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Legal and ethical issues in business
Ethics of product safety
Ethics and law in business
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Law and Ethics Ethical Considerations Dracca’s Funny Bunny toys are banned from being sold in the United States because the toys do not meet the recommended product safety guidelines. Businesses have a moral responsibility ensure that all products are of the highest standard of quality and safety by not causing undue harm to consumers (Federwisch, 2012). By selling products that do not meet safety requirements, Dracca has not fulfilled its moral duty. By choosing to sell the toys in Canada, despite the risk of harm or injury to Canadian consumers, Dracca has shown that high-profitability is more important to the company that the safety of consumers. CISG and Contract with NT The United Nations Convention on Contracts for the International …show more content…
By bribing the customs official to levy only half of the GlideStride shipment to save money, Dracca employee broke customs laws and can be charged a monetary penalty for evading levying duties (Gov.uk, n.d). Traders who do not follow customs rules and regulations or who do not pay import levies can have goods and transport vehicles seized; in addition to the a seizure of these goods, duty debts accrue interest if not paid by a specified time (Gov.uk, n.d.). In addition to monetary penalties, the Dracca employee and the customs official could both face criminal charges (Tedesco, …show more content…
In the United States, federal minimum wage is $7.25 an hour and employers are required to pay workers for excess overtime for more that 40 hours a week (United States Department of Labor, n.d.). Under the Fair Labor Standards Act, the minimum age for employment is 14 years, and they are prohibited from working in hazardous environments (United States Department of Labor, n.d.). Although laws regarding labor and safety may vary in Indonesia, Dracca can still face criminal charges if found to guilty if breaking these laws. Ethically, it is wrong to employ children to work in factories as this compromises their future through losing out on school. It also compromises their growth and development as their are forced to take up significant responsibilities that they may not be ready for (Brown, 2012). As a U.S. company, Dracca has a responsibility to the basic human right of employees because of the reputation and high standards that U.S. companies are held to in regard to child labor, exposure to toxic chemical and employee rights as well as to ensure that social and economic development is not thwarted (Viederman,
In 2005, the Vermont Teddy Bear Company produced a controversial bear for the Valentine holiday. The bear that was made was called “Crazy for You” and wore a straitjacket. It became an issue when the company was confronted for offending the mentally ill. After the problem became apparent to the organization, it responded by saying that it would continue selling the toy until the inventory was empty. It was put out for the public in January and was sold out by February 3. The ethical issue in this case is whether or not Vermont Teddy Bear Company handled the situation ethically correct.
July 13, 2007 is the day Mattel learned their Sarge die-cast toy cars, manufactured in China, contained lead levels in excess of U.S. federal toy safety regulations (Pearce & Robinson, 25-1). The United States implemented safety regulation regarding lead-based paint years ago, as officials were aware of the potential health concerns lead can cause. The products manufactured in China leading up to the recalls in 2007 were of substandard quality, and posed serious health risks to the children of the United States. High levels of lead paint can have a detrimental effect on the health of children. Lead can damage chi...
Implications for personal integrity and character: Their unethical decision may not reflect their personal character, but with the alternative options they have many opportunities to invent a practical toy that can give customers an option.
Contract law controls most agreements between parties, whether oral or written, that involve goods, services, money, employment contracts and real estate deals. In order for a contract to be valid, there must be a few elements that are satisfied. There must be a negotiation, an agreement which consists of an offer and acceptance of the offer, consideration, capacity, and legality. The sources of law that governs contracts today consist of two bodies of law, Article 2 of the Uniform Commercial Code, also known as the UCC, and the common law of contracts. Determining what body of law applies to a contract dispute is an important first step in analyzing that problem. The Uniform Commercial Code, or UCC, is a statutory law that was adopted in every
...the U.S. market to be tested to U.S. standards; 2) standardize procedures that will be used industrywide to verify that products comply with U.S. safety standards; 3) establish criteria to certify that testing laboratories are qualified to perform testing to U.S. standards using industrywide protocols; 4) require the development of testing protocols and certification criteria through the cooperation of all stakeholders and apply them consistently; 5) necessitate that Toy Industry Association work with Congress, Consumer Product Safety Commissions, and American National Standards Institute to implement the legislation, rules, and protocols to ensure industrywide adherence. Both Toys “R” Us and Mattel made testimonies on the incidents as well.
... in the toy industry is to make toy safety the number one priority and to fulfill the customers’ needs.
