Understanding Ethical Conduct of International Business Organizations through Cross-Cultural Lens: An Analysis of Underlying Cultural Issues in Volkswagen Emission Scandal of 2015

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Understanding Ethical Conduct of International Business Organizations through Cross-Cultural Lens: An Analysis of Underlying Cultural Issues in Volkswagen Emission Scandal of 2015

Brandford Shadrach Adams

Department of General Studies

Federal Polytechnic, Bali

Email:shadrachb.adams@yahoo.co.uk

ABSTRACT

Culture plays a critical role in ethical decision making especially in businesses that spans across national borders. This paper attempts an analysis of the underlying cultural issues in the Volkswagen Emission Scandal of 2015. It maintains that the underlying roots for unethical business practice  by the global automobile giant (Volkswagen) goes beyond the drive to maximize profits as believed in many quarters but corporate culture that abhors  failure and requires employees to perform and deliver on their task at all cost, the working environment that is averse to debate and all forms of dissent;  and an autocratic leadership style are the enabling facilitators that pushed Volkswagen to the precipice of the famous emission scandal of 2015. The study is qualitative, it utilized secondary sources of data to do the analysis. It concludes with recommendations on lessons that other businesses, organizations etc. can draw from Volkswagen’s 2015 experience.

Keywords: Ethical, Culture, Conduct, Business, Emission, Scandal