Product Defects: Ethics and Legal Issues in Business - Research Paper Example

? Running Head: PRODUCT DEFECTS: ETHICS AND LEGAS ISSUES IN BUSINESS Within any business environment, production companiesexperience numerous instances of product defection and sub-standard quality. In actual commercial settings, company employees or consumers may become the first ones to notice existence of a defect within the product attributes. Capitalistic economies allow producers to manufacture goods meeting some pre-determined standards. However, it is common to witness presence of product defects within such environments adopting excellent product quality control. According to Sernaker (2010), product defects could result in damage of an organization’s reputation once consumers get to know about the issue. In addition, defective products could cause direct or indirect harm to consumers. In such a case, product manufacture may fall under the legal requirement of explaining the reason for a sub-standard product in their market segments. In this regard, product defects should be taken seriously by a manufacturer in order to avoid possible legal sanctions by relevant authorities and concerned consumer protection agencies. As an employee of the company, it would be professional to notify high level managers about the product defect. According to O’Reilly (2007), this can only be done through a systematic and procedural manner in order to avoid raising unnecessary tensions within the board of directors and the chief executive officer’s team. In this context, lack of significant knowledge on the company’s ethical standards requires approach of the product defect issue from a technical perspective. As an employee of the company, I will categorically and explicitly present my concerns about a defective product within the consumer market. Managers will have to acknowledge the fact that the defective product signifies technical hitches within production and distribution lines. Thorough evaluation of production designs, packaging practices and even product transportation could feature as the main cause of the problem under consideration. In this case, I would take the opportunity given in the meeting to postulate about existence of technical shortfalls within the company’s production lines, which needs immediate attention to avoid unprecedented challenges. O’Reilly (2007) says that presence of practical evidence in form of actual product with defects would facilitate conveyance of the message to the managers and their new chief executive. Standard operation procedures within a sound business environment emphasize that organizations should strictly follow specific safety guidelines in product manufacturing. In an event that production department makes defective products, the manufacturing company becomes solely responsible for any risk and harm involved when such products reach innocent consumers in the market. Sernaker (2010) states that in this case a company should immediately notify customers about the product defect to prevent any potential risk and injury to customers. The company can only notify customers once an objective testing and product analysis substantiates that the product is unsafe for use. With respect to my company, the process of notifying consumers begins with locating exact defective products within the market. Managers can achieve location of products through records on distribution channels and major retail outlets. Upon identifying exact locations of products, management should device mechanisms meant to reach individual customers via information contained in their sales records. Once customers are aware of the defects, the company may opt to temporarily stop production of the product in order to avoid further sales to consumers. According to O’Reilly (2007), continued production and distribution will hold the company even more responsible for neglect of safety programs towards the public consumer market. Product recall succeeds notification of customers. O’Reilly (2007) agrees that recalled products can be destroyed or repaired, and affected customers ought to receive appropriate compensation. With respect to the case of my employer, a successful notification and recall exercise will improve the company’s reputation. Customers will feel that the organization is conducting itself professionally by working in the best interest of their customers. As was insinuated earlier, existence of a product defect signifies a considerable level of technical hitches in various sections involved in production and supply. This means that appropriate internal measures will serve as the best option for addressing immediate product quality issues. In addition, modification of internal production systems will serve the purpose of preventing future incidences of product defects within the consumer market. Sernaker (2010) says that in ideal product development, production and distribution processes possess desired qualities meant to accomplish high degree of product quality. However, actual settings involved in mass production of consumer goods employs technologies falling short of ideal attributes. In this case, manufacturing design could be the most probable cause of the defect. Improvement of manufacturing design and production lines will significantly prevent future incidences of defects. In this case, management will have to commit additional resources and capital in developing efficient production lines through utilization of sophisticated technological tools. Apart from modification and improvement of production technologies, company managers should ensure product standards are met at all costs. In marketing practices, development and advertisement informs the public about all positive aspects of a product. Such positive messages represent true qualities of original products, which undergo numerous safety standard tests in order to ascertain aspects of quality. According to O’Reilly (2007), manufactures usually deviate from ideal production standards during mass manufacture of goods. In this case, production lines may utilize cheap and low quality raw materials, which yield corresponding low quality products. Companies practicing such actions usually strive to achieve a desired profit maximization objective. However, pursuit of high profits results in significant compromise in product quality and safety to consumers. In order to ensure this does not happen in future, managers responsible for cost management during production exercises should notify senior executives of problems associated with use of low quality materials in productions. In the other hand, senior managers should demonstrate social responsibility by suspending their greedy pursuit of proceeds at the expense of product safety. In order to ensure prevention of future incidences of defects, an organization may chose to strengthen the role of its code of ethics within the company’s premises. According to Weiss (2008), ethical practices within both the external and internal spaces of the organization facilitate accomplishment of objectives contained within the corporate mission. In this case, senior management should adopt appropriate measures meant to enhance integration of ethics within the organization. One such measure involves establishing a sense of accountability in respective work stations. Weiss (2008) says employees’ should learn that violation of rules contained in the professional code of ethics results in subsequent consequences. In the case of product defects, production experts should acknowledge that a defect resulting under their custody of production processes makes them accountable to senior management, consumers and the company in general. Sernaker (2010) says that production experts violate their professional and ethical conducts whenever they neglect effects of low quality raw materials in product development. Apart from production managers, other employees working under various departments should acknowledge the same sense of accountability in their respective duties. Consequently, establishment of accountability ensures integration of business ethics within the organization. The organization can also adopt ethical standards by encouraging managers to lead by example. In this context, the chief executive officers, directors and business unit managers should promote ethical conduct but encouraging subordinate employees to follow their lead. According to Weiss (2008), managers should provide copies of well defined ethical standards and requirements of all employees within every department. In the product defects incident, senior management should demonstrate their commitment to ethical practices by implementing widespread customer notification and product recall. In this case, subordinate employees will see that the organization is serious on its business ethics concerns. Subsequently, these subordinates will adopt the same level of responsibility demonstrated by employees in their respective duties. Therefore, leading by example facilitate infiltration of ethical spirit within the organization. References O’Reilly, T. J. (2007). Product defects and hazards: Litigation and regulatory strategies. New York: Wiley & Sons. Weiss, J. W. (2008). Business ethics: A stakeholders and issue management approach with cases. Pittsburgh: Cengange Learning Publishing. Sernaker, G. (August 12, 2010). Product Defects. Ezinarticles.com. 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