CYBER SECURITY: CANADIAN CONTEXT

COURSE CODE:
CYB203

COURSE NAME: IT Security: Ethical and Legal Issues in Canada

ASSIGNMENT: Case Study

SUBMITTED BY:
ROHIT KUMAR BADHALA (22005391)

UNDER THE GUIDANCE OF:

PROF. MUHAMMAD SALEEM
1. VW Cheats on Emissions Testing

1. VW has blamed a small group of engineers for the misconduct and claims that members of its
management board did not know of the decade-long deception. Within many organizations, including
VW, a high value is placed on people who can deliver results and get things done. This can create a
problem known as “normalization of deviance,” where something bad is done by a member of the group
in order to achieve a goal but nobody says anything because everyone is expecting that someone else
will instead. As a result, more and more bad behavior is tolerated. Perhaps, the VW engineers felt they
had no other option when they realized that they could not deliver the combination of great
performance, high gas mileage, and low emissions that had been promised. Some observers believe that
normalization of deviance was perpetuated because VW kept hiring the same type of people with the
same views—engineering graduates who are promotion-obsessed workaholics who have been taught
not to say “no” to management’s goals. Do you accept this explanation for the emission scandal at VW?
Why or why not?

Answer : This is not acceptable to me as an explanation for the VW emissions crisis. Something still
being incorrect even when it has been normalised is still wrong. Because everyone in the room is
thinking but not saying anything, it is unethical to keep making bad business judgments and to allow a
problem to persist. Furthermore, I believe that these workers' job practises are illegal yet unethical.
Following management and continuing a deviant behaviour in order to advance oneself while putting
millions of other people at risk for remaining silent is very immoral.

2. VW must bring in a new CEO and a key board member as a result of the forced resignation of Piëch
and Winterkorn. Identify three specific actions that their replacements must do to begin to change the
corporate culture at VW.

Answer:- Making an organization-wide ethical code would be the first step. This is essential for
establishing VW's values, raising the standard for employees, and incentivizing compliance with these
guidelines through civil or criminal penalties. Mandating ethical training for their workers is the second
thing their successors must undertake. The fact that VW continues to employ people of this type shows
that a large percentage of the workforce lacks the morals or standards of ethics necessary to prevent
crises and misconduct of this kind. The third would tie the other two together, and that would be the
implementation of social audits. A review of how effectively these guidelines are being adhered to
following the creation of an ethical code and training would only serve to reinforce.

3. At the time of this writing, it has been alleged that Robert Bosch GmbH, Europe’s largest supplier of
auto parts, may have had a role in the VW emissions scandal. Bosch supplied the engine control unit
that VW programmed to recognize when its diesel vehicles were undergoing emissions tests. However,
Bosch states that it is not responsible for how its components are integrated into vehicles by customers.
Do research to learn more about what role Bosch may have had in aiding VW in this deception. Do you
believe that Bosch should also be sanctioned and/or fined? Why or why not?
Answer:- In my opinion, Bosch also deserves a punishment for his part in this mishap. I wouldn't even
trust him when he says that he is not responsible for how his parts are used in the cars. It is his
responsibility, both as an auto supplier and a business owner in general, to research and confirm that
the organisations he works with are ethically upstanding and advantageous to his own success. He
wouldn't be in legal jeopardy if it was really his fault. Research suggests that Bosch and VW worked
"hand in glove" to develop this software with the intention of misleading regulators and avoiding
emissions tests. The fact that his guilt is being questioned because he wasn't as honest about his terrible
intentions, when he should be the one at fault, distresses me more.

2. Toshiba Accounting Scandal

1. Observers have commented that a scandal of this magnitude, occurring over such a long period of
time, must involve collaboration among a large number of managers—reaching from the lowest level to
the highest level of an organization. Should investigation of the scandal at Toshiba continue until all
involved parties are outed and punished? What are the pros and cons of such an action?

Answer:-

Yes, the Toshiba issue investigation should continue until all parties are found and responsible for their
actions. This is so because no firm can stand for internal controversies. A company can only succeed if all
of its workers are reliable in their work and avoid getting into any form of conflict. The company should
not tolerate any scandals of any type and should take all necessary measures to stop them. The
dedicated and moral work of a company's employees forms its basis. The business should not be
involved in any dispute. Due to an independent team investigating into the occurrence, people will be
hesitant to become involved in any form of issue. Such an investigation would have the disadvantage of
making people uncomfortable since it wasn't done fairly.

2. Do you think that the practice of appointing outside panels to perform investigations should continue,
or can you develop a better solution to enforce corporate compliance with laws and generally accepted
accounting principles?

Answer

Yes, appointing panels to carry out inquiries is still a good idea since an impartial accounting panel will
do so. They aren't conversant with the internal dynamics of any organisation. They provide a fair and
unbiased investigation into any dispute that is raging within the organisation.

3. Japan is generally considered to be struggling in areas such as transparency and board independence
compared to the global standard. What measures do you think should be considered at the national
level to improve transparency and gain the trust of foreign investors?

Answer:-
To earn back the confidence of foreign investors, the company can do the following:

1. It should implement strict steps to prevent any scandals from happening in their countries.

2. A fair and transparent structure of accountability should be established at all levels of management
within the organisation.

3. Anyone found to be behind controversies should be subject to severe judicial repercussions.

4. The country must have promising commercial prospects, and the government must believe that
investments made in the country won't be lost.