Kathlene R.

Adaya
A1C

Volkswagen Emissions Scandal

Volkswagen Emissions Scandal also called Dieselgate or Emissionsgate, is about how
Volkswagen deceived its customers in terms of promoting that their vehicles emit pollution less
than what they emit. It is only known that VW cheats in diesel emission tests when the United
States Environmental Protection Agency (EPA) issued to VW a notice of violation of the Clean
Air Act to German automaker Volkswagen Group. Moreover, VW has a device or software put in
diesel engines that detect if the vehicles are being tested which changes the performance of the
vehicle in accordance with improved results. The said action was found out by the agency to be
intentionally made to activate the vehicle's emission controls only during laboratory emission
testing that causes the VW to meet the US standards. What makes it worse is when a clean
energy group discovered the fraud and the VW denied the accusations then admitting what they
done in more than a year. Thus, the scandal happened because the VW’s company has been
cheating in the emissions test that breaks the ethical and legal behavior that is required in a
company.
https://www.bbc.com/news/business-34324772
https://www.researchgate.net/publication/303797234_A_Case_Study_of_Volkswagen_Unethica
l_Practice_in_Diesel_Emission_Test

Toshiba Accounting Scandal

Toshiba Accounting Scandal is about the company's accounting improprieties that had
not been known to have taken place over the past seven years. The scandal began to emerge
when a report exposing the improper accounting of the company in detail was released by an
independent investigative panel. This scandal involves two former CEOs of the company
besides Tanaka. Moreover, it was also revealed in the report that the CEOs did not directly
instruct anyone to do the anomalies but then put an immense pressure on the subordinates to
make and reveal the results that the CEOs wanted. The inappropriate accounting practices
began under the leadership of CEO Atsutoshi Nishida in 2018 during the global financial crisis
of Toshiba which cut deep in its profitability. It then continued under the next CEO which is
Norio Sasaki but eventually ended the scandal under Tanaka. In addition, there are various
inappropriate accounting techniques that was employed in Toshiba because of different
business units. Though, they are varied, it still leads to a single set of accounting issues.
Toshiba’s corporate leadership used ‘Challenges’ or profit targets as a goal which is achieved
through the use of irregular accounting techniques. Thus, the corporate leadership of Toshiba
mainly focus on issuing ‘Challenges’ or strict profit targets to business unit leaders in unethical
behavior to achieve it.

https://www.investopedia.com/articles/investing/081315/toshibas-accounting-scandal-how-it-
happened.asp
Libor Scandal
“Libor, which stands for the London Interbank Offered Rate, is a global benchmark
interest rate that is used in setting a range of financial agreements which includes how a bank
will lend money to each other.” Also, libor is relevant in terms of offering a reference rate in
many financial tools in both financial and commercial fields. Moreover, the libor scandal started
when it has been suspected that traders at various banks united to influence the final average
rate for them to benefit in their trading and gain profit. The banks that were involved worked
together and submit false interest figures to get what daily rate they want. Moreover, Tom
Hayes is the main or central person and acted as one of the ringleaders who was found guilty in
the rate manipulation. The scandal includes 20 major banks in all continents that have been
investigated. Hence, many banks used libor for setting interest rates on consumer and
corporate loan but then manipulated the interest rates for them to earn profit which is an
example of unethical behavior that is required for a company.
http://theconversation.com/qanda-what-is-the-libor-scandal-and-why-does-it-matter-45662