VW Scandal

Business Ethics – Re-assignment for 2021 Due date: 25 July 2021 at 23:59 TECHNICAL REQUIREMENTS:

• Create a front page for your assignment with your name, student number and subject code.

• The assignment must be typed in Arial 12 and 1.5 spacing

• Pages must be numbered

• Make use of proper paragraphs and sentences

• Do a language and spelling test using English UK

• Use the VUT Post Graduate referencing guide that is available on VUTELA An assignment will automatically obtain 0 in the following instances:

• Where the similarity score is above 40%

• Where the similarity score is less than 5%

• When unethical methods were used to reduce the similarity score. If you do not agree with the decision that unethical methods were used to lower the similarity score, you will have to make a written submission to your lecturer. Your submission will be evaluated by the 2 lecturers teaching business ethics and their decision will be final.

• When you use language that is incoherent and does not make sense. The Volkswagen Group is one of the world’s leading mobile manufacturers. The group includes several brands for example Volkswagen, Audi, Bentley, Porsche. The company was recognised as the automotive industry leader in sustainability until their emission cheating scandal broke. This assignment requires you to investigate this issue and apply the knowledge that you gained in the course to answer the questions. Marking guidelines:

CONTENT A. Background

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1. Explain why VW was seen as a green company before the emissions scandal.

5

2. What was the motivation for VW to expand in the US market? Explain in detail what problem the US experienced that VW could assist with by supplying their diesel vehicles.

5

3. Explain the NOx emissions of Diesel cars. (What environmental problem it causes, health problems related to it, how it can be managed in diesel vehicles, why VW did not opt to use it, Standards set in US, how it is regulated)

6

4. In light of the above problems, why didn’t they rather opt for hybrid or electric cars?

2

B. The scandal

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1. Discuss the emissions scandal in detail (what was discovered, how it was discovered)

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2. How did VW respond, immediately and up to date 6

3. Fallout for VW 7

C. CID and ethics management

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1. Some people blamed the wrong decisions on the engineers, but others blamed the company. Discuss the CID structure and explain whether the individual engineer or the company can be held accountable

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2. Lots of articles were written about the ethical culture at VW and that it is to blame for what happened. Discuss the type of ethical culture that was prevalent at VW during the time of the scandal and how it contributed to what happened or did not happen. (Management, Board, Ethics management)

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3. Having a Code of conduct is part of good ethics management. Study the current Code of conduct of VW and decide whether it is a directional code or an aspirational code. Motivate your answer.

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4. Find specific sections from the current VW Code of conduct that should prevent a repeat of this scandal, if it is followed. (Link the section with a specific action that took place)

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D. Conclusion If the transgressions in the VW emissions scandal was caused by the company’s engineers, do you think it is fair that the CEO and senior personnel should be punished? Motivate your answer in terms of organisational ethics management.

2

CONTENT TOTAL 60

TECHNICAL

Technical requirements (submission name of the assignment, correct font and spacing, index, headings, page numbers etc.) and general language use (paragraphs, sentences, is/are, was/were, etc.) (1 mark will be deducted for each non-compliance with a technical requirement up to a maximum of 10) Spelling (1 mark will be deducted for each spelling error up to a maximum of 10)

10

10

Bibliography: 4 marks for every reference used correctly in the text as well as listed correctly in the bibliography (4 x 5 references)

20

TECHNICAL TOTAL 40

GRAND TOTAL 100