THE FUTURE OF CORPORATE SCANDALS AND FRAUD 3
Volkswagen emission scandal
The Volkswagen emission scandal of 2015 where the United States Environmental
Protection Agency accused the Volkswagen Group (an automobile company) of intentionally
programming emission systems to activate emissions (Blackwelder, 2016). This was contrary
to their proposed laboratory tests that the diesel engines could not emit poisonous gases while
they had proved that the systems (Krall and Peng, 2015). Despite huge sales made by the
company, this was the biggest scandal in the automobile industry where the consumers were
given the unworthy value of their money. However, the company paid $ 2.8 billion fine for
cheating the government on emission tests.
Factors that Lead to Scandals and Frauds
Having looked at the two scandals it is evident that greed to make maximize profits,
lack of accountability and greed to seize the market are the deterrents to the quality welfare of
the worker. Corporates can ensure a fraud and scandal-free working environment through time
payments of the employees, adhering to the laws such as environmental regulations, following
the state laws, providing quality-working conditions for the workers, and flexible working
schedules.
Mitigation Strategies to Scandals and Frauds
To achieve a reduction in corporate scandals and frauds in future, the implications for
the employers will be to offer quality-learning programs that sensitize the need to reduce
fraudulent acts. Professional development through self-evaluation, seminars, bench markings,
and team building programs should be priorities of the corporates. If such programs are
implemented, scandals and frauds will reduce in the near future. In conclusion, despite the
strategies to reduce exploitation of the employees and the stakeholders of any business, the
main purpose of the business is to make profits. It is therefore important to balance between
