You are the CEO of an auto manufacturer. You have discovered that 1.1 million of

Question

You are the CEO of an auto manufacturer. You have discovered that 1.1 million of your vehicles in North America have power steering problems that may result in a loss of electric power steering assist while driving. A potential intermittent electrical connection in the steering gear of the affected vehicles may result in the loss of electric power steering assist while driving. In both cases, the steering system defaults to manual steering mode, making the vehicle more difficult to steer, especially at lower speeds. Out of the 1.1 Million vehicles, you are aware of fifteen low-speed accidents and two minor injuries believed to be associated with this condition. The issue can be fixed with one of three repairs, depending on what diagnostic codes are shown when the vehicle is taken to the dealer. They will either update the software for the power steering control module and the instrument cluster module, replace the torque sensor or replace the steering column, which includes upgraded power steering control module software. The cost of each repair will range from $50 to $100.

You must decide what to do.

Who are the stakeholders involved in your decision?

What duty do you owe each of them?

How will your decision impact them?

How do you determine your personal tipping point?

What is your decision?

Explanation / Answer

all the customers who are driving the cars, the employees and owners of the company, the society and all these comes under stakeholders only.

the total cars of 1.1 million and the customers are the first stakeholders, these damage has to be repaired as soon as posible. if not, it may leads to accidents which may cause unrecoverable loss to the company. for this the management is charging some fee from the customers, hence the employees should finish the work. the employees must perform the task, hence these people becomes the stakeholders. the management must prepare some plans, schedules for this process and liable to customers, hence these are stakeholders. finally the driving actions of our customer may impact on other drivers on the road, so they also will be effective and becomes stakeholders.

when we recall the cars for repair, it may take some time to the customers, but they know the importance of safety in driving. most of the customers will return the car and complete the work. some may argued and sued it, but finally the may complete it. customers may lost some time due to this and some may loss their work too. when it comes to employees and management, these people should work concentratedly to overcome this problem immediately.

here the personal tipping point is protect the customers and correct the mistake as early as possible. lives of people is more important than any other aspect, hence i must focus on it.

i dicides to recall the cars and complete total process and correct all those. i know it occurs some additional cost, some time also, but if we do not rectify this small problem, it creates more problems which may not recoverable in future.

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