BrainMass
|To: |MICHAEL |
| |Quality Control Manager |
Re: Resources on the Left Navigation Bar
The left navigation bar contains many useful resources you should familiarize yourself with. These will be a great aid to you in your position as a leader. The resources are organized by their subject matter. I've listed these resources below.
Background Information
• About Us - Gives you an overview of G-BioSport's background, the staffing structure, the products the company produces, and the company's financial situation.
• Our Values - Lists the values and shared sense of purpose under which G-BioSport operates.
• Handbook and Code of Conduct - Affirms the company's commitment to conduct all its activities in accordance with all state and federal laws and established standards of business and professional ethics.
Ethics Coach
• Offers an increased understanding of the Decision Model and Ethical Lenses. Also, your score will be enhanced by reading the Coach's advice.
Emails and Notes
• Emails - Stores emails received during the course of the dilemma.
• Notes - Provides you with a space to write about the decisions you've made in order to help you write a business memo at the end of each dilemma.
Game Information
• Learning Objectives - Contains information about what this simulation aims to teach you.
• Memo Structure - Outlines what the memo will be expected to contain.
• Simulation Score Rubrics - Contains the grading rubrics for engagement with the material.
• Current Score - Displays your current scores for each dilemma at the bottom of the page.
Ethics Information
• The Baird Decision Model - Contains basic information about the lenses and the decision making process.
• Ethical Lenses - Provides an overview of the four ethical lenses that are used in the simulation.
• 4+1 Decision Model - Offers an in-depth look at the decision model.
• Ethics Glossary - Contains definitions of words, phrases, and key concepts.
Contact GameMaster
• Click this link to contact the GameMaster with questions or problems.
|The fun is about to begin . . . |
| |
|You begin the day, as always, by checking your email inbox. You've been expecting the lab results from quality tests on |
|the latest sample of outgoing products, and it seems they've just now come in - two weeks late. |
• Top of Form
• [pic][pic]
• In-Box of MICHAEL
|From |Subject |
|Carson Nelson |New Bonus Plan & Procedures |
|John McIntyre |Great news! |
|Elaine Shields |Internal Quality Standards |
|Carol Tempest |Annual Performance Review |
|Bill Witherspoon |Lab Results |
•
•
As you reflect on the situation, you realize that it's all a pretty sticky mess. However you don't have to face the problems alone, since G-BioSport has Rian Brown, the company's Ethics Coach, to assist.
|From: |Carson Nelson |
|To: |All Employees |
| |
|New Bonus Plan & Procedures |
The leadership team is pleased to announce a new bonus plan.
Each employee is eligible to earn up to 12,000 bonus points during the next quarter based on evidence of ethical leadership in difficult situations. These points will apply toward promotions and other company benefits. We know that under the guidance of Rian Brown, our Ethics Officer, many of us have become more skilled at making good decisions when faced with complex problems. Please continue to use Rian as a resource. She is there to help us all.
Rian will be administering this plan, therefore managers should forward recommendations directly to her. Rian is also free to make awards as she sees fit.
I look forward to the results of this program as we all strive for excellence in the operation of this company.
Carson Nelson
Chairman of the Board
G-BioSport
• Bottom of Form
|From: |John McIntyre |
|To: |Quality Control Team |
•
| |
|Great news! |
•
I'm pleased to announce that G-BioSport's QA department has received the Malcom Baldridge National Quality Assurance Award! G-BioSport has always been committed to remaining an industry leader in quality assurance, and this is an affirmation of the hard work and dedication everyone in this department puts forward to see that goal achieved.
Congratulations, and keep up the exemplary work!
John McIntyre
VP of Operations and Research
G-BioSport
|From: |Elaine Shields |
|To: |MICHAEL |
•
| |
|Internal Quality Standards |
•
The work we are doing with other industry leaders and the FDA to implement higher standards has finally borne fruit. We anticipate the proposed standards recently released for comment will be approved and become effective this year.
This will mean additional attention must be paid to assuring internal quality standards. I'd like to schedule a meeting with all QCMs to begin discussing the impact this will have on current workload. I understand there have been some back-ups lately and pressures to ship product when the quality of the product has not been verified. We need to be sure we have enough resources and good systems in place to ensure this doesn't happen. As leaders in the area of developing tighter quality standards, we can't afford to be seen as failing to implement our own standards.
Elaine Shields
Operations Director
G-BioSport
|From: |Carol Tempest |
|To: |MICHAEL |
•
| |
|Annual Performance Review |
•
Just a reminder: We'll be conducting your annual Performance Review this week. Be sure to review your Job Description so you can discuss with us in detail how you fulfill the requirements of your role and how you've attempted to meet your goals. Also, please keep Rian's advice on ethical decision making in mind. Finding leaders who can make ethical decisions is one of G-BioSport's highest priorities.
Here's your current job description:
Quality Control Manager
Designs and conducts tests on a sample of all company products. Responsible for the documentation of test results and drafts regular production reports. Based on test results, advises management on quality improvement and waste reduction measures. An effective QCM can be the difference between quality goods that the public respects and shoddy work that can harm the company's reputation. Part of the Operations and Research Group and reports to Site Operations Director.
Keep up the good work,
Carol Tempest
Human Resources
G-BioSport
|From: |Bill Witherspoon |
|To: |MICHAEL |
•
| |
|Lab Results |
•
I've attached the latest quality analysis. Unfortunately, the results you see here are for products already released. The lab got behind on a few projects, but we would have liked to wait until the tests could be finished before shipping the product. This wasn't possible for some reason, and now we've got a problem.
There's a trace contaminant present in 100% of the samples we received. The impurity is in the GBS-Fibranafren, one of our patented ingredients, which more than two-thirds of our products contain. Before you get too worried, I should point out that the contamination is well below FDA standards. But, as you know, our internal standards are more exacting.
We've determined that risk of an adverse reaction in healthy adults is extremely low. Those with compromised immune systems may be at a slightly elevated risk, especially with continued use of the product, but the overall risk remains low. The biggest problem is how common GBS-F is in our products - the contamination here may indicate that the entire batch is tainted.
Do you want me to follow up with this and if so, how?
Bill Witherspoon
Senior Clinical Researcher
G-BioSport
|From: | |
|Rian Brown | |
| | |
|To: | |
|MICHAEL | |
| | |
| | |
|Issues in your Dilemma | |
Thanks for visiting with me today. You're right . . . you have a tough problem. I am pleased that you are willing to work through the problem by e-mail today. I think you will find this method useful.
The first step is to figure out exactly what the problem is—what is the issue that you are facing. By breaking the problem down into small parts, you can see the dilemma more clearly. If you want some additional help in sorting through the issue, check my Ethics Coach posting for this page. Remember that the Ethics Coach changes on each page with information specific to your current task.
