Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to
A) determine whether any of the organization's stakeholders are violated by poor quality products
B) gain ISO 14000 certification for the organization
C) obtain a product safety certificate from the Consumer Product Safety Commission
D) have the organization's legal staff write disclaimers in the product instruction booklets
E) compare the cost of product liability to the external failure cost

Question

Quizplus · Accepted Answer

Management has an ethical responsibility to ensure that the products their organization produces do not harm any stakeholders, either through poor design, production, or distribution. This includes ensuring that the products are safe, reliable, and of high quality. This requirement extends beyond legal obligations and is a necessary component of running an ethical and responsible business. ISO 14000 certification and product safety certificates may be helpful in demonstrating a commitment to quality and safety, but they are not sufficient on their own to meet ethical requirements. Writing disclaimers in product instruction booklets may also be useful, but again, it is not enough to meet ethical responsibilities. Comparing the cost of product liability to external failure costs may be a practical consideration, but it does not address the ethical requirement to ensure that products do not harm stakeholders.

Regarding the Quality of Design, Production, and Distribution of Products