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Volkswagen scandal essay
Volkswagen emission scandal case study
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BUSI 561 Discussion Board Forum 1: Analysis of the Volkswagen Emissions Scandal Margaret Robinson
Liberty University
BUSI 561 Discussion Board Forum 1: Analysis of the Volkswagen Emissions Scandal
Volkswagen, a well-known German automaker, has continuously been highly regarded for their commitment to producing safe, reliable, and relatively inexpensive vehicles. However, the Volkswagen emissions scandal dramatically changed the world’s perception of the highly rated company. The vastly publicized scandal included the company fraudulently deceiving the United States government in regards to the compliance with pollution emission standards. Volkswagen should be held responsible for the legal, spiritual, and ethical
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According to the EPA, Section 203 of the statue prohibits the “manufacture, selling, or installation of any device that intentionally circumvents EPA emission standards by bypassing, defeating, or rendering inoperative a required element of the vehicle’s emissions control system” (EPA, 2016, para. 1). Volkswagen illegally installed software, called defeat-devices, to make its diesel engines pass U.S. emissions standards (Cavico, 2016, p.305). Additionally, Section 207 gives the EPA authority to “require a manufacture to issue a recall when EPA determines that a substantial number of vehicles do not conform to EPA regulations” (EPA, 2016, para. 5). Furthermore, the Federal Trade Commission (FTC) instituted a civil complaint against Volkswagen contending that the company engaged in false advertising claiming that its vehicles were environmentally friendly (Cavico, 2016, p. …show more content…
D., & Mujtaba, B. G. (2016). Volkswagen Emissions Scandal: A Global Case Study of Legal, Ethical, and Practical Consequences and Recommendations for Sustainable Management. Global Journal of Research in Business & Management, 304-311.
Kubasek, N. K. (2016). Dynamic business law (3rd ed.). New York: McGraw-Hill/Irwin.
Lippe, P. (2015, October 13). Volkswagen: Where were the lawyers? Retrieved from http://www.abajournal.com/legalrebels/article/volkswagen_where_were_the_lawyers/ Laws and Regulations related to Volkswagen Violations. (2016, December 13). Retrieved January 20, 2017, from https://www.epa.gov/vw/laws-and-regulations-related-volkswagen-violations
Reitze, A. W. (2016). American Bar Association. The Volkswagen air pollution emissions scam, 47(4). Retrieved from
Increasing environmental awareness, coupled with a responsible American government and improved technology, have all contributed to the comeback of low-and zero-emissions vehicles in the US. It remains to be seen whether the automakers and oil companies will once again work to halt this progress, or embrace it as the technology of a more responsible future.
On one of the article was the discussions about the act of dishonesty itself, and how the losses due to the cheating of the emission test stood up to losses incurred by other related problems. The writer also included the financial burden the cheating
U.S. Enviromental Protection Agency. (2011, January 13). Retrieved January 20, 2011, from Summary of the Clean Air Act 42 U.S.C. §7401 et seq. (1970): http://www.epa.gov/lawsregs/laws/caa.html
When we consider the case of the Ford Pinto, and its relative controversy, through the varied scope of ethical viewpoints, the results might surprise us. From a personal standpoint, as a consumer, the idea of selling a vehicle to the masses with such a potentially devastating flaw is completely unethical. When we consider the case from other directions and other ethical viewpoints, however, it makes it clear that often ethics are a matter of perspective and philosophy. It’s also clear that there are cases where more information will muddy the waters, rather than clear them.
There was strong competition for Ford in the American small-car market from Volkswagen and several Japanese companies in the 1960’s. To fight the competition, Ford rushed its newest car the Pinto into production in much less time than is usually required to develop a car. The regular time to produce an automobile is 43 months but Ford took 25 months only (Satchi, L., 2005). Although Ford had access to a new design which would decrease the possibility of the Ford Pinto from exploding, the company chose not to implement the design, which would have cost $11 per car, even though it had done an analysis showing that the new design would result in 180 less deaths. The company defended itself on the grounds that it used the accepted risk-benefit analysis to determine if the monetary costs of making the change were greater than the societal benefit. Based on the numbers Ford used, the cost would have been $137 million versus the $49.5 million price tag put on the deaths, injuries, and car damages, and thus Ford felt justified not implementing the design change (Legget, C., 1999). This was a ground breaking decision because it failed to use the common standard of whether a harm was a result of an action on trespass or harm as a result of an action on the case (Ferguson, A., 2005).
This case focuses on corporate obstacles to pollution prevention. Pollution prevention can complex especially for large corporations. There are many different forms of pollution prevention including emissions control devices and incremental changes in existing technology. The author reviews the impact of emissions controlled devices, however the focus of the case study is on incremental changes in existing technology. Incremental changes include substituting one or two steps in a production process or relationship changes between production steps. One example of incremental changes that was provided by the author was eliminating chlorofluorocarbons and saving energy by replacing a refrigeration process with a heath exchanger that can exploit waste cooling from another part of the process. There are three critical decision-making stages for incremental changes; identifying a pollution prevention opportunity, finding a solution appropriate to that opportunity, and implementing that solution. The author discusses the three aspects of an organization (culture, ability to process information, and its politics) and how they impact the decision-making stages.
The standards of ethics serve as guidelines for the conduct of individuals and businesses alike. Uzi Nissan acted h...
