The Scandals of Samsung and Volkswagen-Free-Samples for Students

Question: Using two corporate scandals Samsung Battery Recall and VW (Volkswagen) prepare a report. Answer: Introduction The discussion is about Volkswagen (VW) emission scandal which mainly deals with the internal scandal that has been dented with the integrity of the company (Strittmatter et al., 2017). The company had been equipped with the different varieties of the diesel vehicles that comply with the U.S. emission standards, every diesel car manufacturer tends to focus on handling the software installation in the car to clean the exhaust of the diesel. The other case is about Samsung Battery Recall that focus on handling the effective strategy to steal some market share. Here, the reports are about media attention citing some faults in the batteries. Here, the focus is on the supply chain and the other battery manufacturers. The major effect of the issues came in Galaxy Note 7 after launching well-received smartphone. The sales have halted globally after the issue of battery explosion (Raja, 2016). Stakeholders involved and how they were affected For the VW, the stakeholders in this case include any customer who has been affected by the policies, company and the other people who invest in the same. The scandal has highlighted the extent which includes the customers, employees, dealers, shareholders and the other auto-manufacturers. They have been mainly affected in a large number ranging from loss of jobs, and then leading to change in stock market, environmental issues and tarnished reputations (Tse et al., 2017). After the scandal that went public, VW has been trying to work on taking steps to correct the issues with the ability to cope up with the damage done to the image. In Samsung case, the customers who were loyal had to face a big shock as they were affected by their poor decisions. Samsung SGI was the min supplier as they will not be able to regain the trust of people effectively. The stakeholders are the commission and the consumers, stock market and the environmental issues which were there at the time of explosion. Apple Inc., is a competitor to Samsung and so it is preparing an interconnected supply chain to clean up the problems and recoup the profits (Cooke, 2017). Ethical, legal, accounting corporate governance issues How the issues occurred The ethical issues in VW are related to the fact that the company focused on the sales rather than releasing the quality vehicles. With this, the company could not develop a cleaner diesel engine and tend to sacrifice their integrity at the cost of money. the legal issues are about how VW stole the trust of the people and their employees costing jobs and then other lawsuits. VW has also been using a software to cheat in the emission tests and violating the Clean Air Act with obstruction of justice (Rhodes, 2016). The exposure in US has been dwarfed for the vehicle manufacturers in pollution cases and malfunctioning the safety factors. The corporate governance issues are related to failure of the top management to take the responsibility of the actions. It was known at the different levels of management that the company has been cheating which led to the malfeasance which is punishable by law (Griffin et al., 2016). Along with this, there are rules and processes for the failure of top management to enforce the rules and work on the handling the diminishing of the failure with the classic disruptive innovation. The ethical issues in Samsung were the lack of the safety precautions which attributed to the laws surrounding mainly how the product safety was confirmed. With this, there have been responsibilities for wasting money by sending any type of faulty replacements, hurting the customer and their long-term relationship with this (ABC News, 2017). The legalities are related to handling the faulty replacements, which according to the law has a major impact on the companies through their own uncertainty. There have been issues related to the management, suppliers, shareholders to handle the set of rules and controls in which the company lost the trust of the people. Similarities between the scandals Both the companies thought about making more money rather than thinking of the jobs of the employees or the loss of trust from their customers. A regular damage by using an illegal software by VW could prove that the company sacrificed their integrity and company image for more money. Along with this, both of them lost their consumers and the stakeholders where there have been high routes that meant to go against any type of personal beliefs. There have been issues about company priorities which focused mainly on the sales rather than releasing the quality vehicles. On the other hand, Samsung just added to what VW did. Even after repairing the products, there were explosions which showed that the company does not have any respect for the consumers and their money. Comparison: Between Enron Samsung Battery Recall (Similarity and difference) There difference is related to deadlines where Samsung displayed poor judgement and poor character with the lack of moderation that caused them to release a faulty product with impatience. They then tried to cover the damage in order to keep the sales and not concern about the retention plan of the Samsung customers. Honesty and trustworthiness are important factors which were disregarded by the company. With Enron, the analysis is based on the transparency and auditing in the organisations. The company corresponds mainly to the positional rights which are granted through the position to fulfil the positional duties of serving in an ethical manner (Bloomberg News, 2016). The similarity is about how both the companies have led to risk the jobs of the employees, with risks related to fraudulent activity. Along with this, the companies have code of ethics to prohibit the managers and executive from being involved in other business activities so that there is no major conflict of interests in future. Between Enron Volkswagen (Similarity and difference) The difference is that Enron fraud was about swiping the savings of thousands of people whereas VW endangered the health of people with higher level of NOx. VW promoted with false promotions for less carbon emissions, where Enron only urged the employees to buy the stock of the company. There have been fines and the lawsuits for VW to handle the scale and scope whereas Enron was wiped for the revelation of the accounting fraud that was shown to the company. VW main role in Germany automobile industry led to the blow in the devastation of the global image of the company (Zhang et al., 