Response to case study scenario 1

Of course i will not ignored the problem , but we should not jump to conclusions as there may or may not be an ethical dimension to this scenario.
Before deciding on any action I need to be clear on why the manager has told me to ignore the faulty devices. The first reading of this scenario is that the manager, for whatever reason, is looking to conceal the fault and has deliberately put others at risk. The risk is both physical – to those who handle these items and so could be potentially impacted by fire – and to the business who would be subject to a legal action. As a consequence of any such action, the business would almost certainly dismiss the manager and those staff, including me, who had direct knowledge of the fault.Even if I only have a suspicion that the manager is behaving wrongly, there is a moral as well as a professional obligation to address the matter. In this case I would do as follows:


• Explain to the manager that this advice does not consider the possible harm that could result and the impact to be the business and us, as employees with direct knowledge of the situation.

• If the manager does not change his/her mind then I would discuss the matter promptly and confidentially with HR department. I would explain to them the failure level, the possible reasons for failure and the potential consequences of this failure. The consequences could cause physical harm and will also lead to repercussions for the business and those employees, such as me, who were aware that faulty devices were sent to a client.

• If the feedback from them is inadequate or taking too long then I will contact the police. This is a serious escalation but given that life may be at risk it is necessary. Once informed, the police will address the matter with the company’s senior management who may or may not be implicated in this practice. At the very least there will be a product recall and some form of action will be taken against the manager.

If no damage is caused and if the products are replaced promptly and an honest disclosure is made to the client, then there is every possibility that the relationship between the manufacturer and client can continue successfully.

The second reading of the scenario recognises that in manufacturing environments there is generally an acceptance that a certain proportion of items produced will be faulty. This is especially the case where complex and miniature devices are being manufactured such as memory sticks and a target level is set normally set for an acceptable (or tolerable) fault level. In this context, 1.5% of the items being found faulty does not seem excessive and may or may not be within the target level set by the business. It may also be the case that the potential for fire hazard is exceedingly low. This might explain the manager’s advice to ignore the situation and he/she may be acting entirely ethically and within company policy in providing this feedback.

It is also likely the client is sophisticated and is aware of the potential for fault in which case they are probably indemnified by the manufacturer against fault and consequent damage. It is also likely some reference faulty devices is recognised contractually between the two parties. This is why I should not jump to conclusions.

However, if this is the case then I need to do the following:
• find out the specific policy re faulty devices
• know the tolerable failure rate
• understand how the client is treated in such circumstances
• understand the level of potential fire risk
• ensure that all the information provided to me is documented
• ensure my work and the failure rates I have discovered is documented and “signed off” by the manager

I should do the above in order to be satisfied that the manager providing correct, ethically motivated, advice that is consistent with company policy and the contract with the client.

The legal, financial and personal costs to the company, customer and myself are as follows. In the event of harm being caused the consequences for the company could be a bad image portrayed if reported in mainstream or trade media. This could be very costly should the faulty items be a source of fire and harm. There will likely be a legal action taken and the consequent financial cost could be large. There would be damages to pay and legal cost. There would be smaller costs incurred such as the shipping cost for return of the items. There would be also be the cost of insurance increasing.

The customer would have wasted money on buying inadequate devices but a fire could cost a substantial amount due to other objects being lost, damage to property, suspension of operations for repairs, and any associated cost with serious injury or death. There is also the risk of legal action being taken against the customer by those adversely impacted.

The cost to me would be the likely loss of my job as I was aware of the issue. The loss of reputation and damage to CV or obtaining a reference would be significant and might hamper me getting another job. However, if I inform management and it is found that the manager was behaving inappropriately then I might, in the event of a product recall, get promoted and a consequent financial reward.