The recent scandal around Volkswagen cheating on nitrogen oxide emissions has raised numerous reactions in media, society and industry as Volkswagen Group violated Clean Air Act. Detailed inspections of Volkswagen Group’s products have started all over the world, and particularly in the United States. The scandal sequenced in Volkswagen Group CEO resigning as well as suspending of the head of the brand development, Audi research and development head, and Porche research and development head. The studies conducted on other car companies that produce popular car brands also showed the highest levels of emissions than proclaimed by the companies initially (Carrington par.7). There also appeared certain doubts about the reliability of the data from software-controlled machinery, causing the start of the initiatives to make the software source code available to a broad public (Dwyer par. 13). By cheating on the emissions rate, Volkswagen group has broken its Code of Conduct losing both the worldwide respect and undermined the consumer’s trust.
Reporting Issue
The Volkswagen Group has violated its proclamation on reporting issue stating, “All of our reports, records, and statements are accurate, timely, comprehensible, comprehensive, and true” (“The Volkswagen Group Code of Conduct” 17). As the sources state the problems with the emissions were reported by the European Commission’s Joint Research Centre in 2011 (Weiss et al. 37). The study research of the level of emissions from cars started in the United States in 2014, as the United States regulations are more strict than European. According to the results, the EPA issued a Notice of Violation on Volkswagen Group, stating that there are excessive emissions produced by the cars they make. The Volkswagen group presented the instrument that measured the level of vehicle emissions, and the criteria it measured was similar to EPA testing protocols. Since EPA’s results showed violations, it is obvious that Volkswagen Group was aware of them, but provided the wrong official information, thus violating its Code of Conduct statement.
Environment, Health and Safety Issue
The Volkswagen Group has violated its proclamation on environment, health and safety issue stating that they are accountable for constant improvement of their production’s environmental friendliness, implementing ecologically efficient technologies in all countries of the world (“The Volkswagen Group Code of Conduct” 19). Producing cars that cause exceeded levels of nitrogen oxide is not an environmentally friendly technology, especially today when the vast amount of international acts, laws, and protocols regulate the level of all types of harmful emissions. Thus, the continuation of the statement that says that they implement the ecologically efficient technologies “over the entire lifecycle of our products” (“The Volkswagen Group Code of Conduct” 19) is true as the Group announced the plans for recalling the problematic vehicle and replacing engines or providing a free repair as well as reviewing all the company’s diesel strategy.
Compliance with Law Issue
The Volkswagen Group followed its proclamation on Compliance with Law issue stating that each of the employees, who violated statements of the Code, will face the appropriate consequences up to employment termination and fulfilling the claims for the caused damage (“The Volkswagen Group Code of Conduct” 22). According to the information available to the broad public, Martin Winterkorn, the Volkswagen Group CEO resigned from his position; Heinz-Jakob Neusser, the head of brand development; Wolfgang Hatz, Porsche research and development head; and Ulrich Hackenberg, Audi research and development head were suspended. They are not the people who directly took the measurements, or designed the engines, but they were aware of the violations and the problems. Being the company’s authorities, they approved the ways of development and made the key decisions, so the Group follows its statement, even if partially because of the publicity of the scandal.
Management Culture and Collaboration Issue
The Volkswagen Group violated its proclamation on Management Culture and Collaboration issue stating: “In the context of leadership responsibility, the superiors guard against unacceptable conduct. They bear responsibility for ensuring that no violations of rules occur in their area of responsibility” (“The Volkswagen Group Code of Conduct” 9) as well as the fact that the exchange and transfer of professional information within the responsible employees and superiors should be the common practice. It is obvious that the information on emissions exceeds was known to all persons responsible, starting from engineers who developed engines and the staff who carried tests to top management who made the key decisions. As the top management was suspended and resigned following the statement is clear.
Law Violation Issue
The Volkswagen Group violated its proclamation on Law statement that the Group considers “compliance with international conventions, laws, and internal rules to be the basis for sustainable and successful economic activities” (“The Volkswagen Group Code of Conduct” 4). This is one of the basic violations of the Code of Conduct because the Volkswagen Group directly breaks the Clean Air Act, a federal law of the United States, as the index of emissions exceeded the established level. As the unconventional exceed of emissions caused the certain amount of deaths all over the world, might lead the Volkswagen Group accusing in breaking some criminal laws.
Conclusion
The detailed analysis of the Volkswagen Group Code Conduct has shown that that by the acts that resulted in an international emission scandal the Volkswagen Group has violated both several of its public policy important statements as well as some local laws that lead to critical consequences and wasting company’s reputation.
References
Carrington, Damian. Wide range of cars emit more pollution in realistic driving tests, data shows. 2015. Web.
Dwyer, Jim. Volkswagen’s Diesel Fraud Makes Critic of Secret Code a Prophet. 2015. Web.
The Volkswagen Group Code of Conduct. 2015. Web.
Weiss, Martin, Pierre Bonnel, Rudolf Hummel, Urbano Manfredi, Rinaldo Colombo, Gaston Lanappe, Philippe Le Lijour, and Mirco Sculati Analyzing On-road emissions of light-duty vehicles with Portable Emission Measurement Systems (PEMS). 2015. Web.