Now, based on our conversation, I've included a list of possible issues for this problem.
• Check the one that you think applies to this situation.
• Then, submit your answer.
• I'll let you know whether or not you hit the mark.
Top of Form
[pic][pic][pic][pic][pic][pic][pic]
|Which issue applies to this problem? |
| |[pic] Whether you should recall the product already in stores. |
| | |
| |[pic] Whether the internal quality control limits should be raised to the FDA level. |
| | |
| |[pic] Whether the cost of recalling the product exceeds the potential liability from lawsuits. |
| | |
| |[pic] Whether to warn and what information to provide consumers about the contaminant |
|From: |Bonus Points |
|Rian Brown | |
| | Total: 1,000 (out of 1,000) |
|To: | |
|MICHAEL | |
| | |
| | |
|re: Issues in your Dilemma | |
Thank you for your reply. When analyzing a complex problem, I find it critical that the issues be identified and clearly understood.
Here's how to read the chart:
• A [pic]appears before the issue you selected as applying to the situation.
• An [pic]appears before those issues that you did not select.
• If I disagree with your choice, these symbols are marked as [pic]and [pic].
• For answers on which we agree, the text is highlighted in blue.
• For answers on which we disagree, the text is highlighted in yellow.
Let's see how you did.
Top of Form
[pic][pic]
|Which issue applies to this problem? |
| | |
|[pic] | |
|Whether you should recall the product already in stores. | |
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|(Incorrect) This is an option for resolving the problem. Framing an option as the issue can limit your ability to creatively respond to the| |
|dilemma. | |
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|[pic] | |
|Whether the internal quality control limits should be raised to the FDA level. | |
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|(Incorrect) This is certainly a legitimate question and perhaps there should even be a process in place for a regular review of quality | |
|thresholds. However, this is a long-term issue and not the primary issue you must solve now. | |
| | |
| | |
|[pic] | |
|Whether the cost of recalling the product exceeds the potential liability from lawsuits. | |
| | |
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|(Incorrect) The cost of litigation versus the cost of recall should not be the sole criteria for determining when a product is too | |
|dangerous to leave in the hands of the public. This is also not the primary issue to be addressed. | |
| | |
| | |
|[pic] | |
|Whether to warn and what information to provide consumers about the contaminant. | |
| | |
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| | |
|(Correct) This is the primary issue to be addressed. Don't let yourself be distracted by long-term planning, red herrings or potential | |
|solutions. Framing the ethical dilemma clearly is a prerequisite to solving the problem. | |
| | |
Nicely done! Based on your analysis of the problem, I am pleased to award you 1,000 points. You were able to identify the core issue for your problem. Identifying the issue accurately makes analysis of the problem much easier.
|From: |Bonus Points |
|Rian Brown | |
| | Total: 1,000 (out of 1,000) |
|To: | |
|MICHAEL | |
| | |
| | |
|Stakeholders in your Dilemma | |
Nicely done. So, we have now determined the question we will answer.
The next step is to name the primary stakeholders—those people who are:
• directly involved in this situation;
• have to carry out the decision;
• directly affected by the decision; or
• whose direct interests are to be protected.
Those who have delegated responsibility to others are not primary stakeholders. Also those who are interested observers are not primary stakeholders. If you want more information, check the Ethics Coach.
Now, based on our conversation, here's a list of people who might qualify as the primary stakeholders, but only some of them are directly involved. Check the box next to anyone who you think is a primary stakeholder.
Top of Form
[pic][pic][pic][pic][pic][pic]
|Who are the primary stakeholders in this problem? |
| |[pic] The Shareholders |
| | |
| |Any action taken by the leadership team that affects the value of the company affects |
| |them. |
| | |
| | |
| |[pic] The Board of Directors |
| | |
| |They are responsible for the overall management of the company. |
| | |
| | |
| |[pic] Carson Nelson, Chief Executive Officer |
| | |
| |He is responsible for everything that goes on in the organization. |
| | |
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| |[pic] Cary Bryant, Chief Legal Officer |
| | |
| |He is responsible for managing litigation that arises from company behavior. |
| | |
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| |[pic] MICHAEL, Quality Control Manager |
| | |
| |You are the one that has to make and implement the decision. |
| | |
| | |
| |[pic] Elaine Shields, Operations Director |
| | |
| |She is your overall supervisor. |
| | |
| | |
| |[pic] Judy Birch, Director of Public Relations |
| | |
| |She is responsible for press releases, interviews, and the company's public image. |
| | |
| | |
| |[pic] Consumers of G-BioSport products |
| | |
| |The product they purchased contains a contaminant that exceeds internal specifications. |
| | |
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|From: | |
|Rian Brown | |
| | |
|To: | |
|MICHAEL | |
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| | |
|Rights/Responsibilities Lens | |
Having to decide questions which are not clear cut is the most difficult task we face. We have now determined that the question we will answer is what information or warning you should give the consumers. We have also identified the primary stakeholders whose interests will have to be considered as you decide what to do.
The Rights/Responsibilities Lens helps you identify your obligations—your duties—as well as your rights in this situation. The idea is that as we think carefully about our choices we will know our rights and responsibilities, no matter what anyone else says.
The first step is to identify your duties to the various stakeholders. This lens requires that we treat people the way they have agreed to be treated . . . either because of our stated agreements (contracts) or our implied agreements.
Below is a list of the duties that you might owe the stakeholders. Three of the six of them are actually your responsibility. Considering your leadership role in the company, check those which you believe apply to you in this situation.
Top of Form
[pic][pic][pic][pic][pic][pic]
|Which duties do you owe the stakeholders? |
| |[pic] Duty to ensure that ingredient labels provide accurate and meaningful information. |
| | |
| |[pic] Duty to refund or replace defective product. |
| | |
| |[pic] Duty to keep unpleasant information from the Board of Diretors. |
| | |
| |[pic] Duty to prevent unfavorable product information from reaching the press. |
| | |
| |[pic] Duty to maximize product sales and minimize waste. |
| | |
| |[pic] Duty to warn consumers of known potential dangers. |
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|From: |Bonus Points |
|Rian Brown | |
| | Total: 1,600 (out of 3,000) |
|To: | |
|MICHAEL | |
| | |
| | |
|re: Rights/Responsibilities Lens | |
Just to review . . . we've determined that you have the following duties owed your stakeholders in this problem:
• Duty to ensure that ingredient labels provide accurate and meaningful information.
• Duty to refund or replace defective product.
• Duty to warn consumers of known potential dangers.
Now let's take a look at your options.
