Responsibility is a key moral concept but it is often used ambiguously, such as a firm being considered a responsible part of the community, having corporate social responsibility, or being responsible for harms. This chapter provides a clear framework that distinguishes between the different ways the term is used and shows how it can be applied in practical terms. It starts with an exposition of the Volkswagen diesel scandal to illustrate the various meanings of the term, contrasting notions of legal liability from moral wrongs. The relationship of cause, blame, and fault to moral responsibility is evaluated. It is noted that people may adopt institutional values when working in a role, and whether that approach remains valid even when someone else takes responsibility. The nature of company and institutional codes and compliance issues are discussed, and positive acts are contrasted to deliberate avoidance. The doctrine of double effect is evaluated, where an outcome is foreseeable but unintended. The concluding case deals with the tragic loss of Boeing 737 MAX airplanes and the attempt to shift blame from the company to individuals, especially foreign pilots.

In September 2015, Volkswagen's "clean diesel" technology was exposed as a sham. Not only were the company's vehicles discharging dangerously high levels of nitrogen oxide, but VW had intentionally rigged its emissions systems to cheat on environmental tests. In the wake of resignations and criminal investigations, the company's governance system came under justifiable attack. Were VW's famously worker-friendly governance policies to blame? This Chapter examines the root causes of the emissions scandal and concludes that VW's governance culture suffered from dictatorial leadership as well as a cozy relationship between management and labor leaders. This culture of complacency led to a lack of accountability at key levels, including executives, shareholders, and regulators. In addition, despite its worker-oriented governance structure, Volkswagen's internal management is still organized along traditional hierarchical lines. Empowered workers, participating at all levels of company governance, would provide a stronger internal culture of compliance, innovation, and sustainability.