i_am_the_swammi Posted February 5, 2011 Share Posted February 5, 2011 I've already addressed your comment--the more profitable thing to do is to NOT recall My bad. That makes it a much tougher decision form a purely business standpoint...I am guessing its been made in both directions many times in the past. Taking the backlash out of the mix is pretty unrealistic, though....kinda like saying "take a walk in the rain, but assume you won't get wet". Quote Link to comment Share on other sites More sharing options...
redrumjuice Posted February 5, 2011 Share Posted February 5, 2011 I would immediately create e new company, with the product fixed and no deadly issues, and bankrupt the other company leaving it with no cash, no nothing. Then I would spend a large portion of the money I took from company one, to tell everyone the dangers of product #1, and pimping the benefits of my totally new, improve non-deadly product! It's a win win, you do the right thing by telling everyone the dangers of product one, at the same time making lots of money from it. Quote Link to comment Share on other sites More sharing options...
TimC Posted February 5, 2011 Share Posted February 5, 2011 I would immediately create e new company, with the product fixed and no deadly issues, and bankrupt the other company leaving it with no cash, no nothing. Then I would spend a large portion of the money I took from company one, to tell everyone the dangers of product #1, and pimping the benefits of my totally new, improve non-deadly product! It's a win win, you do the right thing by telling everyone the dangers of product one, at the same time making lots of money from it. Make sure you ask for a few billion in Government bailouts before bankrupting the company, of course. Quote Link to comment Share on other sites More sharing options...
bpwallace49 Posted February 9, 2011 Share Posted February 9, 2011 Immediate recall. The moral implications matter more than money, and it aint even close. Quote Link to comment Share on other sites More sharing options...
moneymakers Posted February 9, 2011 Share Posted February 9, 2011 WWJD Quote Link to comment Share on other sites More sharing options...
The Irish Doggy Posted February 9, 2011 Share Posted February 9, 2011 In this fantasy world, (1) how hot is my wife, and (2) does my mistress swallow? Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted February 9, 2011 Share Posted February 9, 2011 Your company produces a product which you have just learned is defective and has the possibility of severely injuring or even killing the consumers who use it. A recall of the product will cost your company $2 billion dollars. Your lawyers have told you that if you don't recall the product your company is expected to lose $1 billlion dollars in civil lawsuits. (Your company lawyers and personal lawyers have also told you that there is no way that you or anyone in your company will face criminal charges or personal civil suits from this situation.) You get to make the call for your company: do you recall the product or not? EDIT: To make it clear what I am getting at--assume that there will be little to no market backlash if you decide not to recall the product. If you recall the product, your company loses more money than if you don't recall the product. You recall the product, or at least I would. I find it very hard to believe there would be no market backlash if you didn't. Additionally it is the right thing to do. I couldn't live with myself if I knowingly put someone in harms way, and they ended up being maimed or died because of it. That is one of the main reasons we were the first company in our area with a full time safety director. I'm quite sure that the cost of this safety director out ways any cost of possible fines or out of pocket expenses we would have had over possible law suits. Some times you just have to do the right thing, and typically the right thing ends up being more profitable in the end. I know there have been several jobs where everything else was equal between our company and competitor, but we got the job due to our safety record, and the fact that we have a full time safety director. Quote Link to comment Share on other sites More sharing options...
Seattle LawDawg Posted February 9, 2011 Share Posted February 9, 2011 Thank you to all of those that would not recall. I'll appreciate the business. Now, don't take the pansy way out and settle....let's fight this thing! Quote Link to comment Share on other sites More sharing options...
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