Case Study Business Ethics

Comment on Piechs neglect in not express the dining table about Porsche buying Volkswagen shares. What is the significance of this event? During a Volkswagen supervisory meeting on April 19,2006, some of the jury members asked for the conclude on the dramatically changes on the hurt of Volkswagen shares. Unfortunately, there was no answer on this matter. Piech was the unitary 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 compliments the price of Volkswagen shares to increase much more higher. It is unethical look that done by Piech. Piech should inform the board members of Volkswagen as they can honour 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 rove to increase the price of Volkswagen shares. Porsche would like to increase the price of Volkswagen shares in orderliness 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 acquit the money and buy back the shares when the price dropped.It results Porsche earned a monumental amount of profit by short selling the shares. As Porsche acquired a large amount of Volkswagen shares, Porsche became the Volkswagens largest shareholder. The Economist. (2008). How Porsche fleeced hedge funds and roiled the humanitys financial markets. Retrieved from http//www. e conomist. 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