Sunday, December 6, 2015

The Light At The End Of The Tower

The lighthouse has been a symbol of safety and civilization along seacoasts for centuries. Martha’s Vineyard is home to five historical lighthouses. These tall monoliths stand still overlooking cliffs and coasts to ensure safe passage for nearby ships traveling at night. Although the buildings may seem outdated and simplistic, lighthouses continue to play a large role in marine navigation. Having grown up on the ocean, the lighthouse signifies more than just a monument. I believe the light points us in the right direction just as a moral compass would help us choose the right decisions.


Ethics are the moral principles which guide the actions and decisions of an individual or group. In marketing, advertisers should not tell lies or use deception in order to sell their products. This is particularly true if they want repeat customers.  Bad news travels fast. When it comes to consuming goods, people believe they are buying a product that is inherently good and will certainly not harm them. The public is bombarded by marketing campaigns on a daily basis.  For the most part, people believe what they hear and see.  Advertisers tell people what they need and that they should buy it.  


An example of deceptive marketing involves the Volkswagen Group, a large German car manufacturer, that recently has been found guilty of tampering with their vehicle’s emissions outputs during regulated tests. The Volkswagen company was in a major push to sell diesel cars in the US, and relied on a massive marketing campaign touting its cars' low emissions. An algorithm was installed into the emissions control-module, “allowing the car to spew up to 40 times the U.S Environmental Protection Agency’s maximum allowed level of nitrogen oxides, air pollutants that cause respiratory problems and smog,” says Prachi Patel. (Engineers, Ethics, and the VW Scandal) There is no question that the acts performed by Volkswagen were unethical and affected millions of people nationwide. The company experienced a tremendous loss in customers this quarter because of their dishonesty. Trust takes years to build and a matter of seconds to break. Whether it is a buyer-seller relationship or management in a corporation, trust maintains a healthy transaction.


VW badge on US flag
I feel Volkswagen has lost the light that guides them through ethical decisions. Instead, the urge for power and profit has now blinded the true motives and goals of the company. To think an organization as large as Volkswagen would put so many people at risk is a heavy decision with even heavier consequences. The scandal will cost the Volkswagen corporation up to $87 billion and potentially more from the previous consumers who vow to never buy Volkswagen again. Brand loyalty is an accomplishment both parties can be proud of. It takes so many years to build up a following that no amount of money can buy. The best way to gain brand loyalty is to have consistency with product quality, service, and ethics. When one of these factors goes astray, there is the unfortunate possibility to lose customers.

As quoted by the BBC News, "We've totally screwed up," said VW America boss Michael Horn, while the group's chief executive at the time, Martin Winterkorn, said his company had "broken the trust of our customers and the public". Mr Winterkorn resigned as a direct result of the scandal and was replaced by Matthias Mueller, the former boss of Porsche. "My most urgent task is to win back trust for the Volkswagen Group - by leaving no stone unturned," Mr Mueller said on taking up his new post.


A lighthouse is built to withstand the rough weather that inevitably comes with its duty. I am curious to see if Volkswagen can do the same.



No comments:

Post a Comment