Volkswagen Emission Scandal: Ethical and Codes Conduct Report Analysis

This report provides a comprehensive analysis of the Volkswagen emission scandal, focusing on the ethical and codes of conduct within the engineering profession. It begins with an introduction to the importance of ethical codes in guiding professional conduct, followed by a detailed case study of the Volkswagen scandal. The report outlines the company's violation of environmental regulations by installing defeat devices in their diesel vehicles to manipulate emission tests, and it discusses the wide-ranging consequences of the scandal, including financial losses, legal penalties, and damage to the company's reputation. The report also explores the environmental and health impacts of the emissions, including premature deaths and increased pollution. Furthermore, it examines the role of engineers in relation to environmental protection and sustainability, highlighting relevant engineering codes and standards. The report concludes by analyzing the ethical failures of Volkswagen and discussing the lessons learned from the scandal, emphasizing the importance of ethical decision-making and professional responsibility in the engineering field.

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ETHICAL AND CODES CONDUCT REPORT
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Abstract
The code of ethics and conduct is a fundamental and paramount component of every
profession. All professions, including engineering has a code of conduct that guides the
performance and operation of professional duty. Thus, members of the engineering fraternity
are expected to conduct themselves in the highest standard of integrity and honesty in all their
dealings. Therefore, this paper provides a case study related to the engineering sector- The
Volkswagen Emission Scandal. Additionally, it provides an overview of the case and highlights
and discusses the various implications and outcomes of the scandal. Lastly, the paper highlights
and analyses the various relevant professional code of ethics and conduct that are relevant to
the case of Volkswagen Emission Scandal.

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Contents
Introduction................................................................................................................................................4
Engineering code of ethics......................................................................................................................5
Case Study- The Volkswagen Emissions Scandal..............................................................................5
Outcomes of the Scandal........................................................................................................................7
Engineers and the Environment...........................................................................................................10
Analysis....................................................................................................................................................11
Conclusion...............................................................................................................................................18

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Ethical and Codes Conduct Report
Introduction
It is worth noting that a code of ethics plays a critical role in guiding the operations of
companies. Primarily, it is a guide of principles designed to help organizations and professionals
to conduct business honestly and with integrity. It outlines and stipulates the mission and values
of the profession or industry, and how professionals in the line of work are expected to approach
problems, the ethical principles based on the organization’s core values and the principles to
which the profession is held. Engineering companies adopts a code of ethics and conduct with
the aim of guiding professionals to act and work within certain standards and maintain certain
values and missions (Merkel and Burmeister, 2015). The engineering code of conduct helps its
members in understanding the difference between right and wrong in order to apply them in
their decision making process. In this paper, we shall discuss the various code of ethics and
conduct in the engineering profession with particular focus on the Volkswagen emissions
scandal. Primarily, the company violated the code of ethics and conduct by infringing their
clients’ trust and producing motor vehicles that caused significant environmental pollution while
disguising them as compliant to environmental regulations. The paper also discusses the
various engineering codes of ethics and conduct and analyses how Volkswagen violated these
fundamental rules of practice. It also provides detailed background information of the case and
the outcomes after the event.

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Engineering code of ethics
As members in this line of work, engineers are required to demonstrate the highest
standards of integrity and honesty. Mainly, this is due to the fact that the profession has a vital
and direct influence on the quality of life of the society. Thus, engineers and engineering firms
must provide their services in a manner that reflects impartiality, fairness, honesty and equity.
Most importantly, their work must reflect a devotion to the safeguarding of the safety, health and
welfare of the society. Furthermore, they must execute their activities under a standard of
professional behavior that calls for adherence to the highest principle of ethical conduct (Code
of Ethics, n.d.). Today, the fundamental canons of their professional conduct include: To carry
out services only in their areas of specialization and expertise. In addition, they are expected to
give public statements only in a truthful and objective manner. They are also required to act for
each of their clients as faithful agents and trustees (Code of conduct, n.d.). Further, the ethical
code necessitates them to avoid any deceptive acts in their operation. Also, they are obliged to
conduct themselves responsibly, honorably, ethically, and lawfully in order to enhance and
uphold the usefulness, reputation and honor of the engineering profession.
Case Study- The Volkswagen Emissions Scandal
A 2015 article in the BBC News website by Hotten explains the Volkswagen emission
scandal. According to the article, many Volkswagen vehicles that were being sold in the US
were installed with a software in their engines to change the performance of the engines when
they were being tested to alter the results to more acceptable limits. The case began in
September 2015 when the United States Environmental Protection Agency issued a notice of
violation to the company. According to the environmental agency, Volkswagen purposely
programmed a turbocharged direct injection (TDI) diesel engine to activate their emissions
control during laboratory analysis in order to meet US environmental standards during the
testing process. By the time they were exposed, the company has already placed the software

