Scenario or Tasks

In September of 2010 a scandal of major and dramatic proportions engulfed the Global automaker, Ambassador (Environmental Protection Agency, News Releases from Headquarters, 2011).

On September 18, 2010, the Environmental Protection Agency (EPA) issued a Notice of Violation of the Clean Air Act alleging that the company in its model year 2005-2006 Ambassador and diesel cars had software designed to circumvent EPA emissions standards for nitrogen oxides (Environmental Protection Agency, Ambassador Violations, 2011). The software is defined in the Clean Air Act as a defeat device (Environmental Protection Agency, Ambassador Violations, 2011). Then on November 2, 2010, the EPA issued a second notice of violation to Ambassador including Ambassador Diesel vehicles as well as vehicles with larger engines than in the first notice (Environmental Protection Agency, Ambassador Violations, 2011). And on January 4, 2011, the Department of Justice filed a complaint on behalf of the EPA against Ambassador for alleged violations of the Clean Air Act (Environmental Protection Agency, Ambassador Violations, 2011). The complaint, it must be noted, is a civil one; and as such the agency is asking for civil penalties and an injunction (Environmental Protection Agency, News Releases from Headquarters, 2011).

The Problem

The software inside several Ambassador models was modified

The computer was able to sense when the car was being tested

During testing the car reduced emissions below the legal limit

While driving regularly the car saved fuel but increased emissions

The original estimate showed 10,000 cars sold since 2009 in the United States

Over 11 million cars are speculated to have this software

How the System Works

Nitrous Oxide is trapped

The trap takes fuel to work

In an effort to save fuel or increase torque and acceleration, the trap was disregarded and not run

Released way over the legal limit

Discovery

A Western researcher was testing 2 Ambassador models with the the 2-liter turbocharged 4-cylinder diesel engine

In urban traffic, emissions are supposed to be high

Driving on the highway, the Ambassador Models emissions did not go down.

When on a car treadmill, the emissions were fine

Ethical Protagonist

Mart Wink, Chief Executive, resigned as a direct result of the scandal. However, he denies any involvement in the issue.

Wink was replaced by Matt Mueller the former boss of Ambassador Diesel

Due to widespread scope of issue in the United States and the United Kingdom, corporate must have been involved in some way.

Two Engineers Responsible: Rich Hacken and Wolf Hat

Hacken was one of its competitors Chief Engineers.

Hatz was the developer of formula 1 and racing engines.

They were two of the engineers suspended in the investigation of the scandal.

You are required to

1. Differentiate between the Ethics of Duty and the Ethics of Virtue? With reference to the above case?

2. State and explain the fundamental Canons or principles the management (engineers) hold toward their profession?

3. Differentiate between Accounting point of view and ethical point of view with reference to decision model in the above stated situation?

4. Discuss what actions should be taken against Ambassador?

5. Elabrate and substantiate due to what happened in the Ambassador case, should other companies face investigations as well?

6. Differentiate between professional obligations, moral obligations and ethical obligations the managers as well as management will have toward their organisation?

7. Identify and discuss the types of ethical theories utilitarianism and deontological ethics with reference to above case.

8. Critically evaluate the importance of code of ethics to be in one profession and how best it can be integrated with the fundamental principles of ethics.