Case Problem Analysis: Business Ethics

Jackson Grey owns a commercial bakery in Blakely, Georgia that produces a variety of goods sold in grocery stores. Grey is required by law to perform internal tests on food produced at his plant to check for contamination. During one three$-$month period, three tests of food products containing peanut butter were positive for salmonella contamination. Grey was not legally required to report the results to U$.$S$.$ Food and Drug Administration officials, so he did not. Instead, Grey instructed his employees to repeat the tests until the results were negative. Meanwhile, the products that had originally tested positive for salmonella eventually were shipped out to retailers. Five people who ate Grey$$s baked goods that year became seriously ill, and one person died from a salmonella infection.

There are four different aspects of a decision that a business should evaluate in order to maximize profits and be a good corporate citizen. In evaluating the first of the four factors, Grey should determine whether his failure to report the results to the Food and Drug Administration is a violation of

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$.$ In this case, Grey

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have a legal duty to perform internal tests on food produced at his plant to check for contamination. Grey

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have a legal duty to report the initial test results to the U$.$S$.$ Food and Drug Administration. Merely complying with the law is known as the

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$.$

Assessment question

In evaluating the second factor, Grey should analyze what the

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might say if the shipped food caused sickness or death. Knowingly or recklessly allowing someone to become sick from the food because the company continued to test the food until the salmonella test was negative

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be a public relations problem. In evaluating the third factor, Grey would look at the

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for consumers and employees. Grey$$s instructions to repeat the tests until the results were negative,

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support the health and safety of consumers.

Assessment question

To assess the fourth factor, Grey should evaluate how much it might

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the company to continue to test until the salmonella result is negative. Grey$$s approach to profits in making this decision seems to be

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profit maximization. In this case, Grey should consider not just the

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of testing, but also the

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of potential lawsuits or settlements.

Assessment question

In evaluating the four factors, it seems that Grey$$s decision was

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$.$ If Grey had thought through his options as if all food manufacturers would make the same decision, he would be applying

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$.$ If Grey had analyzed his options using

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$,$ he would have evaluated the costs and benefits of each option to determine the

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for the

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and most likely

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shipped the food.

Assessment question

What If the Facts Were Different?

To address the widespread and growing concern of contaminated food causing serious injury and death to individuals throughout the United States, Congress passed a law stating that anyone intentionally distributing contaminated food is subject to criminal prosecution, civil fines, or both. Congress included a provision that any company with a corporate food safety compliance policy approved by the U$.$S$.$ Food and Drug Administration $($FDA$)$ would avoid criminal prosecution, but not civil fines. To be approved, the company policy must require the company to report to FDA any test results that indicate salmonella is present and consult with that agency before shipping any possibly contaminated food.

Grey wants to evaluate the outcome for all stakeholders to inform his decision making. Grey first should consider

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to determine the legal and ethical issues related to implementing a corporate food safety compliance policy. After the initial step, Grey should list his possible actions related to the new law and evaluate each option for

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$.$ Using the information from the first two steps, Grey should work with his staff to come to a consensus and develop a plan of action. Because Grey has used the stakeholder theory to inform his decision making, he has evaluated the protentional outcome for:

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$,$

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$,$

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$,$ as well as

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