Document Type
Article
Publication Date
Fall 12-9-2024
Abstract
This essay examines the ethical implications of the automobile manufacturer Volkswagen Group and the 2015 scandal known as Dieselgate they were involved with. This scandal involved the use of defeat devices to manipulate emissions test in over half a million Volkswagen vehicles and the following cover-up that ensued. The scandal highlights a critical failure of Corporate Social Responsibility (CSR) as Volkswagen prioritized short-term profits over ethical transparency and environmental accountability. Using Stakeholder Theory, Utilitarianism, and Corporate Social Responsibility as the theoretical frameworks, this essay argues that the actions of Volkswagen disregarded the interest of stakeholders, contributed to environmental harm, and undermined consumer trust. This essay also looks at opposing viewpoints such as Milton Friedman's shareholder theory, which emphasizes profit maximization as the primary responsibility of a business and argues that regulatory frameworks alone ensure ethical compliance. These counterarguments are refuted, demonstrating that ethical practices and Corporate Social Responsibility are not only moral imperatives but also key to fostering long-term environmental and financial sustainability, as well as brand loyalty.
Course Level
BUMG 3100: Business Ethics
Advisor
Claudia Hanrahan, PhD
Recommended Citation
Lauder, Reece and Coe, Dillyn, "An Ethical Examination: Dieselgate" (2024). Business Ethics. 10.
https://digitalcommons.shawnee.edu/business_ethics_3100/10