In the contemporary complex and massive global business environment, the concept of business ethics, a relationship of trust between companies and consumers is one of the key determinants to succeed.
Volkswagen, as one of the most well-known car companies in the world, has scrambled to use illegal software in its diesel vehicles to cheat US emissions tests. 11 million vehicles produced by the German carmaker which contained the illegal software were announced to be recalled.
Because of this shocking incident, Martin Winterkorn, the chief executive of Volkswagen, has been replaced by Matthias Müller and was under investigation. According to detailed analysis, the total cost of the refit operation has been put at more than $6.5bn, which would be the biggest-ever vehicle recall by a single car manufacturer.
The emissions scandal, with no doubt, has put Volkswagen into a shame. There is not only a huge financial loss, but also a strike on its reputation, which has been built for years, containing thousands of hard works and dedications from the former participators. Once trust has been lost from their potential consumers, it is hard for them to rebuild again. Whenever people look forward to buying a new car, they may take a reconsideration on whether or not choosing their brand. They must take responsibilities for their own fault. What happened to Volkswagen is a great example of not trying to disobey the business ethics. This is also a lesson for both Volkswagen and other companies that staying true with their commitment and being honest about conducting business affairs are the basics to go well and further on their operations.
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