Comparative Business Ethics and Social Responsibility
Volkswagen has officially dealt with the German automaker company who has cheated on a wide range of diesel emissions and created an ethical scandal in the business culture. It has been found that German national and management of Volkswagen had been charged for the conspiracy about top emissions complaints in the United States. The recovery from this disaster will be elaborated in this study.
Explain how the culture of Volkswagen created this ethical scandal
Volkswagen is a renowned car manufacturing company in the U.S. It has produced many automobile cars, and it has owned a considerable market and reputation by selling the vehicle on a worldwide basis. This project will highlight the matter of ethical scandal which has been accused of cheating the emissions test in the business concern of Volkswagen. Some scientists have been appointed to check out the emissions test, but the company has adopted some devices which can cheat the test while claiming to support the ethical aspects. The former of Volkswagen has been accused of a public statement of $17 billion for the customer and dealers of automaker diesel vehicles and additional charges for $ 4.3 billion due to settlement of criminal charges. Volkswagen's emissions cheating has been uncovered in 2015.owner of Volkswagen has not implemented the software which can help to cheat the emissions tests (Ewing, 2020).
The government has blamed that the owner has taken the initiative for covering up. The government has said that the owner announced officially in California Air Resources Board in 2015 that the emissions test has not been done due to abnormalities and irregularities without revealing that it has been done intentionally by designing a software. An engineer and employees of Volkswagen have pleaded guilty due to being involved in the conspiracy.
It has been involved in emissions cheating scandals which may affect the environment and create an issue on public health. Diesel vehicles have produced 50% more nitrogen oxide gas which is above the restrictions of the regulations. According to the survey, it has been identified that 38000 premature deaths had occurred due to this in 2015.on the other hand, it can help in the long run to reach the desired success by extending the set up in a more significant industry. It has been involved in the ethical scandal, which has created an adverse impact on the company overall. People are not wise to buy them. It tends to decrease the selling of products and profit off the company.
Scientists from West Virginia University have discovered that Volkswagen has implemented a software device in diesel power cars for fooling the emissions test. Therefore this ethical scandal can reduce the stock price of the company, and the CEO has resigned from the company due to this occurrence. This group of scientists has been hired by the University for doing this test of diesel cars around the U.S. Though Volkswagen has developed a diesel car that is efficient according to the fuel and environmental basis. It has the highest sales in the U.S. (Rhodes, 2016). After testing two Volkswagen cars, scientists have found that the statement of low emissions never had an impact on the real world. Scientists have tested the BMW too, but it did the work fine. Therefore scientists were very much sure something was wrong, the team involved in repeatedly testing to check out the procedure once again but it came out the same result.
While Volkswagen claimed to support ethics and sustainability
Volkswagen tries to maintain its ethical duty as it addresses all the aspects such as environmental, social and economic aspects which mainly depends on management. It is imperative for Volkswagen to maintain sustainability because it is necessary to maintain the long- term prosperity as a global company. This principle serves them to reduce the negative impacts, and it also helps them to increase their opportunity as a company. To establish as a good company in the competitive market, they try to cope up with the environment and also try to cooperate with economics. Ethics in the business is essential, so Volkswagen always tries to satisfy the basic human needs, and they always provide the desired product being fair and honest in the workplace. They try to focus on comfort. Ethics are the key points from the perspective of a business because it morally supports the company to date it's desire profits, so Volkswagen always supports the ethic part because the virtue, consequence, rightness are essential to navigate the sustainability. The employees of Volkswagen work hard to produce products which are highly needed in the market. Volkswagen needs to understand the sustainability part because this sustainable business practice is stimulating the mission, objectives and goals (Schrempf-Stirling et al., 2016). By recognizing the market segments and increasing the concern about the growth, they try to do some sustainable business practice. Volkswagen strives to manage the morality and ethical practices which also is a better accomplishment in the competitive market place. Volkswagen tries to increase responsibility among the employees, which often increases the development, and it also has a positive impact on the consumers. By taking some actions and motivating all the workers, they try to run the principle in the right path, which will help them to gain profit. Volkswagen should nice towards their customers because without the customers they cannot be at their excellent positions, so by satisfying the customers and understanding their needs and by attracting them they successfully maintain their business and it also beneficial for their future process. Ethics in the industry is an outstanding value which should be maintained because it tries to decrease the issues and provides a model which will be helpful for the evaluation. Volkswagen seeks to promote these sustainable tactics because it gives them economic stability and protection. This hospitality will be very helpful for the development and it also embassies an array in the business tactics. By supplying their desired product and understanding their needs, this ethical sustainability manages their development on provides various types of considerations which will help them to cover their negative issues. This ethics and sustainability are supported by Volkswagen because it helps to understand the supply and the accommodation (Sison, 2018).
How can they recover from this ethical disaster?
