Reference no: EM133770294

Question

How to respond to classmate discussion below

Team member one argues that there is no issue as the chances are not high of this occurring. He argues that their product is not any more vulnerable than other electric vehicles and votes for the project to continue as is.

In this scenario, the cost outweighs the benefits of proceeding with the launch as planned.

Cost

While proceeding with the launch may seem like a great idea in the short term, the long-term consequences leave the company vulnerable. The company has a corporate social responsibility to the organization to function ethically. It faces reputational damage, financial devastation, and lower employee morale.

Reputation Damage: If word gets out that they had prior knowledge of a 40% chance of fire at certain speeds and disregarded the information, stakeholders and shareholders will lose trust in the company.

Financial Devastation: The stakeholders would face significant financial loss if lawsuits are filed and economic loss from customers opting for brands they trust.

Employee Morale: continuing on this path puts the employees in an ethical dilemma by going against their deceitful values and launching a hazardous product. Employees may whistle blow or have poor morale and undue stress when deciding to proceed.

Benefits

The benefits of continuing with the plan are staying on schedule with projected deadlines and saving money initially. However, proceeding with this scenario has only short-term benefits and long-term catastrophic consequences.

Meeting Deadline: Staying on schedule helps one feel accomplished and attain goals.

Financial Target: The budget is adhered to by staying on the intended schedule.