...Runaway Ethics: Determining Preferred Courses of Action Through Ethical Analysis of the 2009 Toyota Motor Company Automobile Recall In September 2009, Japanese automotive manufacturer Toyota issued a recall of 3.8 million vehicles due to “unintended acceleration” that was believed to be caused by loose floor mats becoming lodged under the gas pedal due to a design flaw in the pedal layout. Since the initial recall, which affected seven models ranging from 2004 to 2010, more details have emerged. Instances of surges in acceleration in Toyota vehicles have been investigated by the NHTSA on six separate occasions since 2003 and over two thousand owners have claimed to experience the phenomenon. Consumer Reports examined cases of unintended acceleration surges in the United States for 2008 and forty-one percent of all instances involved Toyota vehicles. Most tragically, sixteen people have been killed in accidents resulting from unintended acceleration in Toyotas and over two hundred-forty have been injured. As a short-term fix, Toyota brand dealers began removing floor mats or fastening them to the floor pan in order to prevent lodging under the accelerator. More recently, dealerships have begun reshaping or shortening accelerator pedals until replacements become available for installation. However, some consumer groups have criticized Toyota’s sluggish and secretive response, and a national class-action lawsuit has been filed against Toyota alleging that the floor mats...
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...Baker Individual News Article A factor that consumers must consider today is the impact that interest rates have on the United States economy. Economists believed that the housing market would begin to heal, auto sales would hit a record high, and the government would begin running a surplus. However, the only correct prediction was the rise in auto sales. Auto sales rose tremendously, and was a good sign of the economy slowly recovering. Even though the government has full control of the economy their actions greatly affect the economy. In this paper I will analyze the effect that interest rates have on the economy and how aggregated supply and demand is affected. The U.S. economy remains weak and the government has considered tapering. Tapering would mean that the government would have to reduce its asset purchase program. This process would have to be slow and gradual so that the markets will not be affected. Economists believe that tapering would result in an increase in interest rates and could have bad effects on the economy. The first part of the economy to be affected would be mortgage rates. The housing market is critical to a thriving economy and higher interest rates would slow it down drastically. For this reason tapering would be risky to the economy. Higher interest rates will hurt everyone except the investors who rely on interest income. Higher interest rates leave less disposable income for consumers to spend and results in a loss of jobs. A loss...
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...that have negatively affected Toyota’s image as one of the most reliable cars on the market. Along with this a PEST analysis will be produced and the strengths, weaknesses, and outcomes expected will be shown in order to illustrate how our analyses and actions will help move Toyota past their reputational issues. Our goal is to take Toyota back to a place where they can move themselves back to a place of growth, innovation and one of positive consumer confidence. For over the past 70 years Toyota has been considered the leader in new technology development. The brand is renowned for quality and reliability across all their models. The company is also seen as the market leader and flag-bearer for greener, hybrid technologies. The firm’s performance in the global market in recent year has delivered mixed results. In the beginning of 2009 Toyota was confirmed as the world’s largest manufacturer by volume, partly due to the collapse of General Motors. But Toyota hasn’t had much time to celebrate. The carmaker has been plagued by a variety of setbacks, including slumping sales, under-utilized assembly lines and multibillion-dollar losses. But perhaps most worrisome of all are signs that the company’s flaunted quality has been slipping. Long hailed as the industry benchmark, some key Toyota products have suffered quality snags in recent years regarding the overall safety of their vehicles. The auto media seems to believe that Toyota’s reputation is ruined. Consumers, though...
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...material (water is the substantially important material for all products of the company ,as company didnt suffer from any shortage of water supply but having abundant amount of water and having quality and the to ensure sustainability of this precious natural resource,is different thing sustainability is responsibility of company)(envoirment) Being consider it as a threat Water is the main ingredient in substantially all of our products. It is also a limited resource in many parts of the world, facing unprecedented challenges from overexploitation, increasing pollution, poor management and climate change. As demand for water continues to increase around the world, and as water becomes scarcer and the quality of available water deteriorates, our system may incur increasing production costs or face capacity constraints which could adversely affect our profitability or net operating revenues in the long run. sweetneers sweetners in us is high fructose corn syrup hfcsavailable from domestic sources and subject to fluctuation in price.CCBSS is a limited liability company that is owned by authorized Coca-Cola bottlers doing business in the United States. Among other things, CCBSS provides procurement services to our Company for the purchase of various goods and services in the United States, including HFCS. The principal non-nutritive sweeteners we use in our business are aspartame,However, our Company purchases aspartame, an important non-nutritive sweetener that is used alone...
