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Research and analyse the recent ethical scandals of Volkswagen and 7- Eleven. Answer the following questions in report format:
The report will discuss in detail about the importance of ethics in an organizations with the help of understanding the cases of ethical controversies in Volkswagen and 7-Eleven company. Ethics in the present world is getting a lot of importance and it is becoming a crucial concept for every company to maintain in order to sustain in long run. The overall image of the company when considered as ruthless or in other case a company that only gives importance to success and revenue is becoming an old or traditional way of doing business (Wang et al., 2015). The main aim of any organization is now on no kind of conflict in the company or with the customers as well as being ethical in operations. It is also argued that people these days are accountable of organization now can stand and be more accurate related in performing and this will help in achieved of varied outcomes of the business. The important question here is that any type of significance for the organization or when people are trying to construct an image just to attract some attention of customers. The scandals of 7-Eleven and Volkswagen are perfect example of serious impacts an ethical goof up can bring to the reputation and performance of the company. A German Car company, Volkswagen was ranked as the top companies in car manufacturing and has been ranked positive in coals installation in vehicles and used fraud methods to clear the tests which led to a huge controversy along with criminal charges against the company. In the same way, 7-Eleven controversy started when a documentary on a channel showed the work culture of the company which was exploitative by nature along with multiple illegal practices in work to reduce the cost. This is why, the labor was paid less salary which as very low from the standards (Wang et al., 2015). The goal was to get young people primarily from foreign countries that are specifically migrated in country for work.
Companies like 7-Eleven and Volkswagen have enjoyed a positive image for many years and the main base for marketing has always been the low emission vehicles manufactured by the company or an ethical work culture where employees are treated in the right manner.
In case of Volkswagen, the main truth was engineering the whole automobile was based on a wrong image. The competitions in Australia as well as many forums have been conducting investigation in the matter to understand the fraud clearly. Similarly, the convenience store in 7-Eleven is also exploiting the staff in different chains. The company in fact was blamed to practice a crime of slavery since the level of exploitation of the employees. So many reports came in highlight and whole case showed the level insensitive nature of the company toward the workforce which malign the image of the company. In fact, it is important to understand that it is a mistake to presume that the organization can work in an ethical manner (Tiezzi, 2017). The complete case gives rise to issues based on ignorance which is common link since there are so unethical works practices that can be for the image of the company. Both the cases highlighted the truth behind the corporate culture and selfish motives of the company. Volkswagen is constantly facing losses after the controversy since the company has recalled the products from the market as well as there was loss in terms of sales since the company received a lot of criticism. Similarly, the top management in 7-Eleven was forced to resign and a whole new management was appointed that also faced issues in restructuring the company surrounding so many criticisms. Different traits like honesty, ethics, and relationship with the workforce and customers along with overall investment in saving or protecting the image also works where business is conducted in a cordial manner (Arora et al., 2015). Different characteristics help in maintaining the image and public relations along with supporting the moral of the workforce get a boost. The belief and trust is based on consumers which get right kind of highlight. In addition, it also ensures that the management will never be out of the job. Right kind virtues are an important part of the organization and normally get rewards for companies especially in places where practices like corruption is not taken very seriously. However, the whole argument relies on the overall contribution of the present concepts like ethics which is connected with the overall welfare of organization which at times can fail and there is no specific war that exists between the needs of the company and also based on right kind of things (Cyr, 2016).
7-Eleven practicing also proved the company was trying to do what can be treated as a requirement to actually stay successful in the market. The survival of the organization is actually based on actually cutting all kind of issues associated with ethics and work in a manner which set an example in the society as well. These days’ consumers are well aware of the products they are using and the way companies are working. This is why they expect them to follow ethical process to achieve target and failing to do so automatically impact the performance of the company. Unethical functions or practices are becoming very crucial for organizations of every size where the overall margins are associated with small as well as survival of the company (Oldenkampet al,, 2016).