I've made a list of what I think are the possible choices in this situation. Considering your duties to your stakeholders, choose the option that you think is the most ethical.
Top of Form
[pic][pic][pic][pic][pic][pic]
|Which option best fulfills the duties owed the stakeholders? |
| |[pic] Option 1 |
| | |
| |Recall all products containing tainted Fibranafren in order to avoid any possibility of a lawsuit. |
| | |
| |[pic] Option 2 |
| | |
| |Disseminate information broadly about increased risk for specific groups. Offer to replace tainted product or to refund purchase |
| |price. |
| | |
| |[pic] Option 3 |
| | |
| |Disclose the problem on company website. Provide contact information for complaints/problems. |
| | |
| |[pic] Option 4 |
| | |
| |Do nothing. If there are problems deal with them individually. |
| | |
| |[pic] Option 5 |
| | |
| |Target risk information to highest risk groups to limit liability. |
| | |
| |[pic] Option 6 |
| | |
| |Disseminate information on increased risk. Allow consumers to make informed choice |
| | |
|From: | |
|Rian Brown | |
| | |
|To: | |
|MICHAEL | |
| | |
| | |
|re: Rights/Responsibilities Lens | |
Based on the duties you owe the stakeholders, you chose the following option:
Disseminate information broadly about increased risk for specific groups. Offer to replace tainted product or to refund purchase price.
This is a perfectly ethical option. However, it focuses more on creating the greatest good and less on fulfilling your specific duties.
The Rights/Responsibilities Lens is just one of the tools at our disposal. Let's continue onwards and examine this problem from another perspective.
|From: | |
|Rian Brown | |
| | |
|To: | |
|MICHAEL | |
| | |
| | |
|Results Lens | |
The Rights/Responsibilities Lens focused on your duties. Now it's time for a change of perspective. The Results Lens is going to focus on what results will make the stakeholders happy or, in other words, what goals they want to accomplish.
Below is the list of stakeholders that you made earlier. The first step is to decide how much each of the stakeholders will be affected by your decision on this problem, regardless of what your ultimate decision might be.
Select “high” for those stakeholders who will be affected the most. Select “low” for those stakeholders who will be affected the least. Select the middle radio button for those stakeholders where the impact will be between these extremes. I think you'll find that the stakeholders are about evenly divided between these three groups.
Top of Form
[pic][pic][pic][pic][pic][pic]
|How much will each stakeholder be affected by your decision? |
| |Low |
| |[pic] |
| |High |
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| |[pic] |
| |[pic] |
| |[pic] |
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| |The Shareholders |
| |Any action taken by the leadership team that affects the value of the company affects them. |
| |high |
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| |Low |
| |[pic] |
| |High |
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| |[pic] |
| |[pic] |
| |[pic] |
| | |
| |Carson Nelson, Chief Executive Officer |
| |He is responsible for everything that goes on in the organization. |
| |high |
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| |Low |
| |[pic] |
| |High |
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| |[pic] |
| |[pic] |
| |[pic] |
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| |MICHAEL, Quality Control Manager |
| |You are the one that has to make and implement the decision. |
| |medium |
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| |Low |
| |[pic] |
| |High |
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| |[pic] |
| |[pic] |
| |[pic] |
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| |Elaine Shields, Operations Director |
| |She is your overall supervisor. |
| |low |
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| |Low |
| |[pic] |
| |High |
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| |[pic] |
| |[pic] |
| |[pic] |
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| |Judy Birch, Director of Public Relations |
| |She is responsible for press releases, interviews, and the company's public image. |
| |low |
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| |Low |
| |[pic] |
| |High |
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| |[pic] |
| |[pic] |
| |[pic] |
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| |Consumers of G-BioSport products |
| |The product they purchased contains a contaminant that exceeds internal specifications. |
| |medium |
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| |From: |
| |Rian Brown |
| | |
| |To: |
| |MICHAEL |
| | |
| | |
| |re: Results Lens |
| |Bonus Points |
| | |
| | Total: 1,900 (out of 4,000) |
| | |
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| | |
| |Once you understand the impact your decision will have on the stakeholders, the next question is determining what is important to them. |
| |This process is a bit tricky because each of us is an individual and has different criteria for action: |
| |Non-negotiable Criteria—What event would be so horrendous or outside of their personal integrity that a stakeholder would take immediate |
| |action? |
| |Tipping Points—What patterns of action would become so annoying that the stakeholder would eventually take action or leave? |
| |Below is our list of primary stakeholders. For each stakeholder, choose the two items that you believe (given your knowledge of these |
| |people) are the most important for them to be happy. In this context, happiness is a work place that supports them and enables them to |
| |contribute to the world. |
| | |
| | |
| |Top of Form |
| |[pic][pic][pic][pic][pic][pic][pic] |
| |What are each stakeholder's criteria for happiness? |
| | |
| | |
| |The Shareholders—who want to maximize their profit, are happy in this situation if . . . |
| |[pic] |
| |Management acts consistently to maximize the company's value. |
| | |
| |[pic] |
| |The company does not act in ways that generate negative publicity or reduce the value of their stock holdings. |
| | |
| |[pic] |
| |Management does not engage in illegal or harmful actions in order to maximize the company's revenue. |
| | |
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| |Carson Nelson—the CEO, who is responsible for everything that goes on in the organization and potentially liable for any legal violations,|
| |is happy in this situation if... |
| |[pic] |
| |Management acts consistently with the company's core values and risk management protocols. |
| | |
| |[pic] |
| |He is informed of product problems before they become public knowledge. |
| | |
| |[pic] |
| |He does not have to give the Board of Directors bad news. |
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| |You—as you have to make and implement the decision, are happy in this situation if . . . |
| |[pic] |
| |You are never asked to do anything unpleasant. |
| | |
| |[pic] |
| |You are not asked to violate your conscience in order to do your job. |
| | |
| |[pic] |
| |Management supports decisions that protect the public. |
| | |
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| | |
| |Elaine Shields—the Site Operations Director and your immediate supervisor, is happy in this situation if... |
| |[pic] |
| |The actions you take are consistent with the company's core values and risk management protocols. |
| | |
| |[pic] |
| |You give her timely information about potential problems. |
| | |
| |[pic] |
| |You don't make any mistakes that impact her career negatively. |
| | |
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| |Judy Birch—who is responsible for the company's image, is happy in this situation if . . . |
