In two settlements announced last week by the U.S. justice department with German automaker Volkswagen totaling a record .7 billion, the company gets a chance to redeem itself somewhat after being caught nine months ago for cheating on diesel emissions tests . The deal is fair to vehicle owners, but the damage to the environment will go unrecompensed, said Wharton professor of legal studies and business ethics Eric Orts and Rena Steinzor , professor of law at University of Maryland. In an industry that cuts corners too often, corporate structures must have incentive mechanisms to deter wrong behavior and encourage corrective action, they said on the Knowledge at Wharton show on Wharton Business Radio on SiriusXM channel 111 . (Listen to the podcast at the top of this page.) The settlement requires Volkswagen to spend $14.7 billion to compensate vehicle owners and invest in pollution mitigation and green vehicle technology. It won’t be the end of Volkswagen’s woes, warned deputy attorney general Sally Q.…