BUSN310-1102B-10 International Legal and Ethical Issues in Business
June 11, 2011
Renee Clark
Abstract
In this review of a PriOption Oil’s product defect, the reader will experience firsthand the nuances of having to brief the in house team consisting of the PriOption Oil CEO and directors on the improper fuel that was distributed to multiple states and several hundred stations. Many positives can come from this experience, the company learns the hurdles as well as puts into place a plan of action to remedy the situation as well as avert future occurrences. The company also learns the value of ethical choices and puts into place a written document outlining their Code of Ethics for all. Consumers are notified as well as U.S. and state officials to enable a cleansing remedy.
What is PriOption Oil Selling As the Operations Chief of PriOption Oil it has become a concern that our oil & gasoline refining processes have exceeded government ethanol percentage ratings. After careful sampling it was discovered that 5 out of our 14 sites have had a ratio of ethanol to gas mixture problem for a month and they have distributed these excessive products to 10 states, comprised of 500 distribution stations. The problem has been remedied and all production levels have returned to proper ratios at this point. A remedy additive has been bottled and made ready for distribution to our customers as well as a preventative measure in keeping this from happening again. The obstacles now are in briefing the leadership and notifying the public and distribution centers. The Corporate Brief The first step is to present a detailed outline to the CEO on how the mistake was made, the time period of error, the locations that these errors were made, the impacted states and locations, as well as an estimate from distributors of how many gallons have been liquidated. Then a point on how the problem was discovered, corrected, and suggestions to prevent this from happening ever again. To conclude the outline, a proposed plan to set the problem straight with distributors and buyers is offered. As an addendum to the outline, since PriOption does not currently have a Code of Ethics in written form I would format a draft Code as an attachment to the outline for the CEO. The Code draft would read to the effect that: We as management and employees of PriOption will uphold the highest standards in ethical behavior towards our employee team, our product from its conception to distribution, and finally in giving our customer what they want in top grade fuels. Any employee, customer, or party of interest has a direct link to our Quality Control Director, whose information is affixed to the bottom of this written code. If for any reason of safety, product dissatisfaction, or questionable behaviors; direct the information through this channel. The Code document is suggested to contain endorsement by the CEO and Directors. The actual brief to the CEO and management team of PriOption Oil will detail the outline particulars with dates, states, and distribution companies and feature a mass additive for all contaminated tanks as well as a detailed plan of notifying states and distribution stations. The plan will begin to conclude with the presentation of a remedy flush and additive that will be made available to the 500 stations for customers who purchased the contaminated gasoline. In closing the brief a preventative measure for all refineries will be introduced for a quality assurance team to test and implement throughout PriOption Oil. If we fail to take these steps in prevention and notification we could be a statistic of loss in up to 30% in revenues due to defective production; let us all agree to move forward in an ethical direction for the sake of the company and the customer of today and the future (Domingo, 2003). The Notice to State Consumer Protection Each state has steps and perhaps even laws that may apply to the handling and reporting of defective products. Florida for instance has a form that must be filed with the States Attorney Generals Consumer Protection division and that would be a good avenue of advising the steps that PriOption Oil is taking for their assurance of quality service and remedy of the mistake they made (Attorney general’s consumer alerts, 2008). To carry out the task of contacting effected states or looking into their policies, the U. S. Consumer Affairs hosts a website linking each state and any information relative to Consumer Protection (Sites by state, 2011). Public Notification In addition to the State notification, PriOption Oil will deliver letters of notification to all effected distribution sites along with tank additive solutions for both their storage distribution cells and their customer’s individual gas tank. There will also be contact information about using the products or voicing concerns of this incident. The U. S. Consumer Product Safety Commission will be sent a formal letter outlining the impact of the defective product distribution and solutions which have been put into place. Contact information and an company assurance will make official that due to the minimum length of time this product was used and the expected number of users that no permanent damages to persons or larger products would arise (U. S. Consumer Product Safety Commission, 1989). This act of notification will demonstrate good faith and service to our consumers as well as ensure the widest dissemination of the product defect and remedy solution (Consumer product safety commission, 2010). Conclusion To close this presentation it is important to highlight a few things. One, our team demonstrated diligence in identifying the defects as well as a remedy for distribution and prevention of further mix-ups. As a team of leaders, PriOption Oil will continue its good name in the eyes of the public and consumer due to an ethical notification plan utilizing state and U. S. Governmental agencies as well as consumer distribution channels. On a final concluding good note we have also discovered the need for and developed our first written document for a Code of Ethics that all can lay claim to. References
Attorney general's consumer alerts. (2008). Retrieved from June 10,
