A Case Study of Volkswagen Unethical Practice in Diesel Emission Test

Abstract

By end of 2015, automotive industry was shocked by an unethical action of Volkswagen which is one of the noticeable market players amongst automakers. Since October 2015 this case has been under investigation by various authorities. The investigators have managed to find out significant factors leading to this emission scandal. Volkswagen deceptive scandal has resulted in a series of overwhelming devastating consequences on direct and indirect stakeholders of Volkswagen. Since this case is still ongoing, the judge has not succeeded to finalize the case and deliver Volkswagen penalties. In this case, the participants and primary reasons of this rigging in diesel emission test are identified in line with previous studies. Moreover, the critical impacts of such deception on Volkswagen stakeholders are explained in details. The proposals which are given to the judge to consider an appropriate deal to Volkswagen are discussed in details. Last but not least, in order to prevent such scandal to take place in the future, recommendations are provided.