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in about eleven million cars worldwide. In America alone, about half a million cars had the
program installed. After the incident was exposed in the US, other countries began investigating
the company. In Europe, about 1.2 million Volkswagen cars were sold.

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Outcomes of the Scandal
Outcomes for the company
The company came under fresh fire after its unethical practices were uncovered. As a
result, its stock prices fell significantly just a few days after the uncovering. Afterwards, the CEO
of the company resigned. On the other hand, the heads of brand development and the Audi
research and development head were suspended. The company also had to recall millions of
cars from all over the world. It set aside about millions of dollars to cover these costs.
Consequently, the firm registered losses in the year. The company was also fined by EPA a fine
of $18 billion. In November 2015, the company announced that 482,000 diesel Audi and
Volkswagen owners in the US would receive US $1000 in vouchers (Hotten, 2015). Additionally,
it offered a US $2000 to current Volkswagen owners for trade-ins.
In January last year, Volkswagen accepted the criminal charges laid against the
company and signed an agreement statement of facts. The statement focused on the results of
an investigation that the company had undertaken through the help of US lawyers. The
document revealed how Volksagen’s engineers had developed the defeat software due to the
fact that all diesel car models produced by the firm could not pass emission tests without them.
Thus, they intentionally sought to cover up their use. Due to this offense, a US federal judge
ordered the firm to pay a $2.8billion criminal fine for rigging diesel-powered vehicles to cheat on
government emissions tests. Notably, the unprecedented plea deal formalized the punishment,
a deal that the Volkswagen Company agreed to.
As a whole, the scandal brought the society’s attention to the overly high levels of
emissions and environmental pollution caused by diesel-powered cars from a wide range of car
manufacturer all over the world. Further investigation revealed that companies such as Renault,
Volvo, Citroen, Hyundai, Jeep and Citroen indicated major violations in emission and

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environmental regulations in the country. All in all, the Volkswagen Emissions Scandal was a
major blow for the diesel market. Mainly, one can attribute this to the fact carmakers have been
investing a lot of money for the production of diesel vehicles with the conviction that they are
less harmful to the environment. However, after the case, analysis showed that this is not the
case. In turn, this has brought about a significant drop in the number of diesel sales. The
revelations of the scandal caused sharp declines in the demand for diesel engine cars.
Other Effects and Outcomes
It is important to note that the Volkswagen emission scandal is associated with various
negative effects to not only the environment but also human wealth. As noted earlier, the firm’s
cheating system allowed its cars to emit at least 10 to 40 times more nitrogen oxide than is
permitted by the environmental acts (Hall, 2015). According to a research study, the emissions
scandal resulted to 60 premature deaths in America alone (Worland, 2015). The research also
predicted that about 130 more people would die from the toxic emissions by 2016 if the
company does not recall and fix the problem in all affected cars. The problem was worse in
Europe are worse as the emissions are associated with greater health implications. Mainly, this
is due to the fact that half of the passenger cars on the European roads run on diesel engines
compared to the U.S. Further, the research forecasted that the emission problem would result
in an increase in social costs by millions of dollars (Team, 2015).
In addition to health issues, the emissions brought about significant environmental
pollution. According to an analysis by The Guardian, Volkswagen diesel-engine cars may have
caused about one million extra metric tons of pollution annually (Hall, 2015). However, other
experts in the field are reluctant to agree that the scandal brought about such significant
environmental effects. Regardless, they all agree that the nitrogen oxide emitted from the
diesel-powered cars is a vicious pollutant. Once it is released into the air, it transforms into

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nitrogen-dioxide and then absorbs sunlight which converts into a yellow-brown smog that covers
the sky (Surowiecki, 2015). It is noteworthy that this haze is the one that exacerbates health
ailments among them bronchitis, asthma and emphysema. Then again, the haze may be
washed down in the form of acid rain, thereby killing animals and plants. At times, the acid rain
is washed down into water bodies, causing water pollution. When the rain comes into contact
with buildings and iron sheets, it corrodes them. Therefore, it is worth noting that the outcome of
the Volkswagen scandal emission was significantly negative and it affected the environment and
also human health.

