This part of the paper presents information based on recent literature regarding the status quo of Volkswagen. It reveals the incident that acted as a whistleblower in identifying the scandal, the various unethical business practices that were involved and the impact it has as a result. The rest of the paper will elaborate the points of view of different scholars who analyzed this particular scandal and shared their thoughts pertaining to the unethical practices discovered in Volkswagen’s corporation based on evidenced facts.
Ethics versus Profit
In general, business ethics means getting to know what is considered right or wrong in the workplace and involves performing accurately in regard to effects of products, services and relationships with stakeholders. Any corporation involved in fraudulent activities will suffer from consequences that negatively affect the image of an organization. While the majority of companies earn their profits from ethical business practices, other organizations might choose to maximize their profits through unethical performance. The magnetic factor about Volkswagens’ unethical issue is that it has been long seen as a dependable global brand that families can rely on, but overnight the brand 's name and status were ruined due to the scandal relating to emission control. The brand Volkswagen, which is known for delivering innovative, responsible mobility to people worldwide, lost its reputation as a trustworthy company according to an environmental scandal (Adams, 2015). Customers lost their trust in the German car company after it was found guilty in regard to the environmental issue. Reducing the quality of a company’s product to maximize their profits will result in a ...
... middle of paper ...
...aker 's shares have fallen by about a third since the scandal broke (Hotten, December 10, 2015). More than money, the scandal could cost Volkswagen – which "has long enjoyed a reputation for reliable engineering, cheerful affordability, and, largely thanks to its efforts in clean diesel, sustainability," as the Monitor 's Schuyler Velasco reports – the confidence of consumers who are increasingly conscientious when it comes to their product choices (Mendoza, 2 November 2015).
Thus the legitimacy of the world-renowned company that was trusted for years by its customers is questioned and scrutinized for the unethical practice that it followed. The scandal not only created a rebel from the company’s stakeholders, but also from other environmental organizations, business companies, legal authorities, and scholars who consider it as a failure in corporate responsibility.
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