Question

How could these ethical violations of impact strategic leaders such as managers, CEO’s and other stakeholders.

A. Volkwagens Diesel Emissions Control Scandal

B. samsung bribery scandal of 2017

C. Toshiba accounting scandal

Answer 1

Ethical violations of an organization strongly impact the strategic leaders, CEO, and stakeholders of other organizations. The companies become confused about the legal perspectives of policymaking strategies and ethical aspects of organizational decision-making.

Volkswagen scandal

The Volkswagen scandal is also considered the Dieselgate scandal or the Emissiongate scandal strongly impacted the strategic leaders and CEOs. The company failed to maintain alignment with the USA's environmental policies, which resulted in issuing notice from the United States Environment Protection agencies. The company violated the carbon emission standard of the USA. It did not comply with the California air resources board, which has kept a long term impact.

Impacts on other strategic leaders are as follows:

· The strategic leaders and CEO started revising their environmental policies.

· CEOs and stakeholders of automobile companies started planning to reduce carbon emission from their cars.

· Some strategic leaders quickly called the legal bodies of their companies to have a quick discussion on environmental protection acts and ways to reduce environmental pollution.

Samsung's scandal in 2017

The scandal was raised on the chairman of Samsung electronics, where the chairman was arrested for corruption charges and South Korea's contemporary president Park Geun-Hye. He was accused of paying $37.7 million to two different non-profit organizations on behalf of the president in exchange for supporting the presidential candidate. The court brought ethical charges on Samsung's chairman that shook the entire corporate fraternity.

The impacts are mentioned below:

· Most of the strategic leaders of companies started taking stricter action against any kinds of bribery

· CEOs, stakeholders, and diplomatic leaders choose to analyze political factors before entering into any new market

· Strategic leaders and stakeholders planned to implement more reliable, and stricter ethical policy after the incident

C. Toshiba's accounting scandals

Toshiba faced an inappropriate accounting scandal. Independent accounting practitioners found that there was malpractice in accounting standards and accounting misconduct for what the company was convicted, which was a great lesson for other strategic leaders, CEOs, and stakeholders.

Impacts are described below:

· Companies started focusing more on regular financial audits.

· Strategic leaders and CEOs started keeping records of every transactional detail.

· CEOs and strategic leaders started distributing similar and accurate financial statements to all stakeholders to maintain accounting transparency.