Module 1 - Ethics Activity Discussion
Discussion Instructions
To complete this discussion, you must make an initial post responding to the ethical dilemma questions. Please address all the questions in full and cite your sources. Secondly, you must respond to another student's post in which you further the discussion. Start by reflecting on the original post. You may ask further questions, comment on the strength of their reply, address information that is missing, or provide examples that correspond with the topic. Agreement with the initial response is not required, but responses should reflect be supported with analogies, examples, research, or content from the text. All students should respectful of differences of opinions.
Ethics Dilemma
Historically, diesel cars have not been big sellers in the U.S. auto market, mainly because their engines couldn’t pass the strict emissions standards set up by the Environmental Protection Agency and the California Air Resources Board. But that all changed in 2005, when German automaker Volkswagen made a decided push to develop “clean diesel” engines, specifically manufactured to meet strict U.S. emissions standards.
By 2010, VW had introduced several models of diesel cars in the United States, and their sales helped propel Volkswagen to the number-two slot in global auto sales, after Toyota and ahead of GM. While VW was receiving major media attention for its clean diesel models, researchers from West Virginia University discovered that these so-called clean engines had been constructed with a “defeat device”—software that could actually tell when the car was being tested off road for emissions and lower the level of emissions that harm the environment.
By December 2014, Volkswagen agreed to voluntarily recall more than a half-million clean diesel cars in the United States to address the emissions issues. But the scandal continued to escalate, with accusations that senior management knew about the rigged engines, and VW’s CEO resigned and several other executives were fired.
Class-action lawsuits and other litigation followed, and in April 2017, VW agreed to a $4.3 billion settlement, which included a criminal fine of $2.8 billion, as well as various buyback plans for the affected diesel cars. In addition, over the last several years, VW has experienced a significant decline in U.S. sales and is now trying to win back customers.
Using an online search tool, locate information about this topic, and then write responses to
the following questions.
Ethical Dilemma: How can VW ensure that its diesel cars now comply with U.S. emissions standards? What can VW do to regain consumers’ confidence after this worldwide scandal? Do you agree with the billions of dollars in fines that VW will have to pay to move beyond the emissions debacle?
Related Chapter Outcomes and Course Goals:
This forum addresses the following chapter outcomes:- How do businesses and not-for-profit organizations help create our standard of living?
- What are the sectors of the business environment, and how do changes in them influence business decisions?
- What are the basic microeconomic concepts of demand and supply, and how do they establish prices?
- Which trends are reshaping the business, microeconomic, and macroeconomic environments and competitive arena?
- Identify the basic components of the marketing mix: Product, Place, Price, and Promotion.
- Demonstrate an understanding of the forces that shape the business and economic structure of the United States of America in a global marketplace and compare it to other economic systems.
- Describe the ethical, regulatory, and social environments of business.
Grade Value and Rubric
- This discussion activity is worth 15 points.
- The course discussion rubric is applied to this discussion