With The Rise Of Globalization And The Complex Dynamics

1624 WordsApr 18, 20177 Pages
With the rise of globalization and the complex dynamics of the global business environments, organizations are tackling and forced to deal with large ethical issues on a daily basis. The ramifications for an organization that does not handle an ethical scenario efficiently and effectively could put the entire company and organization at dire risk. Organizations put their company brand and identity on the line with their everyday decisions and how they choose to operate themselves and their business. Many companies will do anything to keep their image or façade in good graces with the public and try to cover up or hide the mistakes with hope that their mishap or fault will never be exposed. The auto industry has had its fair share of…show more content…
Everyone except Ford’s top executives, who in an internal document cited the potential danger. So not only did they know about it, but they calculated that it would be cheaper to pay out possible injury claims then it would be to recall all the vehicles. This ethical dilemma came to a head when three teenage girls were killed in Indiana while in a Ford Pinto. With the bad press and with company officials being indicted with negligence and homicide, Ford was forced to recall all their Pinto vehicles. Ethical issues in the auto industry regarding product safety are dangerous and are linked to human lives. The decisions that Ford executives made had a direct impact on those three teenage girls and the blood was left in their hands. This is just one of many faulty decisions made in automakers history that helped mold the unethical decisions made by Volkswagen in the most recent ethical issue facing the auto industry. In 2013, Volkswagen was ranked number eight from Forbes in regard to the top companies with the best reputations for Corporate Social Responsibility (Smith, Forbes, 2013). Volkswagen had a reputation for “innovation, corporate citizenship and economical, environmental and social sustainability” (Volkswagen, 2013) and many people trusted the company and the way that they conducted their business. This all changed in 2015, when just as many automakers did before them, they surrendered to their greed and
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