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Josh Samuels



Volkswagen has been facing much adversity these past few months. Evidence has proven that diesel engines were installed with special software that help evade nitrogen emission tests. Because of the magnitude of this violation, 500,000 cars were recalled in the U.S while millions more were in Europe. Police have searched headquarters in Germany and other places around Europe in search of documentation that finds Volkswagen culpable. Michael Horn blames unnamed engineers and denies management made decisions to break the law. This scandal had a ripple effect, as other companies such as Audi and Porsche were affected by the scandal in negative way both financially and socially. Billions of dollars were lost as a result of the recalls. Their reputation and future shareholders remain at risk. This week they must face a judge and present a solution. I chose this topic because it relates to the idea of CSR. Companies who want to maintain high levels of financial success must also maintain social and environmental responsibility. This has proven not only to improve reputation but also increase profits. Studies we have done including the Vioxx scandal and the Apple Foxconn scandal highlight the importance of CSR, and I immediately drew parallels with this Volkswagen scandal. Volkswagen fitted over 11 million vehicles with this special software that ultimately pumped 40 times the legal amount of nitrogen into the streets.  Ultimately, when evaluating business success it is important not to judge at face value. There are many factors to take into consideration, especially what happens outside of financial components of business. It is especially important to be accountable, which previous firms we have studied in our discussion cases have failed to exhibit.

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