Business Ethics Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Get knowledge and understanding of relevant research relating to ethical issues pertinent to prescribed case study as well as analysing and understanding the implications of these issues.
- Apply ethical theory to a case study organization and understand the extent ethics play a part in the success or demise of an organisation.
Assignment details
In September 2015, the Volkswagen company publicly admitted that almost 600,000 cars made for the US market had been fitted with “defeat devices”, which is used in order to enable the vehicles to pass emissions tests. Soon after this, they announced that the same devices were fitted on some 11 million cars worldwide. The corporation’s Head of U.S. Operations, Michael Horn, went on to sit before a Congressional Committee to claim that the attempt to deceive the regulators was the work of “a couple of software engineers”.However, it soon became clear that this assertion was not the case. The company went on to admit this when it published a “statement of facts” as part of an agreement with the US Department of Justice. This document clarified that Volkswagen’s engineers had difficulty building a diesel engine that was capable of achieving high performance while keeping emissions within regulatory standards. They engineered a mechanism that reduced emissions while testing was occurring, but that allowed emissions far beyond legal limits while driving on roads. The statement made clear that company managers supported the use of this system on various occasions, despite protests from multiple workers.
Assignment Title: Using your case study as an example, discuss to what extent ethics play a part in the success or demise of an organisation. What measures can an organisation take to ensure ethical practice?
Word Count: 2,000 words
1.0 INTRODUCTION
Ethics involves the process of evaluating actions according to moral values (Lluka 2010). Luthan et al (1984) has defined ethics as a theory which aims at systemizing moral judgement as well as establishing and defending moral principles. Whereas most people may confuse law with ethics, Abutalib (2018) has noted that acting ethically and obeying the law are totally different. The author further states that the law just puts up a structure for ethical conducts thus making it a floor of an ethical structure (Abutalib 2018).
Through the years, balancing profitability and acting ethically has become one of the biggest dilemmas for businesses considering that they have to keep their original purpose of functioning which is profit making (Lluka 2010). Never the less, Mullin (2005) points out that there is no single view of what makes something wrong or right in ethics, anything done by a company can be done ethically or unethically. Below are some business ethical theories.