Topics: Ethics, Management, Consumer Product Safety Commission Pages: 3 (808 words) Published: October 19, 2014
Ethics is a challenging concept for many businesses, both domestic and international. It is not a “one size fits all” idea. While one culture may perceive certain actions as ethical, another may not agree. Some cultures incorporate ancient traditions into their “code of conduct” of business. In China, the saying of “I scratch your back, you scratch mine” is part of their business ethics. In Japan, one must be careful when expressing certain idioms or respecting certain cultural norms, such as accepting a gift with two hands (Oster). In a situation where a defective product is discovered, one of the first steps to take is to ask questions and gather data about the defect before presenting to management. Is it a design issue? Is it an issue with the manufacturing process that may have caused the defect? Will this defect cause potential harm to the consumer? How many were affected? How many were sold? Is the product in non-compliance with regulatory and government safety requirements? The data is then gathered and organized in a logical way and presented to immediate and upper management of the issue. The next step from the company is to conduct a root-cause analysis1 to determine and isolate the cause(s) by asking “why”. Why was this manufactured in this way? Why was this not manufactured to specifications? (Determine the Root Cause: 5 Whys). Once the cause is established, recall plan, also known as corrective action plan (CAP)2, should immediately be executed to internally and externally minimize damage. Being proactive in this sense not only minimizes damage, but it can strengthen the public’s trust in that company. In any company, a corporate-wide comprehensive product recall (or CAP) plan should already be in place for such situations and be immediately executed when it does arise. A product recall plan should “cover the operational, legal and public relations (internal and external) components of making a recall," advises Jonathan...
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