BUSM3199: Identified Ethical Issues and Theories All Kai Jun Emphasis on the Main Issue : Ethics and Governance Assignment,, Singapore

Identified Ethical Issues and Theories (All) –

(Kai Jun) Emphasis on the main issue (All problems lead back to the reason: centralization) Kantianism and Utilitarianism, Deontology or virtue ethics is fine. Not limited to Kantianism and Utilitarianism

1. What factors led Volkswagen’s managers to make the decision to try to cheat environmental tests via a “defeat device?” Explain how each of the following concepts was apparent in this decision: ethical fading, framing, bounded ethicality, bounded rationality, obedience to authority, and conformity bias.

2. When the software-based defeat device was first used by Volkswagen in 2008, why do you think those involved decided to use the defeat device?

3. How did Volkswagen frame its goals? Do you think ethical considerations were in the managers’ frame of reference? Why or why not?

4. Did the fact that its profit goals seemed immediate and concrete while the victims of pollution seemed very distant impact the decision-making of the company’s employees? Explain.

5. This was obviously an unethical strategy by Volkswagen. In retrospect, do you think it wise on financial grounds? Explain.

6. Engineers at Volkswagen complained that environmental standards were becoming impossibly strict. In what ways did emissions tests and regulation standards encourage automobile companies to game the system when testing their vehicles? How might these factors lead companies’ ethical frameworks to fade from view?

7. It has been suggested that engineers often focus their attention on solving problems (such as how to build a defeat device and not get caught), and do not pay attention to the ethical particulars of a situation. Do you think that was the case here? Do you think that it is the case generally? Why or why not? What behavioral biases or situational factors may have impacted the engineers’ involvement in developing the defeat device?

8. Are individuals more likely to cheat or engage in other wrongdoing if they think others are doing so? Why or why not?

9. At a minimum, scores of Volkswagen employees knew of the defeat devices. Why might none of them come forward? What was wrong with the company’s culture that no employee felt safe to blow the whistle? How can a company create a culture that would encourage employees to step forward to stop wrongdoing?

10. How might automobile companies guard against ethical fading? How might regulate bodies like the EPA support protections against incentive gaming?

11. Would know that Volkswagen cheated on the emissions testing affect your decision to purchase one of their vehicles? Why or why not? How could a brand regain trust with consumers? Explain. The adding on top of business ethics is an important component in the decision-making process, as ethical practices are a must in current society.

The 2 case studies will outline the ethical dilemmas of Volkswagen’s diesel scandal further exploring the impact amongst Stakeholders and the failure of ethical compliance, from the business ethics perspective.