Manager\'s Ethical Dilemma You are the manager of a factory of the Make-It Compa

Question

Manager's Ethical Dilemma

You are the manager of a factory of the Make-It Company. You have 5,000 parts that must be shipped by Friday at 5:00 p.m. Things have been on schedule, but you have just been alerted that 2,000 of the parts already produced are faulty. This means, even with overtime, you won't meet your goal.

If you do not ship these parts by the deadline, your company will lose this major client, and this will most certainly result in layoffs at your plant.

What do you do? Fully explain the rationale for your decision.

Explanation / Answer

Sending faulty parts to the client will be an unethical action. It can result in losing the client even. However I will chose not to send those 2000 faulty parts to the client, and inform the client of the situation and request for more time to send the remaining 2000 parts, after a discussion with the company management.

3000 parts can be shipped to the client. Remaining 2000 parts can be purchased or outsourced to some other company for immediate buying, as a solution to the current problem.

Above situation might result in layoffs, but it will not be ethical in context of trust and long term relation with the customer to send any faulty parts, as it will then affect the customer’s business too. However, customer may appreciate of the apprising of such situation and may be interested to continue the order with more delivery time allocated to us. It will also give the customer a confidence in our company, as we informed them on time and acted ethically. It will further boost the healthy relationship. In future, we must focus that such situations don’t arise, due to human error or any production/ quality issues.

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