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You are a publicly listed Australian company who manufactures tens of thousands of plastic toys. Your toys meet foreign standards for toy products and are legally sold in foreign markets. The toys are not sold in Australia because they do not meet stricter Australian manufacturing standards. Specifically, all your toys use lead paint which makes the toy cheaper to manufacture but potentially hazardous to the health of children. Because of the potential danger of your products, you are starting to get complaints from local Australians, including small protests outside of your headquarters in Sydney which have resulted in negative media attention. Upon investigation, you have found that the lead paint in your toys have been considered a "potential contributing factor" in 53 child hospitalisations and 1 child's death in the past year but have not been considered the direct cause of any of these cases. You have investigated the manufacture of toys that do not use lead paint, but the cost of each toy would double your product's price, and this would likely lead to a substantial downturn in sales, profits and share price. What actions should the firm take now? In your answer consider the ethical perspective that the firm used so far in its decision making and justify why/why not a new ethical perspective should be adopted. When discussing the firm's future actions ensure that you weigh up the pros and cons of a potential change including product safety, job losses, reduced profits, and any other ethical factors that should be considered.
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