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Volkswagen: Balancing Values vs Profits

Tara J. Shawver (King's College, USA)

William F. Miller (University of Wisconsin – Eau Claire, USA)

Research on Professional Responsibility and Ethics in Accounting

ISBN: 978-1-80455-793-8, eISBN: 978-1-80455-792-1

Publication date: 30 March 2023

Abstract

Martin Winterkorn had high aspirations for Volkswagen to become the world's leading automaker when he was promoted to CEO in 2007. Volkswagen lacked the technology needed to meet American emissions standards and fulfill their promise of a “clean” fuel efficient diesel engine. Instead, they chose to deceive the world, violating the law and the foundation the company's code of conduct was grounded in. This case provides an opportunity to explore corporate governance, ethical leadership, and the ethical and professional responsibilities that senior executives have to create and maintain an ethical culture. Examination of the details in the case uncover value conflicts. Examples of values included in IMA's Statement of Ethical Professional Practice are honesty, fairness, objectivity, and responsibility. IMA describes these as “overarching ethical principles.”

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Acknowledgements

Acknowledgments

Please note the original version of the case has been updated because of the feedback we received. The authors wish to thank Steve Mintz for acting as Editor during the review process and the two anonymous reviewers for their thoughtful suggestions that improved the case. The case is updated as of April 2022.

Citation

Shawver, T.J. and Miller, W.F. (2023), "Volkswagen: Balancing Values vs Profits", Shawver, T.J. (Ed.) Research on Professional Responsibility and Ethics in Accounting (Research on Professional Responsibility and Ethics in Accounting, Vol. 25), Emerald Publishing Limited, Leeds, pp. 181-199. https://doi.org/10.1108/S1574-076520230000025009

Publisher

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Emerald Publishing Limited