The VW Scandal, A REVIEW OF THE BUISNESS

Contents

The VW Scandal, A REVIEW OF THE BUISNESS 1
WHY IS THE VW SCANDAL IMPORTANT TO BUISNESS PRACTITIONERS? 2
What is the relevance of this issue to business operations at present and in the future? 3
How might this impact business? 3
Conclusion on effectiveness of the VW group’s handling of the scandal 4
What other discussions in the press, professional circles and in your own practice relevant to the topic/issue selected 5
References 6
Bibliography 7

WHY IS THE VW SCANDAL IMPORTANT TO BUSINESS PRACTITIONERS?

The VW Scandal brings to light the issues with organizational structure, moral and ethical issues within large international companies, A BBC News report outlined business structure: “It's still unclear who knew what and when, although VW must have had a chain of management command that approved fitting cheating devices to its engines, so further departures are likely.” (Russell Hotten October 2015).
This issue highlights the importance of business structure as with lack of it in a large company can cause people to take irrational possibly immoral decisions. These decisions have the potential to cause major fallout for the company, Reasons for preforming immoral business activities can vary and (Cowan, R. & Rizzo, M.J. 1995). Have looked into when immoral acts can actually be justified if the outcome is for the greater good for ethnical reasons. In the case of VW, they wanted to become the largest car producer and they disregarded environmental regulations to achieve higher profits. Which is not morally or ethnically correct.
Whereas before the Managing Director may have been capable of day-to-day issues within a smear company. As the business grows, there will be a point where regional managers are required and the Managing Directors role changes into steering the company through their ideas.