As one of the world’s largest car manufacturers, Volkswagen had everything a business would like to be: powerful, prosperous, and illustrious. However, the entire company’s well being suddenly came under heavy fire once a scandal was unveiled, with its stock suddenly dropping an inconceivable 20%.

Volkswagen was caught cheating on EPA(Environmental Protection Agency) tests, which unveiled nearly half a million Volkswagen cars emitting up to 40 times more pollutants than authorized. The scandal has resulted in a devastating blow to Volkswagen’s public image and reputation.

This is a prime example of a company failing to operate in a manor that can be considered socially responsible and revisits the issue of business ethics. A company that does not to operate in a socially responsible manner not only fails to contribute to society in good conscience, but also puts themselves at risk in the process. In this scenario, Volkswagen’s image suffered near irreparable damage after its lack of social responsibility was publicized.  Under no circumstances would such a company be looked highly upon in the same situation.

Citations

http://www.bbc.com/news/business-34324772

http://www.bloomberg.com/news/articles/2015-10-04/volkswagen-chief-warns-of-existential-threat-of-cheating-scandal