Now and again, we are reminded of how important it truly is to operate businesses ethically. German-based car manufacturer Volkswagen recently gave us a powerful example of the deep and unforgiving consequences of breaching customers’ trust.
Last month, Volkswagen admitted to outfitting its diesel vehicles with “defeat devices”, components that decreased the actual performance of engines during emissions testing. This allowed many vehicles – approximately 11 million worldwide – to emit lesser quantities of pollutants while being tested than they actually would under regular driving conditions.
The consequences came swiftly. Just days after news of the scandal broke to the public, Volkswagen CEO Martin Winterkorn resigned, and the company’s stock shed over 20% of its value.
With some luck, Volkswagen’s situation will serve as a warning to other car manufacturers of the dangers of conducting unethical business practices.
