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Business Management Case #1 – Volkswagen Scandal Facts: Volkswagen, in 2015, was accused of rigging software in its...

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General Management

Business Management Case #1 – VolkswagenScandal

Facts:

Volkswagen, in 2015, was accused of rigging software in its carto defeat emissions tests. This software could detect when testingwas occurring and blocked emissions.

EPA investigation confirmed the car’s software gave lowerresults than EPA allowable maximum – when, in fact, the emissionswere 40 times higher than allowable emissions.

After the scandal broke the CEO resigned and 9 top executiveswere fired.

This software affected 11 million vehicles affected, ½ millionin US.

Volkswagen recalled the cars at a cost of $18 billion and paidcustomers 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 fromeach of these ethical perspectives (egoism, utilitarianism, rights,duties, virtues) defining what actions you as head of the board ofVW would do if you acted according to each principle and why.

Example:

Egoism principle says you will act in your own best interest forthe long term—what would you do?

Utilitarianism says you what is best for the most people—whatwould you do? Etc, etc.

Answer & Explanation Solved by verified expert
3.7 Ratings (694 Votes)
A Identify the stakeholders and how they are affected Stakeholders that are affected are 1 Volkwagess group as a whole their brand value decreases 2Employees their trust for the company decreases and causes mental instability that is fear of losing a job 3 Retail car dealers product sale freezed until company fix the issues 4 Consumer    See Answer
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