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If that comparison sounds overwrought, consider the words of Denny Gioia, a management professor at Penn State who, in the early 1970s, was the coordinator of product recalls at Ford. At the time, the Ford Pinto was showing a tendency to explode when hit from behind, incinerating passengers. Twice, Gioia and his team elected not to recall the car—a fact that, when revealed to his M.B.A. students, goes off like a bomb. “Before I went to Ford I would have argued strongly that Ford had an ethical obligation to recall,” he wrote in the Journal of Business Ethics some 17 years after he’d left the company. “I now argue and teach that Ford had an ethical obligation to recall. But, while I was there, I perceived no strong obligation to recall and I remember no strong ethical overtones to the case whatsoever.”

Executives are bombarded with information. To ease the cognitive load, they rely on a set of unwritten scripts imported from the organization around them. You could even define corporate culture as a collection of scripts.

back to Volkswagen. You cannot unconsciously install a “defeat device” into hundreds of thousands of cars. You need to be sneaky, and thus deliberate.

The most troubling thing, says Vaughan, is the way scripts “expand like an elastic waistband” to accommodate more and more divergence.

Embarrassed and unable to overturn the script they themselves had built in the preceding years, Morton-Thiokol’s brass buckled. The “no launch” recommendation was reversed to “launch.”

“It’s like losing your virginity,” a NASA teleconference participant later told Vaughan. “Once you’ve done it, you can’t go back.” If you try, you face a credibility spiral: Were you lying then or are you lying now?

Scripts are undoubtedly efficient. Managers don’t have to muddle through each new problem afresh, Gioia wrote, because “the mode of handling such problems has already been worked out in advance.” But therein lies the danger. Scripts can be flawed, and grow more so over time, yet they discourage active analysis

the final decision to deceive was, on an individual level, rational—the logical end to a long sequence.

This sequence of events fits a pattern that appears and reappears in corporate-misconduct cases, beginning with the fantastic commitments made from on high.

All of which placed personnel in a position of extreme strain.

We know what strain does to people. Even without it, they tend to underestimate the probability of future bad events. Put them under emotional stress, some research suggests, and this tendency gets amplified. People will favor decisions that preempt short-term social discomfort even at the cost of heightened long-term risk. Faced with the immediate certainty of a boss’s wrath or the distant possibility of blowback from a faceless agency, many will focus mostly on the former.

What James Burke, Johnson & Johnson’s CEO, did was anticipate the possible results of these pressures, well before they built up. He shared Henry James’s “imagination of disaster.” And it’s why he introduced, if you will, a set of counterscripts. It was a conscious effort to tinker with the unconscious criteria by which decisions at his company were made. The result was an incremental descent into integrity, a slide toward soundness, and the normalization of referencing “Our Credo” in situations that might otherwise have seemed devoid of ethical content.

This reaction isn’t excusable. But it is predictable.

What we know of Ferdinand Piëch, Volkswagen’s chairman before the scandal, is that he was no James Burke. At a 2008 corruption trial that sent one VW executive to jail, Piëch referred to alleged widespread use of VW funds on prostitutes as mere “irregularities,” and chided a lawyer for mispronouncing Lamborghini. (“Those who can’t afford one should say it properly” were his precise words.) This was around the time the emissions cheating began.

“Culture starts at the top,” a businessman recently said in an interview with the Association of Certified Fraud Examiners. “But it doesn’t start at the top with pretty statements. Employees will see through empty rhetoric and will emulate the nature of top-management decision making … A robust ‘code of conduct’ can be emasculated by one action of the CEO or CFO.”

GM’s view contrasts with other auto-making giants, including Toyota Motor Corp. TM 0.93% and Ford Motor Co. F -0.32% , which are working on full electrics but also expanding their U.S. hybrid offerings

Last week, Continental AG, one of the world’s biggest car-parts makers, said it would cut investment in conventional engine parts because of a faster-than-expected fall in demand—yet another sign the industry is accelerating the shift to electric vehicles.

Hybrids, which were popularized by Toyota’s Prius last decade as a social statement, accounted for about 3% of U.S. sales in 2018, according to research firm LMC Automotive. Sales of plug-in electric vehicles were around 1% of the total market—mostly thanks to the success of Tesla Inc.’s offerings.

