Volkswagen In September 2015, the US Environment Protection Agency claimed Volkswagen, responsible for 70 percent of the US diesel car market, had been cheating on emissions tests by installing defeat devices on its vehicles. These devices, which switched cars to a separate, higher-emission mode when they werent being tested, meant that on-the-road nitrogen oxide emissions were being released at up to 40 times higher than the federal limit.

Public perception of the brand was dealt an immediate blow. And time didnt heal things: a survey by Autolist in February 2016 found public willingness to buy a Volkswagen had fallen by 28 percent, while perception of the brands environmental consciousness had tumbled almost 50 percent.

Public willingness to buy a Volkswagen had fallen by 28 percent, while perception of the brands environmental consciousness had tumbled almost 50 percent

Social media seemed to perpetuate the damage; over 16,000 negative tweets had been posted in the four days following the accusations, while on Facebook the company found itself targeted with a flurry of negative comments. One user wrote: As someone who has owned, driven and loved Volkswagens for more than 40 years, because of your criminal actions, I will probably never buy another.

That loss of trust led the companys sales to tumble, especially in the US, where they were down by a sixth in July 2015. Volkswagens market cap plummeted, falling by more than a quarter between September 2015 and June 2016, and the company subsequently revised its plan to become the worlds biggest automaker by 2018. It is also now paying the highest company fee in history for breaches under the Clean Air Act ($14.7bn), setting aside $10bn to buy back or repair the 11 million vehicles affected in the US alone.

1. In 2 clear and concise sentences, describe the key issues presented in the disaster?

2. In 2 clear and concise sentences, describe the scope of your ethics audit?

3. In 2 clear and concise sentences describe how you would improve the reputation of the organization?