INTRODUCTION

Volkswagen Diesel scandal (2015) highlighted the dangers of

01 prioritizing financial gain over social and environmental
responsibilities.

Volkswagen wanted to be the biggest car company. To

02 achieve ambitious market share goals and meet strict
industry standards, Volkswagen developed deceptive
software for their diesel vehicles.

This software manipulated emissions testing results,

03
displaying low pollution levels but the actual levels were high.

This strategy resulted in severe legal, reputational, and

04 financial repercussions for Volkswagen, underlining the
importance of ethical business practices.
BACKGROUND OF THE SCANDAL
Volkswagen's Legacy:
Volkswagen, known for perfection since 1937 with their tagline "Das Auto"
Pioneering advancements in electric mobility, autonomous driving, and digitizing

Troubles Along the Way:

Despite success, faced challenges, notably the 2015 diesel scandal
Involved using tricky software, a "defeat device," on diesel engines
Environmental Consequences:
Truth Exposed:
EPA found emission differences, leading to fines and a deeper look
The tricky software only made cars seem clean during tests, hiding real on-road pollution

Public Fallout:
Volkswagen advertised "clean diesel," but the scandal revealed high nitrogen oxides (NOx)
Showed a big gap between what was claimed and the true environmental impact
ANALYSIS
The Volkswagen Emissions Scandal, or "Dieselgate," revealed a stark failure in ethics as
the company prioritized profits over environmental responsibility. The use of "defeat
devices" manipulated tests, violating regulations and emphasizing the critical
importance of corporate integrity and ethical conduct.

KEY ANALYTICAL POINTS

01 02 03
Utilitarian Analysis Deontological Virtue Ethics
Perspective Assessment

04 05 06
Impact on Financial and
Leadership and
Stakeholders Operational
Corporate Culture
Consequences
 MOTIVATION AND STRATEGY
BEHIND THE DECISION
MOTIVATORS FOR DECEPTION

Developing eco-friendly diesel engines was expensive; COST

deceiving emission tests seemed a cheaper alternative REDUCTION

Intense competition in the German market (heavy on diesel

MARKET vehicles) pushed VW to meet customer preferences to avoid
PRESSURES losing market share

The pressure to align with trends and recover R&D costs led CORPORATE
to shortcuts and prioritizing short-term gains CULTURE
THE CONSEQUENCES OF THE
SCANDAL
Environmental and
health impacts
VW diesel vehicles emitted
NOx 40 times above U.S.
limits
Contributes to air pollution,
risks public health
Linked to respiratory
diseases, exacerbates global
warming
Legal repercussions and
financial losses for
Volkswagen
VW faced global legal actions,
including fines
Paid over $30 billion in
penalties and settlements
Recalled millions of vehicles,
spent on modifications and
buy-backs
Damage to reputation
and trust:
VW's deceit damaged
reputation, lost consumer
trust
Restoring trust remains
challenging
Heightened emissions
testing, standards
 By prioritizing these lessons, the auto industry can chart a course towards a
more ethical and sustainable future.

Open communication Invest in R&D for cleaner, To grow awareness

with stakeholders will efficient vehicle tech among the consumers,
builds trust Ensure compliance with and demand for clean,
Companies must environmental regulations sustainable vehicles
disclose emissions Meet consumer demand It will incentivizes
and environmental for sustainable companies to prioritize
impact transportation responsible practices
Short-term gains over ethics lead to
pitfalls

Environmental degradation, financial

losses, reputational damage

Necessity for ethical leadership,

transparent practices

Integrate ethics, invest in clean tech,

foster transparency

Sustainable, trustworthy future through

collective commitment to ethics