The Scientific Essay analyses the question whether it is possible for companies to agree on ethical and economic goals and to establish a permanent ethical corporate strategy as a result of the Covid-19 pandemic.
For that key question, the Scientific Essay using three concepts of the module Business Ethics analyse and discuss the challenges and opportunities arising from the Covid-19 crisis in general and for Volkswagen. The concepts, which are initially defined and form the basis of the Scientific Essay, are: License to Operate, Triple Bottom Line, Corporate Responsibility.
In the main part, the challenges and opportunities of the pandemic are presented based on the concepts. With reference to the title, it is particularly emphasized to what extent the Covid-19 crisis represents a turning point. Based on this chapter, the Volkswagen company is analysed. The contrast between the emission scandal and the new ethical orientation of VW is shown during the pandemic.
Finally, the conclusion is drawn looking back at the entire Essay.
Table of Contents
1 Introduction
1.1 Presentation of the topic in the context of Business Ethics
1.2 Procedure and objectives of the Scientific Essay
2 Main Concepts
2.1 License to Operate
2.2 Triple Bottom Line
2.3 Corporate Responsibility
3 Ethical and responsibility challenges and opportunities arising from the Covid-19 crisis in general
4 Volkswagen Group AG
5 Conclusion
Objectives and Research Focus
This scientific essay examines the ethical implications of business decisions in times of crisis, specifically focusing on how the Covid-19 pandemic impacts corporate behavior. The primary objective is to analyze whether the pandemic serves as a turning point for companies to shift toward more sustainable, ethically responsible strategies by applying core business ethics concepts.
- Application of the "License to Operate" concept to corporate social legitimacy.
- Evaluation of the "Triple Bottom Line" model regarding economic, ecological, and social balance.
- Analysis of Corporate Responsibility as a strategic management approach.
- Case study of Volkswagen Group AG's transition from the emissions scandal to pandemic-era ethical positioning.
Excerpt from the Book
2.1 License to Operate
License to Operate refers to the social acceptance of companies, which is based on the intersubjective perception of society members. Consumers purchase products or take advantage of services, confirming and affirming the company´s actions and their continued existence.
A missing License to Operate manifests itself in a loss of the entrepreneurial ability to cooperate among stakeholder groups, as a result of which the entrepreneurial added value is reduced. Accordingly, if there is a decline in production, the lack of trust on the part of society is often the reason. An important prerequisite is therefore the principle that society can trust that companies act in the interests of society.
A central point for gaining this trust is the assumption of social responsibility. In this regard, the term Corporate Responsibility takes an important meaning. It becomes an investment in License to Operate and thus in the future viability of entrepreneurship. Is there a lack of consideration of the moral, such as that of Schlecker regarding poor employee management or Nestlé regarding infant nutrition, the company loses acceptance and thus the License to Operate.
Summary of Chapters
1 Introduction: This chapter introduces the intersection of economic activity and ethical philosophy, defining the scope and objective of the essay within the context of the Covid-19 pandemic.
2 Main Concepts: This section provides the theoretical framework by defining the fundamental business ethics concepts of License to Operate, the Triple Bottom Line, and Corporate Responsibility.
3 Ethical and responsibility challenges and opportunities arising from the Covid-19 crisis in general: This chapter explores how global economic instability forces companies to re-evaluate their responsibilities toward society, employees, and the environment.
4 Volkswagen Group AG: An analysis of the company’s history regarding the emission scandal and its subsequent attempt to reposition itself ethically during the Covid-19 crisis.
5 Conclusion: The final chapter summarizes how companies can use crises as turning points to integrate sustainable values and harmonize the economic, ecological, and social dimensions of business.
Key Terms
Business Ethics, Corporate Responsibility, Covid-19, License to Operate, Triple Bottom Line, Sustainability, Stakeholder Value, Volkswagen, Emission Scandal, Corporate Governance, Solidarity, Economic Crisis, Social Acceptance, Ethical Strategy, Corporate Social Responsibility
Frequently Asked Questions
What is the core focus of this scientific essay?
The essay explores the intersection of corporate behavior and business ethics, focusing on how the Covid-19 pandemic challenges companies to rethink their ethical strategies.
Which theoretical frameworks are used in the analysis?
The author utilizes three key concepts: License to Operate, the Triple Bottom Line, and Corporate Responsibility.
What is the primary research objective?
The goal is to determine if the Covid-19 crisis acts as a catalyst or "turning point" for companies to adopt more permanent, ethically sustainable corporate strategies.
What methodology is applied?
The essay follows a qualitative approach, using scientific literature and current internet sources to analyze the theoretical concepts and apply them to the specific case of the Volkswagen Group.
How is the main part of the work structured?
The main part defines the core ethical concepts, discusses the general challenges of the pandemic for industries, and then specifically analyzes the Volkswagen Group’s past and present behavior.
What are the primary characteristics of the work?
The work is characterized by the integration of economic theory with practical crisis management, focusing on stakeholder interests and the need for social legitimacy.
How does the author view the "License to Operate" in the context of the VW scandal?
The author argues that VW lost its social license after the emissions scandal because it prioritized profit over the environmental and social pillars of the Triple Bottom Line.
What criticism does the author level at VW during the Covid-19 pandemic?
While acknowledging VW’s contributions, such as donating medical supplies, the author criticizes the company for taking state benefits for short-time work while simultaneously paying high dividends to shareholders.
What is the final conclusion regarding corporate behavior?
The author concludes that crises offer an opportunity for companies to reposition themselves, but warns that long-term ethical change requires consistent actions rather than just crisis-driven temporary measures.
- Arbeit zitieren
- Janine Kunas (Autor:in), 2020, The Covid-19 Crisis as a Turning Point for Corporate Ethical Behavior? Corporations in General and the Case of Volkswagen, München, GRIN Verlag, https://www.grin.com/document/932328
