Accountability Mechanisms in Volkswagen and Nike

Accountability Mechanisms in Volkswagen and Nike An ever evolving set of responsibilities (and accountabilities) for the functioning and welf are of individuals, society and the environment is entrusted to globe sector governances and private clientele enterprises.Using both positive and interdict faces discuss the above statement.Accountability is defined as the occurrence or condition of being accountable responsibility (Oxford lexicon, 2016). It is an essential part of every last(predicate) avocationes both large and small. The power that adept party has which enables them to demand accounts from other party is through various obligation mechanisms. This essay will turn up how a small selection of said answerability mechanisms succeeded or fai lead in the cases of two large corporations Volkswagen and Nike.The environment is entrusted into the hands of cablees. A prime example of when this trust was broken is the Volkswagen (VW) emissions scandal. In this case, the efficacious accountability mechanism failed miserably. licit accountability is the obligation that companies have to the law. These accountabilities unlike some others e.g. market accountability are compulsory. The VW emissions scandal erupted on the 18th of September 2015 (Kollewe, 2015). The troupe was consistent to recall 482,000 cars in the US after the scandal was expose. Due to the turn over il reasoned installation of a defeat device, VW could cheat emissions testing on several models and was cleared to sell them (Hotten, 2015). The defeat device ca employd cars affected to outperform under normal emissions testing conditions. Its purpose was to recognise test conditions e.g. a locked steering wheel and a stationary test rig and cast off the vehicles into a safety mode which resulted in the cars emitting a significantly displace level of air pollutants than they would under normal driving conditions. The rigging of tests al busteded VW to make out and sell thousa nds of cars that were advertised as being revolutionary overdue their low emissions. The stark reality was that when tested out-with normal test conditions, the engines emitted nitrogen oxide pollutants up to 40 times above what is allowed in the US (Hotten, 2015). When the scandal broke, it was unveiled that 11 million cars worldwide could possibly be fitted with the device (Kollewe, 2015). What is questionable, is the f work out that the company only suggested that 11m cars could possibly be fitted with the device. One would think that they would cognise how umpteen times they broke the law considering all the profits that they raked in. This resulted in the emitted pollution totalling almost 1 million tonnes per twelvemonth (Lee and Vachon, 2016). Roughly the uniform as the UKs combined emissions for all power stations, vehicles, industry and agriculture (Mathiesen and Nelsen, 2016). VW did not take care of the environment here because although their deceit ca utilise them t o rake in profits, their carelessness and lack of consideration has resulted in a negative stupor on the environment and society at large. In the case of this scandal, the legal accountability mechanism failed because although the law stated that cars could not emit more than pollution than a set amount, VW used dishonest vogues trade practices to bypass the law. Since the truth has been unveiled, VW has paid and will continue to pay in a heartfelt way for their wrongdoings with lawsuits and continued legal action being taken against them.Furthermore, legal accountability is not the only accountability mechanism that failed in relation to the VW scandal. another(prenominal) one was market accountability, accountability to the widening market in particular. The output market is where goods are sold and services are provided. This market is specially important as consumers in such markets can take their bespoke elsewhere in the event of a companys wrongdoing. As such a lar ge company, VW was trusted by millions of users all around the world. They bought their products because of their brand fealty and belief. They were drawn in by the advertisements promoting clean diesel and gave up their hard-earned coin in order to receive a product that unbeknownst to them was bring astonishing amounts of pollution into the atmosphere (Jopson, McGee and Campbell, 2016). A study found that US VW vehicles would have spewed between 10,392 and 41,571 tonnes of unhealthful gas into the air each year. If they had complied with EPA standards, they would have emitted just 1,039 tonneseach year in total (Mathiesen and Nelsen, 2016). The ill luck of market accountability is equally even more astonishing due to the astounding volumes of pollution that was emitted due to these defeat devices. Not