Ethics and product quality at high-tech companies

Ethics, Product Quality HighTech, Inc.

Disclosure to the CEO and other relevant aspects of upper-level management who are able to 'pull' the dangerous chip from the market until the needed alternations are made is imperative. PR and marketing must also be consulted about the best way to 'spin' this particular negative development. This must be done before actual injuries occur. A recent study found that "reactive recalls -- recalls due to an incident, injury or death -- were more likely than preventive recalls to result in exchanges, which dramatically reduced the recall time" as well as reduced injury ("What companies must do to recover from a product recall," 2014). If the company is forthcoming, effective damage control is possible, but only if the company is proactive. Relevant government safety personnel must also be consulted at the Consumer Product Safety Commission so that information about recalling the product can be issued.

It is essential that the company takes control of the information being released to the press by being honest and upfront (much like Tylenol was when it was revealed a disturbed person was slipping poison into its capsules) and make a full disclosure of the risk (while being careful to note its relative rarity and the fact that the company rigorously safety tests its products). "Recalls undermine trust in a specific brand and it can take the company a long time to recover from the damage to its reputation, but it doesn't have to take a long time if the company uses good crisis management tactics…Reducing the time it takes to recall a product will have a positive effect on consumers' willingness to purchase other products from the same company and if the recall is handled well, the stock price may recover to the same level as before the incident" ("What companies must do to recover from a product recall," 2014).

Q2. Harley-Davidson Inc.

For a company to continue to remain relevant in the 21st century, it must continue to generate new customers, given that existing customers will gradually age out of the product. For Harley-Davidson this is especially critical, since even the most dedicated riders will at some point have to 'hang up their helmets' as they age. "This isn't a coincidence. Harley-Davidson is a brand whose sales depend disproportionately -- almost exclusively, in fact -- on middle-aged Caucasian males. Riders younger than 40 generally lack the time, interest or the bankroll to buy a Harley. But by the time they get into their 60s or older, the noise and joint pain have begun to make riding lose its allure. You might still ride in your 60s, but you're doing it less frequently and you probably aren't buying a new bike" (Sizemore 2013). Its new program to create a safer and more friendly image is a way to attract new customers who might otherwise be intimidated by the motorcycle company's tough image and the unsafe reputation in general of riding a motorcycle.