Today, auto companies generally lose money on each electric car they sell, mostly because of the high cost of lithium-ion batteries. Concerns about the battery range, along with a lack of places to plug in, also deter buyers from considering electric vehicles. Those factors make going straight to all-electric cars a risky strategy

pouring investment into both hybrids and electrics strains car-company finances, Morgan Stanley analyst Adam Jonas said. “It’s time to pick a path and commit to it,”

VW and GM are focused on all-electric cars largely because of China, where new regulations require car companies to sell a minimum number of zero-emissions vehicles to avoid financial penalties.

VW plans to use its electric-car expansion in China to build scale and drive down prices faster in the U.S., said Scott Keogh, VW’s U.S. chief.

Auto companies are spending $225 billion to develop more than 200 new plug-in vehicles through 2023, a figure that doesn’t include hybrids

For now, both hybrids and electric cars are more expensive to produce than comparable gas-powered vehicles. A hybrid system can add roughly $2,000 to a vehicle’s cost, while a fully electric version costs an additional $6,000 to $10,000,

Toyota’s sales chief for North America, said that with U.S. electric-vehicle sales expected to lag behind Europe and China, the company needs a nearer-term remedy. “That’s why we feel so confident in hybrids

“There’s an attitude among the German public that it’s very unfair for the U.S. to target the auto industry over emissions,” Professor Roth said. “If you have electric cars and a coal-fired plant producing the electricity, you gain nothing.”

maximizing employment shouldn’t be a primary goal of a board, whose purpose is to monitor management for a company’s investors and ensure the long-term health and profitability of a company.

The Volkswagen board has been especially slow to move on environmental issues, investing less in electric and hybrid engine technology than industry leaders.

From an employment standpoint, the company has succeeded. Volkswagen said it employed nearly 600,000 people last year to produce about 10 million vehicles. By comparison, No. 2 Toyota employed 340,000 to produce just under nine million vehicles.

The former Volkswagen executive said Volkswagen’s engineer-driven culture takes the notion even further. He said the engineers felt that the politicians were guilty of rank hypocrisy, especially in the United States, also grumbling that electric cars make no sense as long as power plants are burning fossil fuels.

That Volkswagen is nonetheless obliged to obey applicable environmental laws, he said, is a notion likely to fall on deaf ears in Wolfsburg, especially compared to demands to be No. 1 in sales.

Considering the damage to Volkswagen from the still-unfolding scandal, its attitudes and approach to governance may have to change. Volkswagen faces a staggering number of investigations and lawsuits. Volkswagen said it set aside $7.3 billion, which doesn’t seem nearly enough; legal fees are likely to run into the billions, and the Environmental Protection Agency alone could fine the company up to $18 billion

Volkswagen shares were trading at about €160, or $180, last Friday before the Environmental Protection Agency announced its investigation. They have dropped about 30 percent in the days after the news broke, wiping out over $26 billion in shareholder value

Given the serious financial and reputational damage, the long-term survival of Volkswagen is a real question

“If the reason they are fun to drive is that they are spewing up to 40 times the amount of pollutants they are supposed to be, I just find it outrageous, frankly,”

“Of course, owners who bought these diesel vehicles in part because of any environmental benefits may have moral objections to driving them, and they may feel they have no other option but to keep their cars parked for the time being,” Ms. Caldwell said. “And then there are owners who just feel flat-out deceived and will want their money back.

Carbon capture and storage, which Morgan Stanley says is the only viable option for reducing emissions from coal-fired plants, is another key area and would need almost $2.5 trillion of investment.

to reduce net carbon emissions to zero and meet the Paris Agreement’s goal, the world would have to eliminate 53.5 billion metric tons of carbon dioxide each year,

Beyond the social and environmental consequences from failing to act on climate change, going beyond a temperature rise of 2 degrees Celsius could result in a loss of $10 trillion to $20 trillion of global GDP by 2100, Morgan Stanley predicts.

Within the electric vehicles space, Tesla is the “only pure play”—though they should be followed by VW and Toyota in the long run, while other companies like Panasonic and Albemarle are among the leading players in lithium technology and supply.

