Reply to the thread and Identify the points of accuracy in the analyses. Also, explain how the application of the relevant law to the facts of this situation led you to your stand point in this matter.

Each reply must be at least 450 words and supported by 3 scholarly sources other than the textbook/course materials. Each source must be properly cited in current APA format.

Thread Prompt

Business Ethics

Understanding the importance of ethics in the world today is vital for the success of any business or corporation. The foundation of business ethics revolves around understanding what is good or right and being able to apply this to various problems and decisions that businesspeople tackle on a day-to-day basis (Kubasek, Browne, Barkacs, Herron, & Dhooge, 2020). God has given us guidelines and examples in the Bible that are very applicable to business ethics and how we should operate as Christians in the business world. It is not always an easy or simple task as corporations and managers are always seeking higher sales, margins, and profits and are willing to take risks and sacrifice morals to do so. However, Proverbs 22:1 says, A good name is more desirable than great riches; to be esteemed is better than silver or gold (New International Version). We cannot take our earthly possessions with us when we leave earth and our riches do not bring glory to God, especially when obtained in illegal ways. Volkswagen Group is an example of a successful company, which was negatively affected by deceit and fraud within the organization.

One of the largest car makers and leading automobile manufacturer is the Volkswagen Group, which has been producing vehicles since the late 1930s (Patra, 2016). In 2015, it was discovered that Volkswagen car maker had intentionally installed devices into its engines that lowered emissions during the testing process (Jung & Sharon, 2019). The company was falsifying its emission tests using a defeat devise, which allowed the engine to pass with emitting 40 times the allowed pollution level in the United States (Jung & Sharon, 2019). This was one of the biggest scandals of the decade and resulted in negative effects for both Volkswagen and its customers. MIT scientists conducted research that predicted the fake clean diesel vehicles would lead to 60 premature deaths in the US and 1,200 in Europe (Jacobs & Kalbers, 2019). Volkswagen was at fault and had ample time to become compliant with the emissions requirements, but refused to do so. The requirements were achievable and reasonable and put in place to protect people, however the need for Volkswagen to become the leading car manufacturer in the world hindered them from becoming compliant. (Jacobs & Kalbers, 2019). Due to greed and dishonesty in employees and management, the name of Volkswagen became tainted and was no longer trusted by consumers and stakeholders.

The company faced negative consequences for its actions that are still going on today. Not only did the stock price fall drastically, but the companys overall business economy was hurt (Patra, 2016). Volkswagen also faced lawsuits and legal petitions, which were costly and resulted in negative public relations (Patra, 2016). The cost of all the penalties Volkswagen incurred, is much higher than the price of re-engineering the motors from the beginning to meet the required standards. The impact of the scandal has had a lasting impact that will continue for years to come and carry negative consequences for the employees involved.

The engineering department at Volkswagen had a professional and fiduciary responsibility to the company, which was severely neglected (Patra, 2016). Employees should hold themselves to the highest standards of integrity and honesty. If I were a manager in the engineering department I would not have let this scandal escalate as far as it did. One of my main roles and responsibilities as a manager would be to ensure my team is following all company policies and procedures. I would have ensured my team acted on the 31 recommended actions from the internal auditors at Volkswagen and I would have ensured that all protocols and regulations were being followed (Jacobs & Kalbers, 2019). Internal auditors are in place to prevent scandals such as this and without acting on their recommendations, there is no point in paying them.

As manager, I would ensure there was an open communication line between my department and all other departments that should be aware of our work. If the legal department had been made aware and fully comprehended what was going on, they might have been able to stop the fraud from happening in the first place. I would also encourage open communication with my team members and create an environment of honesty and integrity. Employees should be aware of company policy as well as government and industry requirements. I would not only provide training for my employees on such topics, but I would encourage them to speak up and report suspicious activity. Ephesians 6:24 states, stand firm then, with the belt of truth buckled around your waist, with the breastplate of righteousness in place (New International Version). This verse expresses the need to uphold the truth. I would demonstrate this to my employees through not only my words, but my actions as well. As a Christian manager, I would feel compelled to be honest and open about every transaction happening in my department despite any potential negative consequences. While this would not be easy, I know I would be honoring God by doing so.

As the CEO of the diesel division of Volkswagen, I would come clean and assume responsibility for the scandal because I neglected my responsibility of ensuring the health and safety of the company and its customers. I would make a point to address the public and apologize to our customers and stakeholders for our actions. I would also make sure my coworkers, employees, and customers knew I messed up and was prepared to make amends in whatever way possible.

To ensure this type of scandal does not reoccur in the company again, I would implement a new process in the diesel division which would include independent parties coming in to audit our work on a regular basis. I would request a detailed audit report be submitted to top managers in the business, including the head of the legal department. This would provide accountability among the management team and provide an independent and unbiased perspective outside of the business. I would also review the current relationship and communication that occurs between the engineering and legal department. It is evident that if legal counsel had been given to the engineering department, the scandal might not have escalated as far as it did.

As a Christian CEO, I would strive to live out the Bible verse, Iron sharpens iron, and one man sharpens another (Proverbs 27:17, English Standard Version). God calls us to encourage and hold each other accountable in our Christian circles. This verse can be applied to coworkers and the need to encourage each other and hold one another accountable. I would encourage my employees to not only learn from each other, but challenge one another every day. By creating this type of work environment and new culture at Volkswagen in the diesel division, I anticipate better communication within the department and full compliance with company policies and government regulations.