Companies and business organizations usually hold into secrecy the problems that could lead to negative implications for the company or its products. Toyota Company had manufactured and sold several cars with sudden accelerating problems but kept the problem as secret. The problem was perceived by the management as a major problem, which could interfere with its business reputation and affect its market position. This was the ground rule and the reason why the company decided to hide the problem and secretly repurchased vehicles from customers after realizing that the cars had some sudden acceleration problems (Eisenstein, 2010). The main idea was to hide such defects from the federal regulators, the respective media, and the public. The sudden acceleration problems resulted from manufacturing defaults, which was mainly discovered after some clients complained about it. Employees had earlier reported the sudden acceleration problems, but the automaker hesitated to report the problem to regulators (Bensinger & Vartabedian, 2010).
Answer to Number 4
The situation brought about not only some conflicts but also some ethical issues. First, employees seemed to act unethically by seemingly supporting the company to hide the car defects. This is depicted from the fact that the sudden acceleration problem had started a decade earlier (Bensinger & Vartabedian, 2010). Employees duplicated the same problem several times in the company’s vehicles without and reports being made by the automaker to the regulators (Bensinger & Vartabedian, 2010). It is also unethical for the company to target vehicles without any sudden acceleration problems for repurchase instead of focusing the defected cars. The defected cars could have been endangering people’s lives and property damage. Sudden acceleration is a dangerous problem, but the company avoided the defected vehicles already sold to customers in order to support its claim in the expense of the customers’ lives (Bensinger & Vartabedian, 2010). This action depicts unethical actions by Toyota Company.
Bensinger, K., & Vartabedian, R. (2010, October 29). Toyota kept issue silent, lawsuit says: Workers allegedly saw and replicated events of unintended acceleration, and owners of the vehicles were sworn to secrecy. Retrieved from Los Angeles Times: http://articles.latimes.com/2010/oct/29/business/la-fi-toyota-suit-20101029
Eisenstein, P. A. (2010, October 29). Toyota Secretly Bought Back Defective Cars, Claims Lawsuit. Retrieved from The Detroit Bureau: http://www.thedetroitbureau.com/2010/10/toyota-secretly-bought-back-defective-cars-claims-lawsuit/
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