Running head: THE VOLKSWAGEN SCANDAL

Thelma Landeros
Artifact Paper: The Volkswagen Scandal
Behavior Ethic Leadership I 3322-BY1
Instructor: Rebecca Lynch
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ABSTRACT
The article mentions how a car manufacture made an unethical decision by using “defeat

devices” which altered the environment with pollution, affecting the people and the employees.

Changes should be made as a Chief Executive Officer (CEO) by using transformational

leadership and focusing on making ethical decisions in the corporation.

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Volkswagen and Audi vehicles sold between 2009 and 2015 exceeded by 40 times the

official limit of nitrogen oxides. An apology was given by the Board of Management at

Volkswagen AG, but several lawsuits were filed against Volkswagen to recall or for a free

vehicle replacement (Krall & Peng, 2015). One should assist in transforming the organization by

taking actions that will reflect collective values, focusing on the codes of ethics, and discussing

conflicts of interest. Therefore, directors or members of management should make ethical

decisions in the interest of the organization and community.

To start, one should be prepared to acknowledge the problem of the “defeat devices”

following with an apology to the employees and customers of the business. Writing a list of the

best opportunities to apply for the company, one can conclude that when dealing with ethical

dilemmas it is impossible to avoid consequence. What that means is that my decision would

produce good and bad consequences. Either way, the company would lose money, affect

employees, and credibility. The key when dealing with complex decisions, like ethical dilemmas,

is maximizing the potential positive consequences (Johnson, 2016, pp. 244-245).

Resolving the conflict by recalling the old devices and implementing new ones would be

eco-friendly so they can pass the emission test required by the US Environmental Protection

Agency (EPA) (Krall & Peng, 2015). Someone could use Corporate Social Responsibility (CSR)

to reestablish Volkswagens creditability, which keeps the organization working smoothly and

efficiently, including the welfare of society (Johnson, 2016). As an example, the CSR pyramid

contains the economic responsibilities form the foundation of the pyramid. The Volkswagen

industry has a responsibility to be profitable for employees and investors. Also, the legal

responsibilities would include to follow environmental regulations such as the EPA. Moving

towards ethical values and the standards of society would be the result of ethical responsibilities.
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Finally, the Philanthropic responsibilities would be for the company to contribute to the

community through donating goods and services or partnering with nonprofits. I thought of

having the top students of the community participating in a raffle to obtain a new car and other

prices for the rest of the participants.

The four domains of the CSR would assist in the impact in transforming the company.

They include human resources in offering training opportunities (the new program will assist in

making ethical decisions for the company), community, cultural, and societal involvement and

philanthropy to obey laws and regulations (even if they are costly), environmental protection,

waste reduction, and sustainability (eliminating waste such as the “defeat devices”) and finally

product, consumer, and service contributions and protections (making responsible decisions in

environmental impact of products by not using products that would affect the ecosystem

(Johnson, 2016).

Also, I would use the Transformational Leadership approach to inspire and to reach the

employees full potential. I would recognize the labor and obedience of my staff with incentives

such as increasing payroll, providing optional benefits plans and keeping the work environment

with honesty, fairness and responsibility (Johnson, 2016). Keeping associates engaged is key in

their performing standards and job satisfaction.

Transformational leaders engage in sharing risks with followers. So I would inform the

employees of how my decision would affect the company, since losing credibility is also losing

customers, which equals no sales and no employment. Choosing the ethical decision in the best

interest of the corporation, employees and community would set standards. I would take

individualized consideration encouraging staff development, opportunities, and foster creativity

by not criticizing mistakes or new approaches.

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References

Johnson, C. E. (2016). Organizational Ethics A Practical Approach. Thousand Oaks, California:

Sage Publications, Inc.
Johnson, C. E. (2016). Organizational Ethics A Practical Approach. Thousand Oaks, California:
Sage Publications, Inc.
Krall, J. R., & Peng, R. D. (2015). The Volkswagen scandal: Deception, driving and deaths.
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