| |[pic] |
| |She is informed of product problems that could result in bad publicity. |
| | |
| |[pic] |
| |The company delivers the promises made in her press releases. |
| | |
| |[pic] |
| |Employees don't do anything that creates bad publicity for the company. |
| | |
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| |Current and future customers—who use, or may use, the company's products, are happy in this situation if . . . |
| |[pic] |
| |They can rely on the company to know what supplements they need. |
| | |
| |[pic] |
| |They are not put at unreasonable risk of harm simply so the company can make a profit. |
| | |
| |[pic] |
| |They are given enough information to make informed product choices. |
| | |
| | |
| | |
| |From: |
| |Rian Brown |
| | |
| |To: |
| |MICHAEL |
| | |
| | |
| |re: Results Lens |
| |Bonus Points |
| | |
| | Total: 2,650 (out of 5,000) |
| | |
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| | |
| |The final step in this lens is to determine which of the options make each of the stakeholders the happiest. When combined with your |
| |analysis of how much each stakeholder is affected by your decision, one option should ultimately rise to the top as being the best. |
| | |
| |Here are the ones that we are considering: |
| | |
| |Option 1 |
| |Recall all products containing tainted Fibranafren in order to avoid any possibility of a lawsuit. |
| | |
| |Option 2 |
| |Disseminate information broadly about increased risk for specific groups. Offer to replace tainted product or to refund purchase price. |
| | |
| |Option 3 |
| |Disclose the problem on company website. Provide contact information for complaints/problems. |
| | |
| |Option 4 |
| |Do nothing. If there are problems deal with them individually. |
| | |
| |Option 5 |
| |Target risk information to highest risk groups to limit liability. |
| | |
| |Option 6 |
| |Disseminate information on increased risk. Allow consumers to make informed choice. |
| | |
| | |
| |In the section below, choose the one option that will make each stakeholder the happiest. Beneath each of the stakeholders, I've listed |
| |the two criteria for happiness that we deduced in the previous exercise. Please note that no single option may make every stakeholder |
| |happy—that's to be expected. |
| | |
| |Which option makes each stakeholder the happiest? |
| |Top of Form |
| |[pic][pic][pic][pic][pic][pic] |
| | |
| |The Shareholders |
| |1. |
| |Management acts consistently to maximize the company's value. |
| | |
| |2. |
| |Management does not engage in illegal or harmful actions in order to maximize the company's revenue.option4 |
| | |
| | |
| | |
| | |
| | ------ Options ------ |
| |[pic]1 [pic]2 [pic]3 |
| |[pic]4 [pic]5 [pic]6 |
| | |
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| | |
| |Carson Nelson, Chief Executive Officer |
| |1. |
| |Management acts consistently with the company's core values and risk management protocols. |
| | |
| |2. |
| |He is informed of product problems before they become public knowledge.option 1 |
| | |
| | |
| | |
| | |
| | ------ Options ------ |
| |[pic]1 [pic]2 [pic]3 |
| |[pic]4 [pic]5 [pic]6 |
| | |
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| |MICHAEL, Quality Control Manager |
| |1. |
| |You are not asked to violate your conscience in order to do your job. |
| | |
| |2. |
| |Management supports decisions that protect the public.option6 |
| | |
| | |
| | |
| | |
| | ------ Options ------ |
| |[pic]1 [pic]2 [pic]3 |
| |[pic]4 [pic]5 [pic]6 |
| | |
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| | |
| |Elaine Shields, Operations Director |
| |1. |
| |The actions you take are consistent with the company's core values and risk management protocols. |
| | |
| |2. |
| |You give her timely information about potential problems.option5 |
| | |
| | |
| | |
| | |
| | ------ Options ------ |
| |[pic]1 [pic]2 [pic]3 |
| |[pic]4 [pic]5 [pic]6 |
| | |
| | |
| | |
| |Judy Birch, Director of Public Relations |
| |1. |
| |She is informed of product problems that could result in bad publicity. |
| | |
| |2. |
| |The company delivers the promises made in her press releases.option3 |
| | |
| | |
| | |
| | |
| | ------ Options ------ |
| |[pic]1 [pic]2 [pic]3 |
| |[pic]4 [pic]5 [pic]6 |
| | |
| | |
| | |
| |Consumers of G-BioSport products |
| |1. |
| |They are not put at unreasonable risk of harm simply so the company can make a profit. |
| | |
| |2. |
| |They are given enough information to make informed product choices.option2 |
| | |
| | |
| | |
| | |
| | ------ Options ------ |
| |[pic]1 [pic]2 [pic]3 |
| |[pic]4 [pic]5 [pic]6 |
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| |Bottom of Form |
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| |Bottom of Form |
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|To: | |
|MICHAEL | |
| | |
| | |
|re: Results Lens | |
In this lens, you have determined the impact that your decision will have on the stakeholders. You have also assessed which option should make each stakeholder the happiest. A summary of your analysis is provided below:
| |Impact |
| |Happy with… |
| |Stakeholder |
| | |
| |High |
| |Option 4 |
| |The Shareholders |
| | |
| |High |
| |Option 1 |
| |Carson Nelson, Chief Executive Officer |
| | |
| |Medium |
| |Option 6 |
| |MICHAEL, Quality Control Manager |
| | |
| |Medium |
| |Option 2 |
| |Consumers of G-BioSport products |
| | |
| |Low |
| |Option 5 |
| |Elaine Shields, Site Operations Director |
| | |
| |Low |
| |Option 3 |
| |Judy Birch, Public Relations Director |
| | |
Given this analysis, you must now choose the option that will create the greatest good for the greatest number.
Top of Form
[pic][pic][pic][pic][pic][pic]
|Giving more weight to the happiness of those who will be impacted the most . . . |
|which option will make the most people the happiest? |
| |[pic] Option 1 |
| | |
| |Recall all products containing tainted Fibranafren in order to avoid any possibility of a lawsuit. |
| | |
| |[pic] Option 2 |
| | |
| |Disseminate information broadly about increased risk for specific groups. Offer to replace tainted product or to refund purchase |
| |price. |
| | |
| |[pic] Option 3 |
| | |
| |Disclose the problem on company website. Provide contact information for complaints/problems. |
| | |
| |[pic] Option 4 |
| | |
| |Do nothing. If there are problems deal with them individually. |
| | |
| |[pic] Option 5 |
| | |
| |Target risk information to highest risk groups to limit liability. |
| | |
| |[pic] Option 6 |
| | |
| | |
| | |
| | |
| | |
| |From: |
| |Rian Brown |
| | |
| |To: |
| |MICHAEL |
| | |
| | |
| |re: Results Lens |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |By trying to create the greatest good for the greatest number of stakeholders, you chose the following option: |
| |Disseminate information broadly about increased risk for specific groups. Offer to replace tainted product or to refund purchase |
| |price. |
| |Allowing customers to make different choices based on their individual risk tolerance achieves the greatest good for the greatest |
| |number of people. |
| | |
| |We have now looked at the problem through two lenses. Let's see what options you have chosen as you get ready to make the final |
| |decision about what to do with this situation. |
| | |
| | |
|From: | |
|Rian Brown | |
| | |
|To: | |
|MICHAEL | |
| | |
| | |
|Reaching a Decision | |
Clearly, you were quite consistent . . . settling on a single option for both of the lenses. At this stage, I would normally ask you to choose a best option and thereby determine your final course of action. However, you have already made up your mind.
