Please read the article at the link below. To what extent could (1) performance

Question

Please read the article at the link below. To what extent could (1) performance based compensation models, and (2) divisional performance models based on residual income and/or ROI have been at least partially responsible for the decision by VW senior managers and engineering personnel to push ahead with the plan to sell the new "clean diesel" technology automobiles in places with high emissions standards, like USA, and devise a complex and risky plan to cheat the tests when the technology did not perform as expected? How does this tie in to the discussions of corporate ethics and internal controls that we discussed at the beginning of the term.

http://finance.yahoo.com/news/vw-made-huge-mistake-trying-180606377.html

Explanation / Answer

Facts of the case:

Ethical Issues:

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