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ETHICAL DECISION - Research Paper Example

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Ethical Decision Name of Author Author’s Affiliation Author Note Author note with more information about affiliation, research grants, conflict of interest and how to contact Ethical Decision Memorandum PART 1 To: Mr. Paul Samuels, Chief Executive Officer (CEO) From: Michael Sanders, Elementary Divisional Manager Date: March 17, 2011 Re: Presence of unacceptable levels of lead in toys designed for elementary school children - Dear Mr…
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Download file to see previous pages... I append below my views on the matter: A. Three possible decision alternatives to address the problem regarding the whistles: 1. Withdraw the entire consignment of the order and arrange to have cancellation of the order. If any advance payment has been made, to arrange to have it refunded to the customer. 2. Let the consignment go as it is upon the assumption that just a few whistles have been carrying the high lead content and the others are quite safe for children’s use. 3. Further carry randomized checks on lead content of the whistles contained in the consignment and bifurcate the passable whistles vis-a-vis the reject able ones. Make a fresh consignment containing only the Quality Check (QC) passed whistles. Thus, the three alternatives and their explanations before the company in the wake of this contingency are as follows: (A) Arrange for total withdrawal of the tainted consignment and arrange for cancellation of the order and refund of the money if paid by the buyer. ...
However the reputation and goodwill of the company in terms of ethical and moral values is intact and no legal action would ensue since the consignment has been called back. The main advantages of this alternative would be that the company would not lose face or face lawsuits for supplying toxic whistles. The disadvantage would be the loss of the entire shipment and losses of $100,000 (b) The second alternative would be to allow the consignment to go on as though nothing has happened, and presume that the toxicity would be minor and negligible confined to just a few odd whistles, which would have been there, anyway, considering the bulk of the shipment. Sometimes, companies need to take such risks, in the greater interests of business and in order to circumvent economic losses, or lowered profits. It is quite possible that these may be few in numbers and not create a major issue with customers. The main advantage is that economic losses would be avoided but the disadvantages would stem from probable lawsuits and loss of business reputation. In the event the Government institutes an inquiry to alleged high toxic levels in toys, the company would be in real trouble. The ethical aspects are also heavily compromised since the company is taking a calculated risk that its products would be accepted without further inspection by health authorities. (c) The third alternative seems to be the most sensible and rational under the circumstances, that is, once again, carry out thorough checks on lead content of the whistles contained in the consignment and separate the Quality Checked whistles vis-a-vis the rejectable ones. Make a fresh consignment containing only the Quality ...Download file to see next pagesRead More
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