Question Q.9Discuss, Suggest, SuggestGS4GS2

a) Discuss the ethical issues involved in the case. b) What actions should the competent regulatory authority take against the personal care company for violating domestic quality standards and distributing rejected export batches in the Indian market? c) What course of action is available to the company to manage the crisis and restore public trust and brand credibility? (20 marks, 250 words)

Introduction

The case study reflects the deeper moral issue of lack of professional integrity, greed and profit-oriented mindset of companies.

19 words

Main Body

The case study reflects the deeper moral issue of lack of professional integrity, greed and profit-oriented mindset of companies.

Values needed in the case study:

Honesty and Integrity

Good corporate governance (Awabel)

Public Trust

Equality and Fraternity (Preamble)

Ethical Issues:

1Deceit by company with consumer's goes against consumer welfare.

2Non-transparency with the product where clear moral accountability.

3Falsification Justice - Veil of Ignorance and utilitarianism not adhered

4Biased towards foreign market and exports rather than Indian public: lack of patriotism

5Reputational damage - deteriorate the economic wellbeing of employees as well.

Potential action against company:

(A) Legal measures (FSSAI/company commission of India)

⁓ heavy fines and fees according to the lawful procedure

⁓ Mandatory recalling of product from market

(B) Substantial Justice

⁓ A moral apology by the company to the public.

⁓ Punitive enforcement of their action and assure better standards in future.

(I) Transparency - as highest virtue: Structural thus came our clear and maintain transparency in products/marketing

(II) Cultural pride - of traditional Ayurvedic formulations must be co-asserted to gain legitimacy

(III) Administration recall - so for export and import regulation + mandatory effort of people responsible

(B) Substantive Justice

⁓ A moral apology by the company to the public.

⁓ Punitive enforcement of their action and assure better standards in future.

(I) Transparency - as highest virtue: Structural thus came our clear and maintain transparency in products/marketing

(II) Cultural pride - of traditional Ayurvedic formulations must be co-asserted to gain legitimacy

(III) Administration recall - so for export and import regulation + mandatory effort of people responsible.

(B) Governance - to include quality and employee (viel/iel/)

(E) Social media - for feedback and grievance redressal.

Brand Image is an Asset that must not be viable for any damage by following (integrity) as a crucial.

319 words7 paragraphs4 bullet points

Conclusion

Brand Image is an Asset that must not be viable for any damage by following (integrity) as a crucial.

19 words

Diagram

A circular diagram showing 'Values needed in the case study' with four branches: Honesty and Integrity, Good corporate governance (Awabel), Public Trust, Equality and Fraternity (Preamble)

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Page 38

Topper

DEEKSHA CHOURASIYA

AIR 442025

Subject & Paper

GS4GS2

Topic

Ethics

Corporate Ethics and Governance

Regulatory Compliance, Consumer Welfare, Crisis Management

Writing Stats

357

Total words

Paragraphs

Bullets

analytical

Tone

Linked PYQ

Sivakasi in Tamil Nadu is known for its manufacturing clusters on firecrackers and matches. The local economy of the area is largely dependent on firecrackers industry. It has led to tangible economic development and improved standard of living in the area. So far as child labour norms for hazardous industries like firecrackers industry are concerned, International Labour Organization (ILO) has set the minimum age as 18 years. In India, however, this age is 14 years. The units in industrial clusters of firecrackers can be classified into registered and non-registered entities. One typical unit is household-based work. Though the law is clear on the use of child labour employment norms in registered/non-registered units, it does not include household-based works. Household-based work means children working under the supervision of their parents/relatives. To evade child labour norms, several units project themselves as household-based works but employ children from outside. Needless to say that employing children saves the costs for these units leading to higher profits to the owners. On your visit to one of the units at Sivakasi, the owner takes you around the unit which has about 10-15 children below 14 years of age. The owner tells you that in his household-based unit, the children are all his relatives. You notice that several children smirk, when the owner tells you this. On deeper enquiry, you figure out that neither the owner nor the children are able to satisfactorily establish their relationship with each other. Bring out and discuss the ethical issues involved in the above case. What would be your reaction after your above visit?

25M2013Discuss