CORNERING BAD
Last week the Environmental Protection Agency accused Volkswagen of integrating a defeat device into nearly half a million cars’ software to fool emissions testers. The software programming allegedly affects numerous diesel models such as the 2009–15 Jetta, the 2009–15 Beetle, the 2009–15 Golf, the 2014–15 Passat, and the 2009–15 Audi A3. Please note that this involves seven consecutive model years.
Allegedly, the software detects when the engine and exhaust system are being emissions tested. Upon recognizing that condition, the software immediately modifies technical settings so that the vehicle passes the emissions test (simultaneously compromising power and fuel mileage during that time). When not being emissions tested, the software adjusts the technical settings so that the consumer enjoys improved power and fuel mileage (simultaneously sending a bit more pollution out the tailpipe).
I see two major concerns here. First, we have the concern of using our technology to provide the consumer with the very best motor vehicles possible. Everyone appreciates more power and fewer trips to the pump. Government regulation (regardless of how you feel about it) demands an ongoing dance between the carmakers and the law. However, that dance has been happening for decades and will never end. Carmakers must continue to find ways to continue the dance because they are not allowed to leave the party.
Second, the bigger concern I believe is the ethics of Volkswagen’s decision. In fairness, understanding that this matter is still under investigation, assuming for a moment that the accusations are valid, here are the most important concepts to consider:
- Ethically Indefensible Corporate Decisions. It would appear that Volkswagen made a major technical decision that may have created a certain consumer benefit—improved motor vehicle performance. However, intrinsic to that decision is the perpetration of fraud against the government, the consumer, and society. It is fraud against the government because the implication and expectation of the passed emissions test is that the vehicle is meeting specific technical parameters of exactly how much it is polluting the atmosphere. It is fraud against the consumer and against society because individually and collectively, consumers believe that their vehicles are satisfying antipollution standards. Ethically, this is an indefensible position for Volkswagen.
- Personal Integrity Violations. Regardless of how large the corporation, it remains comprised of individual people who make individual decisions. That means that at multiple steps over several years, specific persons knew that something bad was happening and they actively supported it or they chose to look the other way. In terms of personal integrity, this is a clear constellation of multiple failures.
- When The Short Term Only Works In The Short Term. When it comes to corporate success, personal success, and ethical standards, if the short term only works in the short term, then we have a problem. You want the short term to work in the long term too. This translates to corporate success, personal success, and ethical efficacy.
- When Public Relations Ignores Future Outcomes. I remain baffled when cases like this arise in which it is so obvious that people are not thinking about eventual public relations difficulties. First, with all our capabilities in technology and communications, it is foolish to believe even for a moment that poor ethical decisions will never see the light of day. After due time, they always hit the headlines. Second, once that happens, the public relations damage to the organization is always immense and irrevocable. Sometimes it is unrepairable. For a very long time, anyone considering doing business with Volkswagen will directly or indirectly ask the question do I want to do business with a company that intentionally tried to deceive? How do I know that this company will not try to deceive me?
Let’s see if we can take our corners a little better than Volkswagen apparently did on this one.



