Failure of Ethical Compliance: The Case of Volkswagen

Abstract

Violation of business ethics due to environmental mitigation pressures is frequently observed in the automobile industry. Accordingly, this case analyzes the ethical implications of the 2015 Volkswagen emissions scandal in the United States (U.S.). The review of Volkswagen is fitting purely because of the extent and notoriety of the controversy. The case established business ethics in global agenda and public consciousness, having serious implications on how major corporations are run. Volkswagen faces two allegations: air pollution and cheating on emissions tests. This case focuses on the corporate fraud in the American market. Kantian ethics and Utilitarianism will be used to argue that Volkswagen’s rigging of emissions tests was unethical behaviour on a massive scale. The assumptions and limitations of the theories are explored, followed by a discussion and conclusion.