Question

VW Emission Scandal

What moral implications exist in Volkswagen’s advertising policies and behaviors? Fully respond.

Answer 1

In 2015 the United States Environmental Protection Agency found that Volkswagen cars in USV had a turbocharged direct injection (TDI) diesel engine to control emission only during laboratory testing. This enabled them to control the emission of nitrogen oxides up to the desired level/standard level set up by US authorities. While in reality the cars emitted 40 times more nitrogen oxides into the atmosphere causing greater pollution. The company , violating the rules set up this programming software in around eleven million cars world wide. This scam is also known as emission gate

As the result of this news, the Volkswagen company’s share value fall down in the stock market and their higher officials resigned taking up the responsibility. In 2016 they introduced a 18.32 million dollar plan to correct the emission errors. In 2017 US federal court ordered them to pay 2.8 million dollar as penalty for cheating the US regulatory authorities. This incident leads to the discussion of software-controlled machinery and the probability of fraud in that case .

This incident affected the reputation and good will of the company and their loyal consumers. This also badly affected the credibility of professionals, engineers especially software engineers. The companies decision of using this particular software was considered as unethical since it conflicts the interest of consumers, stock holders and the environment. Consumers have the right to know the quality of the products available in the market.

These unethical aspects in decision making will pave the way for scams and financial implications. This irrecoverably damaged the company’s reputation in the public and they had to recall the defeat device mechanism from the market. This gradually decreased the share price. The company had to announce the review of all its brands and models. They advertised in media in order to regain their reputation and consumer confidence. They had to offer free engines upgrades for the cheated consumers. Later the company offered compensation of 1000 US dollar for their US consumers. They expanded this compensation programme in Canada also. Volkswagen also created a fund which offer full compensation to the 6000000 customers in United States. In an ethical perspective the company’s action is unethical and cannot justify. After this infamous incident the other automobile companies including Volkswagen are quite scare of doing illegal practices. They drastically cut down its production and suspended their workers. Consumers became more aware of the automobile fraud and keep an eye on their advertisements and policies

In 2015 the United States Environmental Protection Agency found that Volkswagen cars in USV had a turbocharged direct injection (TDI) diesel engine to control emission only during laboratory testing. This enabled them to control the emission of nitrogen oxides up to the desired level/standard level set up by US authorities. While in reality the cars emitted 40 times more nitrogen oxides into the atmosphere causing greater pollution. The company , violating the rules set up this programming software in around eleven million cars world wide. This scam is also known as emission gate

As the result of this news, the Volkswagen company’s share value fall down in the stock market and their higher officials resigned taking up the responsibility. In 2016 they introduced a 18.32 million dollar plan to correct the emission errors. In 2017 US federal court ordered them to pay 2.8 million dollar as penalty for cheating the US regulatory authorities. This incident leads to the discussion of software-controlled machinery and the probability of fraud in that case .

This incident affected the reputation and good will of the company and their loyal consumers. This also badly affected the credibility of professionals, engineers especially software engineers. The companies decision of using this particular software was considered as unethical since it conflicts the interest of consumers, stock holders and the environment. Consumers have the right to know the quality of the products available in the market.

These unethical aspects in decision making will pave the way for scams and financial implications. This irrecoverably damaged the company’s reputation in the public and they had to recall the defeat device mechanism from the market. This gradually decreased the share price. The company had to announce the review of all its brands and models. They advertised in media in order to regain their reputation and consumer confidence. They had to offer free engines upgrades for the cheated consumers. Later the company offered compensation of 1000 US dollar for their US consumers. They expanded this compensation programme in Canada also. Volkswagen also created a fund which offer full compensation to the 6000000 customers in United States. In an ethical perspective the company’s action is unethical and cannot justify. After this infamous incident the other automobile companies including Volkswagen are quite scare of doing illegal practices. They drastically cut down its production and suspended their workers. Consumers became more aware of the automobile fraud and keep an eye on their advertisements and policies