BUSI 561 Business Ethics.docx

Running head: BUSINESS ETHICS 1 Business Ethics BUSI 561 Liberty University

BUSINESS ETHICS 2 Abstract There has been a lot talk, debate, and controversy over smog. greenhouse gases and better emissions for vehicles. With more laws being passed directing and governing the auto industry, has the auto industry found themselves in a no win situation by failing to meet or exceed the government regulations surrounding fuel efficiency and emissions? Is it possible that the engineers might have falsified and manipulated the data from their tests and forwarded this misinformation to the shareholders? Are the engineers and lawyers collaborating in this disingenuous plot? What if the auto industry was manipulating and falsifying their tests and misrepresenting their product for a larger piece of the market? This article will attempt to answer these questions.

BUSINESS ETHICS 3 Business Ethics Overview In the early 2000’s diesel automobile sales were a fraction of what they were when news broke in 2015 that Volkswagen cheated test results on their diesel engines. Volkswagen “aspired to be the biggest seller of cars in the world” and “sales of US diesels were critical” to achieving this goal (Valentini & Kruckeberg, 2018). In their quest for global dominance of the diesel market Volkswagen abandoned their ethics and morals and compromised their integrity. “For what does it profit a man to gain the whole world and forfeit his soul?” (Mark, 8:36, ESV). In 2015, Volkswagen made headline news when it was reported that they were in direct violation of the Clean Air Act that was last amended in 1990. The Environmental Protection Agency had discovered and sent notice to Volkswagen that the diesel engines that were manufactured from 2009 to 2015 had failed to pass the nitrogen oxide test during laboratory testing. It was determined during the ensuing investigation that there was an engineering design in which was incorporated into the engine to manipulate the engine’s data during laboratory testing. The test results, design and engineering flaws, and manipulation of data set off a chain reaction of events that brought discredit to Volkswagen but also cost Volkswagen billions of dollars in repairs, fines and penalties, stocks, and sales. In the years leading up to the scandal, Volkswagen increased their sales through marketing and by branding themselves as a clean diesel engine automobile manufacturer. Volkswagen’s determination and quest for dominance only contributed to their own demise. In this case, it would seem Volkswagen had decided it was cheaper to develop a program to cheat emissions than it was to develop a more efficient and cleaner burning diesel engine.

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