To: CEO
From:
Date: 6/6/11
Re: Problem Regarding Whistles in the Toy Collection A1. To address the problem regarding the whistles, there are three possible decision alternatives:
1) Have the whistles tested by another lab to confirm the amount of lead in the whistles
2) Get the manufacturer involved and see if they will absorb the cost of reproducing the whistles
3) Send the shipment of the elementary toy collection without the whistles for now. A1a. Forming a distinctive faction of supervisors, we can review which alternatives satisfy the musts and which one satisfies the most wants and the issues at hand to devise possible resolutions. Brainstorming will allow participants in the group to provide different suggestions or ideas, thus creating more options. Once all views were presented, we then narrowed the alternatives to the top three with everyone’s agreement involved in the critical thinking process. (Explain the steps for decision making, 1999-2011) A1b. The benefits of the first alternative are having a second opinion. Whistles should not necessarily be discarded if after an additional test shows that the whistles do meet the legally acceptable limits of the lead in them.
A disadvantage of the second opinion is the cost of having an additional test done to confirm the amount of lead in the whistles. Not only will it cost to have the test done, but to ship the whistles to the lab.
The benefits of getting the manufacturer involved are taking the responsibility off the toy company. The manufacturer would absorb all the costs of either testing the whistles or replacing them. A disadvantage of involving the manufacturer is that this can affect the customer relationship with the toy company. This could make them feel they are to blame and possibly create legal issues. The advantage of shipping the toy collection without the whistles is that the toy collections would still arrive at the schools in time for the beginning of the school year and would only be minus the whistles. This would keep the customer relationship in good standing. A drawback to this alternative would be not to send the entire toy collection as originally planned. Credibility could become an issue with the customer and prevent further business opportunities as well. A1c. Having a second opinion may create additional expenses, which could be very costly to the toy company. With a time limit at hand, a second inspection must be performed quickly, generating additional fees to have the testing done on a “rush basis.” We must compare the cost of having a second opinion done compared to replacing the whistles. If a second opinion results in the same outcome as the routine testing of the quality assurance department, then the company should most likely seek legal advice to assist in any action that may be brought against them due to the above normal lead found in the whistles. Presentation of a second opinion demonstrates the company protects them against the manufacturer of the product. The financial consideration of having a second opinion completed in a fast and timely fashion could be very costly. Replacing the whistles would be more cost effective, as this would prevent paying for a second opinion and paying the cost of the whistles if the second opinion is unfavorable. Having a second opinion could involve legal representation, as the company would want to have an attorney analyze the case and protect the company’s legal rights on this major issue. There does not appear to be any impact concerning ethical consideration with this alternative. Having a second opinion should not cause ethical concern, as it is the right thing to do in confirming the amount of lead in the whistles. Contacting the manufacturer of the whistles and having them absorb the costs of

reproducing the whistles may relieve us of obtaining the significant financial responsibility.

The liability falls on the manufacturer, as the problem would lie in the making of the whistles. The financial burden involves maintaining the facility, costs of their employees and equipment.
If the facility is guilty of making a bad product, then the right thing to do is to hold them accountable for the mistake made. Placing the manufacturer on notice and requesting they resolve the issue may void our company of any suspect legal issues. Any legal issues involved would apply to the liable source, the manufacturer. Ethical considerations would include a process that would be harmful to the environment which is the lead used in making the whistles. Having the manufacturer absorb the costs of reproducing the whistles would be a financial burden on the manufacturer. They would still have to pay their employees that work in the plant as well as the cost of the equipment. This could result in a financial loss to the manufacturer if they were willing to take on this responsibility. We would want to have an attorney review this case and have them advise of any legal concerns involved with the manufacturer. The lead used in the whistles creates an ethical concern, as it is harmful to the environment. The shipping cost of sending the toy collections onto the elementary schools without the whistles could possibly be less, as shipping is based on weight. When the new whistles are shipped, the cost may only be the difference between the shipment without the whistles and the whistles by themselves. If this is the case, then there is no additional financial expense other than originally budgeted for. Any possible legal issues could be avoided, as the shipment would be shipped as originally scheduled, only without the whistles and reach the schools on time. This would provide the schools the confidence they would have in our company, as we would be protecting the interests of the children by not sending the whistles until they were reproduced. This would help reduce any possibility of legal action, and would build a stronger relationship between our company and the customer. Ethically this is the correct thing to do. As a company, we would not be sending anything knowingly harmful to our customers. A2a. I recommend shipping the toy collections to the schools without the whistles for now. My decision is based on attempting to maintain our agreement; the items arrive on schedule at the beginning of the school year, less one item, with little to no interruption. This will benefit the client by showing them that we have addressed the issue with the whistles and while that is getting resolved, we want to get the rest of the shipment sent without causing a huge delay. This will keep our client relationship in good standing. By taking this step to provide top customer service, it reflects a positive yet ethical standard of our company. A2b. Recommending shipping the toy collection without the whistles could affect the customer relationship in many ways. Keeping the customer satisfied reaps rewards and is a proactive approach. Maintaining a happy customer insures trust. Increase in sales will occur and the company will be more profitable, as other customers will recognize how we take care of our client. By not sending any part of the toy collection would be a bad experience and in turn would prevail over the good ones. Trying to gain new customers would be very costly and in turn be unprofitable if this occurred.
A2c. Performing at a high level and taking responsibility of the company’s action is an obligation we have to our customer(s) to avoid any damaging relationship. Recognizing that there is a problem with the whistles, we are providing a positive impact not only to our customer, but also to the community. This puts us in compliance with our own ethical standards. As a company, our corporate responsibility is to integrate self-regulation into our business model. With this self-regulation in place, our business would scrutinize and makes certain it complies with the law and ethical standards. This shows what the company stands for and supports our customers. Eliminating any potential harm to the public, endorses the community’s interest and their growth and development. It is imperative to be able to recognize a problem and take the necessary steps to resolve it and at the same time, still be able to fulfill the majority of our obligation by still shipping everything but the whistles. Providing this positive impact on our customers also reflects on our employees as well.

Bibliography
Explain the steps for decision making. (1999-2011). Retrieved May 26, 2011, from www.ehow.com.