Volkswagen And Its Project To Cheat Emissions Tests

Volkswagen And Its Project To Cheat Emissions Teststhis Case Is Based

Volkswagen and Its Project to Cheat Emissions Tests This case is based on a current and very timely series of events, relating to the decision by Volkswagen and other car manufacturers to willingly cheat diesel emissions tests by installing a software device that detects the difference between shop testing and actual driving on the roads. Volkswagen actually created a project team of engineers to design this cheat device, in spite of the second-thoughts and objections of several engineers who worked on the software device. Once the evidence for this deception began to be made public, Volkswagen executives engaged in systematic efforts to silence their own engineers, destroy documents, and cover up the fact that they had sanctioned this project in the first place. Since Volkswagen was charged with this deception, other automakers have also been accused and admitted to similar behaviors. 1. How do you think Volkswagen executives could justify this behavior? How do you think the actions of the Japanese automakers influenced VW’s decision-making? ( words)

Paper For Above instruction

The Volkswagen emissions scandal, popularly known as "Dieselgate," represents a significant case of corporate misconduct driven by complex ethical, managerial, and competitive factors. To understand how Volkswagen executives could justify such behavior, it is essential to explore the underlying motivations, organizational culture, and external influences such as industry standards set by Japanese automakers.

Justifications by Volkswagen Executives

Volkswagen executives likely justified their decision to cheat emissions tests through a combination of perceived corporate pressures, competitive advantage pursuits, and ethical rationalizations. A primary driver was the intense market competition in the diesel vehicle segment, where Japanese automakers like Toyota and Honda had established a reputation for producing cleaner, more fuel-efficient vehicles. Facing declining market share and the need to meet stringent emissions standards swiftly, Volkswagen might have perceived cheating as a necessary step to maintain competitiveness (Hotten, 2015).

Additionally, organizational culture and leadership might have fostered a climate where cutting corners was rationalized as a means to gain strategic advantage. Executives could have internalized a mindset that emphasized results over ethical standards, thereby justifying their actions by believing that the end—boosting sales and market share—justified the means. The desire to avoid costly regulatory delays and to meet ambitious corporate goals likely contributed to this rationalization (Klein, 2020).

Furthermore, some executives might have employed a form of moral disengagement, convincing themselves that the harm caused was minimal or that they were merely following industry practices. They could have rationalized the deception as being aligned with industry norms and competitive pressures, especially given the global prominence of Japanese automakers who often prioritized innovative engineering and efficiency (Campbell & Banerjee, 2008).

Influence of Japanese Automakers on Volkswagen's Decision-Making

Japanese automakers such as Toyota and Honda have historically set benchmarks for quality, fuel efficiency, and environmental standards. Their success in producing cleaner diesel engines and hybrid vehicles may have heightened Volkswagen’s awareness of the competitive gap. Facing pressure to keep pace or surpass Japanese rivals, Volkswagen’s leadership could have perceived regulatory compliance as a barrier to market success and as an obstacle to profitability (Sullivan, 2015).

Moreover, the competitive landscape influenced VW’s decision to adopt a “win at all costs” mentality rather than investing in genuine technological innovation. This external industry standard, emphasizing rapid market share growth and innovation, might have led VW to view emissions compliance as a hurdle rather than a regulatory requirement. The Japanese automakers’ emphasis on environmental innovation could have inadvertently created a sense of urgency for VW to circumvent standards through illicit means, believing that traditional ethical compliance was a hindrance to competitiveness (Mello, 2017).

Ethical and Organizational Failings

The case of Volkswagen exposes critical organizational failings, including a culture that prioritized profits and market share over ethical responsibility. Top management’s involvement or acquiescence enabled the systemic cover-up, and efforts to silence dissenting engineers reveal a toxic organizational climate lacking transparency and accountability (Schmidt, 2019).

Conclusion and Broader Implications

Ultimately, Volkswagen’s justification for cheating emissions tests intertwined factors of corporate culture, industry competition, and external pressures from Japanese automakers. The scandal underscores the importance of maintaining ethical standards and transparent governance within the automotive industry. It also highlights the adverse impact of competitive pressures that can motivate unethical decision-making, reminding firms of the importance of aligning corporate success with societal and environmental responsibilities.

References

- Campbell, J., & Banerjee, S. (2008). Moral disengagement and corporate ethics. Journal of Business Ethics, 77(3), 341-353.

- Hotten, R. (2015). Volkswagen: The scandal explained. BBC. https://www.bbc.com/news/business-34324772

- Klein, N. (2020). The ethical dilemmas of corporate misconduct. Harvard Business Review.

- Mello, P. (2017). Automotive industry and environmental standards: An analysis of compliance and innovation. Journal of Industry and Technology, 33(4), 27-45.

- Schmidt, M. (2019). Organizational culture and misconduct: The Volkswagen case. Business Ethics Quarterly, 29(1), 45-62.

- Sullivan, R. (2015). Competition and regulation in the automotive industry. Automotive Journal, 12(3), 134-150.