Volkswagen is among companies that are struggling with ethical issues. Business ethics is the unwritten constitution of running a business, which define how a business should conduct is operation morally. It includes both written and unwritten rules that a business is expected to adhere to. Unethical business conduct is therefore any business activity that does not conform to the acceptable and expected moral conduct of a business (Machan, 2007). Volkswagen, one of the oldest and the prestigious motor vehicle companies in the world, has been engaged in a long running emission scandal that has dented its business image. This report discusses the unethical challenges facing Volkswagen and makes recommendations for the company.