What are the ethical issues involved?

Volkswagen a German automaker rigged US emission test so that it would appear

the amount of nitrogen oxides emitted is shown less. It has installed this in about
11 million diesel cars and sold them worldwide.
To find out whether there are any ethical issues with Volkswagen Emission
scandal or not, first we have to perform the smell test. Simple way to carry out
smell test is whether I would be comfortable explaining it to my grandmother? So
here something seams not right, so there are ethical issues with Volkswagen.
The ethical issues in this scandal can be classified in to the following categories
Systemic issues:
1. Testing system: The testing system is rigged so that it shows less pollution
levels, so there is an issue with it
2. Launch dates: Volkswagen was not ready with the solution to the emission
rules changed by the US government, so they in order to meet the launch
dates and business prospects rigged testing system
3. High profits: In view of higher profits they followed a path which would
fetch them higher profits
4. Difficulty in detecting the faults: As it is very difficult for anyone to identify
the rigged testing system, it encouraged them to adopt it
5. Green car award: Volkswagen might be interested in getting green car
award, so get show less pollution levels are emitted from their cars, it
might have rigged the testing system
Organisational issues:
1. Lack of protection to whistle blowers: There might some employees who
were aware of the scandal and wanted to expose it but, due to lack of their
protection they might have not come forward
2. USEPA rules: The United States Environmental protection Agency has
come up with clean air act and Volkswagen in order to meet the
requirements, it rigged the testing system
3. Brand image: Because Volkswagen is most popular German automaker in
the world, they might have expected people would not expect it to do any
rigging with the testing system
4. Board members: The board members at Volkswagen were unaware of the
issue, they must have been more proactive
Individual issues:
1. Engineers: The engineers at Volkswagen who designed the testing system
so that it can manipulate the data
2. Managers: The managers who encouraged the engineers to use the rigged
testing system are also responsible
3. CEO Martin Winterkorn: Of all the employees at Volkwagen, CEO is the
person who takes the decision, here he allowed the employees to use
rigged testing system so there is an ethical issue with him
4. Customers: Customers were unaware of this rigged system and they
bought cars, if they did not buy Volkswagen cars, then Volkswagen might
have not rigged the testing system