A Corporations Social Responsibility to Stakeholders Essay

Abstract This paper is a view on how to approach the CEO, directors and managers of a potential defective product. It will provide insight on the process of identifying the product, potential recall and the responsibility to notify the consumer. A Corporations Social Responsibility to Stakeholders Introduction One of the many things a manufacturing company has to worry about is producing defective products. If a company has produced defective products, it is in their best interest to find out and address the issue before their customers find out. If the company find and address the issue first they can limit the amount of lost trust and credibility. By the consumers finding out first it could take the company years or maybe never to repair the damage to their reputation. With new products becoming available for consumers the manufacturers must take the necessary precautions to insure their customer’s safety. How would you effectively present the issue of potentially defective products to the CEO, other directors, and managers? Prior to this meeting I would do an extensive research of the product such as retrieve any complaints from consumers if there were any and analyze them to determine if it was the same issue or random problems. My next step would be get the time frame when the potentially defective product was produced along with the location (s), retrieve all test results regarding the product. Creating a presentation of the information that was gathered in my research would be beneficial. 1.What the specific defect is 2.What caused defect 3.Location of products 4.Reason for failure to comply with regulation Equipped with the Recall Handbook from the Consumer Product Safety Commission (CPDC) I would present the information in a group setting to the CEO, directors and managers. The type of liability claim should be identified as well whether it is ((defective product design, defective product manufacturing, and failure/negligence to warn of product defect)) (Product Liability, n.d.). When presenting the information to the CEO, directors and managers I would be specific in regards to what the defect is, and plans for a product recall. How would you specifically notify customers of such an occurrence? The removal of defective products from the market is the responsibility of the company. A designated recall coordinator should be appointed. This person has the responsibility to recall products that may be deemed defective or unsafe. The obligations and responsibilities of a company that has a potentially defective product have been set forth by the CPSC. If it is determined the product needs to be recalled I would follow the guidelines pursuant to the Consumer Protection Safety Act (CPSA) pursuant to Section 15(b). which is The Fast Track Product Recall Program (Recall Handbook, 1998). This section is for companies that discover they have a defective product and pro-actively initiate a remedy. With the help of the CPSC I would What kind of internal actions would you take to prevent future problems? I believe that preventing future problems and defects is the responsibility of the quality control department. Insure quality control is follows the processes and guidelines of the department. Make sure that there are in-process inspections as well as final inspections. Overhaul the process of how you inspection. Review your sampling plan, and insure that the sampling plan that is in place is the right one for the product and your business. To insure a good product I would setup process capability studies (CpK) to insure the product meets design specifications. Quality control is a key factor in preventing low standards and defective products. What can be done to ensure that a strong sense of business ethics permeates your company? You need just to check the news to see the how ethics can affect the business world. Examples are Johnson & Johnson, Dow Corning (DC) and many other business have come to the brink of ruin because they lacked the business ethics to put public safety in fro nt of their self interest and those of their companies. The focus of a company is dictated by the ethical principles the company adopt. These principles should permeate the company and affect the decisions the company makes (Nixon, 2009). Senior management set the ethical principles and culture of a business. Insure your business senior officers believe in business sustainability, not because of lower cost but because it is the virtuous thing to do. Senior officers should implement their principles and ethics consistently throughout the company which will make their organization true to principles and authentic while making the organization transparent. The transparency of your organization allows your stakeholder to decide if they want to do business with you. References Nixon, L., Corporate Ethics and the Art of Balancing, 2009, Retrieved January 13, 2013, from http://www.corporate-eye.com/blog/2009/06/corporate-ethics-balancing/ Product Liability, N.D., ForThePeople.com Retrieved from http://www.forthepeople.com/product_liability.htm?gclid=CMyUpMnj4bQCFQiqnQodFykAMw