{"id":34688,"date":"2023-09-27T03:01:05","date_gmt":"2023-09-27T03:01:05","guid":{"rendered":"https:\/\/www.goodacademic.com\/blog\/questions\/read-the-ethics-cases-listed-below-and-answer-the-questions-associated-with-each\/"},"modified":"2023-09-27T03:01:05","modified_gmt":"2023-09-27T03:01:05","slug":"read-the-ethics-cases-listed-below-and-answer-the-questions-associated-with-each","status":"publish","type":"questions","link":"https:\/\/www.goodacademic.com\/blog\/questions\/read-the-ethics-cases-listed-below-and-answer-the-questions-associated-with-each\/","title":{"rendered":"Read the ethics cases listed below and answer the questions associated with each."},"content":{"rendered":"<p><span style=\"font-size: 15.5px; cursor: auto; color: inherit;\"><\/p>\n<p style=\"cursor: auto; color: inherit;\">Read the following cases and answer the questions that<br \/>\nfollow.<\/p>\n<p style=\"cursor: auto; color: inherit;\">&nbsp;<\/p>\n<p style=\"cursor: auto; color: inherit;\"><u>Case 1:&nbsp;VW Cheats on Emissions Tests<\/u><\/p>\n<p style=\"cursor: auto; color: inherit;\">&nbsp;<\/p>\n<p style=\"cursor: auto; color: inherit;\">In 2006, Mercedes-Benz introduced Blue-TEC, an advanced<br \/>\nsystem to trap and neu-tralize harmful emissions and particulates that allowed<br \/>\nMercedes to market \u201cclean diesel\u201d cars. VW and Audi made agree-ments to share<br \/>\nthe technology to enable all three companies to market clean diesels in an<br \/>\nattempt to expand the market for diesel car. If VW and Audi had not joined<br \/>\nMer-cedes, they would probably have been at a significant competitive<br \/>\ndisadvantage. VW, however, being a company of proud employees, started work on<br \/>\ntheir own \u201cclean diesel\u201d system and introduced one in 2009. Unfortunately, VWs<br \/>\nnew system could operate in compliance with U.S. emis-sion standards only if<br \/>\ntheir engines were adjusted to run at very poor performance and gas usage<br \/>\nlevels, which were not com-petitive with the BlueTEC systems already on the<br \/>\nmarket. Motivated by pride and enabled by arrogance and complacency,1 VW<br \/>\nengineers decided to install a computer software switch that, when government<br \/>\nemission tests were started, would alter the engine performance characteristics<br \/>\nduring&nbsp;the tests from a normal high-performance\/high-emission setting to a<br \/>\nlow-emission\/low-performance setting. This computer software defeat device<br \/>\nallowed VW vehicles to pass the California emission tests, which were the<br \/>\ntoughest in the United States. In fact, the VW engines produced up to thirty-<br \/>\neight times the allowed pollution lev-els.2 Hypocritically, VW\u2019s Super Bowl ad<br \/>\nshowed their engineers sprouting white wings like angels.Essentially, VW<br \/>\nengineers decided to cheat\u2014to defeat the emission tests\u2014with a technical \u201cfix.\u201d<br \/>\nThey gambled that no one would find out and\/or that there would be little<br \/>\nnegative reaction. Apparently, top management were unaware of the plan to<br \/>\ncheat. Interestingly, this was not the first time that a defeat device had been<br \/>\nused. In 1973, VW was fined $120,000 in the United States for using an earlier<br \/>\ndefeat device, and in 1998, truck engine makers agreed to a $1 billion<br \/>\nsettlement for a similar instance. But VW tried it again, and when high test<br \/>\nresults came to light in 2014.VWs software deception was discov-ered in 2014 by<br \/>\nscientists at West Virginia University who disclosed their results at a public<br \/>\nforum. VW\u2019s reaction was that the testers did not conduct the tests prop-e r<br \/>\nly.3 The U.S. Environmental Protection Agency repeated the tests and questioned<br \/>\nVW personnel. This triggered VW\u2019s halt of sales of some diesels and the<br \/>\nproduction of others, an internal investigation, and the resignation of the<br \/>\nCEO, Martin Winter-korn, as well as a recall of 11 million cars.4 In September<br \/>\n2015, VW stock sank by 20% and then another 17%, and $7.3 bil-lion was<br \/>\nallocated to cover the recalls, refits, and other costs of the scandal.5 The<br \/>\namount of fines and the cost of settling civil lawsuits will not be known for<br \/>\nsome time, although the U.S. Justice Department has sued VW for up to $48<br \/>\nbillion.6 It is evident that many VW employees and man-agers knew of this<br \/>\nillegal deception of cheat-ing on emissions standards from before 2009 to 2014,<br \/>\nthus putting the company at great financial and reputation risk. Concern has<br \/>\nbeen expressed that the VW emissions cheating scandal has under-mined the<br \/>\nvaunted reputation of German engineering, calling into question the traditionally<br \/>\nrespected Mercedes, BMW, and other brands that employ so many in Germany and<br \/>\nabroad. Also, VW\u2019s cheating has deeply offended the<br \/>\nenvironmental\/sustainability movement, which is very strong in Europe, and the<br \/>\ngovernments that backed the \u201cclean diesel\u201d program there. As David Bach has<br \/>\npointed out, \u201c\u2018Clean diesel,\u2019 it turns out, is as much a lie as \u2018clean coal.