What is your decision?
Top of Form
[pic][pic]
Rights/Responsibilities Lens
+
Results Lens
[pic] Option 2
| |Disseminate information broadly about increased risk for specific groups. Offer to replace tainted product or to refund purchase price. |
|From: | |
|Rian Brown | |
| | |
|To: | |
|MICHAEL | |
| | |
| | |
|Communicating your Decision | |
As you come to the end of the process, you have made the following decision:
Disseminate information broadly about increased risk for specific groups. Offer to replace tainted product or to refund purchase price.
Now you need to communicate this decision to others in the organization. I’ve laid out for you a very effective method for writing an e-mail or an inter-office memo to close the loop.
Important!
The memo page does not save your work until you have finished and click 'Continue.' The page will time out after 30 minutes of inactivity, and you will lose your work if you attempt to advance after that time. If you anticipate spending more than 30 minutes on the memo, you may wish to work on a word processor and copy/paste the memo into the appropriate fields when you are finished.
You may be required to create a copy of this memo after you have completed it. To view your completed memo, click the Library link on the left-hand menu after the memo is submitted and select "Your Archive."
Please refer to the course syllabus for any information regarding assignments related to the simulation.
Top of Form
[pic][pic][pic][pic][pic][pic][pic][pic]Audience
Who should receive the report of the decision?
[pic]
Subject
Add a subject line that clearly identifies the purpose of the communication.
(Limit of 50 characters)
[pic]
Background of the Problem
Include sufficient detail so that the recipient knows what the problem is without including any confidential information. Clearly present the values in conflict in the problem.
(Limit of 1,000 characters)
I've attached the latest quality analysis. Unfortunately, the results you see here are for products already released.
There's a trace contaminant present in 100% of the samples we received. The impurity is in the GBS-Fibranafren, one of our patented ingredients, which more than two-thirds of our products contain. Before you get too worried, I should point out that the contamination is well below FDA standards.
We've determined that risk of an adverse reaction in healthy adults is extremely low. Those with compromised immune systems may be at a slightly elevated risk, especially with continued use of the product, but the overall risk remains low. The biggest problem is how common GBS-F is in our products - the contamination here may indicate that the entire batch is tainted.
[pic]
Statement of Decision
In a sentence, clearly and concisely state your decision.
(Limit of 150 characters)
Disseminate information broadly about increased risk for specific groups. Offer to replace tainted product or to refund purchase price.
[pic]
Reasons for the Decision
Now, give the reasons for your decision. Use the language of the ethical framework or which ethical principles you used to come to your decision. Do not use technical words, such as “this decision is reversible because . . .” Rather, you might say—“As each of us considers how we would like to be treated in a similar situation . . .”
(Limit of 1,000 characters)
As individuals, this situation should be handled in a way that suits not only the consumers but the company as a whole. Offering a refund and replacing the product shws a trust with consumers. Making the problem aware to the pulic is a must. The threat is low and will not have a high impact but the the reputation of the company must remain high in the publics eye. This is the right thing to do.
[pic]
Forward-Looking Conclusion
The final sentences should build relationship with the other team members and your constituents, leave the door open for further conversation, and tell the reader what the decision means for him or her.
(Limit of 500 characters)
The right thing in this delicate matter is a must. THe decision made will reflect good judgement made on the the companies behalf. What are your thoughts??
[pic]
Once you have completed your memo, we'll review the implications of your decision.
|From: | |
|Rian Brown | |
| | |
|To: | |
|MICHAEL | |
| | |
| | |
|Evaluating your Decision | |
In order to close the loop, I'd like to show you where your choices fell in the possible range of choices that we developed. In particular, I have highlighted your final decision in blue.
You chose the option for the Results lens, which shows that you tend to be a realist and acknowledge the very human frailties that we all have.
The point of this final exercise is to show that while more than one choice is ethical, some choices are better than others. You will notice that the best options are often the more complex ones.
• Using the Rights/Responsibilities Lens, the best decision tilted toward rationality as you gave all consumers equal information upon which to base their independent choice.
• Using the Results Lens, the best decision tilted toward sensibility as you provided different information to consumers with different needs.
Both choices are perfectly ethical. The difference is your understanding of human nature, how best to assure that we are all responsible members of the community, and your core values.
| |Rights/Responsibilities |Results |
|Best |6. Disseminate information on increased risk. Allow |2. Disseminate information broadly about increased |
| |consumers to make informed choice. |risk for specific groups. Offer to replace tainted |
| | |product or to refund purchase price. |
|Good |1. Recall all products containing tainted |5. Target risk information to highest risk groups to|
| |Fibranafren in order to avoid any possibility of a |limit liability. |
| |lawsuit. | |
|Poor |4. Do nothing. If there are problems deal with them |3. Disclose the problem on company website. Provide |
| |individually. |contact information for complaints/problems. |
Now, let's give your option the “orange jumpsuit” test.
|From: | |
|Rian Brown | |
| | |
|To: | |
|MICHAEL | |
| | |
| | |
|Avoiding an Orange Jumpsuit | |
The reason for putting you through this drill is to make sure that you never have to wear an orange jumpsuit because of an action you took as an employee of G-BioSport. So, here’s the bottom line . . .
You chose the following option:
Disseminate information broadly about increased risk for specific groups. Offer to replace tainted product or to refund purchase price.
On a scale of 0 to 5, from low to high risk, your decision rates a 1. It represents very low risk.
• Once the product has been sold to consumers, there is no way to entirely eliminate the possibility of a lawsuit. The goal at this point is to reduce the risk.
• Giving consumers information upon which to base informed choices about continued use of the product reduces both the risk of a lawsuit and the risk of adverse publicity.
• Quality and breadth of dissemination of information are the keys to reducing risk.
• The cost of replacing product and/or refunding the purchase price to any consumer who wants to return their product is an expense that is likely to have a direct trade-off in increased consumer good will.
Settled Law
Products liability is a broad legal category covering everything from exploding gas tanks to flammable baby clothes to lead paint toys, to poisoned toothpaste and dog food. Legal risk for defective products can attach to manufacturers, assemblers, wholesalers, and retail distributors, depending on where in the chain of production and distribution a problem occurred that led to a consumer being harmed. Liability varies greatly by state and there is no federal or uniform law governing products liability. International standards also vary greatly.