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...organizations must ensure that their human resources have desirable ethical behaviour. This will ensure that their organizations maintain their clientele and in turn increase their profit margins. How would you effectively present the issue of potentially defective products to the CEO, other directors, and managers? A potential defective product can cause injuries if taken lightly regardless of whether the company’s ethical guidelines have been communicated. Such situations can cause significant legal repercussions and destroy the reputation of a company, which can cost the company if proper steps are not followed in correcting it. Normally, the senior management in current organizations fails to know what is happening at the ground level and it is the duty of the employee in charge to give out a report (Edwards, 2008). During such a presentation to the top management, it is important for one to give out sampled evidence to support the allegation in an honest manner. This should be made in comparison to the actual products to bring out the difference. Physical evidence brings out product defects and it will challenge the top management to act fast to avoid legal battles with the consumers (Brooks, 2012). How would you specifically notify customers of such an occurrence? It is an ethical obligation of an organization to notify the consumer of the possibility of a defective product in the market. A preferred way of notifying the consumers may be through a media campaign such as print...
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...1. Did the intervention effort by the Thai government constitute direct or indirect intervention? Explain. The intervention effort by the Thai government constituted direct intervention, since the government exchanged dollar reserves for baht in order to strengthen the currency. This action would increase the demand for baht and the supply of dollars for sale, which puts upward pressure on the baht. In indirect intervention, a central bank attempts to influence the value of a currency by influencing the factors that determine it. For example, if the Thai government wanted to strengthen the baht, it could have increased interest rates by decreasing the Thai money supply. 2. Did the intervention by the Thai government constitute sterilized or nonsterilized intervention? What is the difference between the two types of intervention? Which type do you think would be more effective in increasing the value of the baht? Why? The intervention by the Thai government constituted nonsterilized intervention. In using a nonsterilized intervention, a central bank intervenes in the foreign exchange market without adjusting for the change in money supply. Using sterilized intervention, a central bank intervenes in the foreign exchange market while retaining the money supply. Since the Thai government exchanged dollar reserves for baht in the foreign exchange market, the dollar money supply is increased. An increase in the money supply may decrease...
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...Product. In the last three decades, the U.S. has incurred a trade deficit from importing more products than it exports (Colander, 2010). The largest sector of imports is industrial supply products representing 32% of total imports Trading Economics, 2014). This includes products such as, crude oil, steel, natural rubber, and other various raw and man-made materials required for industrial and commercial industries (United States Census Bureau, n.d.). The surplus of imports affects U.S. businesses and consumers differently. Domestic companies can be negatively affected if it is unable to remain competitive with their international counterparts. As I mentioned previously, the U.S. imports a large number of raw materials used for industrial supplies. Domestic companies have lost profits and released employees due to lack of demand for their goods or services. This also negatively affects American workers who lose their employment and main source of income. However, consumers reap the benefits of these imported raw materials because they are less expensive than domestic products. The surplus of foreign goods also creates job in the U.S., such as marketing, advertising, and distribution, which also help American workers (Colander, 2010). Effects of International Trade International trade affects different aspects of the...
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...Workplace and the World Alicia Pearson Dr. Mary Nelson LEG/500 November 28, 2015 Ethics and Corporate Responsibility in the Workplace and the World PharmaCARE is a hypothetical, successful, pharmaceutical company. The company is one of the world’s most successful pharmaceutical companies which enjoys the status of being a caring, ethical, well-run company that produces high-quality products which saves millions of lives and improves the quality of life for its consumers. PharmaCARE offers free and discounted drugs to low-income families who are unable to purchase expensive drugs. The company also has a foundation which sponsors healthcare educational programs and scholarships with its CEO serving on the PhRMA board. PhRMA, the Pharmaceutical Research and Manufacturers of America, represents the country’s leading biopharmaceutical researchers and biotechnology companies. “Its mission is to conduct effective advocacy for public policies that encourage discovery of important new medicines for patients by pharmaceutical and biotechnology research companies” (PhRMA, 2015). PharmaCARE has developed a new initiative, We CARE about YOUR world, which pledges its commitment to the environment through recycling, packaging changes, and other green initiatives. The company successfully proved its lobbying by defeating environmental laws and regulation, including the reinstatement of the Superfund tax, now known as the Comprehensive Environmental Response, Compensation, and Liability...