For hydrogen, companies to watch include Air Liquide, Siemens and Alstom.

It is a position that China has not been shy to weaponize.

“It is not about individual companies, but rather security standards,” the chancellor said in November. “It is about the certification we will carry out. That should be our guiding benchmark.”

rebellion is brewing in Germany’s foreign policy and intelligence community — scared of American threats to limit intelligence sharing — and even among some of the chancellor’s own lawmakers, who want to submit a proposal to Parliament with tougher security criteria that would, in effect, keep Huawei out.

“Car companies gather loads of personal data from the drivers of their cars, and they face an enormous risk of an angry public outraged to find their data used by the Chinese Communist Party,” said Mr. Grenell, the United States ambassador.

German automakers like Volkswagen, Daimler and BMW have continued to record sales gains in China and to take share from rivals like Ford, even as the overall market has slumped.

Today Volkswagen earns almost half its sales revenue in China and has 14 percent of the Chinese car market.

“If we were to pull out” of China, Herbert Diess, the chief executive of Volkswagen, told the Wolfsburger Nachrichten newspaper in December, “a day later 10,000 of our 20,000 development engineers in Germany would be out of work.”

An early critic of groupthink, Carter warned against “the idea that Black people who gain positions of authority or influence are vested a special responsibility to articulate the presumed views of other people who are Black — in effect, to think and act and speak in a particular way, the Black way — and that there is something peculiar about Black people who insist on doing anything else.”

In the past, such ideas might have been seen as “frankly racist,” Carter noted. “Now, however, they are almost a gospel for people who want to show their commitment to equality.” This belies the reality that Black people, he said, “fairly sparkle with diversity of outlook.”

He disparaged what he called “the peculiar relationship between Black intellectuals and the white ones who seem loath to criticize us for fear of being branded racists — which is itself a mark of racism of a sort.”

At the same time, Carter bristled at the judgment of many of his Black peers, describing several situations in which he found himself accused of being “inauthentically” Black, as if people of a particular race were a monolith and that those who deviated from it were somehow shirking their duty. He said he didn’t want to be limited in what he was allowed to say by “an old and vicious form of silencing.”

“No weight is added to a position because somebody is Black. One has to evaluate an argument on its own merits, not on the race of the person making it.”

Carter took issue with the belief, now practically gospel in academic, cultural and media circles, that heightened race consciousness would be central to overcoming racism. However well intentioned you may be, when you reduce people to their race-based identity rather than view them as individuals in their full, complex humanity, you risk making sweeping assumptions about who they are.

“There has always been something unsettling about the advocacy of a continuation of racial consciousness in the name of eradicating it.”

In a cover review in The New York Times Book Review, David J. Garrow, a Pulitzer Prize-winning historian of the civil rights movement, called “Reflections of an Affirmative Action Baby” “powerfully written and persuasive.” The Los Angeles Times said it was “an essential text in the public debate over racial preferences.” The New Yorker called Carter “shrewd, subtle and funny.”

defenders of affirmative action too often dismiss those beneficiaries of affirmative action who publicly express reservations about the policy. These defenders often make knee-jerk assumptions about the political agendas of liberal Black writers like Thomas Chatterton Williams and my colleague at The Times John McWhorter, falsely casting them as conservatives or traitors to their race.

he rejected all efforts to label him, insisting that intellectuals should be “politically unpredictable.” As Washington Monthly noted: “Critics who attempt to push (or pull) Carter into the ranks of the Black right wing will be making a mistake. He is not a conservative, neo- or otherwise. He is an honest Black scholar — the product of the pre-politically correct era — who abhors the stifling of debate by either wing or by people of any hue.”

“Reflections” offers a vigorous and unflinching examination of ideas, something academia, media and the arts still prized in 1991. Carter’s arguments were considered worthy of discussion, however misguided his critics took them to be

Today, a kind of magical thinking has seized ideologues on both the left and the right, who seem to believe that stifling debate on difficult questions will make them go away. But if affirmative action itself goes away, America — which Carter deemed “a society that prefers its racial justice cheap” — will no longer be able to avoid grappling with the real and persistent inequalities that necessitated it in the first place.