International Legal and Ethical Issues in Business - Essay Example

113). For instance, if the employee chose to present the issue to the higher management, then it is expected that the company would incur losses for product test and recall. However, the action would benefit customers to stop from patronizing the defective products. In the code of ethics, it is an employee’s responsibility to act in professional manner and report promptly to the higher management about any information he or she knows about wherein the business is directly involve so that it could be given appropriate corrective actions.

However, “it is not uncommon practice for lower-level employees to communicate upwards about only those matters which are likely to appeal to people at higher levels (Rashid, 1983, p. 133); therefore, the employee should present first the subject matter to his or her next in command particularly if the company’s structure is following an upward communication by subordinates. In addition, he or she is not at all responsible to tell directly to the company’s CEO and executives about the knowledge of potentially defective products that are being sold to the customers until such time that it is delegated to the immediate supervisor.

In the first place, the employee is uncertain about the organization’s ethical guidelines which are supposed to be communicated to them to ensure that they understand the company’s values and policies. Lastly, he is just maintaining the welfare of the company and at the same time fulfilling his duties, respecting the higher authorities and maintaining social order. Values for professionals and employees in particular are not bound for the organization alone but it needs to serve for the good of the public.

* How would you specifically notify customers of such an occurrence? Satisfied customer contributes higher revenue growth, therefore, it is their right to be notified and it is the company’s responsibility to provide them with real information. In case the issue is effectively presented to the top management, then it is the company’s responsibility to test and recall the product to know the defects. This process is costly but it could prevent further losses. Also, it is one of their ethical and social responsibilities to secure the safety of their customers in return for their reputation (Jennings, 2009, p.

511; Shaw, 2010, p. 222). It should consider the seriousness and frequency of the injury that the product could create to the customers and remember that quality of products should be prioritized first. The customer will be notified through a press release, describing to them the real problem, guarantee their safety, and most importantly, ask for an apology. In this case wherein defective products are involved, it is a requirement that the company should respond promptly and efficiently. It should ensure that the remaining defective products will not reach the customers by tracking them through helpful signs, and setting up tracking system for customers’ complaints.

Through this way of keeping the customer informed, everything will be centralized and easier to control. * What kind of internal actions would you take to prevent future problems? The employee must define the problem clearly and be responsible on all his or her actions. For instance, if he or she discovers material information that involves the business, he or she should promptly report this to the