Effective Ethics and Ethical Behavior free essay sample

Effective ethics and ethical behavior Memorandum and Report Carol Harris TO: Rebecca M. Melton, ABC Toy Co. CEO FROM: Carol Harris, Elementary Division Manager, ABC Toy Co. DATE: 6/5/11 SUBJECT: Product quality issue and a report on ethical decision making. This memo addresses a product quality issue with a whistle included in our toy collection. I have included a report on the importance of ethical decision making and strategies the ABC Toy Co. could adopt to ensure that all members of ABC Toy Company make ethical decisions. This morning I received a memo from the manager of quality assurance. During a routine test, the department discovered a problem with one of the toys included in the elementary toy collection. The collection is scheduled to be shipped to South America by the end of this week. The metal whistle, included in the toy collection, tested slightly above, the United States, legally acceptable limits, of lead in toys intended for children under the ages of seven. It will cost the company $100,000 to reproduce and repackage the toy collection. After reviewing the data, I’ve included the following information for consideration in rectifying the current problem. And I’ve included a personal recommendation for resolution. First of all, we could choose to cancel the shipment. The advantage of this is option is that it lets others know that we are socially responsible. And, the company would be following U. S. law. The disadvantage is that profits will be eliminated, clients will be out product and we will be out the initial cost to produce and package and the product. We will also be out the additional costs to discard the unsafe product. The second option could be to reproduce and repackage the product. The advantage of this choice is that the product will meet U. S. legal standards and arrive to the consumer on time. The disadvantage is that it will cost the company $100,000 on top of the original cost to produce and package the toy collection. And third, we could eliminate the whistle from the toy collection altogether. The advantage of this option is that the collection will arrive on time; there will be no extra reproduction and repackaging charges. It will be safe to use. We will maintain the integrity of the product and the company’s image. And, we will be adhering to the law. The disadvantage, if we eliminate the toy whistles from the collection we will need to lower the cost of the collection which equates to less profit for the shareholders. My recommendation is to eliminate the whistle from the collection. By eliminating the whistle from the collection we are providing a legal, safe product to the consumer. The product will arrive on time. We will be showing social responsibility having made an ethical decision (Miller,B. 2003-2011). This will also help build trust with our clients and the consumer, which leads to better business in the long term. My recommendation will have the least negative impact on the company. The product will be shipped. It will arrive on time. We will offer a discounted price to the consumer to make up for the loss of the whistle. We will build customer confidence by having made an ethical decision. And, client relations by keeping with our commitment to provide a quality product that is on schedule. Social responsibility has played a big part in the decision making process. Making an ethical choice means taking into consideration all of people who will be affected by the final decision. The first option will let the stakeholders down. No product for the consumer, and more cost to the company. The second option will cost the company an additional $100,000. Plus, the shipment cannot be guaranteed to arrive on time. The last option, delivers the product on time, less the whistle, and follows legal guidelines for a safer product. The consumer gets the product; the shareholders get their profit, and the stakeholders are being respected. The above considerations address the financial, legal, and ethical aspects of our decision. These considerations will have a positive effect on customer relations because it shows our commitment to our client and the customer. Becker, P. A 2008) As a producer of consumer products that are geared towards children it is our responsibility to provide a safe product. When we make decisions about product safety there should be an ethical protocol in place with broad and easy to follow guidelines. The following report discusses two strategies the company could adopt to ensure that all members of ABC Toy Company make ethical decisions; the benefits of adopting a code of ethics, an analysis of another company’s code of ethics and components of those ethics that would be important to include or to incorporate into our own. Our first strategy will be in recognizing our responsibility to the consumer. Our main consumers are children. Product safety is paramount. Recognizing that our social responsibility is to provide a product free of health and safety risks is absolute (Miller,B. 2003-2011). Our second strategy, our focus should be on creating a code of conduct. A code of conduct encompasses the company’s commitment to its stakeholders. In our case, the consumer, the client, and the shareholders are our stakeholders (Becker,P. A 2008). Using strategies to assess criteria that all members of ABC Toy Co. can use to affirm each person’s responsibility to make ethical decisions is a step towards better business. Established strategies are a step in the right direction towards creating ethical decision making at all levels. They will help establish criteria for ethical behavior. ABC Toy Company would benefit from a code of ethics. By using the aforementioned strategies and criteria we could cr eate our own code of ethics. A few of the benefits a code of ethics supply are: *A code of ethics gives employees guidance for solving ethical dilemmas. A code of ethics would encourage communication between employees about ethics. *A code of ethics could be used to debate or argue your cause. *A code of ethics would spell out our obligation to the public. *A code of ethics would provide a reference point. The following analysis explores the National Association of Social Worker’s (NASW) code of ethics for examples that may be used in creating our own code of ethics. NASW’s code of ethics serves six purposes: (NASW, 2008), 1. Identifies the values of social work’s mission. 2. It condenses broad ethical principles-to establish ethical standards specific to social work practice. 3. Is geared to help identify important considerations when conflict or ethical questions arise. 4. Provides standards that can be used to hold social workers accountable. 5. It familiarizes new practitioners to social works mission, values, and ethical standards. 6. It clearly characterizes standards the social work profession can use to assess ethical conduct issues. The NASW has formal procedures to settle ethic complaints, members are required to follow the code and all it entails. NASW code of ethics purpose is to fulfill its obligation, to articulate its mission on behalf of clients, NASW clients encompass the underserved populations from individuals to communities and all groups in between. They strive to enhance the well being of all people but focus on empowering those living in poverty and those who are oppressed and vulnerable (NASW, 2008). Considering the six purposes of NASW’s code of ethics the following uses key components to establish our own reasoning. For example, ABC Toy Companies purpose behind a code of ethics, 1. Identify core values on which ABC Toy Co. s founded. 2. Summarizes broad principles that reflect the ethics, values, and standards ABC Toy Co. put in products, and in client and customer relationships. 3. The code helps all members to identify conflict or ethical uncertainties when they arise. 4. The code provides standards of product quality. 5. The code familiarizes all new members to ABC Toy Co. mission, values, principles a nd standards. Establishing a code of ethics helps business by showing our stakeholders our commitment to excellence. Good business means a larger market share. And what’s good for business is good for ABC Toy Co. References Assembly, N. D. (1996). Code of Ethics. Retrieved 6/ 10, 2011, from Code of Ethics of the National Association of Social Workers: http://www. socialworkers. org/pubs/code/code/asp Becker, P. A. (Vol. 1 No. 1 2008 ). The Ethical Challenges for Enterprise and Risks to Consumers of Large Market Share Through Low-Cost Suppier Strategy. Journal of International Business , 107-111. Miller, B. (2003-2011). What is the Importance of Business Ethics. Retrieved 6/ 7, 2011, from Wisegeek. com: http://www. wisegeek. com/what-is-the-importance-of-business-ethics. htm