Reference no: EM133619156

Assignment:

Many local and global corporate scandals can be traced back to corporate governance failings. An example of this is the Volkswagen emissions scandal. In this small group discussion, you will explore this case study and conduct your own research to identify how neglecting components of the triple bottom line resulted in the subsequent scandal.

The Volkswagen emissions scandal

In 2015, Volkswagen diesel cars were discovered to have special devices that detected when the vehicles were undergoing regulatory tests. These "defeat devices" allowed the carmaker to cheat the emissions tests by altering the performance of the car while it was undergoing testing, and thereby pass regulatory requirements.

John Armour, professor of law and finance at the University of Oxford, wrote a two-part blog that draws lessons for corporate governance from the Volkswagen emissions scandal. The first part of the blog focuses on how the scandal challenges corporate governance, and the second part comments on the implications for corporate governance.

Once you have read through the resources provided, conduct some research of your own on the scandal. Then, discuss and debate your answers to the following questions with your peers in this small group discussion forum:

Which element of the triple bottom line do you believe was most neglected by Volkswagen?

In what way did corporate governance failures contribute to the scandal?