Human and Resource



Business of Ethics

Memorandum

To: CEO of Toy Company

From: Elementary Division Manager

Cc: Executive Team

Date: 07/11/2012

Subject: Decision Alternatives regarding traces of lead found in whistles.

The basic purpose of this memorandum is to present the decision alternatives regarding the problems that are found in the whistles. This memorandum will also provide the advantages and disadvantages along with the financial, legal and ethical considerations of the decision alternatives selected in this regard. It was considered very important to bring into your knowledge these alternatives and the advantages and disadvantages of these alternatives to decide which decision will best suit the present situation of the organization. Although, only small traces of lead were found in the whistles but it was above the amount of lead allowed to be used by the government. This shipment was very huge so it was very important to consider the alternatives for this particular situation. These three decision alternative were identified by going through a decision making model. This decision making model involved five steps were logically systemized to identify these three alternatives.

The first step involved identifying the actual decision to be made. In other words, this step was related to clarifying exactly what goals were to be achieved. The second step included making a list of our priorities and begins gathering relevant information from different sources. The third step was considered very important from the perspective of decision making. This was because this step involved identifying the advantages and disadvantages of the prioritized options. The fourth step involved making a decision of selecting the most suitable alternatives from the pool of various alternatives on the basis of the gathered information. The final step of the decision making model was to evaluate the decision made under this particular situation.

The three most suitable alternatives that were considered to be implemented in this particular situation are a) cancel the order and the shipment, b) reschedule the shipment after making adjustments, and c) ship the assignment without whistles as scheduled. These are the three most suitable decision alternatives under this situation, and the related advantages and disadvantages are discussed as follows.

Alternative 1 is cancelling the order and shipment.

Advantage of this alternative is that our company will be recognized by public as an ethical and moral, socially responsible and honest company.

Disadvantage of Alternative 1 is the financial loss that the company will incur.

Legal consideration of Alternative 1 is that by canceling the order and retuning the payment of the customer will protect the company form any sort of legal ramification.

Financial consideration of Alternative 1 is that the stakeholders and finance department will not pleased with the costs incurred for the initial production of the order and the loss sustained after cancellation of order.

Ethical Consideration of Alternative 1 is that the company will be considered an ethical company because of the forthcoming of our findings and returning the customer's money back.

Alternative 2 is rescheduling the shipment after making adjustments

Advantage of this alternative is that the company will not be losing such a huge ...