ETHICS & COMMINICATION VW EMISSIONS 1

Ethics and Communication Behind the Volkswagen Emissions Scandal

Mason T. Guy

Florida State College at Jacksonville

GEB3213: Business Writing

Edward Rush

April 16, 2021

ABSTRACT

Emission standards and laws are set by countries around the world to prevent damage to the

environment and to protect their citizens. Volkswagen deliberately tried to avoid following these

standards in their diesel vehicles with the use of a device called a ‘defeat device’. The device was

not discovered until September of 2015; despite the discovery, Volkswagen claimed the device

was never installed in any of their vehicles and put into question the testing conditions of the

tests the United States government performed. The device led to many deaths as well as the

development of health issues for many others. Volkswagen showed no ethical standards with the

use of the ‘defeat device’ as well as how the company responded to the discovery of the device.

As a result, the company faced multiple legal charges from the United States alone and pled

guilty to those charges. Volkswagen was required to pay a large amount of money in fines and

took a hit in sales for the following year. Volkswagen’s emission scandal is a textbook example

of why having and following ethical standards is important not only to the business, but to the

environment and its consumers.

Ethics and Communication Behind the Volkswagen Emissions Scandal

In September of 2015, the Environmental Protection Agency (EPA) discovered that many

of the diesel motor Volkswagen vehicles being sold in the United States had a manufacturer

installed “defeat device – or software” that detected when the vehicle was being tested[ CITATION

Hot15 \l 1033 ]. This device would change the cars performance to improve the results to pass the

emission standards set in the United States as well as other countries [ CITATION Hot15 \l 1033 ].

The emissions standards are set the way they are for good reason. Within the United States, the

estimated death toll caused by Volkswagens illegal emissions is around 46 to 59 deaths by the

time the ‘defeat device’ was discovered [ CITATION Fit20 \l 1033 ]. The death toll was able to rise

in the following years after the discovery. Volkswagen did not issue the recall for the affected

vehicles until 2018, around three years after the discovery of the ‘defeat device’ had been made;

if the recall process began by the end of 2016, an estimated 130 more deaths could have been

avoided [ CITATION Fit20 \l 1033 ]. The emissions put out by the affected vehicles, when the

vehicles were not being tested, “was up to 40 times” higher than the United States standard /

legal limit that was set by the Clean Air Act [ CITATION Rho16 \l 1033 ]. This is significant because

it is the soul contributor to the estimated deaths caused by the ‘defeat device’. Death was not the

only outcome of the emissions issue. The diesel motor vehicles that had the device installed also

had a direct link to cases of “chronic bronchitis and heart diseases” in the United States alone

[ CITATION Dur19 \l 1033 ]. There was also an estimated 250 to 1000 respiratory episodes, around

14 admissions to hospitals due to cardiorespiratory issues, and around 13 emergency room (ER)

visits due to asthma by the end of 2016 [ CITATION Hou16 \l 1033 ]. Volkswagen later admitted,

after the device had been discovered, that “11 million diesel vehicles worldwide” had the ‘defeat
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device’ installed, with 590,000 of those vehicles being sold in the United States alone [ CITATION

Jun19 \l 1033 ].

Impacts of Ethics in Communication

Volkswagen tried to hide their use of the ‘defeat device’ for as long as they could. After

the device had been discovered Volkswagen’s response was to “try and undermine the veracity

of the findings” by claiming the testing conditions were insufficient and that the results of the

tests were due to “various technical issues” as well as “unexpected in-use conditions” [ CITATION

Rho16 \l 1033 ]. They decided to try and hide that information despite the health risk and

environmental risk the continued use of the vehicles would cause. Volkswagens deception on the

emissions of their vehicles caused consumers to be “upset about having been tricked”, the

consumers thought the vehicles purchased were environmentally friendly [ CITATION Jun19 \l 1033

]. Despite being tricked, consumers were found to be more upset about how the ‘defeat device’

effected the performance of the car as well as “the hassle of the recall” [ CITATION Jun19 \l 1033 ].

