The ethics game simulation involved a hypothetical company called Optilex, a game console manufacturer. The company is popular for its product Gameboard X for which it has released a newer improved version, Gameboard X 2.1. However, the company discovers that this newer version is prone to sparking, overheating and may explode if connected to a voltage higher than 220 volts.
The company is confronted by an ethical situation where it has to choose between recalling the product and incurring huge losses or allowing the continued distribution of the product despite its poor safety standards.
As the C.E.O of Optiplex Corporation, the decision to recall the product Gameboard X 2.1 lies squarely on my shoulders. I have received a report that shows that the company will suffer a $ 100 million loss and a likely tumble of share price in the NYSE if I choose to recall the product. Additionally, I receive another report showing that some countries where the product is to be sold have a domestic voltage of over 220V. I am also informed that it does not meet US safety standards on electrical appliances.
The ethical decisions at play here are quite clear. There is a high likelihood that if the product continues to be distributed, consumers are likely to get hurt and worse still, young children who love the Gameboard X. As a company, our policy statement holds that we are a company committed to making safe products for all (Stringer, 2010). Since no accidents related to the Gameboard X 2.1 have been reported yet, making a recall of the product will definitely reaffirm our values as a caring company.
Upon consideration of the issues at play, I decide to recall all the Gameboard pieces already distributed. I also decide to raise awareness on the risks involved in using the product. Though the product had passed safety regulations in some countries, I decide to make recalls in those countries too since all our customers have a right to safety.
Velasquez (2005) states that a company should be committed to its values at all times. At the same time, making a decision based on ethics shows that the company is dedicated to quality and in this way, it retains its customer base.
Though Optiplex Corporation will incur a huge loss this year, we can still recover in the next financial year since our customers will remain faithful since we recalled the product for their sake. In addition, the adjustments to be made to the Gameboard X 2.1 will not cost the company a lot of money, meaning that we can still reintroduce the product and recover the costs of recall.
As managers, situations requiring an ethical solution come up from time to time. Though the need for profit keeps the company running, ethical decisions ensure that the company retains its customer base. In addition, employees feel more comfortable working for companies that have ethical practices since it means that the company is more likely to treat them with dignity (Pfeiffer & Forsberg, 2005).
As seen above, my decision as C.E.O was based on my ethical stance and this means that I also get to have peace of mind knowing that our products are safe.
This simulation brings out ethical perspectives that managers should consider in their decision-making duties. These concepts are applicable to my current workplace since ethical decisions can be made at any management level. In conclusion, all employees should engage I ethical practices for the sake of building healthy relationships within the company.
Stringer, B (2010). Ethics Game Simulation Essay. Retrieved from:
Pfeiffer, R & Forsberg, R. (2005). Ethics on the Job, 3rd Ed. Boston: Wadsworth Publishing.
Velasquez, M. (2005). Business Ethics, 6th Ed. New York: Prentice Hall.