The quote “Business decisions affect both stakeholders and nature; therefore, a logical conclusion is that those decisions have ethical content inherently” (p. 1) reminded me of the Volkswagen emissions scandal from a few years ago. In 2015, it was discovered that Volkswagen had programmed their diesel cars to cheat on emissions tests. The cars were made to appear environmentally friendly, but in reality, they were polluting way more than what was legally allowed. Millions of cars were affected, and so were millions of people.

What stood out to me in the reading was how Waddock says that every business decision has some kind of ethical impact. In Volkswagen’s case, their decision affected customers, the environment, public health, and even the company’s reputation. Managers at the company chose to cover up the truth in order to increase sales, and that decision led to lawsuits, fines, and a major loss of trust from the public.

This shows why ethics in leadership really matter. If the managers had thought about the long-term consequences instead of just the short-term profits, this could have been avoided. The reading makes it clear that ethics shouldn’t be treated like an add-on, they’re a core part of leadership and decision making.

The Volkswagen scandal proves Waddock’s point: whether a company wants to admit it or not, their choices have ethical weight. When companies ignore that, real people and the environment suffer. It’s a reminder that ethical leadership isn’t just about following rules, it’s about doing what’s right.

Ethical Role of the Manage encyclopedia of business ethics