Legal claims for damages from defective products were originally based primarily on theories of negligence or breach of warranty. Increasingly, however, successful claims are made on the basis of strict liability. This means that liability is increasing. Where a strict liability theory is used, the injured consumer does not need to demonstrate that the manufacturer or some other person was negligent or that the product was unfit for the purpose for which it was sold. All the injured consumer in such cases needs to prove is that he or she was injured by the product. The seminal case is Greenman v. Yuba Power Products, Inc., 59 Cal.2d 57, 377 P.2d 897, 27 Cal.Rptr. 697 (1963), in which the Court stated that the 'purpose of such liability is to ensure that the costs of injuries resulting from defective products are borne by the manufacturers that put such products on the market rather than by the injured persons who are powerless to protect themselves.'
The care taken by the manufacturer can impact the outcome of the case, as evidence of reasonable care is a defense to negligence. Some products are unavoidably dangerous, but serve some beneficial purpose, such as live polio vaccine. The live vaccine has been used almost exclusively in the United States since the 1960s, although there is a very small risk that some who are vaccinated or those who come in close contact with them will contract 'paralytic disease.' The vaccine can not be made completely safe, however, it is considered far superior in combating polio than vaccines made with an inactivate or dead strain of the polio virus. In such cases, the key to liability is often the adequacy of warnings. Adequate warnings can reduce or eliminate manufacturer liability even in cases of consumer products that do not serve a beneficial purpose.
Emerging Law
A spate of consumer product recalls in 2007, in combination with a number of deaths due to contaminated food products, resulted in a variety of legislative proposals to reduce consumer risk. One such proposal was the Food and Product Responsibility Act of 2007, proposed by U.S. senators from Pennsylvania and Ohio. The proposed Act would 'require distributors of food and consumer products demonstrate the financial capacity to cover risks associated with recalls and product safety.' Press Release of Senator Casey, September 20, 2007. Such legislation is an extreme reaction to a growing combination of an increasingly litigious U.S. society and increased risk of harm posed by mass manufacturing and distribution. Less extreme reactions include voluntary measures by some manufacturers to provide more informative product labels or to engage in third-party testing to assure product safety. The U.S. Food and Drug Administration is charged with regulations affecting food, supplements, and drugs (three distinct regulatory categories), although not exclusively so, and without sufficient funding or independence to fulfill its regulatory mandate. Some other efforts to respond to growing consumer fears include proposals for streamlined regulations and better funding and/or increased authority for the FDA.
Beyond Compliance
Many parts of U.S. culture contribute to the growing problem of legal liability. Lack of personal responsibility as well as collusive industry and government practices all contribute to an environment in which even the most egregious and obvious harm is disclaimed by those clearly responsible. At the same time, the news is also full of accounts in which those who have failed absolutely to take personal responsibility for their behavior are desperate to blame someone else for the natural - albeit devastating - consequences of that behavior. Insurance costs skyrocket at the same time that coverage is minimized. The public increasingly bears the burden of caring for those injured by both defective products and personal irresponsibility. Government regulations vacillate between paternalistic and buyer-beware depending on the political winds of the moment or the clout of an industry.
Cynicism cripples an effective response to the problem of how to both reduce and respond to the risk of harm from defective or unavoidably dangerous products. While transparency of motive and adequate warning will not eliminate legal liability for manufacturers, they can go a long way toward fostering the environment of cooperation among manufacturers, consumers, lawyers, and legislators that could contribute to solutions. Public confidence in both corporate responsibility and the legal system could be vastly improved as well.
| |
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| |
| |
| |
|The glow had not even faded from the news of your bonus when your computer alerted you to some new emails in your inbox. |
|Just when you thought you were going to have smooth sailing, another ethical dilemma raises its ugly head. |
Top of Form
[pic][pic]
In-Box of MICHAEL
|From |Subject |
|Elaine Shields |FDA Regulations Changes |
|Paul Marconi |An Opportunity |
As you reflect on the situation, you realize that it's all a pretty sticky mess. However you don't have to face the problems alone... once again, you have Rian Brown, the company's Ethics Officer, to assist. The time seems right to contact the Ethics Coach.
Bottom of Form
|From: |Elaine Shields |
|To: |MICHAEL |
| |
|FDA Regulations Changes |
The revised FDA standards - the changes we have been advocating for - are now effective, which means our products affected by the GBS-F contaminant no longer meet official standards. Can you update me on the status of your investigation into how much of our inventory is affected? After all the leadership this company has demonstrated in achieving this important change, I'd hate to have to admit that we are no longer able to meet the standards, now that they have been adopted industry-wide.
The last time we spoke, you and Bill were working on a sampling model to determine what percentage of GBS products currently in inventory were affected by the problem. We've clearly got several options, but we'll need to know the scope of the problem to evaluate them.
Elaine Shields
Operations Director
G-BioSport
|From: |Paul Marconi |
|To: |MICHAEL |
| |
|An Opportunity |
Elaine suggested I let you know about some research we've been doing to expand the overseas marketing plan. As it turns out, standards for food and drug product vary widely from country to country in ways that provide some opportunities as well as challenges. The recent issue with the GBS-F and changing FDA standards is a perfect example. In many places, the products can still be sold legally and safely.
Given the extremely low level of risk for the vast majority of users, the marketing anlaysis suggests this is a viable opportunity for distribution rather than disposal. I'd love to talk to you about this opportunity soon.
Paul Marconi
Market Analysis
G-BioSport
|From: | |
|Rian Brown | |
| | |
|To: | |
|MICHAEL | |
| | |
| | |
|Issues in your Dilemma | |
Wow! I didn't think I'd see you again so soon. However, we know that you can sort your way through this second problem, although it is more complex than your last problem.
As you remember, the first step is to figure out exactly what the problem is . . . what is the issue that you are facing. By breaking the problem into small parts, you can get to the core of the problem. Don't forget to check the Ethics Coach on every page for a refresher and more information whenever you need it.
Now, based on our conversation, here is a list of possible issues for this problem.
• Check the one that you think applies to this situation.
• Then, submit your answer.
• I'll let you know whether or not you hit the mark.
Top of Form
[pic][pic][pic][pic][pic][pic]
|Which issue applies to this problem? |
| |[pic] Whether to sell a product that does not meet U.S. safety requirements in a foreign market that has lower safety restrictions. |
| | |
| |[pic] Whether U.S. regulations are unreasonably high because of out of control legal costs. |
| | |
| |[pic] Whether you can avoid bad publicity if a non-U.S. consumer has a problem with the tainted supplement. |
| | |
| |[pic] Whether the level of contaminant is high enough to make the product unreasonably dangerous. |
The next step is to name the primary stakeholders—those people who are:
• directly involved in this situation;
• have to carry out the decision;
• directly affected by the decision; or
• whose direct interests are to be protected.
