Business Management Case 1 – Volkswagen Scandal
Facts:
Volkswagen, in 2015, was accused of rigging software in its car to defeat emissions tests. This software could detect when testing was occurring and blocked emissions.
EPA investigation confirmed the car’s software gave lower results than EPA allowable maximum – when, in fact, the emissions were 40 times higher than allowable emissions.
After the scandal broke the CEO resigned and 9 top executives were fired.
This software affected 11 million vehicles affected, ½ million in US.
Volkswagen recalled the cars at a cost of $18 billion and paid customers affected another $14 billion.
The company fell to #2 from its previous # 1 slot in Europe.
Questions:
Identify the stakeholders and how they are affected.
Review the five principles of ethics and analyze the case from each of these ethical perspectives (egoism, utilitarianism, rights, duties, virtues) defining what actions you as head of the board of VW would do if you acted according to each principle and why.
Example:
Egoism principle says you will act in your own best interest for the long term—what would you do?
Utilitarianism says you what is best for the most people—what would you do? Etc, etc.