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!