1.3: Application Case: The Volkswagen Scandal

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Business Ethics: Ethical Decision Making & Cases

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O. C. Ferrell; John Fraedrich; Linda Ferrell

This case highlights the Volkswagen (VW) emissions scandal, a case so notorious because the German-owned, global company purposefully deceived government officials. In 2017, VW had to plead guilty to three criminal felony charges that included defrauding the U.S. government, violating environmental regulations, obstructing justice, engaging in wire fraud, and violating import regulations. VW agreed to pay $2.8 billion in criminal charges, but this is only a small portion of the total costs VW will have to pay to resolve the issue.

You will find the Cases section towards the end of your textbook. Look for Case 1 – The Volkswagen Scandal: An Admission to Emission Fraud.

Instructions: Professor Lavoy Love, PHD

After reading the case, respond to the questions listed below. Justify your responses, opinions, and conclusions with facts and details from the case. (Your response for each question should be at least one paragraph.) This assignment must be in APA format and each questions must be a paragraph (4-6) sentences: copy and paste the questions into a Microsoft Word document it must be and submit your file using the Upload Instructions below. Remember to include your name, the course, and the assignment name at the top of your file.

Explain how the culture of Volkswagen helped to create this ethical scandal described in the case.
Identify and describe one step Volkswagen can and should take to recover from this ethical scandal.
In your opinion, how will this scandal result in tougher oversight of all companies’ environmental claims in the future?
What is the most important point (your main takeaway) from this case that might influence your own professional code of ethics?