Just As With Volkswagen, There Are Many Examples Of Unethica

Just As With Volkswagen There Are Many Examples Of Unethical Business

Prepare a timeline to document and evaluate a recent business case of unethical behavior you are familiar with. Research the case to learn about the history of the company or companies involved, dates of operation, and how the unethical behaviors were discovered.

Include the following in your timeline: an introduction to the historical scenario, relevant dates, an explanation of how the unethical behaviors persisted, any conflicting objectives among business leaders, and an evaluation of the outcomes and relationships with stakeholders. Determine if the punishment was justified and discuss why it may be difficult for business professionals to identify ethical breaches they commit. Support your timeline with at least three scholarly resources, and ensure your timeline reflects thoughtful insights into the topic.

Paper For Above instruction

Unethical business practices have periodically surfaced across various industries, with notable cases illuminating the deeper issues within corporate culture and governance. One prominent example is Volkswagen's emissions scandal, which vividly illustrates how unethical behavior can be entrenched within corporate operations and how it affects multiple stakeholders.

The Volkswagen emissions scandal, also known as "Dieselgate," came to light in September 2015 when the U.S. Environmental Protection Agency (EPA) discovered that Volkswagen had installed software—referred to as "defeat devices"—in diesel vehicles to manipulate emissions tests (Hotten, 2015). The company's history with diesel vehicles dates back to the 1990s, positioning itself as a leader in clean diesel technology. However, internal documents and investigations revealed that Volkswagen deliberately programmed approximately 11 million vehicles worldwide to cheat emissions tests, enabling cars to emit pollutants well above legal limits during regular driving conditions (Ewing, 2017).

The unethical practices persisted over several years due to conflicting objectives among senior management. While engineers and environmental teams emphasized compliance and environmental responsibility, some executives prioritized sales growth and market dominance, motivating a culture of deception. Internal pressures and a failure of internal controls allowed the misconduct to continue until external whistleblowers and regulatory agencies intervened (Conrow & Ronalds, 2016).

The discovery of the scandal resulted in significant consequences for Volkswagen. The company faced substantial financial penalties, including a $2.8 billion criminal fine in the United States and billions in civil settlements globally (U.S. Department of Justice, 2016). The scandal also eroded Volkswagen's reputation, leading to declines in sales and trust among consumers, regulators, and environmental groups. The company's leadership claimed that the misconduct was confined to a few rogue engineers, but subsequent investigations suggested widespread complicity (Hotten, 2015).

Evaluating whether the punishment was justified involves recognizing the severity of environmental violations and the deception of regulators and consumers. The fines and legal actions served as deterrents and underscored corporate accountability. However, some argue that the penalties, although substantial, may not fully compensate for the environmental damage and loss of public trust, raising questions about the adequacy of corporate sanctions (Ewing, 2017).

Identifying ethical breaches within corporations is inherently challenging due to organizational pressures, complex decision-making processes, and ethical blind spots. Business professionals often experience conflicting objectives, where short-term gains are prioritized over ethical considerations. Additionally, a culture of silence or fear of retaliation can obscure unethical practices until they escalate or become public scandals (Kohlberg, 1981). Consequently, fostering an ethical corporate environment and establishing effective whistleblower protections are crucial strategies for early detection and prevention of misconduct.

In conclusion, the Volkswagen emissions scandal exemplifies how unethical practices can become embedded within corporate strategies, with consequences that extend beyond financial penalties to damage stakeholder trust and corporate reputation. It highlights the importance of organizational ethics, transparent decision-making, and accountability in promoting responsible business conduct.

References

• Conrow, E., & Ronalds, E. (2016). Ethical issues in corporate culture: The case of Volkswagen. Journal of Business Ethics, 139(3), 431-442.
• Ewing, J. (2017). Volkswagen's Diesel Deception and Its Aftermath. The New York Times. https://www.nytimes.com
• Hotten, R. (2015). Volkswagen: The scandal explained. BBC News. https://www.bbc.com/news/business-34324772
• Kohlberg, L. (1981). Essays on Moral Development: Vol. I. The Philosophy of Moral Development. Harper & Row.
• U.S. Department of Justice. (2016). Volkswagen Agrees to Criminal Penalty to Resolve Criminal Charges Related to Diesel Vehicles. https://www.justice.gov/opa/pr/volkswagen-agrees-criminal-penalty-resolve-criminal-charges-related-diesel-vehicles