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In: Operations Management

There was always a strong suspicion that the Volkswagen emissions-cheating scandal went all the way to...

There was always a strong suspicion that the Volkswagen emissions-cheating scandal went all the way to the top. Now it’s clear that the US Department of Justice believes that to be true.

“The indictment unsealed today alleges that Volkswagen’s scheme to cheat its legal requirements went all the way to the top of the company,” U.S. Attorney General Jeff Sessions said.

The indictment alleges that Mr. Winterkorn was informed by employees of the company’s intentions to defraud U.S. regulators by cheating on diesel emissions tests in May 2014 and July 2015, but agreed with other senior VW executives to continue the efforts.

Mr. Winterkorn faces up to five years in prison and a $250,000 fine for the conspiracy count and up to 20 years jail time and a $25,000 fine for each of the three counts of wire fraud, according to the government.

Q1. Discuss why ethics are much important in this case.

Q2. Explain the ethics to be followed in marketing after Volkswagen scandal case.

Q3. Describe in detail the modern ethical models for decision making to solve Volkswagen issue.

Q4. Apply the characteristics that make a business decision ethical.

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