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...Sustainability - Pepsi-Cola Company Sustainability - Pepsi-Cola Company Sustainability can impact all the areas of operation within a company; including manufacturing, distribution, development, and support functions. All entities including; employees, supply chain partners, customers, investors and stakeholders involved in a company’s operations should understand the importance of achieving and establishing sustainability. Because of the numerous entities involved along with government regulations, establishing sustainability may come with red tape and barriers. According to The Boston Consulting Group (2009), companies often lack the right information upon which to base decisions and companies struggle to define the business case for value creation. The Consulting Group, also states that flawed execution is often a cause of failure. Creating a successful sustainability and implementation strategy is an important factor to a company’s financial success. Pepsi is an example of a company who has successfully worked through the challenges to execute and maintain sustainability. Sustainability The meaning of sustainability in business is defined more clearly by example of bad practices in sustainability and also success stories throughout history. This way a person who isn’t familiar with the meaning or sustainability practices and strategies can get a solid grasp on what it is truly about. Sustainability is crucial for financial success...
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...Stakeholder A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources. Not all stakeholders are equal. A company's customers are entitled to fair trading practices but they are not entitled to the same consideration as the company's employees. An example of a negative impact on stakeholders is when a company needs to cut costs and plans a round of layoffs. This negatively affects the community of workers in the area and therefore the local economy. Someone owning shares in an business such as Microsoft is positively affected, for example, when the company releases a new device and sees their profit and therefore stock price rise. What is the meaning of "Take/Taken for granted'? Most common definitions: 1) to use, accept, or treat in a careless or indifferent manner: 2) to accept without question or objection; assume constituency the people involved in or served by an organization (as a business or institution) political action committee a group formed (as by an industry or an issue-oriented organization) to raise and contribute money to the campaigns of candidates likely to advance the group's interests advocacy advertising Advertising...
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...Air France Finance and competitiveness are today the two words at the heart of preoccupations for all Air France executives. Air France is the main French airline company. Founded in 1933, it provides transportation of passengers, cargo, maintenance, and maintains aircraft around the world. It joined with the Dutch company named KLM in 2004 and became together the fifth air carrier in the world. Air France KLM has about 77.3 million passengers each year, more than 95,000 employees and 25.5 billion turnover in 2013, so it must implement a very specific organization in order to better manage its business. With the rise of low cost airline and the economic crisis raging, Air France KLM must pay close attention to the management of his company. Many stakeholders are involved in the good functionment of Air France KLM, that’s why they have an important place in the company. In recent weeks, Air France KLM has been affected by several strikes of its employees which caused Air France to lose a lot of money (until 500 million euros) and created lowers credibility to its loyal customers. How Air France KLM has to face all these threats and what solutions could be put in place to prevent these risks ? First of all, we will see the main stakeholders present in this company and the actions to take in place to manage them. Finally, we will find different preventions to avoid any strikes and minimize risk. Company’s stake holders identification. Can you establish...
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...P6 How does political, legal and social factors impact business activities of selected organisations and their stakeholders Political factors: Politics can Nike.in both negatively and positively through changes made to tax, labor and national security laws. For example, politicians can raise taxes directly on businesses or on individuals, which ends up costing the company in the long run as people spend less money on goods and services. Alternatively, Nike profit when citizens receive tax incentives. Legal Factors: Businesses can be affected by many aspects of government policy. In particular, all businesses must comply with the law. They must also consider the impact of any forthcoming legislation on their operations. This may require taking action before the legislation comes into effect. One issue that affects manufacturers and retailers of electronic goods is the disposal of these products at the end of their life. Recycling is high on the public agenda. There are government initiatives to promote more recycling. These initiatives are sometimes backed by legislation. For example, the Waste Electrical and Electronic Equipment (WEEE) regulations are designed to reduce the amount of electronic waste going to landfill sites. Businesses must obey these environmental laws. However, a company that goes further by taking other measures to minimize its environmental impact will be seen more favorably by consumers. Another is how they’re manufactured; trade unions and government...