To recover from this ethical disaster, Volkswagen should take some steps and ensure some strategies which will help them to improve and maintain their profile. By understanding the needs and the key objectives, Volkswagen should handle and minimize the disaster. For a recovery solution, they should choose a high profile technique which will help them to configure their wrong decisions, and this also helps as a guide. After finalizing the methods, they should create a guide which allows them to define the sets and helps the company to flow through the process smoothly. They need a good team which is technically upgraded and advanced. This technologically advanced team always ready for the backup plan, and they recommended the strategies which help them to recover from this disaster. Volkswagen should support their employees because they are the backbone of their company. By supporting them, Volkswagen can easily connect with them and can find the issues which affect them very much. Volkswagen needs to implement some procedures and techniques which ensure them recovery and helps them to return in their usual stage (Beschorner and Hajduk, 2017). A disaster recovery plan always focuses on regular functions and analyzes critical issues. By recreating all the requirements, the employees can quickly identify the strategies and back up, which helps them to minimize the disaster. To decreases, the damages and the ethical disaster Volkswagen should check the security and the privacy issues, which has control over their business. By building some theoretical framework and technologies, they try to implement some ethics, which is essential for the company. Ethical disaster is a serious issue and has a costly risk, so to manage this disaster, Volkswagen helps the employees who are aligned with the mission and the values of their company. The values should be ingrained with the behaviour of the employees. By reviewing the benefits, they can plan their strategy and prioritizing their needs. By handling every employee systematically, they can easily do appropriate planning and preparation, which helps them to decrease the scandal. By identifying the issues, Volkswagen should make a team which are perfect for the managing of disasters and this plan also is an excellent choice for the company because it respects his ethics and values and provides a safe community for the employees. By utilizing the integrity of strategic planning, Volkswagen should handle this and manage all the negative issues and can quickly recover from their ethical disaster (Juoperi, 2017).
Do you believe this scandal will lead to stricter scrutiny of companies' environmental claims in the future?
Yes, I believe that this scandal will be a big issue for the future of Volkswagen. These scandals have a significant impact which can affect the company Volkswagen. In the long learn, the diesel fall out could happen, and there will be some public health and environmental crisis. This diesels scandal sometime increases the challenges and troubles in the coming era. In the field of automobile, technology, electrification there will be some problems which will affect the profit of the company. Sometimes some other industries of the car business had been closed due to the lack of supplier, cost, so there will see some slim profit margins. It will be tough for companies because society is too advanced and it is changing at a first-rate. This scandal may affect Volkswagen because the employees of Volkswagen may face some financial damages, and they may also suffer because of this false advertising (Crane et al., 2019). Diesel is an important thing not only for the cars but also for the government, so the diesel scandal can significantly cause some issues and affect Volkswagen effectively. On the other hand, some diseases, including asthma and other heart-related conditions, are the mean problems which are caused by the using of diesel. Worldwide about fifty per cent more nitrogen oxide is produced by the diesel vehicles which may cause near about 38000 deaths, so in the field of business the diesel fall out can increase enough trouble and also increase the challenges. Some expensive legal settlements and fines have been given by the company Volkswagen for breaking the rule, which did a significant change in the research and development factors and in the driving technology. This diesel scandal may be a big decimate for the future, and sometimes it may change the technologies and manufacturing advantage of Volkswagen and may decrease the opportunities of the carmaker (Lindholm, 2017).
Why or why not?
This scandal may arise some potentially devastating losses, not for the company but also the economy of the government. This scandal may appear some risk in the system, which will be a burden for the German industries. Besides that, these effects might affect the total government and increases some negative issues in finance. Volkswagen is one of the largest employers in Germany, so this scandal affects the explorer of the manufacturing factory and has a significant impact on the entire industry (Gelter, 2016). The employees, as well as the customers of the automotive sectors, are destroyed by this scandal, and there are several larger and smaller malfunctions arises. This company has a significant expense for the scandals, and this scandal will create some short term losses with no doubt. This scandals affect the export business and cut down future development. It has been seen that Volkswagen costs about 27.4 billion Euros of fine. This devastating scandal jeopardize the company, and Volkswagen suffered some reputational damage, and this scandal also affects overall manufacturing. The reputation of this German company somehow decreases, and because of this scandal, there will be some broader issues like inflation, unemployment arises. This fall out scandal affects the dealership, and there will be some negative impact in the auto industry. This scandal subsequently increases the issues, and Volkswagen paid a considerable amount of compensation cost because of this. Not only Volkswagen but also the other automotive sectors feel the worries because of this scandals, and there will be some legal issues which increase effectively (Arli and Tjiptono, 2018).
From the above research and data's it can be concluded that in the business field employees may face some ethical problems which will act as a barrier in the economic performance for the management and the employees. Business ethics mainly focus on the best part and on the other hand company's impact on the community is focused by social responsibility. Social responsibility always empowers the workers because it helps them to corporate and boost morale and lead them to gain high productivity and business.
Arli, D.I. and Tjiptono, F., 2018. Consumer ethics, religiosity, and consumer social responsibility: are they related?. Social Responsibility Journal.
Beschorner, T. and Hajduk, T., 2017. Responsible practices are culturally embedded: Theoretical considerations on industry-specific corporate social responsibility.
Crane, A., Matten, D., Glozer, S. and Spence, L., 2019. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press, USA.
Ewing, J., 2020. Diesel Scandals Could Sink The Longterm Futures Of Big Automakers. [online] Wired. Available at:
Gelter, M., 2016. Employee participation in corporate governance and corporate social responsibility. Forthcoming in Handbook on the Economics of Social Responsibility: Individuals, Corporations and Institutions (Lorenzo Sacconi and Giacomo Degli Antoni eds.).
Jumper, S., 2017. Corporate social irresponsibility & electronic word of mouth: Case Volkswagen emissions crisis.
Lindholm, H., 2017. Cars and Environmental Values: A Rhetoric and Semiotics Analysis of How Environmental CSR values are communicated on webpages at General Motors, Hyundai and Volkswagen.
Rhodes, C., 2016. Free business ethics: Volkswagen's emissions scandal and the disruption of corporate sovereignty. Organization Studies, 37(10), pp.1501-1518.
Schrempf-Stirling, J., Palazzo, G. and Phillips, R.A., 2016. Historic corporate social responsibility. Academy of Management Review, 41(4), pp.700-719.
Sison, A.J.G., Ferrero, I. and Guitián, G. eds., 2018. Business ethics: virtue ethics and the common right approach. Routledge.