Question 1: Whats the role of the whisteblower in the case and what positive and negative impact did it have on the stakeholders invovled?

Question 2: Identify the most common ethical dilemma in the case and explain how this dilemma had a negative impact on the levels of CSR?

Question 3: With reference to the VW case study dilemma, can you identify the ethical challenges that VW has experienced?

Question 4: Reading the case study, how would you identify the type of regulation/law which has been violated by VW? Explain the negative impact that can result from this unethical practice for the organization?

 

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The Volkswagen Scandal: An Admission to Emission Fraud This case highlights the Volkswagen (VW) emissions scandal, a case so notorious because the German company purposefully deceived government officials. In 2017 VW pled guilty to three criminal felony charges that included defrauding the U.S. government, violating environmental regulations, obstructing justice, engaging in wire fraud, and violating import regulations. It agreed to pay $2.8 billion in criminal charges, only a small portion of the total costs it will have to pay to resolve this scheme. Until recently, VW Was known for its strong reputation for sustainability. It became the first car manufacturer to adopt ISO 14001 principles, international environmental principles that act as standards for global firms. It adopted a number of sustainability goals in 2002 at a time before sustainability became a hot topic. VW began investing in vehicles that would reduce carbon emissions early, including electric and diesel vehicles. In 2014 VW introduced the VW XL1, which it claimed to be the most fuel-efficient car in the world at the time. The later scandal showed just how misleading these claims really were. The scandal involved VW's diesel vehicles, which it claimed were more environmentally friendly. During lab testing, the vehicles released fewer emissions, satisfying regulators. What they did not know was that VW had installed defeat devices that could detect whenever the vehicle was undergoing emissions testing. During the test, the vehicle would run below performance, thereby giving off more emissions. On the road, however, these vehicles ran at maximum performance and gave off 40 times the allowable limit of emissions in the United States. European testers noticed that these vehicles did not perform as well on emissions tests on the road as they did in the lab. They asked U.S. testers to perform similar tests as the United States has some of the highest emission laws in the world. Using a portable emission system measurement device on the road to detect the emissions, the testers obtained scientific proof that the emissions given off on the road were not nearly as low as those given off during lab testing. VW admitted to installing defeat devices in its diesel vehicles to fool testers and regulators. A whistleblower at VW came forward and stated that VW immediately began destroying documents that could implicate the firm. VW's CEO resigned. The company agreed to pay up to $17.5 billion to compensate consumers affected by its defeat devices, which included retrofitting and buying back impacted vehicles. Those who knew about or were responsible for the defeat device's installation could face jail time. Six executives and employees have been indicted for knowing about the conspiracy. Charges were also filed against German parts supplier Robert Bosch GmbH as it designed the defeat devices and seemed to know that VW was using them to violate laws. The Volkswagen Scandal: An Admission to Emission Fraud This case highlights the Volkswagen (VW) emissions scandal, a case so notorious because the German company purposefully deceived government officials. In 2017 VW pled guilty to three criminal felony charges that included defrauding the U.S. government, violating environmental regulations, obstructing justice, engaging in wire fraud, and violating import regulations. It agreed to pay $2.8 billion in criminal charges, only a small portion of the total costs it will have to pay to resolve this scheme. Until recently, VW Was known for its strong reputation for sustainability. It became the first car manufacturer to adopt ISO 14001 principles, international environmental principles that act as standards for global firms. It adopted a number of sustainability goals in 2002 at a time before sustainability became a hot topic. VW began investing in vehicles that would reduce carbon emissions early, including electric and diesel vehicles. In 2014 VW introduced the VW XL1, which it claimed to be the most fuel-efficient car in the world at the time. The later scandal showed just how misleading these claims really were. The scandal involved VW's diesel vehicles, which it claimed were more environmentally friendly. During lab testing, the vehicles released fewer emissions, satisfying regulators. What they did not know was that VW had installed defeat devices that could detect whenever the vehicle was undergoing emissions testing. During the test, the vehicle would run below performance, thereby giving off more emissions. On the road, however, these vehicles ran at maximum performance and gave off 40 times the allowable limit of emissions in the United States. European testers noticed that these vehicles did not perform as well on emissions tests on the road as they did in the lab. They asked U.S. testers to perform similar tests as the United States has some of the highest emission laws in the world. Using a portable emission system measurement device on the road to detect the emissions, the testers obtained scientific proof that the emissions given off on the road were not nearly as low as those given off during lab testing. VW admitted to installing defeat devices in its diesel vehicles to fool testers and regulators. A whistleblower at VW came forward and stated that VW immediately began destroying documents that could implicate the firm. VW's CEO resigned. The company agreed to pay up to $17.5 billion to compensate consumers affected by its defeat devices, which included retrofitting and buying back impacted vehicles. Those who knew about or were responsible for the defeat device's installation could face jail time. Six executives and employees have been indicted for knowing about the conspiracy. Charges were also filed against German parts supplier Robert Bosch GmbH as it designed the defeat devices and seemed to know that VW was using them to violate laws.

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Question 1 Role of the Whistleblower and Impact on Stakeholders Role The whistleblower played a crucial role in exposing the Volkswagen emissions scan... View the full answer