adequate
knowledge and understanding of the carbon emission and its counter strategies.
H1 – The secondary sources which are used in the research study are reliable and they could
be utilized for progressing in the research study.
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LIMITATIONS OF THE STUDY
There are certain limitations which would be observed during the progress of the research
study. Initially, the data which would be collected through the survey cannot be completely
reliable as the opinion, views, and perception of the people might be different from each
other. In addition to this, the statistics are not completely trustable aspects because
different areas influenced the research study at the huge level. It is essential to effectively
manage the primary data and evaluate it effectively so that required knowledge and
information could be gathered adequately.
In addition to this, the sample size for the study might result from a methodological
limitation on the research as the small size results in obstacles during the progress of
research. The small sample size in a research study is small which would make difficult to
make a significant relationship from the collected data because the statistical tests require
large sample size in order to collect the required data. The lack of literature review also
possesses a huge influence on the research study as it is the foundation of the research. It is
essential to assess appropriate literature for the study so that adequate amount of
knowledge and information would be gain for conducting the research. Moreover, the other
limitations of the study are access and cultural bias as the research could not access the
huge number of population easily. In addition, the cultural bias could occur as the people
find the research study inappropriate. These limitations should be effectively overcome
through the application of appropriate methodologies and strategies.
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2.0 LITERATURE REVIEW
2.1 BACKGROUND
One of the biggest catastrophes in the automobile industry is the Volkswagen Emission
Scandal (2008 - 2015). In 2015, the US government officials have found that the company is
violating the Clean Air Act and polluting the environment of the country (Kollewe, 2015). It
has been found that the German Automaker company; The Volkswagen Group has
developed a direct turbocharged injection system for the diesel cars which helps in
activating a control over the emissions at the time of tests so that they can meet the output
emissions of the NOx in the USA (Hotten, 2015). After discovering the violation of the act, US
government has found that the cars are actually emitting 40 times more than the standard
limits allowed particularly in the US which has resulted in several concerns to the people
and the environment. in this particular time span, the company has deployed this system in
around 11 million cars in between 2009 and 2015 (Hankel, 2015).
In this scandal, there are several agencies and officials have found these types of practices
by the Volkswagen Group and hence this scandal is also termed as "Diesel Dupe". The
Environmental Protection Agency (EPA) has found that the VW cars in America have that
defeat device which controls the emissions at the time of the test. The company has huge
marketing campaigns to push the sales of diesel cars with the low emission rates (Jung, et al.
2017). After the strict actions on many of the accountable persons in this issue, the
company has admitted that they have fitted this so-called defeat device in around 11 million
cars sold all over the world from which 8 million are in Europe only (Ewing, 2015). This is
one of the biggest blunders in the automobile businesses all over the world and has created
a major concern regarding the environment and health issues of the people (McGee, 2017).
Further, this present literature review will be going to illustrate the scandal in detail and the
other concerns related to it with the help of various literature, research papers, expert
views from the automobile industry, news and many other sources (Krall, et al. 2015).
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2.2 HOW VOLKSWAGEN PASSED THE CARBON EMISSION TEST AND
REASON BEHIND THE PRACTICE
Before this one of the biggest scandal in the automobile industry of the world, Volkswagen
is a symbol of simplicity and prosperity (Cremer, 2015). According to the study and research
of Casasola (2016), the insight view and the market position of the company at that time
depicts that this is not a mistake rather it is the combined unethical practice of several
officials, company representatives or third-party people for maybe increasing the revenue of
the company, market share, gain more valuable position in the global markets etc. But,
considering the name of the Volkswagen, the company is a well-performing organization
that can easily turn the market situation and customers attraction towards the company and
its products and services (Bachmann, et al. 2018). At that time also, the company is
operating globally and is in one of the top automobile groups in the world (Ewing, 2017).
This is maybe for the reason to reduce the costs of the company in developing new engines
that emit low pollution according to the American standards (Blackwelder, et al. 2016).
While according to the Boston, et al. (2015), the spokesperson of the Volkswagen AG,
Germany blamed several series of mistakes for the damaging crisis of the emission disaster
(Kretchmer, 2015).
According to Schiermeier (2015), initially the VW uses the catalytic converter technology,
which is one of the best technology used by a company to reduce the emission rate
especially in the petrol engines while in case of diesel engines the exhaust takes high
amount of oxygen and hence it is not useful in them and since then the Volkswagen is trying
to resolve the issues in their cars (Barrett, et al. 2015). In 2005, the VW group tried to use
the Mercedes Blu Tech system to reduce the emission rate, but other collaborators and
parts of the business want to develop their own emission control system (Gates, et al.
2016).
In the starting of 2009, the company has implemented its turbocharged direct injection
system (TDI) in the light passenger vehicles diesel engines to a common rail fuel injection
system (Schmidt, 2016). The fuel delivery system is one of the best systems that deliver the
high precision fuel to the engine, which is electronically controlled by a system (Lane, 2016).
This model has actually been used since 2008 has been sold by the Volkswagen to the
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