2016). Here, the people were not able to handle the value and were wiped due to the false claims. Enron tend to taint the accounting profession relating to financial reporting where VW confronted about advocating the technology with the means to achieve a better sustainability in the environment. The similarities that could be considered are about the defeat devices, how they affected the jobs of the employees. Along with this, there have been issues related to controlling the management as both the companies looked over the profits rather than the welfare of the consumers. The short-term profits meant rising the stock prices and stock plummeted, but quick fortunes were lost. Both of them empowered the government to create a commission to make sure that collusion never happens. Improvements and Changes For Samsung, it is important to focus on utilitarianism and Kantianism about viewing the case mainly to determine about the ethical significance by looking at the controversy that reflected on the risks and rewards with adding the technology into a small device. The business actions mainly aim to maximize the happiness with a major affect that holds on maximizing the pleasure and minimizing the pain with a stakeholder approach (Zhang et al., 2017). The paying of more attention with product launch deadlines than the safety and satisfaction. Considering the deontology, Samsung was facing the outrage from social media, and so they tried to mitigate the problem. But, Samsung could not respect the ability of public to make the different rational decisions related to the controversy, when they also declared that their replacements are now safe and easy to use without making any effective changes to the product. But the false claims were unethical on the standards to hide the truth that cou ld never be considered under the universal law (Brian et al., 2016). For Volkswagen, utilitarian theory is about producing a better amount of good with consequentialism ethics which are for determining the different actions and to work on the matter of perspectives when related to the terms of what actions are beneficial. VW actions have been found to be oppositional to Utilitarian where the entire scandal has been not good for any person or the company as well. The consumers are now facing the issues related to whether they should buy the defected cars or not. Along with this, the employees also lost their jobs even after the problems were rectified. VW has been focusing on the reinforcement of compliance, risks management and auditing in the company (Li, 2015). For deontology, there have been perspectives related to how the people are working under a proper range and scope of rights. VW never have the people a complete right of what they were doing or what they have been planning to do. They have made people believe only in the different facts and t he images, where dishonesty kept the consumers to buy the cars and the shareholders only buying the stock of the company. With this, there has been a major helping build-up where the faulty cars or the car dealers tend to sell, and people also kept their sales going without thinking of making appropriate decisions. Conclusion After analysing the collapse of Enron, there are different lessons about preventing the acts of corruption. The major recommendation could be to give a firm to create and embrace the stronger code of conduct. This will lead to enforcing a strict conduct policy with the better business actions which can completely jeopardize the firms in legal and ethical forms. It is important to safeguard and allow management to clear understanding of how the corporation is adopting. The companies are capable to establish a sense of transparency with building trust for the investors and in the public. Enron case is important to handle the case of code of conduct policy that has been highly acclaimed (Bart Jansen, 2016). The creation of a culture where the employees hold a culture with higher standards include a series of checks and balances that will be able to match with the transparency in operations. It also shows that the firms are representing the honest sense of security and faith in the compa ny where one is also aware of that lead to unethical practices References ABC News.ABC News. 27 October 2016. https://abcnews.go.com/Technology/wireStory/samsung-galaxy-note-troubles-numbers-43094439. AndroidHeadlines.com.Android Headlines. 27 October 2016. https://www.androidheadlines.com/2016/10/samsung-expanding-scope-galaxy-note-7-investigation.html. Bart Jansen.USA Today. 5 October 2016. https://www.usatoday.com/story/news/2016/10/05/samsung-galaxy-note-7-explodes-while-boarding-southwest-flight/91602698/. Bloomberg News.Bloomberg. 4 September 2016. https://www.bloomberg.com/news/articles/2016-09-04/samsung-s-note-7-recall-will-be-expensive-but-probably-worth-it. Brian X. Chen, Choe Sang-Hun.The New York Times. 11 October 2016. https://www.nytimes.com/2016/10/12/business/international/samsung-galaxy-note7-terminated.html?_r=0. Cooke, P., 2017. A ground-up Quaternary innovation strategy for South Korea using entrepreneurial ecosystem platforms.Journal of Open Innovation: Technology, Market, and Complexity,3(1), p.10. Griffin, P.A. and Lont, D.H., 2016. Game Changer? The Impact of the VW Emission Cheating Scandal on the Co-Integration of Large Automakers Securities. Li, Y., 2015. The severity of negative events in enterprises affects consumers' brand attitude.Social Behavior and Personality: an international journal,43(9), pp.1533-1546. Raja, S., 2016. Samsung: Its Time To Take Note.The Market Mogul. Rhodes, C., 2016. Democratic business ethics: Volkswagens emissions scandal and the disruption of corporate sovereignty.Organization Studies,37(10), pp.1501-1518. Strittmatter, A. and Lechner, M., 2017. Sorting on the Used-Car Market After the Volkswagen Emission Scandal. Tse, Y.K., Zhang, M., Doherty, B., Chappell, P., Moore, S.R. and Keefe, T., 2017. Exploring the hidden pattern from tweets: Investigation into Volkswagen emissions scandal. InSupply Chain Management in the Big Data Era(pp. 172-198). IGI Global. Zhang, B., Veijalainen, J. and Kotkov, D., 2016. Volkswagen Emission Crisis: Managing Stakeholder Relations on the Web. InWEBIST 2016: Proceedings of the 12th International conference on web information systems and technologies. Volume 1, ISBN 978-989-758-186-1. SCITEPRESS. Zhang, B., Veijalainen, J. and Kotkov, D., 2017. Samsung and Volkswagen Crisis Communication in Facebook and Twitter: A Comparative Study. InWEBIST 2017: Proceedings of the 13rd International conference on web information systems and technologies. Volume 1, ISBN 978-989-758-246-2. SCITEPRESS