Volkswagen Emission Scandal

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Business ethics refers to a kind of social responsibility of the enterprise in the scope of morality for each level of object.Corporate social responsibility is even more significant in the automobile industry, which has huge interests.
Volkswagen(VW), the world's largest automobile maker, has used "cheating" software to detect emissions in the United States as its biggest scandal in its 78-year history, facing tremendous fines and criminal investigations. Relative to gasoline vehicles, diesel exhaust often contains large amounts of nitrogen oxides. In order to meet the stringent environmental standards of the United States, in addition to installing diesel particulate filters, diesel vehicles often use urea injection to reduce toxic nitrogen
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Qatar is one of Volkswagen's largest shareholders, with a stake of $17%. Nearly $5 billion has been lost.And what's more, it's not just in the United States that the emissions scandal is happening. There are about 11 million Volkswagen cars. As a result, the economic pressures that Volkswagen ultimately has to bear are incalculable.

Like that sandal , Volkswagen emission scandal’s solution should include three parts. The first part involves financial compensation to consumers and pay the fine to the government. Indeed, Volkswagen had reached a wide range of framework agreements with U.S. regulators, including buying back troubled cars and compensating U.S. consumers. Volkswagen did not disclose the cost or details of the deal today.
Consequently, the second part should be recall those vehicles that were unqualified of the emission standards and repair those cars to meet the acceptable emission range. VW is expected to buy back 480,000 diesel cars equipped with emissions test cheating from U.S. users. If added to the additional fines and compensation, VW will face losses totalling more than $6
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According to the research conducted by our group, we surprisingly found out that the vast majority of the corporations abiding by the professional ethics are sharing one thing in common: an outstanding managerial mechanism. Considering the management, managers play significant roles shaping corporate values, strengthening the social responsibility and the reputations upon which their companies’ success depends. “Managers who fail to provide proper leadership and to institute systems that facilitate ethical conduct share responsibility with those who conceive, execute, and knowingly benefit from corporate misdeeds.” Claimed by Lynn S. Paine, a professor in Harvard Business school. In the process of implementing ethical standards, managers are required to come up with managerial strategies bolstering employees’ sympathies with moral thoughts, which intangibly transform the burdensome liability to abide by the rules into the corporate

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