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.
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