In fact, it is ironic that competition among companies in the market becomes so important that they companies are ready to risk their reputation with so many unethical activities. Companies like Volkswagen and 7-Eleven also have to understand that large organizations are actually a right place to function ethically but the probity can sometimes have undermined by the environment that encouraged a more aggressive attitude to function in market. It is based on the institutionalized wage fraud with the exploration of labor at 7-eleven that has let the store cost to be little down with increase in the profitable standards for the different franchisees. Hence, with this, the corporations are based on understanding the triggers and the debates with the political, legal and the social implications where the companies need to check over the massive public and the media outcry behaviors. The check is also on handling the corporations with the work that results with government actions,
There are so many companies which are facing issues associated with the overall standards and the values that are related to guidelines in the present set of attitudes. It is also very easy to be more doubtful about the whole efficacy associated with the statement where the companies like Volkswagen can make some important impacts (Abdellah, 2015).
Ethical training and development
Since there is always some kind of crisis in the finance and there are also number of other organizations that have to organize the overall based for many kinds related to ethical training for the employees as well as complete influence on the training can be issue to evaluate. At the same time, the overall experience claims that the work in reality is best when encourage the employees to identify and also open up about the doubts and issues in ethics that are there in the current work environment (Jang et al., 2015). The corporations generally focus on the idea of handling corporate self-regulations so that there is an easy check of the corporations which are being caught. For the business ethics, the effectiveness is based on the ethical corporations that are set with holding the corporations to account for the actions. The ethics of corporations are at a major level with the discussion over how scan meant employees are able to work over the payments. It has been seen that according to United Stated Environmental Protection Agency, there is a issue of the notice to the accusing of the Volkswagen for cheating mainly on the emission tests. The later data also revealed with the checks on how the vehicles are been rigged. Hence, for this, the feathered approach is when one is able to find out the corporations who are able to work for the global warming. There are revelations regarding the corporate self-regulations with the different types of the practices and the policies with scant concern of the social environmental and personal consequences. To check the business this, there are self-regulation standards that are coupled with the better practices and the policies so that the business could easily ensure that there is a righteousness for the appearance. The business ethics need to be checked with the corporations that is being held under the accounts for the behavioral standards with the major effect of the actions. The business ethics is the responsibility of the society where the corporations are the society through law.
Here the main issue of red tape where all the regulation normally based on the needs and the organization may also put some kind of injustice instead of actually flaunting it (Legreid, 2016).
Board of directors
It is important to provide right kind of power to shareholder or provide some kind of presentation with the help of some employees on boards related to corporation which further may encourage ethical attitude.
This is most obvious since it is claimed to be most crucial method for encouraging ethical attitude in the company as well as people will be able to trust more as a consumer. When people can supervise or easily evaluate the behavior of the company when it requires making the information present associated with operations and then the complete interest is primarily based on ignoring any type of unethical activities. Companies have all the reasons in order to keep specific things of the company and related management (Wang et al., 2015). However, the whole responsibility is always on the company. In addition there is always some kind of company that will somehow do not act in right manner. At the same time, the overall revelation of such illegal or unethical work is based on factors that are negative associated with the reforms. It is seen that the leaders of the companies need to work on the development of a proper culture with ethical standards that is important for the different kinds of practices. To check for this, a proper explanation of how the ethical leaders should work is focused on.
It is particularly based on any type corporate controversy and other type of moral lapses that people in general enquire about either individually or in interest groups. In the present era managers as well as research based people have completely turned the whole discussion on the management. It is important to understand that leaders in reality are main source of ethics based on supervision for workforce and there should be same amount of time required for the complete development of the organization (Jang et al., 2015). Normally people must ask about the concept based on ethics which is very intimate by nature in specific cases and also a confidential matter. People or leaders, who are ethically sound, often speak more about identity and location of people and actual situation of people. It also happens to follow the way people are leading their lives and how in personal lives they lead a better life.
The overall concept based on ethics is reality is a philosophical work which comes from a Greek work termed as ethos. It is also associated with discussion as well as mentoring of the moral requirement and the behavior which normally showcase that there must be some acceptable and unacceptable ways of doing things. This is reality serve as a main activity which come philosophical principles. Ethics normally is associated with the code which actually based on overall values and moral principles that monitor behavior of people and assess it.
When ethical behavior is analyzed in organizational way, it is described according to number of ethical standards of much top management and the complete culture.
The objective of the leader is therefore is the process of providing some direction to people and take them to untapped goals. Management also highly depends on many kinds of leadership styles that come from distinct features of personality of people. There are particular leaders who adopt transformational approach and also gain personal power by engaging the workforce in work and also push them towards achieving something in company (Wall-Tweedie and Nguyen, 2016).