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Engineers and the Environment
Over the years, engineering codes have been structured to include provisions on the
environment. However, their influence for many environmental issues still remains unclear.
Nonetheless, engineers have a complicated and multifaceted relationship with the environment.
On one hand, they have helped create some of the worst environmental issues that affect the
human society today. It is worth noting that projects and machines built by engineers produce
dangerous chemicals that contaminate the air, land and water bodies. Furthermore, engineers
design projects that drain wetlands, flood farmlands, and destroy forests. Then again, they also
design projects, products and processes that eliminate and reduce threats to the environment.
Thus, even though engineers play a major role in creating environmental problems, they are
also part of the solution to these problems. In the case of Volkswagen, engineers designed
motor vehicles that pollute the air and cause environmental degradation. However, they were
also part of the solution as the vehicles that were recalled were redesigned to fit and meet the
required environmental standards and regulations. In the US, for instance their federal
environmental law describes the framework in which engineering decisions regarding the
environment are made. In most countries, including Australia, environmental law focuses on
practices that make the environment clean and protect it as well. Many argue that mandatory
obligations should be set for engineers towards the environment in a manner that protects the
environment as well as protects human health. Therefore, Volkswagen should have maintained
a high regard for the environment and protect it in order to protect human life against the effects
of air pollution.
It is worth noting that many professional codes do not make any reference to the
environment. However, according to the ASCE, engineers play a critical role in sustainable
development. In this context, sustainable development refers to the process of change in which
the orientation of technology, direction of investment, allocation of resources is channeled to

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meet the present aspirations and needs of the firm without endangering the capacity of natural
systems to absorb the effects of human activities, and without compromising the ability of future
generations to meet their own needs and aspirations. Given the magnitude of the scandal,
environmental groups took keen interest on the issue. Warden (2016) reports that they
demanded for the company to either fix or do away with all the polluting cars. In addition, they
demand for the company to make whole and compensate all its customers who believed that
the for the pollution that their faulty cars created. Thus, Volkswagen was charged with the
responsibility of conduct its operations in a manner that does not violate the principles of
sustainable development. Yet, the company failed miserably since it led to significant air
pollution problems from massive emissions.

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Analysis
By and large, Volkswagen violated significant elements of the code of ethics and
conduct in the field of engineering. From the scandal, one notes that the company failed in
various capacities to uphold high standards of honesty, integrity, and impartiality in its
operations. What is more, the carmaker failed in protecting its clients with regards to their
health, safety and overall welfare. This section therefore provides a detailed overview and
analysis of the various ways in which Volkswagen violated various elements in the engineering
ethics and code of conduct.
Violation of Rules of Practice 1
One of the most paramount rules of ethics and conduct require that engineers shall hold
paramount the safety, welfare and health of its clients and the public at large. Particularly, the
codes of ethics dictate that engineers should only approve those engineering documents that
are in compliance with the pertinent standards (NSPE Code of Ethics, n.d.). What is more, the
conduct requires that engineers should not aid or abet the unlawful practice or engage in
fraudulent and dishonest practices. In this case, Volkswagen violated all these rules and
standards (NSPE Code of Ethics, n.d.). Firstly, the company neglected its responsibility to put
the safety, health, and welfare of the public as a priority by producing cars that violated
significant environmental problems that result in a reduction to human welfare. As such, air
pollution can result in significant health problems for not only the users of the car but also the
society in general. Besides, it results in environmental degradation and dilapidation. Secondly,
the firm failed to maintain the required standard of honesty in its dealings by engaging in
unlawful and fraudulent practices of altering test results in order to meet the required
environmental standards in world markets. As a result, Volkswagen failed significantly in
maintaining the required levels of standards. In this regard, the company conducted its business
unethically with utter disregard to the code of conduct requirements to uphold the health, safety