As a result, the image of the company took a hit. The company’s stockholders, their consumers,

and government representatives were unhappy, especially when it was reported that “the

company’s senior managers had known” of the implementation of the device from the beginning,

despite the legal and health issues involved [ CITATION Jun19 \l 1033 ]. As previously, the ‘defeat

device’ can be attributed to and estimated 46 to 59 deaths as well as “social costs at US$430-450

million” by the time the discovery of the ‘defeat device’ had been made [ CITATION Fit20 \l 1033 ].

The number of health issues and deaths only increased as Volkswagen tried to hide their

wrongdoings as well as refusing to recall the affected vehicles until years later. Volkswagen had,

and still has, a responsibility to the governments in which their products are sold as well as their

consumers. The use of devices to game the system and display false information on emissions
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tests showed blatant disregard to their responsibility, trust of their consumers, the environment,

and most importantly the health of their consumers. Volkswagen only owned up to the use of the

‘defeat device’ once it was impossible to deny it. In early 2016, the US Department of Justice

(DOJ) filed charges against Volkswagen including “Clean Air Act violations, false advertising,

deceptive trade practices, lost profit claims, and Racketeer Influenced and Corruption

Organizations Act (RICO) violations” [ CITATION Fit20 \l 1033 ]. The United States government

was determined to hold Volkswagen responsible for their deceptive practices, especially with the

effects it has caused. Volkswagen eventually pled guilty to the charges placed against them,

“making it the first time” the company had pled guilty to criminal charges that have been placed

upon the company [ CITATION Fit20 \l 1033 ]. In the end, Volkswagen paid for what they have

done. The DOJ required Volkswagen to pay “US$20 billion, which, to date, is the largest ever

secured under their Clean Air Act”; the company was also fined 16 billion US dollars (USD) in

restitution, a 1.45 billion USD civil penalty, and over 1 billion USD in additional penalties from

individual states [ CITATION Fit20 \l 1033 ]. The company’s sales also took a hit, dropping upwards

of 9.6 percent in 2016 from the year before and followed a “diminishing trend for 12 months”

after the ‘defeat device’ was exposed to the world [ CITATION Dur19 \l 1033 ].

Importance of Ethics in Business

The public image of a company is strongly tied to the ethics and actions of the company.

Ethics are the moral principles the guide the behavior of any individual, organization, or

company. If ethical standards are disregarded, especially within businesses, a company could see

a decrease in their image, decreased profits, and legal fallout as seen in the case of Volkswagens

emissions scandal. Furthermore, ethical standards can prevent any harm to the environment and

consumers, especially when concerning deliberate actions taken by a company.

Reflection

Volkswagen’s emission scandal is a textbook example of what a company should avoid

doing. Laws and standards are set by countries and states for good reason, whether it be to

protect the environment or ensure the safety and well-being of that given countries’ citizens. The

deliberate neglect for the laws and standards Volkswagen showed to the world by the installation

of a device in their vehicles specifically designed to trick consumers and governments could and

did have serious implications. Not only were their actions illegal, but they were also damaging to

the environment as well as being the cause of many unnecessary deaths and health problems of

their consumers. If the Volkswagen were honest, owned up to using the ‘defeat devices’ in their

vehicles, and recalled the effected vehicles sooner many of those affected would have avoided

death or any health issues as a result.

Conclusion

Volkswagen’s emission scandal was a result of a device deliberately installed to avoid

emissions standards / laws. If ethical standards were followed, the device never would have been

installed or even thought of; the standards and laws were put into place for a reason and should

not be avoided. Furthermore, Volkswagen had the responsibility to its consumers and to the

governments of the world to be truthful of the ‘defeat devices’ use as well as fixing the issue

quickly after the device was discovered. Their neglect caused many people to lose their life or

have significant health issues that all could have been avoided. As previously stated, this scandal

is a textbook example of what not to do for any business currently in operation today.

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