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Introduction And Analyze Theocratization Ethical Dilemma Assignment

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Added on: 2023-10-04 12:16:25
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Provide an Introduction and Analyze Theocratization Ethical Dilemma

The scandal involving Volkswagens emissions commonly referred to as “Diesel gate “was an event, in the industry that came to light in September 2015. According to an article in the BBC news of 10/12/205 by Russell Hotten, It was discovered that Volkswagen had installed software in millions of their diesel vehicles with the intention of manipulating emissions tests. The purpose of this software was to give the impression that the cars were compliant with regulations even though they were emitting pollutants beyond acceptable levels. This scandal had ranging consequences for Volkswagen, the sector, and corporate ethics (Hotten, 2015). The ethical dilemma surrounding the Volkswagen Emission scandal can be understood by looking at the conflict, between profitability and ethical responsibility in today’s competitive global market. In this case Volkswagen had to make a choice between manufacturing environmentally compliant vehicles and maximizing profits. Unfortunately, they decided to prioritize term gains, over long-term sustainability and ethical behavior compromising their principles in the process.

Present the Key Ethical issues of the Dilemma

Emissions Manipulation: The concern revolved around Volkswagens deliberate manipulation of emissions tests, where they intentionally deceived regulators, consumers, and the public regarding the environmental impact of their vehicles (Kell, 2022).

Environmental Impact; As a result of Volkswagens actions, air pollution. Caused harm to the environment contradicting their claims of producing eco-friendly cars.

Loss of Customer Trust; Volkswagen betrayed the trust placed in them by customers who believed they were purchasing vehicles. This breach eroded brand trust and customer loyalty.

Failure to comply with Regulations: The Company not failed to adhere to emissions regulations. Also engaged in illegal activities. This raises questions, about responsibility and accountability.

Identify the Relevant Stakeholders were affected by the Dilemma

Different groups of people are impacted by the Volkswagen scandal.

  1. Consumers: These are the individuals who bought Volkswagens diesel vehicles with the belief that they were eco-friendly and environmentally responsible.
  2. Volkswagen: The Company itself is facing consequences in terms of actions, financial implications and damage, to its reputation.
  3. Regulators: Environmental agencies and governmental bodies responsible for establishing and enforcing emissions standards are involved in dealing with this issue.
  4. Competitors: Other automotive companies are also affected as there may be changes in how consumers perceive their products and increased scrutiny from regulators.
  5. Shareholders; Investors who have put their money into Volkswagen have experienced a decline, in the company’s stock value as a result of this scandal.

Consider the Relevant risks/facts/laws/principles and critically evaluate the Arguments (for/against) each relevant Important Considerations/Information/Rules/Values.

Considerations: It has been revealed that Volkswagen employed a software called a "defeat device" to manipulate the results of emissions tests.

Rules: This action, by Volkswagen is in violation of regulations and various laws aimed at protecting consumers.

Values: Ethical values such as honesty, transparency and corporate responsibility should be upheld by all companies.

Potential Consequences: The risks associated with these actions include penalties, financial losses harm, to the brand reputation and erosion of consumer trust.

There are viewpoints regarding the arguments, for and against Volkswagens actions. On one hand some argue that Volkswagen was primarily focused on maximizing profits in a market, which they believe is their responsibility to shareholders. They may also point out that the intense competition in the industry might have compelled Volkswagen to take shortcuts to remain competitive.

On the hand there is an opposing viewpoint that emphasizes responsibility. According to this perspective Volkswagen had an obligation to accurately represent its products and comply with regulations prioritizing the well-being of consumers and the environment over profits. Furthermore, it is argued that prioritizing short term gains over long term sustainability can have effects on the company’s reputation and viability (FHSU Digital Press, n.d). These contrasting viewpoints highlight the complexity of this issue. Demonstrate differing perspectives on what should be considered as priorities for a company, like Volkswagen.

Explain the Importance of Ethical Decision making especially when Organizations face an Ethical Dilemma Ethical decision-making holds significance, for organizations in instances where they encounter ethical quandaries (OCED, & HEC Paris, 2017). Here is the rationale, behind the importance of decision making:

Acting ethically is crucial, for maintaining a reputation and building trust with stakeholders such, as employees, customers, investors, and regulators. Trust is an asset that requires time to establish. It can be easily shattered by engaging in unethical behavior.

Ensuring compliance: Making decisions is crucial for organizations to adhere to laws and regulations thereby reducing the risk of legal issues and potential penalties. Disregarding principles can lead to legal battles and damage, to reputation.

Prioritizing long term sustainability; Ethical choices focus on the long-term sustainability of an organization than short term gains (Jeffs, 2019). Although unethical decisions may yield benefits, they often result in consequences in the future such as a tarnished brand image and loss of market share.

Boosting employee morale and retention; Ethical organizations typically experience levels of employee morale and retention. When employees believe in their organization’s values, they are more likely to be engaged and loyal.

Enhancing customer loyalty; Ethical behavior strengthens customer loyalty. Customers are inclined to support and remain loyal to companies that align with their values and demonstrate conduct.

Assess and Evaluate the Dilemma using 2 Ethical Frameworks/theories Evaluating through frameworks/theories; Lets analyze the Volkswagen Emission scandal using two frameworks. Utilitarianism approach: Utilitarianism assesses actions based on their outcomes (Stanford encyclopedia of philosophy, 2009). In this case Volkswagens actions had effects on the environment, health, and consumer trust. From a perspective manipulating emission tests was deemed unethical because it prioritized short term profits, for the company at the expense of causing harm to society. Deontological ethics, which is often linked to principles and obligations centers, on determining whether actions are inherently right or wrong regardless of their outcomes (Ethics Unwrapped, 2022). In the case of Volkswagens actions they were deemed unethical from a standpoint as they violated ethical principles such as honesty, transparency and compliance with regulations. This breach, in values is what makes the emissions manipulation morally wrong.

Discuss and evaluate your Position regarding the Ethical Dilemma I strongly believe that the actions taken by Volkswagen during the emissions scandal were completely unethical. Not only did Volkswagen intentionally manipulate emissions tests, they also disregarded important ethical principles, like honesty and transparency (Francis, 2022). Their focus on short term gains at the expense of long-term sustainability had consequences for the environment and public health. As a result their reputation has been irreparably. Trust in the company has plummeted.

Develop a Plan and Review Systems to ensure Ethical Decisions are made when facing similar Dilemmas To establish a plan for making decisions in similar situations organizations can consider implementing the steps;

  1. Continuous Ethical Training; Offer ongoing ethics training to employees so that they have an understanding of the organizations principles and comprehend the potential repercussions of unethical conduct.
  2. Ethics Committees; Establish committees or review boards dedicated to assessing dilemmas and providing guidance on making ethical decisions.
  3. Whistleblower Protection; Develop policies that protect whistleblowers encouraging employees to report behavior without fear of retaliation.
  4. Accountability; Foster transparency throughout decision making processes while holding individuals and departments accountable for any breaches in ethics.
  5. Regular Ethics Audits; Conduct audits to evaluate an organizations compliance, with standards identifying areas for improvement where necessary.

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  • Posted on : October 04th, 2023
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