In September 2015, Volkswagen AG's crisis over allegedly cheating on U.S. emissions tests deepened, with the German auto maker halting American sales of popular diesel-powered cars and issuing a sweeping apology for violating customers' trust. It also launched an external investigation. Shares in the company slumped more than 20% in early trading Monday in response to the crisis. The U.S. Environmental Protection Agency (EPA) accused Volkswagen AG of deliberately dodging air-pollution rules on nearly half a million cars sold since 2008, furthering an Obama administration crackdown on auto makers suspected of flouting regulations intended to reduce tailpipe emissions. Within two days of the EPA disclosure, Volkswagen made an admission that it did in fact cheat on US emissions tests. The company could now face billions of dollars in fines and the crisis weakened Volkswagen Chief Executive Martin Winterkorn's position. Winterkorn initially narrowly survived efforts by a major shareholder to oust him earlier last year and was passed over for the chairman's job, the company's top post. Eventually the Board forced Winterkorn's resignation from his post with the company.

The United States Environmental Protection Agency (EPA), which on Friday September 18, 2015 unveiled the allegations with the California Air Resources Board, alleged the German auto maker used software in the cars to get around government emissions tests. EPA officials said the software, dubbed a "defeat device," made about 482,000 Volkswagen diesel-powered cars appear cleaner running than they were. The Clean Air Act requires vehicle manufacturers to disclose design information to receive certification that their products meet federal air-pollution standards. Officials alleged that Volkswagen used software that activates full emissions controls only during testing but then reduces their effectiveness during normal driving. The result is that cars can emit nitrogen oxides at up to 40 times the allowable standard, the agency said. Diesel-powered cars are a small part of overall U.S. car and light-truck sales. U.S. officials said Volkswagen violated two parts of the federal Clean Air Act and could face sizable financial penalties of up to $37,500 per car, or more than $18 billion. It remained unclear whether the government would seek such an onerous penalty. The EPA in November 2014 hit South Korean auto makers Hyundai Motor Co. and Kia Motors Corp. with a record $100 million penalty for overstating fuel-economy claims and forced the companies to cough up another $200 million in regulatory credits. It remains unclear who at Volkswagen ordered the software be installed on the engines, at what point in time, and who covered it up for so long.

Nonetheless, the company suspended nine managers who are suspected of being involved in the fraud, but Volkswagen asserts that it remains unclear if all or any of them were guilty of wrongdoing. Two of the top engineers amongst the group Ulrich Hackenberg and Wolfgang Hatz resigned after pressures from the board and stockholders. These two long-term senior VW engineers had been considered the best engineers in the global auto industry

"There was not one single mistake, but rather a chain of errors that was never broken," as reported by Mr. Ptsch, who until the crisis broke, was the company's chief finance officer. He insisted that the company still believed a small group of employees carried out the deception. The company's internal audit found no evidence to suggest that members of the executive board or supervisory board were involved in the diesel fraud. He said the roots of the deception were the "misconduct and shortcomings of individual employees," insufficient internal processes to detect such fraud, and "a mind-set in some areas of the company that tolerated breaches of rules."

1)How did VW cheat in the scandal?

2)Sort through and identify the ethical issues embedded in the case study

3)Analyze the case situation with purpose of identifying approaches to resolve the ethical dilemma and issues presented by the case.

"Org Chart B' Chief Executive Officer Hangy H. Nguyen O Chief Financial Chief Development Chief Operating Chief HR Officer Chief Information Offlor Chief Marketing Officer Officer Sammy S. Servedr Diver 0 Oaks Tomya T. TH Director of Internal Audit Director of North Vice President for Director of Executive Director of Director of Brand identity and Compllance American Sales Production Compensation and Total Information Security and Advertising Rewards Umean U. Urich Veronica V. Vera William W. Wadsworth Youal Y. Yerger Tola I. Tachery Director of Treasury Director of South Director of Supply Chain Director of Training and Director of System and Director of Public Management American Sales Management Development Network Architecture Holations (Controller) Violet V. Weiden Wyatt W. Weddis Unruh U. Ulary Director of Global Director of Workplace Director of Labor and Director of Software Director of Internal Director of Billing and Business Development Health and Safety Employee Relations Development Communications Accounts Receivable Victoria V. Vadner Wayne W. Wegner Mandrin X. Nun Tolda I. TaborukRobert Webb EBAL Director Katy Stewart Program Analyst Office of the Exteulive Director CDR David Zezula Jerry Janssen EGAL Deputy Director Executive Diecine, NOAA Broader Labs Global Monitoring Division Physical Sciences Division Chemical Sciences Division Global Systems Division James Butler Robert Webb David Fahey Kevin Kellcher Director Director Consider the following organization chart for marketing. Use MS-Visio tool to create an organization structure.Robert Webb ESAL Director Katy Stewart Program Analyst Office of the Executive Director CDR David Zozula Jerry Janssen ES.RL Deputy Director Executive Director, NOAA Boulder Loba Global Monitoring Division Physical Sciences Division Chemical Sciences Division Global Systems Division James Butler Robert Webb David Fahey Kevin Kelleher Director Director Director Director Consider the following organization chart for marketing. Use MS-Visio tool to create organization structure.According to the company's policies, the firm whose structure is represented by "Org Chart B" has very specific rules about communication. For example, if Ulysses finds that Xu has failed to follow the company's purchasing guidelines when hiring a contracted trainer, Ulysses is not permitted to question Xu about the matter before first communicating his preliminary finding to both Oliver and Rebecca. What organizational characteristic is best illustrated by this policy? O formalization open-door the distinction between "line" and "staff" departments O standardization O span of control corporate governanceQUESTION 49 Which of the following is true about marketing messages and social media? a. Traditional marketing messages are bottom up. Ob. Social media marketing messages are not like traditional marketing messages. c. Social media messages are typically bottom up. d. Traditional marketing messages are top down, similar to social media messages e. Social media follows traditional marketing messages and how they are distributed QUESTION 50 What do users say is their primary reason for using social media? O a. Reconnecting with school mates Ob. Reconnecting with old friends O c. Promoting their own goals and objectives O d. Sharing information about themselves O e. Staying in touch with family and friends