\u2019<br \/>\nVolkswagen\u2019s abhorrent behaviour therefore threatens to delegiti-mise the<br \/>\ncountless and essential efforts by companies around the world to develop<br \/>\nscalable environmental solutions.\u201d<\/p>\n<p style=\"cursor: auto; color: inherit;\">&nbsp;<\/p>\n<p style=\"cursor: auto; color: inherit;\">&nbsp;Answer the following questions:<\/p>\n<p style=\"text-decoration-line: underline; cursor: auto; color: inherit;\">\n<ul style=\"margin-top: 0in; cursor: auto; color: inherit;\">\n<li style=\"cursor: auto; color: inherit;\">Why<br \/>\n     did none of the several design engineers, test engineers, and technicians<br \/>\n     involved blow the whistle to top management and\/or the regulators?<\/li>\n<li style=\"cursor: auto; color: inherit;\">VW has<br \/>\n     a governance system in which the Supervisory Board is different from North<br \/>\n     American boards of directors. How is it different from North American<br \/>\n     governance models? Could the differences in governance have contributed to<br \/>\n     the decision to cheat and to keep it a secret? If so, how?<\/li>\n<li style=\"cursor: auto; color: inherit;\">How<br \/>\n     would VW ensure that its policy on environmental protection is upheld?<\/li>\n<li style=\"cursor: auto; color: inherit;\">Had<br \/>\n     the VW employees evaluated the decision from the deontological<br \/>\n     perspective, do you think they would have made the same decision?<\/li>\n<\/ul>\n<div><\/div>\n<div><span style=\"font-size: 11pt; line-height: 107%; cursor: auto; color: inherit;\"><u>Case<br \/>\n2:&nbsp;BP\u2019s Gulf Oil Spill Costs&nbsp; &nbsp;<\/u><\/span><\/div>\n<div><span style=\"font-size: 11pt; line-height: 107%; cursor: auto; color: inherit;\"><u><br \/><\/u><\/span><\/div>\n<div><span style=\"font-size: 11pt; line-height: 107%; cursor: auto; color: inherit;\"><span style=\"font-size: 15.5px; cursor: auto; color: inherit;\">Read the ethics case \u201cBP\u2019s Gulf Oil Spill Costs\u201d at the end of Chapter 4 of your text and answer the following questions:<\/span><u><br \/><\/u><\/span><\/div>\n<div><span style=\"font-size: 11pt; line-height: 107%; cursor: auto; color: inherit;\"><span style=\"font-size: 15.5px; cursor: auto; color: inherit;\"><br \/><\/span><\/span><\/div>\n<div><span style=\"font-size: 11pt; line-height: 107%; cursor: auto; color: inherit;\"><b><u>see attached&nbsp; below<\/u><\/b><\/span><\/div>\n<div><\/div>\n<div><span style=\"font-size: 11pt; line-height: 107%; cursor: auto; color: inherit;\"><\/p>\n<ul style=\"margin-right: 0px; margin-bottom: 15px; margin-left: 0px; padding-left: 30px; font-size: 15.5px; cursor: auto; color: inherit;\">\n<li style=\"cursor: auto; color: inherit;\">What are the costs to other stakeholders in society beyond those that Reuters included? For example, was the cost of lost reputation considered? How would these costs be estimated?<\/li>\n<li style=\"cursor: auto; color: inherit;\">Since there are so many uncertainties involved in analyses such as Reuters presented, are analyses like this useful? Why or why not?<\/li>\n<li style=\"cursor: auto; color: inherit;\">Why were BP\u2019s early estimates so low? After all, as Reuters reports, BP had experience with two other recent cases. Consider both US GAAP and IFRS rules for reporting contingent liabilities.<\/li>\n<\/ul>\n<p><\/span><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Read the following cases and answer the questions that follow. &nbsp; Case 1:&nbsp;VW Cheats on Emissions Tests &nbsp; In 2006, Mercedes-Benz introduced Blue-TEC, an advanced system to trap and neu-tralize harmful emissions and particulates that allowed Mercedes to market \u201cclean diesel\u201d cars. VW and Audi made agree-ments to share the technology to enable all three [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[1139],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/34688"}],"collection":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/comments?post=34688"}],"version-history":[{"count":0,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/34688\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/media?parent=34688"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/disciplines?post=34688"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/paper_types?post=34688"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/tagged?post=34688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}