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.
