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Instructions: In about one paragraph, read the "Ethical Dilemma" paragraphs, and answer question raised at the end. Imagine you are the president faced with the situation.
“Ethical Dilemma”
John Sloan, president of Sloan Toy Company, Inc., in Oregon, has just reviewed the design of a new pull-toy locomotive for 1- to 3-year old’s. John’s design and marketing staff are very enthusiastic about the market for the product and the potential of follow-on circus train cars. The sales manager is looking forward to a very good reception at the annual toy show in Dallas next month. John, too, is delighted, as he is faced with a layoff if orders do not improve.
John’s production people have worked out the manufacturing issues and produced a successful pilot run. However, the quality assessment staff suggests that under certain conditions, a hook to attach cars to the locomotive and the crank for the bell can be broken off. This is an issue because children can choke on small parts such as these. In the quality test, 1- to 3-year old’s were unable to break off these parts; there were no failures. But when the test simulated the force of an adult tossing the locomotive into a toy box or a 5-year-old throwing it on the floor, there were failures. The estimate is that one of the two parts can be broken off 4 times out of 100,000 throws. Neither the design nor the material people know how to make the toy safer and still perform as designed. The failure rate is low and certainly normal for this type of toy, but not at the Six Sigma level that John’s firm strives for. And, of course, someone, someday may sue. A child choking on the broken part is a serious matter. Also, John was recently reminded in a discussion with legal counsel that U.S. law suggests that new products may not be produced if there is “actual or foreseeable knowledge of a problem” with the product.
The design of successful, ethically produced new products, as suggested in the chapter, is a complex task. What should John do?
Explanation / Answer
John should allow production. The reason is product meets safety standards of industry even though it does not meet expectations of manufacturing firm regarding safety. But the product is primarily for 1-3 year children. Tests have shown they can't demage it. Further there is question of layoffs which would lead to more hardships in reality. Given this info it is more ethical to produce toys. Further law uses the word may not which means it is not definitely mandatory
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