Those who have delegated responsibility to others are not primary stakeholders. Also those who are interested observers are not primary stakeholders. If you want more information, check the Ethics Coach.
Now, based on our conversation, here's a list of people who might qualify as the primary stakeholders, but only some of them are directly involved. Check the box next to anyone who you think is a primary stakeholder.
Top of Form
[pic][pic][pic][pic][pic][pic]
|Who are the primary stakeholders in this problem? |
| |[pic] The Shareholders |
| | |
| |Any action taken by the leadership team affects the value of the company. |
| | |
| | |
| |[pic] The Board of Directors |
| | |
| |They are responsible for the overall management of the company. |
| | |
| | |
| |[pic] Carson Nelson, Chief Executive Officer |
| | |
| |He is responsible for everything that goes on in the organization. |
| | |
| | |
| |[pic] Cary Bryant, Chief Legal Officer |
| | |
| |He is responsible for managing litigation that arises from company behavior. |
| | |
| | |
| |[pic] MICHAEL, Quality Control Manager |
| | |
| |You are the one that has to make and implement the decision. |
| | |
| | |
| |[pic] Elaine Shields, Operations Director |
| | |
| |She is your overall supervisor. |
| | |
| | |
| |[pic] Judy Birch, Director of Public Relations |
| | |
| |She is responsible for press releases, interviews, and the company's public image. |
| | |
| | |
| |[pic] G-BioSport's international consumers |
| | |
| |Their government has not chosen to protect them to the same extent the U.S. government protects its citizens. |
| | |
You are about to look at the third lens, the Relationships Lens, which focuses on the processes—the systems—needed for an ethical organization. The first two lenses, the Rights/Responsibilities Lens (duty focus) and the Results Lens (happiness focus), had the individual as the primary concern. The Relationships Lens moves the community to center stage.
The first concern of this lens is protection of the basic liberties of all people:
• Each of us is entitled to a limited number of rights, regardless of wealth or status.
• The rights are procedural: we have a right to a fair process.
• The emphasis is on protecting those without power, the least advantaged.
These rights are as follows:
1. Right to notice:
To know what the rules are and what process is to be used to enforce the rules.
2. Right to voice, not a veto:
To share concerns and critiques about the rules and the process. Each stakeholder is entitled to a seat at the table where decisions are being made.
3. Right to have contracts honored:
To have the terms of a contract honored once an agreement is made, and not to have those terms changed on a whim.
As you can see, the list is pretty abstract. Given the problem you have to solve, let's see if you can identify which of the following list of rights is covered under the category of basic liberties. Some of the items on the list are basic liberties and some are not.
Top of Form
[pic][pic][pic][pic][pic][pic]
|Which of the following rights represent basic liberties? |
| |[pic] Right to know what the safety standards are for a product. |
| | |
| |[pic] Right to have industry-wide safety standards be based on input from members of the industry. |
| | |
| |[pic] Right to a product that meets its stated purpose. |
| | |
| |[pic] Right to market access for the company's products. |
| | |
| |[pic] Right not to have one's career put at risk by a single bad decision. |
| | |
| |[pic] Right to act contrary to government regulations with which you don't agree. |
| | |
| |People become confused about basic liberties—those rights of which we all have an equal amount—and other rights of which people get |
| |various amounts, like education or health care. The interesting feature of considering basic liberties is that we can take an option|
| |for action which is not ethical and by adding a process for guaranteeing basic liberties make the option perfectly ethical. |
| | |
| |In the previous screen you identified the following basic liberties: |
| |Right to know what the safety standards are for a product. |
| |Right to have industry-wide safety standards be based on input from members of the industry. |
| |Right to a product that meets its stated purpose. |
| |Below is a list of actions that you could take in this situation. Check those actions that would meet the requirements of adding |
| |basic liberties to the process. |
| |Top of Form |
| |[pic][pic][pic][pic][pic][pic] |
| |Which actions add a process for guaranteeing basic liberties? |
| | |
| | |
| |[pic] |
| |Don't include safety information on product label. Instead, provide the company's 800 number on the label for those who want |
| |information. |
| | |
| |[pic] |
| |Post FDA and internal quality control standards on company website. |
| | |
| |[pic] |
| |Maintain confidentiality of internal quality standards so that competitors don't find out. |
| | |
| |[pic] |
| |Support development with other manufacturers of industry-wide standards and make recommendations to the FDA. |
| | |
| |[pic] |
| |Create an internal task force to annually review and recommend modifications to internal quality standards. Include Quality Control |
| |Managers from each division as well as the Director of Quality Assurance and Senior Clinical Researchers. |
| | |
| |[pic] |
| |Identify on product label all potential benefits of product, so long as the standard FDA disclaimer is also on the label. |
| | |
| | |
| | |
| | |
| | |
| |In this lens, we identified the basic liberties entitled to our community: |
| |Right to know what the safety standards are for a product. |
| |Right to have industry-wide safety standards be based on input from members of the industry. |
| |Right to a product that meets its stated purpose. |
| |We also identified some actions that are representative of those that would help ensure that the basic liberties are supported: |
| |Post FDA and internal quality control standards on company website. |
| |Support development with other manufacturers of industry-wide standards and make recommendations to the FDA. |
| |Create an internal task force to annually review and recommend modifications to internal quality standards. Include Quality Control |
| |Managers from each division as well as the Director of Quality Assurance and Senior Clinical Researchers. |
| |You must now choose the option that best guarantees that the community's basic liberties are upheld. |
| | |
| | |
| |Top of Form |
| |[pic][pic][pic][pic][pic][pic] |
| |Which option best supports the community's basic liberties? |
| | |
| | |
| |[pic] Option 1 |
| | |
| |Honor other countries' rights to set safety standards for their own citizens. Sell product where foreign regulations permit. |
| | |
| |[pic] Option 2 |
| | |
| |Some countries fail to protect their citizens. Do not sell to other countries any product that can't be sold in the U.S. |
| | |
| |[pic] Option 3 |
| | |
| |Sell product wherever regulations permit. |
| | |
| |[pic] Option 4 |
| | |
| |Sell product where products liability law does not create risk of lawsuit in the unlikely event of a problem. |
| | |
| |[pic] Option 5 |
| | |
| |Market product at a discount as 'seconds,' disclosing the contaminant in excess of U.S. standards. |
| | |
| |[pic] Option 6 |
| | |
| |Apply U.S. safety standard to all sales. Do not sell product even where there are lower safety standards or none at all. |
| | |
| |We're almost done! The final lens we are going to examine is the Reputation Lens, which explores the virtues that are important for |
| |leadership. |
| | |
| |The first concern of this lens is identifying the core competencies of your role—Quality Control Manager. Each leadership position |
| |in an organization has a responsibility for moving ahead the goals of the organization as well as a gatekeeper function . . . making|
| |sure that individuals and the company do not violate ethical norms. |
| | |
