Class Directions: Answer the following questions thoroughly and do not plagiarize your answers. Use credible sources (news sites, scholarly articles, and textbook!) and class do not use Wikipedia, Investopedia, or Reddit – these are not acceptable sources or accuracy. Use APA 7 style and cite sources correctly. Please type questions along with answers. I have attached the cases for you class!

Class Directions: Answer the following questions thoroughly and do not plagiarize your answers. Use credible sources (news sites, scholarly articles, and textbook!) and class do not use Wikipedia, Investopedia, or Reddit – these are not acceptable sources or accuracy. Use APA 7 style and cite sources correctly. Please type questions along with answers. I have attached the cases for you class!

Read the ethics cases listed below and answer the questions associated with each.

Ethics case 1: “VW Cheats on Emission Tests”

Read the ethics case “VW Cheats on Emission Tests” at the end of Chapter 2 of your text and answer the following questions:

  • Why did none of the several design engineers, test engineers, and technicians involved blow the whistle to top management and/or the regulators?
  • VW has a governance system in which the Supervisory Board is different from North American boards of directors. How is it different from North American governance models? Could the differences in governance have contributed to the decision to cheat and to keep it a secret? If so, how?
  • How would VW ensure that its policy on environmental protection is upheld?
  • Had the VW employees evaluated the decision from the deontological perspective, do you think they would have made the same decision?

 

Ethics case 2: “BP’s Gulf Oil Spill Costs”

Read the ethics case “BP’s Gulf Oil Spill Costs” at the end of Chapter 4 of your text and answer the following questions:

  • What are the costs to other stakeholders in society beyond those that Reuters included? For example, was the cost of lost reputation considered? How would these costs be estimated?
  • Since there are so many uncertainties involved in analyses such as Reuters presented, are analyses like this useful? Why or why not?
  • Why were BP’s early estimates so low? After all, as Reuters reports, BP had experience with two other recent cases. Consider both US GAAP and IFRS rules for reporting contingent liabilities.