Organizational Ethical Practices The Volkswagen Case


OrganizationalEthical Practices: The Volkswagen Case

OrganizationalEthical Practices: The Volkswagen Case

Thecommitment that organizations have to customers, the public and theenvironment is reflected by the ethical standards that firmspractice. The ethical practices by organization determine the outcomeof the operational decisions made by organizations. The problem ofmaintaining ethical behavior is a critical issue that affects theinternal environment of a firm (Hellriegel &amp Slocum, 2011).According to Ferrell et al (2014), ethical practices also affect therelationship between a firm and the stakeholders of the externalenvironment, especially for the global firms. The managements ofthese firms are not keen to apply optimum efforts in applying theprudence of ethics and the ambitions of their profit maximizationgoals.

Toexplore this topic, the paper will take Volkswagen as the company toexplore its recent emissions scandal that reveals its ethicalproblems. Volkswagen is a German car manufacturer that wasestablished in 1946 to grow into one of the largest car sellers inEurope (Volkswagen, 2015). The company relates to the topic understudy during to the ethical practices of the management in the recentpast. In particular, will explore the Volkswagen ethical crisis wherethe firm did not meet the ethical expectations of the public, thepaper will explore the ethical issues arising from the failure by thecompany to honestly indicate accurate quality standards.

Insummary, Volkswagen failed to meet the Clean Air Act guidelines thatrequire car manufacturers to adhere to environmental friendlyguidelines (DW, 2015). On the contrary, Volkswagen unethicallyinstalled Engine Control Unit software that did not follow theguidelines (DW, 2015). More unethical was the sale of the faulty madeengines to customers, without informing them, since the year 2008,and portraying them as environmentally friendly. Therefore, the focuson the Volkswagen case in the paper will reveal the diverse decisionsmade by companies and the implications of their management andoperational practice.


DW,2015, Autoexpert: `A conscious breach of US law`,Retrieved From,&lt November, 2015

Ferrell,O.C., Fraedrich, J., &amp Ferrell,L. (2014). BusinessEthics: Ethical Decision Making &amp Cases. Stamford,CT: Cengage Learning

Hellriegel,D., &amp Slocum, J. (2011). Principlesof Organizational Behavior.Nashville, Tennessee: South-Western Publishing

Volkswagen,2015,RetrievedFrom,&nbsp&lt 23 November, 2015