Week 9 – Individual Work
Laura Den Bleyker
Everest University
Managerial Ethics
Dr. Heaney September 16, 2014

INTRODUCTION

This weeks assignment will center on the two major product and service issues are quality and safety. We will also be covering three ethical theories apply to the issue of quality: contractual theory, due care theory, and the social costs view. Product safety is also an important legal and ethical issue. The Consumer Product Safety Commission and the FDA both have jurisdiction over these issues (Carroll & Buchholtz, 2012). The above individual work will include answers to discussion questions 1, 2, 3, and 4 on page 420 and on page 445-446 responses to discussion questions 1, 2, 3, 4, 5 and 6.

Question 1
In addition to the basic consumer rights expressed by consumer’s Magna Carta, what other expectation do you think consumer stakeholder has of business? In addition to the right to safety, the right to be informed, the right to choose and the right to be heard as the “basic consumer rights expressed by the Consumer’s Magna Carta consumers today definitely for example - want “fair value” for money spent, a product that will meet “reasonable” expectations, a product or service with full disclosure of its specifications and a product or that has been truthfully advertised (Carroll & Buchholtz 2012).

Question 2
What is your opinion of the consumerism movement? Is it”alive andwell” or is it dead” Provide evidence for your observations. Because consumers needed more than the consumers rights in the consumers Magna Carta the consumerism movement I think is a great thing and yes it is alive and well today and continues to develop their vision into asset of eight basic consumer needs which are:
THE RIGHT TO
“Satisfaction of basic needs
Safety
Be informed -.
Right to choose -.
Right to be heard -
Right to redress -.
Right to consumer education –
Right to a healthy environment (“The global voice,”).

Question 3
Give an example of a major abuse of advertising from your own observations and experiences. How do you feel about this as a consumer? As a consumer, I feel that an advertising abuse from my own observations is the fast foods industries focus on advertising to our young children. I will use Mc Donald’s as an example their ads target children between 2 to 5 years old with the idea that the children will convince their parent to take them there because even the Happy Meals show that a toy comes with.
What they do not tell you is that statistics show that luring our children at such a young age to eat Mc Donald that children will in time have an epidemic of diet related diseases like, cardiovascular, cancer liver disease, asthma, and there is scientific evidence to base this on. In short, many parents across our country are literally fed up with these fast food chains shaping their children’s eating habit. In addition, it if very difficult for a parent to ever compete with their enormous marking ads that some say is determined to undermine their authority with at every turn. In conclusion, we see that the parent are taking action on Mc Donald’s as they are tired of being nagged by a child to want their product and as we see this is a very unethical practice because these fast food chains are marketing and “targeting” an audience who, unfortunately is not capable of making fully rational choices.
Question 4
Has there been a need for new consumer’s financial products regulation? Why shouldn’t consumers be left to fend for themselves with respect to consumer financial products?
Over the past several years, there has definitely been a need for consumer financial products in our country. W have many companies out there who have taken advantage of consumers’ financial circumstances (by giving them high prices loans, for example these Cash Advance places, there lack of education, and their being naïve and their biding them to contracts that are unconscionable. “There has been a need for consumer financial products legislation for some time (Carroll & Bucholtz, 2012). So, as a result, unfortunately many consumers in our country today may find themselves in situations where they cannot realistically meet their debt obligations; and because they use these bad practices in selling their products their has to be regulations to protect them (Carroll & Bucholtz, 2012).

Question 1

Identify the major dimension of quality. Give an example of a product or service in which each of these chractrics is important.

Example

“Performance Laptop Computer

Features Video Game

Reliability Rolex Watch

Conformance Software program, that communicates with another program another program

Durability Lawn Mower

Serviceability Automobile

Aesthetics Prom Gown (Carroll & Bucholtz, 2012).

Question 2

What ethical theories can help us to better understand the issue of quality? Discuss

The three ethical theories based on the concept that informs our understand of the

ethical dimension of quality, which include

Contractual Theory

Contractual duty “focuses n the contruatural agreement between the firm and the consumer.

Further firms have a responsibility to comply with the terms of the sale, inform them of the

nature of the product and not coerce the customer in any way (Carroll & Buchholtz, 2012).

Due Care Theory

This theory mainly “focuses on the relative vulnerability of the customer who has less

information and expertise than the firm, and the ethical responsibility that places on the firm.

meaning customers depend on the firm providing the product to live up to the claims about it and

to exercise due care to avoid customer injury (Carroll & Buchholtz, 2012).

Social Costs Theory

This theory extends beyond both theories mentioned above. This theory is all about” if a

product causes harm, the firm should pay the cost of any injury, even if the firm had met

terms of the contract, exercised all due care and taken all reasonable precautions (Carroll &

Bucholtz, 2012)

Question 3

Identify the principal reasons why we have a product liability crisis. Have any reasons been

omitted? Discuss

“Research shows us that there is definitely a product liability crisis in our country today and

it appears that the real crisis lies in the hundreds of thousands of people in our country who are

injured, maimed or killed each year by the sale and use of defective, unsafe and carelessly

designed products (The product liability,”).

“The product liability crisis does not relate to the number of lawsuits filed each year, nor to

the few large verdicts awarded annually, but rather it concerns itself with the reality that

corporations marketing their products in this country are driven to profit at the expense of safety

(The product liability,”).

Question 4

What implications do these views have for the business community and for future products and services that might be offered?

Differentiate the doctrine of strict liability from the doctrines of and market share absolute

liability.

The doctrine of strict liability defined is “that anyone in the value chain is liable for harm

caused to users if the product as sold was defective and unreasonably dangerous. In the U.S. the

doctrine of strict liability in our court system is the main reason for the litigious state our country

is in. (Carroll & Buchholtz, 2012).

On the other hand, “Absolute liability goes beyond this to say that a firm is liable for

damages even if it had no way of knowing that the product might cause a problem later. Under

this principle, it does no good for a company to claim that it did its best at the time, given the

prevailing state of the art (Carroll & Buchholtz, 2012).

Finally, “market share liability further extends the concept to cover all companies that

produced a certain product, regardless if the plaintiff can prove that he/she used a specific

company’s goods. Each company’s liability would be in proportion to the market share it held

(Carroll & Buchholtz, 2012))

Question 6

What is your of business’s response to product and service quality and safety? Have they

done enough? What is missing from their approaches?

It appears today business is trying to retain a loyal customer base despite the competition

that is out there and at all cost try to avoid costly litigation. It also appears today that business as

a whole is endeavoring to meet what their customers want and need – quality and safety.

On the other hand, it appears that businesses today are still struggling with the department

of customer service, as many companies seem to be lacking sufficient resources to devote the

post sale-service or appear that they are unwilling to divert such resources for this purpose

(Carroll & Buchholtz, 2012).

References

Carroll, A. B. & Buchholtz, A. K. (2012). Business and society: Ethics, sustainability, and stakeholder management (8th Ed.). South-Western: Cengage Learning.

The product liability crisis: The truth corporate responsibility. The Cohen Law Firm, Retrieved from

http://coreclickhoo

The global voice for consumers. Consumer Rights, Retrieved from http://www.consumersinternational.org/who-we-are/consumer-rights