| |The list of core competencies is personal. Each of us sees ourselves fulfilling the role in a somewhat different fashion, bringing |
| |together a unique blend of skill and abilities to the organization. Nonetheless, there are certain competencies that must be |
| |fulfilled in order that we meet the ethical requirements of our job. |
| | |
| |In the list below, choose seven to nine competencies that you believe are important for the role you have in G-BioSport. See if you |
| |can identify the ethical requirements of your job. |
| |Top of Form |
| |[pic][pic][pic][pic][pic][pic][pic] |
| |What are the core competencies of your role? |
| | |
| | |
| |[pic] Adaptability |
| |[pic] Decision-making |
| | |
| |[pic] Business acumen |
| |[pic] Political savvy |
| | |
| |[pic] Career ambitions |
| |[pic] Provide accurate safety information |
| | |
| |[pic] Customer focus |
| |[pic] Manage through systems |
| | |
| |[pic] Embody company values |
| |[pic] Sizing up people |
| | |
| |[pic] Drive for results |
| |[pic] Fairness to consumers |
| | |
| |[pic] Creativity |
| |[pic] Fairness |
| | |
| |[pic] Priority setting |
| |[pic] Self-knowledge |
| | |
| |[pic] Planning |
| |[pic] Managerial courage |
| | |
| |[pic] Managing and measuring results |
| |[pic] Develop external relationships |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |We now have a sense of the competencies that are essential to your role. These competencies include certain ethical requirements |
| |given your position. They also include aspects that uniquely reflect you. Taken together, these qualities are: |
| |Decision-making |
| |Provide accurate safety information |
| |Manage through systems |
| |Embody company values |
| |Drive for results |
| |Fairness to consumers |
| |Creativity |
| |Priority setting |
| |Self-knowledge |
| |Planning |
| |Managerial courage |
| |Managing and measuring results |
| |At this point, I'd like you to choose the options that you believe would allow you to meet the requirements of your role. Do not |
| |mark those that you believe would keep you from meeting the requirements of your position. |
| |Top of Form |
| |[pic][pic][pic][pic][pic][pic] |
| |Which options allow you to meet the requirements of your role? |
| | |
| | |
| |[pic] Option 1 |
| | |
| |Honor other countries' rights to set safety standards for their own citizens. Sell product where foreign regulations permit. |
| | |
| |[pic] Option 2 |
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| |Some countries fail to protect their citizens. Do not sell to other countries any product that can't be sold in the U.S. |
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| |[pic] Option 3 |
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| |Sell product wherever regulations permit. |
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| |[pic] Option 4 |
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| |Sell product where products liability law does not create risk of lawsuit in the unlikely event of a problem. |
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| |[pic] Option 5 |
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| |Market product at a discount as 'seconds,' disclosing the contaminant in excess of U.S. standards. |
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| |[pic] Option 6 |
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| |Apply U.S. safety standard to all sales. Do not sell product even where there are lower safety standards or none at all. |
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The reason for putting you through this drill is to make sure that you never have to wear an orange jumpsuit because of an action you took as an employee of G-BioSport. So, here's the bottom line . . .
You chose the following option:
Apply U.S. safety standard to all sales. Do not sell product even where there are lower safety standards or none at all.
On a scale of 0 to 5, from low to high risk, your decision rates a 0. It represents virtually no risk.
• The company cannot be sued for not selling product that doesn't meet its own internal or U.S. safety standards.
• Although you have created no legal liability, your decision will cost the company money: all the tainted product will have to be destroyed and sales will slow as you create new untainted product.
• Public reaction to such a step could be so positive that sales will increase in the long run.
Emerging Law
Technological innovations continue to shrink the world and bring vastly different systems and priorities into conflict. The expanded movement of goods and services worldwide as a result of globalization is one example. As Europe harmonizes regulatory policy regarding health and safety standards, food, supplement, and medical businesses worldwide are feeling pressured to revise manufacturing practices consistent with European standards. A September 2007 article in The Economist suggests that the European Union is 'becoming the world's chief regulator.' Typically, such standards are more stringent than those in the United States.
Different cultures drive different legal systems. The U.S. legal system tends to prioritize the values in tension using the Rights/Responsibilities Lens, favoring individual autonomy and minimal restrictions that govern all equally. Whatever is not specifically prohibited is permitted. Such principles are embedded in the U.S. Constitution as well as individual state constitutions. Underlying the U.S. justice system is the premise that individuals are competent adults capable of making their own choices and responsible for the natural consequences of those choices. In contrast, European legal systems, typified by the Napoleonic Code, prohibit whatever is not specifically permitted. In addition, the EU harmonization effort tends to take a 'least common denominator' approach, regulating protectively. Some feel that such an approach limits consumer choice unreasonably, ostensibly in the name of safety.
Regardless of one's views - which Ethical Lens is one's primary home - the global trend appears to be toward stricter safety regulations. Even where increased risk of litigation is not a concern, real barriers for global marketing efforts exist. These include denial of the right to enter a market (e.g., the Arab embargo of Israel), the requirement that the manufacturer guarantee the financial ability to recall a product as a condition of market entry, and protectionist regulations. Ultimately, these issues also affect product design. Some U.S. manufacturers with global sales are even beginning to advocate tighter U.S. regulations out of fears that meeting requirements to sell products in Europe will put them at a competitive disadvantage with U.S. manufacturers who do not have to meet higher European guidelines.
Beyond Compliance
In the context of globalization, the balance between legitimate corporate profit, respect for individual government regulations, and human safety also involves the question of basic human necessities. Human resources and access are naturally distributed unequally. The development of corporate social responsibility reflects what appears to be a growing perception that corporations bear some responsibility to redress those natural inequities.
The question raised by the difference in this dilemma between the best options in each lens is unresolved. The answer may very well depend on the situation. In some cases, insisting on the application of one's own standards instead of local standards is an example of imperialism. In other cases, failing to do so takes advantage of those with fewer resources for improper gain. Respecting someone else's cultural uniqueness represents an appropriate avoidance of imperialism, while paying lower wages for third world manufacturing is seen as exploitative. Fair and sustainable trade is increasingly the standard for ethical goods and services, despite the added cost to consumers. Bottom of Form
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