HILLIARD, J. And O’SULLIVAN, J. (2012) The Law of Contract [Online] 5th Ed. Oxford: Oxford University Press. Available from - http://books.google.co.uk/ [Accessed: 2nd January 2014]
Unfortunately for Mattel, a difficult battle with Carter Bryant also was very costly over the product Bratz. The manufacturer reaches damages as starting at hundred million and more the toy manufacturer continues to be the number one toy doll factory (Ferrell & Hartline, 2014). Although, Mattel has much misfortunate concerning lawsuit, and recalls much of what they experience may have been avoided had consider very closely optimizing their organization with strategies outsourcing product (Capelle2017). In closing Mattel at some point must have taken in to account espoused values, and basic assumptions that have brought failure to their industry, in the end they have to do what is ethical and right in service community around the globe (Kreitner & Kinick, 2013).
Top managers should be reminded that they are ultimately responsible for the quality of a product and the company. Quality management is one of the keys. By defining quality in operational terms, understanding the costs and benefits of quality, recognizing the consequences of poor quality, and recognizing the need for ethical behavior (Stevenson, 2012), will lead to a more productive operation. If Toys, Inc. specifically doesn’t want to hire additional positions to inspect quality they could outsource to a company such as SATRA whom from its website states, “SATRA can assess the risk of injury from a toy, as well as carry out analysis for the presence of restricted metals such as lead, chromium and mercury(2015).” Quality is the ability of a product or service to consistently meet or exceed customer expectations (Stevenson, 2012). Quality when it comes to manufacturing of toys especially those that have moving parts also brings in safety concerns. “Market watch officials and technological experts have warned parents to pay more attention to the quality of toys they purchase to better protect their children (Hazell, C 2011).” Parents will associate a poorly made toy, especially one that already knows that it’s poorly made by having a trade-in program as potentially dangerous for their son or daughter. Continuing to have customer dissatisfaction will further question the quality of our product and in turn the safety of our
Manufacturers are responsible for making sure the products they produce are child safe. What this means is the products must be designed and marketing to children based on the age appropriateness. The products must comply with all safety requirements for each country Mattel does business. The products advertisement targeted to children must not exploit their innocence and age restriction should be placed on the products they produce so that the appropriate consumer age group is purchasing the products. Parent of these consumers must be informed, when parental guidance is needed in deciding to purchase a particular product because the product requires
The International Covenant on Economic, Social and Cultural Rights, hereafter the ‘ICESCR’, binds State Parties to take steps to achieve the rights recognized within the treaty. Involved are both core obligations, which are to be realized immediately, and duties to be achieved progressively, through the use of maximum available resources. Once attained, measures are to be taken to ensure those rights are not diminished. Should regression occur, full justification is required. This legal brief will critically analyse the situations in Mythica in order to identify any potential duties assigned in the ICESCR that may have been breached. Following that, it will expound upon which of those prospective violations could be brought before the Optional Protocol, hereafter the ‘OP’, for a remedy.
There has been increased the outcry by international labor organizations accusing multinational companies of foul play when dealing with their workers. Many multinational companies, in a bid, to reduce operation costs and costs of production, end up suppressing their clueless workers. Some multinational companies have gone to the extent on having their central productions being done in low-income earning companies where they would not have many responsibilities to bear for the workers. Coca-Cola, however, has received widespread criticism for its mistreatment of workers and the way it has...
Manufacturers such as Mattel and Fisher Price take a consequentialist view of ethics for toy safety. Their feelings lie in the “concern about outcomes or the consequences of actions and good choices involve options which produce the best benefit/harm ratio”
Public International law International law contains of rules and principles, which preside over the relations and communication of nations with each other. International Law that is in most other countries referred to as Public International Law concerns itself only with questions of rights among more than a few nations or nations and the citizens or subjects of other nations. In dissimilarity, Private International Law deals with controversies among confidential persons, natural or juridical, arising out of situations having important association to further than one nation. In current years the line up connecting public and private international law have became more and more doubtful. Issues of private international law may also associate issues of public international law and numerous matters of private international law nave considerable meaning for the international group of people of nations. International Law consists of the basic, classic concepts of law in nationwide legal systems, status, property, responsibility, and tort. It also includes substantive law, procedure, process and remedies. International Law is rooted in receipt by the nation states, which comprise the system. Customary law and conventional law are primary sources of international law. Customary international law results when states trail convinced practices usually and time after time out of an intelligence of legal responsibility. Lately the customary law was codified in the Vienna Convention on the Law of Treaties. Conventional international law derives from international agreements and may obtain any appearance that the constricting parties have the same opinion upon. Agreements may be complete in admiration to any substance except for to the leve...
Von Galhn and Taulbee. 2013. Law Among Nations. An Introduction to Public International Law. Pearson Education.