Case Study: Fiat Chrysler Automobile And Dieselgate Scandal
Introduction
As the infamous Volkswagen (VW) “Dieselgate” scandal comes to light, the United States Environmental Protection Agency (EPA) started testing other automobiles on the road to ensure compliance of regulation. This leads to the exposure of Fiat Chrysler (FC) scandal and Renault scandal in 2017 (Bovens, 2017). Similar to VW, they were accused using a “defeat device” software to bypass laboratory test on nitrogen oxide (NOx) emission level. Such act of cheating and the increase in scandal draws attention to the importance of business ethics. This report discusses extensively on ethical dilemmas in the use of technological knowledge to cheat environmental test and consumers for the advantage of FC. The discussion includes an overview on FC scandal, strict product liability…...
Fiat Chrysler Automobile and Dieselgate Scandal
Fiat Chrysler Automobile’s mission is to provide consumers a safe, flexible and best-in-class performance by innovating continuously. They believe …show more content…
The opportunity to cheat presents in this case as there exist such a technology to alter NOx emission level. Although this system was never meant used in such a manner to deceive regulators, there is no reason not to do it because it will be hidden in millions line of software code.
The last element in fraud triangle is rationalization, where FC can use the defeat device to fool vehicle exhaust emission laboratory test if they manage to provide reasoning for their action. Having known that VW faced a mere $120,000 fine back in 1970s, equivalent to approximately €690,000 in 2017; FC may have rationalized that using the device will only cause a light punishment if and only if they are caught. With the existence of all three elements, FC acted unethically with only profit maximization in their
As the infamous Volkswagen (VW) “Dieselgate” scandal comes to light, the United States Environmental Protection Agency (EPA) started testing other automobiles on the road to ensure compliance of regulation. This leads to the exposure of Fiat Chrysler (FC) scandal and Renault scandal in 2017 (Bovens, 2017). Similar to VW, they were accused using a “defeat device” software to bypass laboratory test on nitrogen oxide (NOx) emission level. Such act of cheating and the increase in scandal draws attention to the importance of business ethics. This report discusses extensively on ethical dilemmas in the use of technological knowledge to cheat environmental test and consumers for the advantage of FC. The discussion includes an overview on FC scandal, strict product liability…...
Fiat Chrysler Automobile and Dieselgate Scandal
Fiat Chrysler Automobile’s mission is to provide consumers a safe, flexible and best-in-class performance by innovating continuously. They believe …show more content…
The opportunity to cheat presents in this case as there exist such a technology to alter NOx emission level. Although this system was never meant used in such a manner to deceive regulators, there is no reason not to do it because it will be hidden in millions line of software code.
The last element in fraud triangle is rationalization, where FC can use the defeat device to fool vehicle exhaust emission laboratory test if they manage to provide reasoning for their action. Having known that VW faced a mere $120,000 fine back in 1970s, equivalent to approximately €690,000 in 2017; FC may have rationalized that using the device will only cause a light punishment if and only if they are caught. With the existence of all three elements, FC acted unethically with only profit maximization in their