How Deep do the Lies Go, and What Are the Repercussions?
And whom can we trust now?
In the world of science and medicine, one of the most frustrating issues with which we deal in trying to debunk pseudoscience, quackery, and woo, is the accusation that – at various times and for various reasons – scientists and corporations (especially in the pharmaceutical industry; read Ben Goldacre’s book Bad Pharma http://www.amazon.com/Bad-Pharma-Companies-Mislead-Patients/dp/0865478007) have knowingly lied and fabricated results in the pursuit of profit. And every time those lies have been revealed, the public loses trust in both the institutions and individuals who do science, medicine, etc. Hence the growing popularity of “outsiders,” “rebels against the establishment,” “investigators,” etc who proclaim the duplicity of profit-mongering of Big Pharma, Big Ag, Big Medicine, Big Oil……you name it.
Now once again we are witness to a spectacle of such monumental lies, it almost boggles the mind. Volkswagen, one of the world’s most respected, trusted, and big automobile manufacturers, has been caught in a web of complex deceit that is almost beyond belief. (See all the relevant links in David Amerland ‘s thoughtful and withering discussion)
And sadly, the consequences of VW’s lies will spread far beyond this specific incident. Once again, all science deniers, all those who oppose big corporations and big profits, all those with an axe to grind, have been handed a weapon of such magnitude that all honest scientists, engineers, institutions, and companies will struggle to withstand it for years, if not decades.
Have no doubt, the fallout of this deception will spread far beyond the automobile industry, because when a corporation as generally trusted as VW is willing to lie at such levels, for so long, with such complexity – whom are we to trust?
ping Skeptical Writers Society Alison Bernstein Anna Zakrisson The Imaginarium Mommy, PhD Robert Sacerich Jon Entine John R. Ellis Yvette d’Entremont
Originally shared by David Amerland
A Case of Broken Trust
In what is going to be a landmark case in terms of the use of smart computing and cognitive technology and the trust we place in it VW is ready to become a chapter in the marketing history books. For those of you who may not be aware of the scandal here’s what happened. VW installed in its cars software smart enough to know when a car was being tested and alter the engine performance to meet specific environmental emissions standards when in reality the engine was not compliant.
This gave the company a specific competitive advantage: In the first year Volkswagen Jettas were programmed with the illegal “defeat device,” the car manufacturer actually won a tax break for selling fuel-efficient cars. (http://goo.gl/0qlyJg) plus it helped it win the hearts and minds of consumers who were concerned about the environment and made purchasing choices based upon their knowledge of the technical details specified by manufacturers.
VW recently overtook Toyota as the world’s top-selling vehicle maker – market share that rests upon its reputation for engineering and the performance of its vehicles (http://goo.gl/YLxCQn). With over 11 million cars affected worldwide (http://goo.gl/kPnADC) VW suddenly becomes a world-class cheat that took advantage of technology to willfully lie and manipulate the public and is likely to pay a hefty price for it: http://goo.gl/1lsMBz.
The issue here is with the intent behind the act. VW spent considerable skill and expertise setting up the ruse that duped regulators testing its cars: http://goo.gl/KjXKFr. In other words it knowingly acted against public good for its own self-gain. (Remember the Libor scandal? – https://goo.gl/rqcjXe). In doing so it broke its pledge of trust with consumers where we believe that the company wants the same things we do: the best performing car, with the best environmentally safe characteristics at a price that is reasonable for us to pay and the company to make a profit.
This is a fine, unwritten contract the breach of which is important because of its ramifications. Just like in the Libor case the VW actions created a culture of deception that suddenly made it “OK” for others to do the same: http://goo.gl/FMutbH. In other words not only did they lie to the world, not only did they use their technological know-how not to win, but to cheat, they may have also done even more harm to the automotive industry by leading others to take a similar course of action in order to compete with them.
To break this down in very simple terms VW made each of those who purchased affected cars complicit in burning up the planet so the company could meet quarterly profit estimates. (!)
The value of VW shares lost 20% almost overnight and the fine levied against it is going to set a new record. Yet it is in the harm it has done to public trust and the damage to its brand that all eyes will now rest upon. This, like many of the challenges we face in the age of cognitive computing, is new. How a company recovers from it will be a valuable lesson in how we build, use, lose (and maybe regain?) trust (http://goo.gl/4u8dcJ).