Choose A Company That Faced A Recent Ethical Issue

Choose A Company That Has Faced An Ethical Issue Recently

Choose a company that has faced an ethical issue recently. Answer the following questions based on your research and analysis of the situation. This document should not be more than 3 pages. Answer the questions directly in the boxes provided. Do not write a separate document.

Cite the sources you use. Student Name: ________________ Company Name: _________________ Date: ______________

Paper For Above instruction

Introduction

In recent years, corporate ethics have become a critical concern for both companies and consumers. Ethical issues often reflect a company's values, decision-making processes, and societal responsibilities. Selecting a recent example involves understanding the core ethical dilemma, the stakeholders involved, and the broader societal implications. This paper examines the ethical controversy faced by Volkswagen, specifically the emissions scandal, analyzing the ethical dimensions, decision makers, alternatives, and moral considerations from various ethical theories including egoism, utilitarianism, principle-based ethics, and biblical perspectives.

The Ethical Issue

The primary ethical issue in the Volkswagen case involves the intentional manipulation of vehicle emissions tests. Volkswagen engineers, allegedly under corporate directives, installed software known as "defeat devices" that manipulated emissions readings during testing to meet environmental standards. This act raises moral questions about honesty, environmental responsibility, and the integrity of corporate practices. Is it right or wrong for Volkswagen to deceive regulators and consumers by falsifying emissions data? The consensus is clear that such deception is morally wrong, as it violates principles of honesty and harms environmental stewardship. The unethical practice led to the release of vehicles that emitted pollutants well above legal limits, contributing to environmental degradation and health risks.

Decision Maker Responsible

The key decision-maker in this scenario was the senior executives of Volkswagen, including the CEO and the board of directors, who either directly authorized or failed to prevent the implementation of the defeat device technology. The ethical responsibility also extends to engineers and managers who may have known about or facilitated the deception. However, from a corporate governance perspective, top executives bear ultimate responsibility for setting organizational culture and overseeing ethical compliance.

Alternative Choices

The decision makers had several alternative options to address the challenge of complying with emission standards:

  1. Adopt clean and compliant engineering solutions to meet environmental standards genuinely, even if costly or time-consuming.
  2. Negotiate with regulators for delayed deadlines or more lenient standards, balancing business interests with ethical responsibilities.
  3. Prioritize transparency and disclose difficulties in meeting standards, seeking collaborative solutions with regulatory agencies.

Egoism and Potential Outcomes

From an egoistic perspective, the decision-maker’s actions are driven by self-interest, considering the consequences for personal or corporate benefit. The potential outcomes include:

  1. Short-term financial gains due to avoiding costly redesigns or recalls.
  2. Protection of executive reputations and career prospects by avoiding scandal-related fallout.
  3. Maintaining shareholder confidence and stock prices, preserving leadership status.
  4. Reducing immediate legal risks or penalties for non-compliance.

However, these outcomes are short-sighted, as the eventual exposure led to massive legal fines, loss of trust, and long-term financial damage, illustrating the perils of egoism in ethical decision-making.

Utilitarianism and Stakeholder Impact

Utilitarian analysis involves assessing the effects on all parties involved. Key stakeholders include:

  1. Consumers: Negative impact due to deception, loss of trust, and potential health risks from emissions.
  2. Environment: Significant harm caused by increased pollution, contributing to climate change and ecological damage.
  3. Shareholders and Investors: Financial losses and reputational damage resulting from the scandal.
  4. Regulatory Bodies: Strained relationships and diminished credibility due to corporate deception.
  5. Society at large: Public health concerns and environmental degradation caused by increased pollution levels.

Each stakeholder's well-being was compromised, with environmental and societal harms outweighing any corporate or individual gains, revealing the unethical nature of Volkswagen's deception.

Principle-Based Ethics

Decision-making based on principles involves adhering to moral duties and rules, regardless of outcomes. Key principles applicable include:

  1. Honesty: Maintaining truthful disclosures about vehicle emissions and avoiding deception.
  2. Responsibility: Companies have a moral obligation to protect the environment and public health.
  3. Fairness: Ensuring equitable treatment for consumers and regulators by providing accurate information.

Biblical Perspectives and Ethical Themes

Christian ethical considerations offer guidance in this case through biblical themes such as integrity and stewardship. Two relevant scriptures include:

  1. Proverbs 11:3: "The integrity of the upright guides them, but the unfaithful are destroyed by their duplicity." This highlights the importance of honesty and integrity in corporate conduct.
  2. Genesis 2:15: "The Lord God took the man and put him in the Garden of Eden to work it and take care of it." This emphasizes stewardship of creation, reminding companies of their moral obligation toward environmental preservation.

Applying these themes underscores that corporate deception violates biblical principles of integrity and stewardship, hindering ethical responsibility both spiritually and socially.

Recommended Decision and Rationale

Based on the analysis, the ethically sound decision for Volkswagen would have been to prioritize transparency and genuine compliance with environmental standards. This involves openly acknowledging difficulties in meeting emissions regulations and investing in genuine technological improvements. Although this may entail short-term costs, it aligns with principles of honesty, responsibility, and stewardship. Such an approach cultivates long-term trust, corporate integrity, and societal well-being. Conversely, continuing deception would perpetuate harm and undermine moral standards, ultimately damaging the company's reputation and sustainability.

Conclusion

The Volkswagen emissions scandal exemplifies the detrimental consequences of unethical decision-making driven by short-term gains and egocentric motives. Analyzing the case through various ethical frameworks reveals that honesty, responsibility, and stewardship are paramount moral principles that should guide corporate choices. Embedding biblical themes of integrity and environmental care amplifies the moral duty companies have toward society. Ethical leadership involves genuine accountability and proactive efforts to uphold standards that benefit both the corporation and the broader community.

References

  • Crane, A., & Matten, D. (2016). Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization. Oxford University Press.
  • Donaldson, T., & Werhane, P. H. (2017). Ethical Dilemmas in Business: A Reader. Routledge.
  • Kaptein, M. (2019). The moral DNA of organizations. Harvard Business Review, 97(6), 98-105.
  • Pope, S., & Vasquez, M. (2016). Ethics in Business and Management. Routledge.
  • Schneider, R. H. (2012). The Moral Roots of Business: A Christian Worldview. InterVarsity Press.
  • Ethics Unwrapped. (n.d.). The Virtues and Ethical Principles. University of Texas at Austin.
  • United States Environmental Protection Agency. (2015). Clean Air Act Compliance and Enforcement.
  • Volkswagen AG. (2015). Official apology and corporate response to emissions scandal.
  • Justice Department. (2016). Volkswagen Settlement - Overview of legal actions.
  • Winston, W. L. (2014). Economics and the Environment. Routledge.

Related Assignments