Course: Managing IT for Organizations
Name _Roll No.: Jivanshi Arora_N025
Summary
In 2015, automotive industry was shocked by
Ethics Case their emission cheating scandal which was an
unethical action of Volkswagen.
Study 1 The investigators (three mechanical
engineers) managed to find out significant
factors leading to this emission scandal.
DIESELGATE: A CASE Volkswagen deceptive emission sensor used
in the diesel engine cars resulted low emission
STUDY IN reading under standard tests but on road tests
the emissions of NOx were found to be 40
ENGINEERING times more the permissible limits as set by the
ETHICS regulatory authorities in the United States in
order to achieve high power and acceleration.
It led to a series of overwhelming devastating
consequences on direct and indirect
stakeholders of Volkswagen.
Volkswagen was fined and had to recall the
vehicles in the US market. It led to severe
brand dilution and loss to the company.
Key Points from Un Ethical Points of View
The compliance-based business ethics like
Volkswagen approach does not treat their
employees ethically and they also face the fear
of losing job or being taken unethical action on.
Example: They used Schmidt to protect
themselves and destroyed his career.it is
important to value employees and improve their
moral to accomplish tasks ethically.
The freedom to voice their complaints to
seniors or share their ideas within the
company was a great hindrance for the
employees. Example: In team, the dauting
task was given to them to perform the goal it
was asked to but seniors pressured them to
perform on time and do whatever needs to be
done. After the scandal was caught , they
blamed the engineers.
Case of Volkswagen reveals that excess of
NOx emission resulted in harm to environment
and people. They did not follow the rules of
U.S. Clean Air Act .
Therefore, in view of the above events
happened, it is significant to plan for feasible
emission standards and also provide
technological and R&D support to automakers
to prohibit such cases to take place.
 Answer What should Ashok do?
Ethics Case First of all, Ashok needs to take Remember this is his first
Study 2 permission to upgrade to new version
which was the first mistake he did. As per day on the job!
rule, an employee whether
contractual/permanent cannot make Question
Situation 1: changes without the permission of the
seniors specially if you are making
Ethical Dilemma changes for all the systems of the
company.

of a System Secondly, yes the company should not

have installed the Non licensed software
which includes anti-virus software that is
Administrator not covered by any warranty and is liable
to be prosecuted under law by the
company owning it.
In current scenario, Ashok should
escalate the matter by reporting to the
next higher senior person after his boss
and request to follow the rules and
purchase the original license.
 Answer What should Gauri do?
Ethics Case It is always important for a company to
Question
Study 2 gain customer satisfaction and trust then
only the company can be a success.
XYZ company’s client will come to know
Situation 2: about the difference in their requirements
in the software sooner or later. This will

Ethical Dilemma be declared cheating and fraud. By the

company.

of a Business Gauri should highlight the issue to the

higher ups and senior management in
written communication pointing to the
Analyst issues and how it would bring bad name
to the company.
 Answer Based on theoretical input
Case Study Win- The company was not caring about the discuss situation with all
Win Model employees in the team who were released
from the project may not get jobs outside. angles?
Ajay was performing well and he was
assured that he will not lose his job and be Can you suggest Ajay a
transferred to other projects. But his team
members who worked hard will lose the win-win model that will
job. He was in dilemma whether to take the help bank, AAA software,
offer or not when he was offered for MK
Bank CIO. There may be legal implications Ajay and his team?
of accepting this offer.MK Bank CIO was
trying to hire the employees to save cost Question
doesn’t fits in the purpose of ethically
correct. There can be legal actions on MK
bank on this conduct under contractual
obligation.

Answer
For MK Bank, it was win win situation as
they will get better deal in terms of project
at lower cost which will help them to
maintain AAA software as service
providers. AAA software win-win situation
will be negotiate with MK bank on rates
given financial situation and retain
contract. They should also act ethically to
retain whole team along with Ajay to win
the contract from bank in optimal rates /
values. Given situation business code of
conduct they should also talk with Ajay
and team to confirm their retention for the
contract and not to close this unit until
they have this contract with them. Ajay
should not accept offer from MK Bank to
maintain professional ethics as well as to
avoid any legal action on himself and
team. He should negotiate with AAA
software on job retention for whole team
to ensure MK bank contract will be won
by company and not closing department
till company has contract from MK Bank.