only did VW bear witness a lack of regard for the environment, but they also did not act responsibly with the trust bestowed onto them by the output market society. The market penalized VW for its unsustainable doings with many customers taking their custom elsewhere. Volkswagen faces a consumer backlash against its brand (Lee and Vachon, 2016) and deservedly so. The VW scandal is a perfect example of the clashing that both legal and market accountabilities can have on a company when they are ignored.On the contrary, public reputational and market accountability succeeded in the case of Nike. The company began their Reuse-a-shoe curtain raising in 1990 and since then have recycled more than 28 million pairs of shoes and 36,000 tons of scrap material into Nike outwear for use in more than 450,000 locations around the world (Ekstrm, 2014). The material Nike Grind- is created using the slice-and-grind method. This meant that the shoes were slit into deuce-ace separate parts rubber outsole, foam midsole and fibre upper. The three separate parts would then be ground and refined for use (Nike, 2016). The three different types of Nike Grind can then be u sed for different purposes, all for benefitting communities and society in general. What is remarkable is the fact that Nike axiom an opportunity to make use of all the old trainers that were being incorrectly disposed of. By beginning this initiative, it is easy to see that Nike could build a strong brand consignment. Consumers are always eager to support an initiative that will better the planet in any way, shape or form and Nike realised this and have succeeded. Nikes Grind website statesNikes vision is that our products will be closed loop-that is, they will use the fewest possible materials and be assembled in ways that allow them to be readily recycled into new products. Our long terminus vision is to create a continuous loop without waste. (Nike, 2016)Nike has been very prospering with this initiative and it shows that they care for the environments and the well-being of society as a whole. This denominate is derived from the fact that all the old trainers were being dis posed of incorrectly and this led to an increase in landfill. Also, the burning of the rubber led to change magnitude toxic gases being released into the atmosphere. Nikes decision to begin the Reuse-a-shoe initiative was a great one because it improved the regard with which the company was seen. In addition, their pledge to use sustainable, durable materials designed for professional level performance has only further increased its popularity with millions of consumers around the world (Nike, 2016). Nikes swift action to try and reduce the impact that their old products had on the environment worked in their favour as Nike Grind is now well established and continues to boost the Nike brand image.In conclusion, yes, it is adjust that society and the environment is entrusted into the hands of public sector organisations and private business enterprises. These are regulated using accountability mechanisms. All companies are accountable in many ways. However, where VW failed in thei r legal, market and public reputational accountabilities due to their deceitful actions, Nike succeeded in their market and public reputational accountabilities by identifying and devising a way to fulfil its objectives whilst making a positive impact in many communities and society. While, VW fitted the defeat device to cheat emissions testing and eventually make more profit, Nikes outward thinking resulted in even more brand loyalty than they started out with. It simply demonstrates that accountability is an essential part of every organisation and when the accountability mechanisms fail, there are serious consequences.BibliographyEkstrm, K.M. (2014) Waste management and sustainable consumption Reflections on consumer waste. Pg 169-171. visible(prenominal) at https//books.google.co.uk/books?id=GXLfBQAAQBAJpg=PA170dq=nike+reuse+a+shoehl=ensa=Xredir_esc=yv=onepageq=nike%20reuse%20a%20shoef=false (Accessed 16 November 2016).Hotten, R. (2015) Volkswagen The scandal explained. Availab le at http//www.bbc.co.uk/ intelligence/business-34324772 (Accessed 16 November 2016).Jopson, B., McGee, P. and Campbell, P. (2016) Volkswagen faces $15bn hit over US green ad campaign. Available at https//www.ft.com/content/1234f9be-f5bf-11e5-9afe-dd2472ea263d (Accessed 16 November 2016).Kollewe, J. (2015) Volkswagen emissions scandal timeline. 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(2016) The Three keystone model for business decisions Strategy, law and ethics. Pg 16-19. Available at https//books.google.co.uk/books?id=SYXNCwAAQBAJpg=PA18dq=vw+scandalhl=ensa=Xredir_esc=yv=onepageq=vw%20scandalf=false (Accessed 16 November 2016).