LEADING AND MANAGING INDIVIDUALS

Leading and Managing Individuals



Leading and Managing Individuals

Memorandum and ReportTo: CEO, XYZ Toy Co. From: Elementary Division Manager, XYZ Toy Co.Date: 11/7/11Subject: Report on Ethical Decision Making

I have received a memo from the quality assurance department that discusses a problem with one of the toys in our toy production line. The toy's composition contains a substance tha can cause harm to children. This is a negligence from the part of the testing and design department, however, now the company has to think about the ways to avoid the threat of customer harm and saving organization's reputation. This decision will not be as easy as it appears as the repackaging and redesigning of the product will cause the compnay millions of dollars. I have attached a report with this memo that analyses the possible strategies that the organization can adopt.

The first alternative could be to cancel the shipment as it will reduce the risk of any legal allegaition.

The second alternative could be to replicate, and repackage the product.

The third alternative is to eliminate this particular product line which may harm children.

keeping in view the first alternative, if company calls off the shipment, it will have to incur signifcant losses as the manufacturing cost of the toys are high and the company will not be getting the revenues back. On the other hand, if the shipment reaches customers and the children are affected, the compnay may face severe allegations from the public that will serve as a bad reputation for the company.The second alternative involves additional cost implicartions for the company as repackaging and design costs about $100,000. If the company adopts the third alternative, the initial cost that incurred in the product design and research will be wasted however it will let the company to be on the safe side by eliminating the product line.

By not implementing any of the above mentiend alternaitves, the company may face allegations according to the consumer protection act. On the other hand, the trust of the consumers will be distorted if they face harmful affects of the products. Another formula for handling and disseminating proper ethical behavior is that any unethical practices do not occur in the first place within the organization (Kidder, 2009). For instance, data breech within the organization, safety controls broken down, insider trading, etc. should not occur in the first place, putting all employees, all the way from the support staff up to the executive and presidential level, under strict compliance, scrutiny, investigation and checking of their conduct within the organization.

Other methods that may include are security cameras, banning photos within the organization, locker's facility for keeping valuables, job rotation among employee within the organization, and checking employee work under daily or weekly scrutiny and evaluation (this method could be undertaken on either quantitative or judgmental basis). Thus, to conclude, the more secure companies are, the less likely individuals will make lesser unethical decisions that may affect the proceedings, procedures and undertakings of all employees within ...