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Professional Ethics and Responsibilities: The Volkswagen Emissions ScandalIn what was deemed a major blunder on the part of VW’s executives, and a blot to the long-term reputation of the Volkswagen Company, the Volkswagen emissions scandal was uncovered by the Environmental Protection Agency (EPA) which had found out that “many VW cars being sold in America had a ‘defeat device’ – or software – in diesel engines that could detect when they were being tested, changing the performance accordingly to improve the results” (Hotten, 2015). Thanks to the emissions scandal, the company has had to contend with various costs – ranging from loss of confidence on the part of its customers, to actual monetary losses, to much more.
It should be noted, from the onset, that the automaker may have lost the confidence of many of its loyal customers following the scandal. From the scandal, it emerged that VW was ready to cut corners so as to enhance its bottom-line. Towards this end, it is inevitable that prospective consumers of the company’s products would query the company’s ethical bearing. If the company could deliberately put the environment at risk through blatant disregard for...
As a matter of fact, when the scandal came to light, Martin Winterkorn, the CEO of the VW group at the time, was of the opinion that his company’s actions had broken not only the trust of its customers, but also the trust of the general public (Hotten, 2015).
The scandal also cost the automaker greatly on the financial front. As of September of 2017, the total cost of the scandal to VW was approximated to have hit $30 billion (Schwartz and Bryan, 2017). According to Schwartz and Bryan (2017), towards the last bit of last year’s second half, the company took “another $3 billion charge to fix diesel engines in the United States, lifting the total bill for its emissions-test cheating scandal to around $30 billion.” The company’s stock also took a hit following the emissions scandal. According to Stash (2016) the announcement of the scandal effectively led to 30% drop in VW’s stock price in a single day. Also, in the author’s own words,…
Volkswagen Emission Scandal Volkswagen is a company headquartered in Wolfsburg, Lower Saxony, Germany and is the original marquee within the Volkswagen Group. The Volkswagen Group includes different car marquees like Bentley Motors, Audi, Automobile Lamborghini, Bugatti Automobiles, and Scania, which manufactures heavy goods vehicles. Since its inception, Volkswagen has developed to become the third largest manufacturer of automobiles after Toyota and General Motors respectively. However, the company was recently involved in
Crisis Management in VW’s ‘Dieselgate’ Scandal Trust is the most important factor in the success of any organization. This trust extends to all levels of stakeholders. If customers feel that they cannot trust the company for any reason, they will not purchase their products. Stakeholders have to trust that the organization will make sound business decisions to keep profits high and manage value. This is becoming even more prominent in the
Decisions Influenced by Bias Volkswagen produced vehicles that were equipped with emissions controls that were designed to shut off once the cars had passed regulatory tests. As s result, not only did the cars pollute more in real life than in those tests, but the company benefitted from these tests financially, because they showed that diesel engines were less polluting than gasoline ones. The result was misleading the public, making the
Meta-Analysis When it comes to the Volkswagen scandal, the real cost in human terms could be sixty or more premature deaths, according to an environmental study reported in Time. The 482,000 dirty diesel Volkswagen engines (sold in the U.S.) spewed enormous amounts of nitrogen oxide into the air for years before the deceptive software was discovered. The study by the peer-reviewed journal Environmental Research Letters suggests that "... as many
Volkswagen's Performance And Organizational Structure Volkswagen's growth over the past three decades has been a roller coaster characterized by numerous ups and downs. In 2002, the company hired Bernd Pischetsrieder, the former BMW boss to help fix its problems. While the new boss developed strategies towards promoting Volkswagen's growth, the well established plans usually go astray. The company's poor performance is evident in the fact that is share price has decline
Car companies have made many promises over the years. From reduced emissions, to steady driving, to conserving fuel, car companies try to please the public with sometimes-ludicrous claims. Volkswagen is one of those companies, promising their customers cars the produce less emissions. They did deliver said promise. However, that was only in test mode. In fact, their cars produced more than expected outside of test mode. Volkswagen has not been all