Case Study Business Ethics

Comment on Piech’s neglect in not telling the board about Porsche buying Volkswagen shares. What is the significance of this event? During a Volkswagen supervisory meeting on April 19,2006, some of the board members asked for the reason on the dramatically changes on the price of Volkswagen shares. Unfortunately, there was no answer on this matter. Piech was the one who know about Porsche buying Volkswagen shares and purposely not informed to the board members of Volkswagen. The price of shares increased was due to Porsche keep buying the Volkswagen shares.
Piech stated that he kept quiet on the increasing of the price of Volkswagen shares because he did not want the price of Volkswagen shares to increase much more higher. It is unethical behavior that done by Piech. Piech should inform the board members of Volkswagen as they can find a strategy to prevent the share price grows up abnormally. The board members have the right to be well informed on the reason of changes on the shares price. The significance of this event is the drastically increase in the price of Volkswagen shares.
Porsche tends to buy the Volkswagen shares as much as possible in order to increase the price of Volkswagen shares. Porsche would like to increase the price of Volkswagen shares in order to direct the Volkswagen shareholders that Porsche want to takeover Volkswagen. It then makes sense to the public that Porsche want the share of Volkswagen. From here, Porsche shorted huge amounts of Volkswagen shares by borrowing from the existing owners. Then, Porsche started to sell it to earn the money and buy back the shares when the price dropped.

It results Porsche earned a large amount of profit by short selling the shares. As Porsche acquired a large amount of Volkswagen shares, Porsche became the Volkswagen’s largest shareholder. The Economist. (2008). How Porsche fleeced hedge funds and roiled the world’s financial markets. Retrieved from http://www. economist. com/node/12523898. Bloomberg. (2012). Piech Crowns 20-Year VW Turnaround With Porsche Takeover. Retrieved from http://www. bloomberg. com/news/2012-07-05/piech-crowns-20-year-vw-turnaround-with-porsche-takeover-cars. html

Don't use plagiarized sources. Get Your Custom Essay on
Case Study Business Ethics
Just from $13/Page
Order Essay
Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

At Solution Essays, we are determined to deliver high-quality papers to our clients at a fair price. To ensure this happens effectively, we have developed 5 beneficial guarantees. This guarantees will ensure you enjoy using our website which is secure and easy to use.

Money-back guarantee

Most companies do not offer a money-back guarantee but with Solution Essays, it’s either a quality paper or your money back. Our customers are assured of high-quality papers and thus there are very rare cases of refund requests due to quality concern.

Read more

Zero-plagiarism guarantee

All our papers are written from scratch and according to your specific paper instructions. This minimizes any chance of plagiarism. The papers are also passed through a plagiarism-detecting software thus ruling out any chance of plagiarism.

Read more

Free-revision policy

We offer free revisions in all orders delivered as long as there is no alteration in the initial order instruction. We will revise your paper until you are fully satisfied with the order delivered to you.

Read more

Privacy policy

All data on our website is stored as per international data protection rules. This ensures that any personal data you share with us is stored safely. We never share your personal data with third parties without your consent.

Read more

Fair-cooperation guarantee

Ordering and sending money to us is an indication that you are purchasing our products and services. To have business talks laid out in the official language, you can check on our terms and conditions and get more information about this.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Order your essay today and save 20% with the discount code: LEMONADEPlace Order
Live Chat+1(978) 822-0999EmailWhatsApp