These kinds of cases have actually got a lot of attention on ethics and its practice in organizations all over the world. In fact, the world was surprised when these cases got highlighted since the companies have been industry for quite some time and for many years they were easily committing frauds in a deliberate manner and were fooling the customers. It was also told that there are so many software engineers at the Volkswagen that gained from the deceit. (Cyr, 2016) Also, 7-Eleven tried to improve the image and resolve the issues by giving proper incentives from better as well as ethical manner. It is very important to be have clarity about the ethics followed by business and must be associated with companies being help responsible for the attitude and the overall influence of all the actions. The recent development also shows that the organizations are never expected to take any responsibility. While on the other hand, the organizations were also capable of actually trying to avoid any kind of responsibility which is beyond the present interest of the companies in commercial success (Cyr, 2016)
Concept of business ethics is also based on overall responsibility of the society not the organizations. In fact, these are closely chartered by the society through proper application of law. It is actually the accountability of society as well to take some solid actions for right type of business ethics.
The foundation of overall learning comes from all kinds of ethics in organization which are very critical and it should not be left only in the hand of business. What more is required in current time is a much more active as well as vigilant king of democracy that will work in a steadier manner to ensure that the company is held responsible for what can work and what’s not.
The incidences discussed in the report have given a platform to a large debate which in reality is raging with passing time at every possible sector of the community. The solution here is to have no confusion about the company that are continuously changing or gaining a lot of importance since there are cases that shows that these are considered to be bad set of ethics in a good company. Sometimes it also becomes important to present the thought process which is legally as well as politically correct (Cyr, 2016). The cases discussed above shows that these days a lot of attention is given to such strategies since organizations get a lot of attention from all section of the company in addition to media outcry associated with selfish motive of the organization. Bringing change in the organization is a more collective kind of effort which revolves around many types of NGOs, general public and academic.
The overall approaches of ethics in organizations have become a main characteristic that is mainly dominating the overall conversation in last so many years. The complete scandal in reality based on the workers that are functioning twice the time and salary is very less (Legreid, 2016). It is also very crucial to be clear about the success of market and the current ethical based conduct that cannot be separated with each other. Ethics are also based on competitive nature which is a part and parcel of the cycle. The present society has to compete in a more collective way and there is no community worldwide that can compete for a long period of time.
The situations need to be mapped with the ethics and to check how to handle the people with the fellow beings. For this, there is a need to check over the overall government writing that has been related mainly to the different frameworks set with the regulatory standards. The working patterns are also based on providing that the organization like 7 Eleven need to check and improve the working so that the workers are able to work in a proper systematic form. There are number of researches which shows that are some strong based of proofs based on the codes associated with company performance along with business ethics produced and on this basis, the performance of the workers are above average and it can be calculated against similar group (Jang and Jung, 2015).
Abdellah, K.A., Corporate framing and news media framing of the Volkswagen crisis.
Arora, S., Kalro, A.D. and Sharma, D., 2015. A comprehensive framework of brand name classification. Journal of Brand Management, 22(2), pp.79-116.
Cyr, J., 2016. L’échec du rêve américain: Volkswagen Blues, Une histoire américaine, On the Road et Detroit: An American Autopsy (Doctoral dissertation, University of British Columbia).
Jang, H.J. and Jung, T., 2015. Slow, Small, and Sustainable. In Go Slow and Curvy (pp. 1-27). Springer International Publishing.
Legreid, A.M., 2016. Potholes and Strategies on the Road to Campus Internationalization. International Research and Review: Journal of Phi Beta Delta, 7(1), p.1.
Oldenkamp, R., van Zelm, R. and Huijbregts, M.A., 2016. Valuing the human health damage caused by the fraud of Volkswagen. Environmental Pollution, 212, pp.121-127.
Tiezzi, D., 2017. UNFAIR COMMERCIAL PRACTICES IN THE AUTOMOTIVE SECTOR: THE VOLKSWAGEN CASE. Rivista Italiana di Antitrust/Italian Antitrust Review, 3(2).
Wang, W.C., Chien, C.S. and Moutinho, L., 2015. Do you really feel happy? Some implications of Voice Emotion Response in Mandarin Chinese. Marketing Letters, 26(3), pp.391-409.
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