Question

Scenario or Tasks

In September of 2010 a scandal of major and dramatic proportions engulfed the Global automaker, Ambassador (Environmental Protection Agency, News Releases from Headquarters, 2011).

On September 18, 2010, the Environmental Protection Agency (EPA) issued a Notice of Violation of the Clean Air Act alleging that the company in its model year 2005-2006 Ambassador and diesel cars had software designed to circumvent EPA emissions standards for nitrogen oxides (Environmental Protection Agency, Ambassador Violations, 2011). The software is defined in the Clean Air Act as a “defeat device” (Environmental Protection Agency, Ambassador Violations, 2011). Then on November 2, 2010, the EPA issued a second notice of violation to Ambassador including Ambassador Diesel vehicles as well as vehicles with larger engines than in the first notice (Environmental Protection Agency, Ambassador Violations, 2011). And on January 4, 2011, the Department of Justice filed a complaint on behalf of the EPA against Ambassador for alleged violations of the Clean Air Act (Environmental Protection Agency, Ambassador Violations, 2011). The complaint, it must be noted, is a civil one; and as such the agency is asking for civil penalties and an injunction (Environmental Protection Agency, News Releases from Headquarters, 2011).

The Problem

• The software inside several Ambassador models was modified

• The computer was able to sense when the car was being tested

• During testing the car reduced emissions below the legal limit

• While driving regularly the car saved fuel but increased emissions

• The original estimate showed 10,000 cars sold since 2009 in the United States

• Over 11 million cars are speculated to have ​this software

How the System Works

• Nitrous Oxide is trapped

• The trap takes fuel to work

• In an effort to save fuel or increase torque and acceleration, the trap was disregarded and not run

• Released way over the legal limit

Discovery

• A Western researcher was testing 2 Ambassador models with the the 2-liter turbocharged 4-cylinder diesel engine

• In urban traffic, emissions are supposed to be high

• Driving on the highway, the Ambassador Models emissions did not go down.

• When on a car treadmill, the emissions were fine

Ethical Protagonist

• Mart Wink, Chief Executive, resigned as a direct result of the scandal. However, he denies any involvement in the issue.

• Wink was replaced by Matt Mueller the former boss of Ambassador Diesel

• Due to widespread scope of issue in the United States and the United Kingdom, corporate must have been involved in some way.

• Two Engineers Responsible: Rich Hacken and Wolf Hat

• Hacken was one of its competitors Chief Engineers.

• Hatz was the developer of formula 1 and racing engines.

• They were two of the engineers suspended in the investigation of the scandal.

You are required to

1. Differentiate between the Ethics of Duty and the Ethics of Virtue? With reference to the above case?​   

2. State and explain the fundamental Canons or principles the management (engineers) hold toward their profession?​   

3. Differentiate between Accounting point of view and ethical point of view with reference to decision model in the above stated situation?​ ​

4. Discuss what actions should be taken against Ambassador?​

5. Elabórate and substantiate due to what happened in the Ambassador case, should other companies face investigations as well?​ ​

6. Differentiate between professional obligations, moral obligations and ethical obligations the managers as well as management will have toward their organisation?​   

7. Identify and discuss the types of ethical theories utilitarianism and deontological ethics with reference to above case.​

8. Critically evaluate the importance of code of ethics to be in one profession and how best it can be integrated with the fundamental principles of ethics.

Answer 1

Answer 1:- Difference between the Ethics of Duty and the Ethics of Virtue are as follows:-

Duty ethics (deontology) is about following the rules laid down by external sources (be it a human society or a divine commander).

Virtue ethics is about internal guidance – following one’s conscience to do the right thing.

this is the difference between doing good vs being good

• What kind of ethics do you follow: rules or conscience?
• What kind of ethics do you think is more effective for a society?
• What kind of ethics do you think is more effective for making us better persons?

its is the ethical duty of Ambassador to investigate th matter i unbaised manner, the Ambassador shall have to change the assitance of software company if required. and the ethical virtue is that Ambassador shall adhrere the norms of Clean Air Act as a “defeat device” (Environmental Protection Agency, Ambassador Violations, 2011.

Answer 2:-

Fundamental Canons or principles the management (engineers) are as follows:-

Engineering is an important and learned profession. As members of this profession, engineers are expected to exhibit the highest standards of honesty and integrity. Engineering has a direct and vital impact on the quality of life for all people. Accordingly, the services provided by engineers require honesty, impartiality, fairness, and equity, and must be dedicated to the protection of the public health, safety, and welfare. Engineers must perform under a standard of professional behavior that requires adherence to the highest principles of ethical conduct.

Engineers, in the fulfillment of their professional duties, shall:

1. Hold paramount the safety, health, and welfare of the public.
2. Perform services only in areas of their competence.
3. Issue public statements only in an objective and truthful manner.
4. Act for each employer or client as faithful agents or trustees.
5. Avoid deceptive acts.
6. Conduct themselves honorably, responsibly, ethically, and lawfully so as to enhance the honor, reputation, and usefulness of the profession.

