The incident triggered widespread public criticism and regulatory scrutiny, leading to a sharp decline in the company's reputation and financial performance. a) Discuss the ethical issues involved in the case. b) What action 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?
Main Body
The above case reflects the prioritization of profit over principles (Noam Chomsky). A Ethical issues in the case: i Faking of quality standards (commerce without morality) ii Soft misuse of brand name iii Fraud of market sentiments iv Consumer cheating for vested interest v Willful default of standards b Action taken by competent authority: → Bring company under Consumer protection Act → Enforce ban on production c Course of action available to company: (1) Issue public apology on official social media handles. (2) Improve product and quality testing (3) Foot in the door technique by few products that they have undertaken course correction (4) Update company bye-laws to make such acts admissible. Thus, company should follow principles of ethical capitalism and take inspiration from reputed companies like Tata Group.
— LIZA GARGA · AIR 303
LIZA GARGA
Government Policies and Interventions - Design, Implementation and Issues
Consumer Protection and Regulatory Issues
129
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formal analytical
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