Reference no: EM133022151

Case Study: Volkswagen Emissions Scandal: Who is in the driving seat of ethical decision making?

This case examines the 2015 Volkswagen emissions scandal where the company fitted many of their vehicles with software designed to cheat emissions testing. Furthermore, the case covers how the scandal came to light and the subsequent unveiling of steps taken to mask the scandal by certain individuals employed by the company.

Note: This activity will be done in groups. Each member has to contribute in the activity and non participation would result in zero marks for the students.

1. Outline the points of the scandal. What role could issues regarding moral intensity have played in the decision making that led to the scandal?

2. Analyze, using Rest's four stage model of ethical decision making, at what stage VW deviated from the model in its decision-making process regarding the attempted cover up.

3. What context related factors could have influenced executives and engineers at VW not to whistle blow on the fraudulent activities?

4. Do you think that VW's senior management handled the scandal well? Could earlier admission of fraudulent activities have reduced the negative impact on the firm?

5. How could VW seek to improve their approach to ethics management in the future? Can claims that the firm has so quickly changed its culture stand up to scrutiny?