The business ethics memo

METZ MGMT 3500 Business Ethics Memo

EXTREME BUSINESS OPPORTUNITY (Your Product...Your Responsibility?)

Here’s the dilemma - are you going to be a GOOD person and take responsibility for the effects of your product? Or, are you going to be a GREAT businessperson and put profit ahead of everything else? Or, can you do both?

You are the owner of a company (306 SPORTS INC.) that produces a new, technologically advanced skateboard. This board is smaller and much faster than any skateboard ever created. Your creation has become the best selling sports product in the country, with many extreme sports stars buying, using, and promoting your new skateboard. You are making millions for you and your shareholders!

Because of its capability for tremendous speed, the “Rocket Board” is considered an extremely dangerous board. In the past year, several customers, some as young as 5 years old, have been injured while riding the “Rocket Board.” Injuries range from bumps and bruises, to broken arms and legs, to concussions.

Some pediatricians and politicians claim your product should be recommended only for advanced riders, preferably over the age of 18. And, they want a warning label printed on the package. But, these restrictions and warnings would, of course, hurt your sales and profits.

Your company also faces several lawsuits and tremendous public criticism because of the injuries sustained by some users of your product. The public is calling for you and your company to take responsibility for the injuries your product has caused.

Some want 306 SPORTS INC. held financially responsible for creating a product that you knew to be dangerous to many users/customers. Many critics have said creating a product such as the “Rocket Board” is unethical because skateboards are traditionally children’s toys and your product is causing harm to many young consumers.

As owner of 306, it is time to answer your critics. How do you plan on defending your company and its reputation and make critics happy? How do you plan to maintain sales and keep employees, investors, and shareholders happy?

YOU HAVE TO:

• Explain your plan to answer your critics who claim you are responsible for the injuries and your company has behaved unethically.

• Explain what you are going to do about the current lawsuits filed against your company and any lawsuits moving forward.

• Finally, explain what steps you are going to take to make sure the Rocket Board’s sales continue to grow and your company remains profitable so your investors and shareholders have confidence in your leadership.

Write a properly formatted memo to the 306 Sports Inc. Community. The readers include shareholders, employees, and even critics. Your memo must explain your position and answer all of their concerns. Your memo should be well-written and detailed. Give as many specific examples that you deem necessary.