Volkswagen : The Outrageous Corporate Scandal Of 2015

2000 Words May 18th, 2016 8 Pages
Volkswagen: The most outrageous corporate scandal of 2015
There is a very fine line between what is morally right or wrong. As a student of this subject, I believe it all depends on a company’s ethical conduct that how likely it’s going to perform in the long run (Bob Worcester, 2007). The ‘week 4’ assignment enabled me introspect myself and bring out some of the core ethical values which I believe are inherited by me and should be inculcated by all business leaders. These core ethical values are honesty, fair/rational behaviour, dedication, emotional intelligence and bravery. Sometimes, values such as honesty and rationalism can be difficult to abide in all situations but such ethical practices build grounds of trust and loyalty with
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Volkswagen has maintained the largest market share in Europe for over two decades carries a very high reputation for its safe, comfortable and fuel-efficient cars around the globe (annual report, 2016). Despite all the reputation, the company was found guilty of something much unexpected. About 482,000 VWs in the U.S. and almost 11 million more worldwide were found to be fitted with the so-called “defeat devices” (hoaxwagen, 2016). This was basically software installed in the engines of these cars. This computer software could sense test scenarios by monitoring various aspects such as speed, engine operation, air pressure etc. When the cars were operating under controlled laboratory conditions, the device appears to have put the vehicle into a sort of safety mode in which the engine ran below normal power and performance. The engines switched out of the test mode as soon as the car run on the road on normal conditions. This enabled these VW cars to easily clear the emission tests.

The scandal took the automobile industry by storm. It not only affected the company but also its owners and the society as a whole. Even though the company faced huge losses and can be subjected to pay around $47 billion in fines (Topgear, 2016), its car owners felt cheated. I, myself being an owner of a Volkswagen Jetta felt highly disappointed and betrayed as one of the main reasons of me buying it was its better fuel economy and overall environmental performance than
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