Volkswagen :Scandal, Ethical and Professional issues
Transcript of Volkswagen :Scandal, Ethical and Professional issues
Volkswagen
How big is VW?
VW Scandal?What is
More than 20 Billion Euros cost for VW
11 Million VW and Audi cars affected
Called back 11 Million carsDevastated 50+ years goodwill of VW
brand
How does the defeat device work? The defeat device -read steering wheel position, tire rotation,
atmospheric pressure, duration of engine run-time to determine if car was on-road or in emission testing
If testing for emissions- Increase the amount of fuel being burned + lower nitrogen oxide and pollutant emissions.
Photo Courtesy: CNN
Fuel Consumption Vs. Being Green
Source: http://www.nytimes.com/interactive/2015/business/international/vw-diesel-emissions-scandal-explained.html
Source: http://www.nytimes.com/interactive/2015/business/international/vw-diesel-emissions-scandal-explained.html
Who were affected?
VW itself• This scandal
hurt the good will of the long standing brand VW and its subsidiary brands
Ignorant Customers• The hearts of
green customers who bough VWs were broken
Professionals• The credibility
of Software Engineering Professionals, Management Professionals were degraded
Innocent Environment• Environment pollution
Source: http://www.nytimes.com/interactive/2015/business/international/vw-diesel-emissions-scandal-explained.html
Who were responsible & what were their roles?
Martin Winterkorn
Senior executives including the CEO in charge at Volkswagen Supervisory board members The Software Engineers who developed cheating device!
Picture courtesy :BBC
The legal and ethical perspective
Volkswagen Scandal
What is an ethical dilemma?
An ethical dilemma is a situation in which all alternative choices or behaviors have potentially negative consequences. Right or wrong can’t be distinguished.
(Daft,2012)
The following approaches can be used to make proper decisions in ethical dilemmas• Utilitarian Approach- Take the decision which produces the greatest good for
the greatest number• Individualism Approach-Actions are ethical when they promote the
individual’s best interest• Moral Rights Approach- Ethical decisions are those that best maintain the
fundamental rights of the people affected by them• Justice Approach-Ethical decisions must be based on standards of equity,
fairness and impartiality.(Daft,2012)
Applications of theories of ethics
Volkswagen fixing a defeat device on the diesel VW and Audi vehicles
• This deceives the customers and other stakeholders of the actual level of emissions and does bad to majority of the stakeholders such as customers, authorities, shareholders and environment. So this is Unethical (Utilitarian Approach)
• This decision is not ethical because it doesn’t support the stakeholders’ best interest (Individualism Approach)
• Customers have a right to be fully aware of the standards+quality of what they buy. So this decision is unethical (Moral Rights Approach)
Professional lapses identified of the persons responsible
Martin Winterkorn- As the CEO is expected to be fully aware of what’s happening beneath.
Environment Protection Authority (EPA)- Is expected to advance their standards in testing for compliances
Software Engineers- Is expected to use their skills for the betterment of the world. But used to fraud and damage the environment
R&D Team and Mechanical Engineers- Is expected to come up with the newest Greenest technology for cars which they didn’t.
VW as a whole- Any brand is expected to deliver the promises it makes to the customers.
How could such be avoided from repeating?
The importance of Micro Management Introducing and inducing Code of Ethics for Software Engineers EPA of Europe being more responsible and increasing the
seriousness of the testing procedures Increased involvement of independent 3rd party involvement for
quality and environment related certifications An overhaul of the regulatory structure, business ethics, corporate
culture, and also engineering education
Professional bodies relevant to the industry.
European Council of Engineers Chambers (ECEC) Exemplary to behave Civic to get involved To maintain professional ethics
IEEE-CS
The code of conducts
PUBLIC - Software engineers shall act consistently with the public interest. CLIENT AND EMPLOYER - Software engineers shall act in a manner that is in the best
interests of their client and employer consistent with the public interest JUDGMENT - Software engineers shall maintain integrity and independence in the
professional judgment. MANAGEMENT - Software engineering managers and leaders shall subscribe to and
promote an ethical approach to the management of software development and maintenance.
PROFESSION - Software engineers shall advance the integrity and reputation of the profession consistent with the public interest.
COLLEAGUES - Software engineers shall be fair to and supportive of their colleagues. SELF - Software engineers shall participate in lifelong learning regarding the practice
of their profession and shall promote an ethical approach to the practice of the profession.
The role of professional body in avoiding such circumstances
The professional bodies should actively participate in the professionals’ development throughout their lives
Professional bodies should come up with common standards for industry wise-not from professional body to body.
Shanon Vallor, University of Sata Clara
Volkswagen is now facing $18bn (£12bn) in penalties under the US Clean Air Act, which allows fines of up to $37,500 per car.
To what extents ethics can go?
• The US Department of Justice and Federal Bureau of Investigations could also bring criminal cases.
• The German company has set aside €6.7bn to deal with the penalties it faces.
PR Disaster!
Being unethical won’t make you ended up in bars. But the repercussions may make you ended
up in ROAD!
References
Daft, R.L, 2012. The New Era of Management. 10th ed. USA: Canage Learning.
Credits
BBC news CNN world wide news New York Times news
”
“Thank you!