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Business Ethics

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An upcoming meeting with your new company's chief executive officer (CEO) and other executives is a great opportunity for you to share your knowledge of potentially defective products being sold to customers. You are not sure if others are aware of this issue, and the defective products could possibly lead to serious injuries. To complicate matters, you are uncertain about your organization's ethical guidelines because none have been communicated.

How would you present this issue to the CEO, directors, and managers? What specific courses of action would you recommend with respect to internal actions and customer notification?

In the longer term, what can be done to ensure that a strong sense of business ethics permeates your company? Consider aspects of the organization's structure (such as adding an oversight function) as well as supporting policies and procedures.

Answer the following questions regarding the scenario described:

How would you effectively present the issue of potentially defective products to the CEO, other directors, and managers?
How would you specifically notify customers of such an occurrence?
What kind of internal actions would you take to prevent future problems?
What can be done to ensure that a strong sense of business ethics permeates your company?

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This solution provided answers to a scenario when it comes to defective products.

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How would you effectively present the issue of potentially defective products to the CEO, other directors, and managers?

This is what I would do to present the defective products to the CEO, other directors, and managers. I would first of all compliment them by thanking them for the opportunity to speak to them about the issue at hand. The next step would be to present the case of what is going on, and encourage each of them to keep an open mind during this process. They will have to decide for themselves on either to react or act at this point, or to let you continue on in letting them know the issue at hand. When this is taking place within the presentation, the benefits and drawback are set forth to management, in hopes that they will remove and modify the product, or whatever choice they decide. At the very end of it, I would let them know that you appreciate them for their time, and if there are any ...

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