Question

Research any TWO corporate cases that involve unethical behavior and/or corporate scandal(s) …..Why are such scandals so common today if they are? What appropriate measures would you take to eradicate this unethical misbehavior or corporate cancer? Be specific and test their applicability.

Assignment: #2B

Wear a corporate CEO’s big hat today:

Does this hat make you feel any different if anything? (1 page response) Incorporate this chapter subject matter in your response

Answer 1

Volkswagen Emission Scandal

Volkswagen is one of the biggest brand in United States of America having more than 70% market share of diesel cars. Volkswagen cheated with the diesel emission test reports by promoting their cars as safe in the society. Company is always project in the clean diesel ideology and even had a march in Washington with some of its premium car's diesel models.
Volkswagen installed emission software in their cars which prevented the environmental protection agency to detect the correct emission level of the car. When the environmental protection agency arranges the test the cars start behaving according to the guidelines. But as the car starts to run on the normal way, the computer inside the cars which is the car to a normal mode which emits much more toxic emissions then when it was being checked. Volkswagen is cheated on the federal company by installing the software for analysing the pattern of the Federal agency to predict and provide a wrongly modified software for lowering emission at the time of tests.
By having the scandal Volkswagen has been facing a grade A post from the customers in the US industry. By misleading the customer and providing false report, volkswagen has been in life for doing unethical business and being and loyal to the Employees as well as the customers. This the specific scandal band Volkswagen to self other more cars in United States of America inform factor of diesel cars. This is specific ban reduce the overall sales of Volkswagen into the specific market and what are the main reasons for the loss happening for the Volkswagen.
Company is not allowed to sell the diesel variants of car later than the 2015 in United States of America. They are also asked to roll back all the cars and provide replacement or 6 to the pre existing cars in the market for the customers. Volkswagen has also plan to introduce a 10 million buyback program in which the cars are bought back and money is given out to the customer.
This ethical dilemma of Volkswagen created a buzz in the market and also deprived the image of volkswagen in car industry. As this scandal was done at a large scale, it has affected the companies in a bus way and volkswagen is banned for selling vehicles related to the diesel engines in the United States of America.

Fanny Mae financial scandal

Fannie Mae has been charged with 400 million dollars to fraud there investors by manipulating the accounts resulting capture of million dollars in form of the undeserved bonuses.
It has been a very big scandal involving huge amount of money such as $11 billion. SEC put on penalty of 400 million dollars against Fannie Mae in specific settlement over the very well known accounting manipulation.

For better detection of the specific fraud I would have done an intensive approach of the top down structure of the company. While having assessment of the different structural analysis as well as having electronic data management system which can be analysed plea for observing any kind of destructions into the company would have been my choice for early detection of the specific scandal. By having multiple financial analysis and also having a specific team to analyse the situation as well as having a find eye on the investment from the company would also have been my main motive to create more ethical working environment without any standard.
By implementing new accounting methods and implementing the new risk management strategies would also have been my main concern. Be specific technological advancements as well as implementation of newer strategies into the organisation would have directly helped me too early detect this is specific scandal and to overcome the situation.
While having intense Research and analysis over the financial structure of the company, I would have directly increase the level of implementation of risk management strategies as well as analysis strategies which would have been reduced or stopped the specific situation.