Answer 3:-

Most of those who write about ethics do not make a clear distinction between ethics and morality. The question of what is “right” or “morally correct” or “ethically correct” or “morally desirable” in any situation is variously phrased, but all of the words and phrases are after the same thing: what act is “better” in a moral or ethical sense than some other act? People sometimes speak of morality as something personal but view ethics as having wider social implications. Others see morality as the subject of a field of study, that field being ethics. Ethics would be morality as applied to any number of subjects, including journalistic ethics, business ethics, or the ethics of professionals such as doctors, attorneys, and accountants. We will venture a definition of ethics, but for our purposes, ethics and morality will be used as equivalent terms.

The usual answer is that good ethics is good business. In the long run, businesses that pay attention to ethics do better; they are viewed more favorably by customers. But this is a difficult claim to measure scientifically, because “the long run” is an indistinct period of time and because there are as yet no generally accepted criteria by which ethical excellence can be measured. In addition, life is still lived in the short run, and there are many occasions when something short of perfect conduct is a lot more profitable.

The company shall have to maintain the balance between the accounting point of view and ethical point of view , The ambassador has not be more think about the profitable but the company has to focus on the ethical point of view which creates a value the market and it helps to maintain more goodwill as compared to their competitors

Answer 4:-

Heavy penalty shall be imposed against ambassador if the offence has been proof.The matter shall be investigate in an unbiased manner if required the help of third party shall be takenAfter this time ambassador has been found guilty the licence of making cars and designs shall be cancelled. They will not operate in United States and United Kingdom.

Answer 5:-

Other companies also face investigation if anyf complaint made by any any person or government shall take suo Moto action against other companies ambassador will become an example for other companies that other company shall also liable for investigation if the matter is reported And the matter will not be tolerated at any cost heavy penalty shall be imposed and they have to contribute to work corporate social responsibility , they have to follow the principle of sustainable development.

Answer 6:-

Difference between professional obligations, moral obligations and ethical obligations the managers as well as management are as follows:-

Obligations of Employers,An employer's obligations are often tied to legal responsibilities. For example, an employer must implement health and safety measures in the workplace in accordance with local, state and federal laws as well as industry standards. Emergency exits should be easily accessible.

Obligations of an Employee,An employee is legally bound to fulfill his end of contractual obligations to a business. If he signs a contract to work for a certain number of years, for example, he is obligated to fulfill the terms of the contract. If he signs a contract preventing him from sharing company secrets or intellectual property with others outside the company, he must uphold that obligation as well. He is also obligated to perform his job without breaking laws. An employer has a right to institute legal proceedings when his employee violates his legal obligations.

Obligations of manager, In a broad construction of the ethical role of the manager, managing and leading can be said to be inherently ethics-laden tasks because every managerial decision affects either people or the natural environment in some way—and those effects or impacts need to be taken into consideration as decisions are made. A narrower construction of the ethical role of the manager is that managers should serve only the interests of the shareholder; that is, their sole ethical task is to meet the fiduciary obligation to maximize shareholder wealth that is embedded in the law, predominantly that of the United States, although this point of view is increasingly accepted in other parts of the world. Even in this narrow view, however, although not always recognized explicitly, ethics are at the core of management practice.

Answer 7:-

In the notion of consequences the utilitarian includes all of the good and bad produced by the act, whether arising after the act has been performed or during its performance. If the difference in the consequences of alternative acts is not great, some utilitarians do not regard the choice between them as a moral issue.

types of ethical theories utilitarianism are as follows:-

Bentham's Principle of Utility: (1) Recognizes the fundamental role of pain and pleasure in human life, (2) approves or disapproves of an action on the basis of the amount of pain or pleasure brought about i.e, consequences, (3) equates good with pleasure and evil with pain, and (4) asserts that pleasure and pain are capable of quantification (and hence 'measure').

John Stuart Mill adjusted the more hedonistic tendencies in Bentham's philosophy by emphasizing (1) It is not the quantity of pleasure, but the quality of happiness that is central to utilitarianism, (2) the calculus is unreasonable -- qualities cannot be quantified (there is a distinction between 'higher' and 'lower' pleasures), and (3) utilitarianism refers to "the Greatest Happiness Principle" -- it seeks to promote the capability of achieving happiness (higher pleasures) for the most amount of people (this is its "extent")

answer 8:-

Importance of code of ethics to be in one profession, A code of ethics is important because it clearly lays out the rules for behavior and provides the groundwork for a preemptive warning.Regardless of size, businesses count on their management staff to set a standard of ethical conduct for other employees to follow.

Professional values form the basis for the principles that are included in a code of ethics. Professional values for include the importance of education and technical competency, patient safety, data validity and accuracy, truthfulness, compassion, and dedication to providing quality services in professional roles. Decision-making criteria for work decisions can include technological feasibility, reasonable cost, legality, available personnel expertise, standards of care, and organizational goals. The ethical decision is what should be done (the best action), given the competing interests, obligations, and values of others involved in making the decision. This criterion requires the professional to consider values that are beyond the personal and to take into account the values and perspectives of others who are involved.