Blog Post

GETTING BACK ON THE ROAD: HOW VOLKSWAGEN RECOVERS

websitebuilder • September 23, 2015

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.

Jack Ewing reports on exactly what the software does ( The New York Times in The Kansas City Star . “Scandal Weights on Volkswagen.” September 22, 2015, pp. A6–A7):

The software measured factors such as the position of the steering wheel, the vehicle’s speed and even barometric pressure to sense when the car was being subjected to testing, the EPA said. The car then configured itself to reduce emissions of nitrogen oxide, a gas that is a major contributor to smog and is linked to an array of respiratory ailments including asthma, emphysema and bronchitis, the EPA said Friday. ” (p. A7)

Volkswagen executives have already admitted to the deception. The investigation, of course, is ongoing. A couple days ago, I identified four major ethical concerns connected to this situation:

  • 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?

In the wake of this corporate debacle, it will be most interesting to observe Volkswagen’s response. There is a right way and a wrong way to do this. If Volkswagen wants to do it the right way, then we should see a response that involves a convincing combination of these essential elements:

  • A Serious Apology. Consumers have a right to be frustrated and angry. Those emotions only intensify when the company demonstrates no remorse. On the other hand, consumers can be very forgiving when they perceive that a company is moving in the right direction. The opportunity to win in the marketplace is huge. But that is not the fundamental reason for the apology. The fundamental reason for the apology is that it is the right thing to do, and that is enough reason. Marketplace wins are incidental at this point.
  • Personnel Housecleaning. As quickly yet sensitively as possible, a company must investigate the misdeeds, determine who was responsible, and exercise its internal disciplinary process. Depending on the nature and severity of the circumstances, that will of course mean job terminations. With authority comes responsibility, with responsibility comes accountability, and with accountability comes consequences.
  • Technical Housecleaning. With the personnel housecleaning, a technical housecleaning must occur. All appropriate technical, procedural, process, product, and inventory changes that are needed to repair the damages must be executed immediately.
  • Corporate Culture Revision. Corporate culture can be difficult to change. Nevertheless, if the company is serious about permanent solutions instead of Band-Aid fixes, then it will do the difficult work. From the top leadership to the bench level, the company must ruthlessly evaluate all aspects of its being that enabled it to step down to such a level of inappropriate behavior and ethical compromise.
  • A Study Of Lessons Learned. As painful as the process might be, the company must invest the resources to engage every employee on the introspective journey of lessons learned. Only by studying the past can the company avoid the same errors in its future.

Volkswagen presents us with a textbook case study of a tragically common corporate disaster. Let’s hope we are all satisfied with how it responds.

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Respect for the processes and institutions of higher education. The responsibilities that are intrinsic to power and privilege. Personal character and integrity. Student character and integrity. Parental character and integrity. Professional character and integrity. Societal and academic implications. These are weighty matters that should give us all cause for concern. Specifically, they should remind us of six essential ethical realities: 1—Power and privilege do not equal immunity. Whether in the Spider-Man world (“with great power comes great responsibility”) or in sacred writings (“to whom much is given, much is required”), we understand that large influence travels with commensurate accountability. Just because a parent might hold a position of influence, have a prominent name, or possess significant fiscal assets does not mean the law of the land and academic admissions policies do not apply. Many benefits come with position, name, and assets—immunity from the law and organizational policies should not be among them. 2—Bad outcomes can manifest from an apparent good heart. A pure heart never guarantees a noble outcome. That is because all of us are subject to change and sometimes that change equals corruption. A parent of a one-month-old child might begin with a pure heart that leads to noble outcomes. However, fast forward that same parent 17 years and now vicariously experiencing that child’s college admissions stress. Do we have an outcome guarantee? Of course, it depends on the parent. Many noble outcomes ensue, but many does not equal all. Some parents in their quest to provide the best for their child will succumb to the temptation to step outside proper boundaries. Doing so is seemingly justified by that apparent good heart: “ I’m doing this because I want to give my child the best. ” Although we can all to some extent understand this sentiment, it in no way excuses or justifies the unethical actions and outcomes. If anything, it reinforces how vulnerable we all are. Therein lies the need for a constant ethical scrutiny over ourselves and our communities. 3—Unethical practices to gain entry into an ethical institution fundamentally disqualify the candidate. On the most basic sensible and philosophical level, by definition any ethical institution must deny any candidate entry when that entry attempt was unethically based. Any other action makes a mockery of the ethical institution and its entry process. Our academic institutions are among the tallest pillars of our humanity. The fundamental preservation of their purity must remain a constant commitment by every human being directly or indirectly connected to them. 4—Falsifying your child's profile only immerses that child into a universe that is fundamentally and unfairly built on false pretenses. When we enter into a new universe by virtue of truth and integrity, we do the best service to ourselves and others. To enter into a new universe not arrived at via truth and integrity will degrade and undermine all aspects of that new universe both for ourselves and others. Going into a new universe is something that the student should want to do by being his or her authentic best person. You cannot be your authentic best person without first being that person. In being that person, you then genuinely display that person. Therefore, no one can be that best person without truth and integrity. 5—Secretly shielding your child from the consequences of that child's behavior, aptitudes, and performance vehemently disrespects that child's personhood, and this is an abuse of your parenthood. Parenthood is an extremely personal, overwhelming, grave, complicated, rewarding, painful, amazing, and beautiful role. However, none of those adjectives imply that the parent owns that child. Nothing could be further from the truth. Indeed, the child is “on loan” to the parent for a limited time, during which the parent has a stewardship responsibility. An intrinsic stewardship component of parenthood is releasing that child from your tutelage. That releasing process begins the moment the child is born and slowly continues for nearly two decades (in most cases). 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