The Volkswagen emissions scandal is a series of choices made by the company and the people employed by Volkswagen to install a "cheat" button to alter the amount of emissions produced only under testing situations. Ordinarily, all vehicles on the road that run off of gasoline have a set about of CO2 and other harmful emissions produced by the burning of gasoline. Violation of these rules can result in fines and recalls. Due to an increased attention on car companies to fight global warming and air pollution a number of emissions have lowered in the over the year for tighter regulation on the amount of CO2 produced. Consequently, this reduction in the amount of CO2 produced is the source of the scandal. This change may come across as minor,
In 2014, researchers from West Virginia found out that recent models of Volkswagen vehicles were emitting up to 40 times the allowed levels of nitrogen oxides (2). These vehicles had a special software that would determine when the vehicle was in laboratory testing conditions, and the software would then alter the vehicle 's functionality to emit the legal amount of nitrogen oxides allowed by the EPA. The software was found in around half a million vehicles in the United States. In addition to the bad publicity, the Volkswagen scandal will cost the company at least $15.3 billion dollars in compensation to the owners of the affected vehicles (3). In 2016, Volkswagen engineer James Liang pleaded guilty for being a crucial part in developing the illegal software (3). The software was created because Volkswagen was unable to meet the rigorous EPA emission standards. Therefore, a small team of engineers including James Liang decided to cheat the emission exams to allow Volkswagen vehicles to be sold in the U.S.
Purchasing a car is one of the hugest or biggest accomplishments that a person can achieve on their own. However, what happens when that purchase turns out to also be the worst decision that was ever made? The purchase was a success and a goal was achieved, but the moment the key is turned and the engine is started the contribution to environmental harm begins. As the car is driven, the gasoline fumes that are released from the car contribute to the other many factors and pollutants that damage the environment. Not only is the purchase now a contributor to the depletion of clean air, but it could also play a part in the depletion of someone’s health. For example, asthma or bronchitis could develop in an adult or child as a direct result of breathing in noxious automotive fumes. Depending on where one lives, there could be strict regulations on air pollution. One must be accountable for any and all contributions made to the demise of what was once a healthy Earth. One must be accountable for his or her own carbon footprint. Some individuals have taken steps to reduce their carbon footprints and cause less harm to the environment by purchasing electric cars.
Tyco provides products and services across the world. The company is global and diversified providing a variety of products including electronics, healthcare, fire and security services and engineered products and services. While employing over 250,000 people worldwide they grossed approximately $40 billion in revenue in the year 2005. In 2002 Tyco was involved with the corporate scandal where the management mis-appropriated corporation funds. The previous CEO Dennis Kozlowski was convicted in 2005 on 22 counts of the 23 that he was charged with. This is an example of not only a legal issue of responsibility but also one of an ethical issue that the Tyco Corporation has had to face. In the face of the legal and ethical issues that this mishap had placed the corporation in, Tyco placed Ed Breen in as chairman and CEO. Mr. Breen joined the company in 2002 after the scandal and immediately began the rebuild of the company’s name. With the appointment of Ed Breen and his changing of the company’s ethical standards (to be discussed in the next portion of the paper) he promotes the legal responsibilities of not only the company’s employees but the responsibilities of the suppliers and buyers to report any wrong doing. This reporting also speaks to the ethics of the Tyco corporation employees as well as those of the companies th...
Toyota issues in automotive industry resulted from a lack of moral and ethical obligations to loyal customers. In fact, people encounter ethics at one time or another. A business expectation is to act in manner upholding society values. According to authors Trevino and Nelson, (2004) states, “a set of moral principals or values, or the principals, norm, and standards of conduct governing a group or individual.” On the other hand, three ethical criteria determined in this discussion like obligation, moral ideas, and consequences which this article highlights an ethical dilemma with automobiles makers.
Last Sunday, the company’s then CEO, Martin Winterkorn, issued a brief statement declaring that the Board of Management at Volkswagen AG “takes these findings very seriously.” The findings revealed that the automaker used “defeat devices” to fool emissions testing, effectively concealing the reality that certain cars spew emissions some 10 to 40 times the legal limit.
Humans have been destroying the planet since we were able to stand on two legs. As a society, we need to work to reverse these terrible effects that our existence has on the planet. Sustainability is one way to begin reversing these effects, while still living our daily lives. In 2006, Al Gore presented his documentary, “ An Inconvenient Truth”, as a way to show the world the evidence behind global warming, climate change and the destruction of our planet. This documentary shocked the world. It was clear that changes needed to be made, but the destruction was more intense than previously thought. SInce this revelation in 2006, companies have tried to cut down on their greenhouse emissions, as well as offered sustainable products to their customers. Through a debate of morals and
Audi, one of Germany’s first automobile producers, has been designing and building cars since August Horch, its founder, completed his first car in 1901. Over the years following, a series of innovations and mergers have led Audi to the position it is in today. Audi’s subsidiaries include companies to facilitate international operations, part manufacturers, a vehicle customization company, a technology research company, and Lamborghini Corp, a successful sports car manufacturer. Audi’s current developments include its holding the EU Seal of Environmental Protection, and a number of technological advancements, including new car designs and a “seeing car” technology that has been nominated for the German Future award for Technology and Innovation.