Memorandum
To: Mr. Jones, CEO
CC: Executive Leadership Team
From: Shannon Peaden, Elementary Division Manager
Date: [ 10/13/2013 ]
Re: South American toy collection shipment
Confidential
A. South American toy collection alternative decision actions 1. Since the lead limit in South America apparently regulated as tightly as it is here in the U.S. the company should proceed with the shipment as scheduled. This decision alternative came to me when I realized that I couldn’t locate a lead level for South America. After a few unsuccessful Google searches for South American lead level regulations, the automatic thought is that this is not a heavily monitored in that country. This
Advantages of this alternative * The obvious cost savings achieved by not having to repackage the collection = positive financial move for the company. * Avoidance of the receiving company finding out about the production error, and on time shipping proceeding as scheduled = this is dishonest and unethical. The difference between right and wrong is obvious to me, personally. * Avoiding bad publicity Disadvantages * Potential to harm a child with increased lead levels * If the client were to find out about this incident after the fact, your company could lose a business deal. Word of mouth also travels fast regarding negative client experiences.
This decision is ethically unsound. If one of the children were to get sick after playing with one of the whistles that would be would be tragic and it would have been preventable. The customer providing the toy could be in serious legal trouble and would potentially face lawsuits. 2. Remove the whistle from the collection completely and reduce overall cost of shipment.
Advantages of this decision * There is no concern of any children getting sick. * Avoidance of potential legal issues = if there is no object that presents a potential risk of sickness or injury, there is no chance of someone seeking potential legal action in response to an illness or injury. Legal action could be pursued by the customer or potentially from families of children who could have become ill from lead exposure. “For children who were harmed by lead paint in children's products or toys, manufacturers will have to pay for all past, present, and future medical expenses, as well as punitive damages in many cases”. (Jackson) * Potential to strengthen the business relationship through honesty by acknowledging the problem and reducing the cost. Disadvantages * Repacking costs incurred $100,000.00 = financial loss * Having to notify the customer of a problem * Customer dissatisfaction for lack of delivery on a deal * Reducing cost of shipment
I reached this decision by thinking over the case and potential decision action alternatives. Ethically this decision makes sense, although it was my personal thought, it seems to follow a utilitarianism process – the most good for the most people. There is no concern of the consumer getting sick/hurt. Legally the company avoids legal action that could potentially be pursued if someone did become ill from playing with the whistles. However, there are financial disadvantages to the company. The financial cost of $100,000.00 for repackaging is a big hit. There is also the aspect of having to notify the company of the issue and dealing with their potential dissatisfaction.
3. Send the shipment as is, but provide notice to the customer regarding the lead level along with the US recommendation to only issue to children over 7. We could potentially advise them to consider removing the whistle from the packages prior to distributing to the children.
Advantages of this alternative * No repackaging costs = financial positive * Honesty with customer = ethically sound * No concern over sickness in children = ethically sounds * Avoid legal issues = by informing the customer of US regulations, it then becomes a personal decision of the customer if they issue the whistles to the children. If they elect to do so and anyone does become ill, it relieves the company of that burden and is a positive in the companies favor if someone tries to pursue legal action. We notified the company of the US lead level regulations and therefore we have a written document to show that we provided the customer the warning. Disadvantages * Dissatisfaction from customer * Potential request for price reduction from the customer
This decision is seems to follow the Utilitarianism process even more than alternative number 2. This is a result that I would want if my company was the purchaser. It truly is good outcomes for the most people. The advantages far out weigh the disadvantages. Ethically the decision is sound. It does not hurt anyone in the end and it is just honest.
2. Recommendation
My personal recommendation is the third decision alternative. This decision has the most positives for both the toy company and the customer in South America. It is the decision that most closely represents the personal decision that I would make for my company. Ethically the decision prevents anyone from getting hurt and it’s an honest approach. IT seems at the worst; there is the potential for a price reduction request from the purchaser. Even if there was a request, reduction is better than $100,000.00 repackaging costs. The disadvantages are few and outweighed by the overall advantages.
This decision is socially responsible by ensuring that we do not knowingly hurt anyone. It is an honest and ethical decision overall. While there could be mild dissatisfaction (associated with mild financial loss) on behalf of the purchasing company, overall I feel that they would be pleased with our honesty in providing notification regarding the lead levels and US lead level information .
Jackson, C. N. (2012, March 3). Have You Been Injured by Lead Paint?. Retrieved October 13, 2013, from http://ezinearticles.com/?Have-You-Been-Injured-by-Lead-Paint?&id=6918663
Works Cited
Jackson, C. N. (n.d.). Have You BeenInjured by Lead Paint? Retrieved October 13, 2013, from ezine articles: Jackson, C. N. (2012, March 3). Ha http://ezinearticles.com/?Have-You-Been-Injured-by-Lead-Paint?&id=6918663
Jackson, C. N. (2012, March 3). Have You Been Injured by Lead Paint?. Retrieved October 13, 2013, from http://ezinearticles.com/?Have-You-Been-Injured-by-Lead-Paint?&id=6918663 Jackson, C. N. (2012, March 3). Have You Been Injured by Lead Paint?. Retrieved October 13, 2013, from http://ezinearticles.com/?Have-You-Been-Injured-by-Lead-Paint?&id=6918663 