Case Study Vw Scandal

Case 1: The Volkswagen emissions scandal:

Case1-Question 1

Volkswagen has falsified emissions data on its diesel cars, by installing devices on its diesel engines that could detect when the car is being tested, changing the performance accordingly to improve results and limiting the nitrogen oxide emissions, so it can pass the emissions test.

VW tried to avoid the cost of implementing environmental solutions in their Diesel cars by cheating.

And because of this cheating Volkswagen is facing today a big financially loss however ,the market capitalization of VW has dropped almost 30% , and the company has to pay for fines for this unethical solution and to cover the cost of adaptation of the affected vehicles to meet pollution standards. VW’s solution was focused on short-term profits; and didn’t consider the long-term heath of the company’s brand, its customers, or the environment.

Today the VW Group is the second most reputed brand of Germany and the fourteenth in the world by the Reputation Institute Reptrak Index. But after this scandal VW‘s reputation will definitely receive a great blow by the loss of confidence that not only their current customers but the whole society will experience for a fraud of this caliber.

Case1-Question 2

The triple bottom line is an accounting framework that incorporates three dimensions of performance: social, environmental and financial. This differs from traditional reporting frameworks as it includes ecological (or environmental) and social measures that can be difficult to assign appropriate means of measurement. The TBL dimensions are also commonly called the three Ps: people, planet and profits. We will refer to these as the 3Ps.

Corporations must balance shareholders’ desire for rising earnings with the dual objectives of looking after other stakeholders (such as employees) and respecting the environment. In this case VW didn’t maintain the balance between these 3 Ps, and it only focus on the...