People Coming before Profit
Business ethics is a broad field of practice that governs organizational behaviors. Ethics teaches leaders that business operations have a huge impact on people and the environment. The application of ethical practices in decision-making and operations helps to build a good relationship with the public. In business, the term people refer to customers, the government, the general public, and shareholders. In the contemporary world, advancements in communication technology have posed both opportunities and threats to the business. A significant opportunity is the creation of an effective way of marketing where a message reaches an enormous population within a short period. Conversely, the threat entails the rapid spread of bad news that has immediate effects on business. Therefore, successful companies make ethical practices a major consideration in their routine operations by ensuring that people come before profit.
1n 2015, Volkswagen Motor Company encountered a major setback in its operations. Unethical business practices had resulted in the release of faulty vehicles into the market. Volkswagen was the second largest car manufacturer internationally. The company had a history of making high-quality cars and this incident came as a surprise to most customers. The scandal resulted in huge losses to the corporation regarding profit and reputation. Excessive media attention and public outcry tarnished the company’s image.
The twenty-first century has witnessed an increase in the rate of environmental pollution. As a result, the public has suffered from the adverse effects of environmental degradation, which include climatic changes, global warming, and unpredictable weather patterns. World leaders have resolved to address the issue of environmental pollution by establishing policies to regulate car makers. The legislations set the maximum gas emission levels, which manufacturers have to ensure that their vehicles and machinery do not exceed before releasing them into the market. Also, the policies require industrialists and carmakers to be at the forefront of the conservation of the environment.
The automobile industry is very competitive as there is a steady demand for vehicles. Advancement in technology has led to customers buying high-quality cars with minimal fuel consumption. Car manufacturers have devised techniques to enhance performance and reduce fuel consumption. Nonetheless, most hybrid vehicles have failed to meet the desired results because of a technology malfunction. Therefore, manufacturers are required by law to test their vehicles before selling them.
Volkswagen failed to perform accurate tests in its diesel vehicles before releasing them into the market. The vehicles emitted a lot of carbon monoxide and other harmful gasses contributing to environmental pollution. After thorough research, they were found to have faulty riggings in the gas system. The investigators concluded that the problem was a result of human error and company negligence. The company’s leadership accepted to take full responsibility for the damages as a sign of their willingness to resolve the issue. It also recalled the damaged vehicles and compensated the affected customers.
Volkswagen was determined to salvage its reputation by putting customers first and overlooking the need to make a profit. It instituted strict measures to ensure that vehicles were tested and issued with verification certificates. Also, the company devised new methods of establishing good customer relations to enable it to regain its success. The management created a client relations team that was mandated to respond to clients’ queries. The team collected data about the public perception of the company’s products. Two years later, Volkswagen had rebuilt its image and increased its market share.