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...{Ackerman v. The Coca- Cola Company and Energy Brands Inc. (d/b/a Glaceau), Case No. 09-cv-0395) (Brison, 2012). The suit compiles a class action suit from the states of New York, New Jersey, and California. Thirteen allegations are identified with three dismissed. We will be discussing the issue at hand, what the basis of the suit is and ground rules, ethical issues, how Coca Cola’s leadership conduct affected the company, and the changes needed. The history of Coca Cola dates back to the 1886 when an Atlanta pharmacist named of Dr. John S. Pemberton discovered that by mixing sweet syrup with carbonated water an eccentric taste was produced. In 1886 Coca-Cola started as a five cent drink in a neighborhood pharmacy and today has become a household name for millions. With the increasing push for health, coke, and other carbonated soft-drink manufacturers have experienced a 2.1% volume decline in one year alone. In an effort to prevent decreasing soda sales, Coca-Cola decided to manufacture Vitaminwater. The success of this product was largely because of the marketing power of the organization and the products health claims. For example they listed that this product will provide “optimal functioning of the immune system,” and that Vitaminwater “is specially formulated to provide 50% of the many important vitamins you need every day" (Brison, p 195, 2012). According to Brison, “In 2009, Coca-Cola was named in a class action lawsuit, Ackerman v. The Coca-Cola Company based on Fraud/Misrepresentation...
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... Siomkos, & Chatzipanagiotou, 2009, pp. 65-66). Crisis Management in Relation to Business Vassilikopoulou et al. (2009) stated, “Crisis are events that are difficult for a company to avoid” (p.66). Vassilikopoulou et al. further stated “the types of crisis are numerous from ‘small-scale organizational issues’ to a grave crisis." Several studies prove that when a company neglects a crisis it will eventually hurt the brand and the image. The following two citations will prove this “The immediate expense of product replacement and consumer compensation may pale in comparison with the loss of consumer trust and damage to brand evaluations” (Lei, Dawar, & Gürhan-Canli, 2012, p. 336). “A poorly managed marketing crisis can quickly destroy the affected brand’s equity, which might have been nurtured over many years” (Zhao. Y., Zhao, Y., & Helsen , K., 2011). Managing Crisis Management should minimize negative consequences (Vassilikopoulou et al., p.69). Vassilikopoulou et al. described “companies involved in a crisis are more likely to be held responsible for the defective product if they have a poor reputation” (as cited in Siomkos, 1999). Thus, a good reputation could also play a protective role when conducting crisis management properly (Vassilikopoulou et al., p.66). Mowen et al. argues that a company could limit the adverse effects of a product recall if it emphasise that it is acting in a socially responsible manner (as cited in Vassilikopoulou et al.). Personal Experience...
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...PharmaCARE Company is a well successful pharmaceutical company known to produce high quality products that have saved millions of lives and enhanced a quality of life to others. The Company is recognized for offering free and discounted drugs to low-income consumers, and has a foundation that sponsors healthcare educational programs and scholarships, and its CEO serves on the PhRMA board. The company is located in New Jersey, and maintains a large manufacturing facility in the African nation of Colberia. In this, paper I will review questions that arose from a given scenario that PharmaCARE Company encountered while they reformulated one of its top-selling diabetes drug. PharmaCARE established a wholly-owned subsidiary called CompCARE to operate as a compounding pharmacy to sell the new formulation to individuals on a prescription basis. I will highlight the negative impacts the new drug caused to individuals, and the negligence the company had towards the working condition of its employees. Determination of all the stakeholders in the given scenario Stakeholders are defined as individuals who are involved in, have a vested interest in, or a “stake” in the success of an organization (Merriam-Webster, 2011). Internal stakeholders will participate in the strategic development of coordinating resources to fund and sustain an operation, whereas external stakeholders are not directly connected to the organization; however, they are vested in the company success as clients, business...
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