x - ethical issues in industry
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Product Design It is concerned with the efficient and effective
generation and development of ideas through aprocess that leads to new products
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Process of Product Design
Idea Generation Need Based Generation
Mid Stage
Design Solutions Production
Final Stage
Marketing
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Health
Health is the condition of being physically & emotionallyable to perform vital functions normally or properly
It includes general physical & mental well being
Employees who have good health are more efficient
Occupationally related diseases result from long termexposure
Employers are not held liable for that
Some diseases occur after exposure of 30 to 40 years
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Health Hazards Pneumoconiosis or black lung disease
Silicosis or white plague Caisson disease (among divers)
Contracts (glass blowers)
Skin cancer
Phosphorous poisoning
Mercury poisoning
Hatters shakes (produces tremors)
Routine exposure to hazardous substances: Asbestos, cotton dust, lead, cadmium, benzene, phenols,
pesticides, radiation, etc
Occupationally related diseases
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Safety The use of any product involves certain risk
Safety is freedom from danger Safety is likelihood that one will stay healthy
Working in safe environment
Employees working in safe environment are more
efficient
Occupational Safety & Health Act (OSHA) has forced allorganisations to be concerned
Social responsibility
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Safety Hazards
Loss of limbs
Burns
Broken bones
Electrical shocks Bruises
Sprains
Impairment of sight or hearing
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SAFETY
People consider, anything to be safe if the risk associated with
it and its use are judged to be acceptable.
Safety is frequently thought of in terms of something asfairly safe or relatively safe
The safety norms or standards are mandatory/statutory whichare as per various laws like pollution control, Indian StandardInstitution, etc.
The norms/standards can be set voluntarily by the Firm
Safety would mean the safe operation of systems and theprevention of either human caused or process caused disaster.
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Safety
Products Services Process Disaster
ProductDesign
ManufacturingProcess
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Product Safety
Products are to be designed in such a way to
reduce the accidents and ease of operations for the
customers.
Products should be sold with proper testing for
safety, else it would lead to accidents.
No compromises on safety quality standards
The standards complied by ISI should be properlyregulated.
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High Risk/ High Safety
High cost price
Aircraft, nuclear power
High Risk/Low Safety
Low cost high price
Automobiles
Low Risk/ High Safety
High cost medium price
Electrical products
Low Risk/Low Safety
Low cost Low price
Computers
High Low
High
Low
Safety
Risk
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Safety in Services
Postsales
Repairs with original equipment spare parts
Avoid duplicate spare parts
Test after installation and repair
Adequate training should be given to safety
engineers, testing engineers and quality
engineers.
Safety audit.
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Process at work place
Includes manufacturing process in the shop floor.
Work place has:
Static equipments like machines
Operating equipments like material handling
equipments
Raw materials
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Preventive Measures Should carry instructions about the safety precautions
prominently displayed.
Training to escape accidents Clean shop floors not oily and slippery.
Space allocation clearly marked.
Yellow line to show place for movement.
Proper maintenance. Avoid spill over's.
Proper storage of raw material.
Provide glows and shoes to the persons handling chemical andother hazardous materials
Use of mask and caps over head.
Process should prevent mal functioning of equipments.
Selection of technology.
Treatment on gases and water before releasing in atmosphere
Execute safety norms.
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Handling of Raw Materials
Their properties should be clearly mentioned
A Material Safety Data Sheet (MSDS) should
be submitted by chemical companies.
Safety guidelines should be given before the
use of any Toxic
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Disaster
Engineers should plan for disaster .
Training and education should be given to
users in event of any disaster.
Firefighting training
Simulation studies are used while training
people for disaster.
All engineering companies assign safety one of
the highest priorities.
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CERC
Consumer Education & Research
Centre
CERC has a full fledged large laboratories to
conduct tests and give performance results. CERC purchased 14 brands of ceiling fans from
market of 1200mm and were put through 22 tests.
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Obligation to Inform Consumer Doctrine of Caveat Emptor
Business obligations to consumers never cease Consumers have right to know
Manufacturers inform consumers:
The potential risk of danger to which they are exposed
Nature & source of risk, condition under which risk arises
How great it is & how to get rid of it, prevent or overcome it
Consumer has to use it with care taking due precautions
Manufacturers should produce goods that are uptoconsumers expectations
Consumers need intervention of experts & technical mento decide safety standards of products
I d i
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Introduction A product is more than just a physical object.
The degree to which it satisfies customer expectations
will be the most powerful and lasting communication ofall.
A product displays essential physical attributes such asquality, performance and design.
Also it entails implied attributes such as reliability,warranty with assured after sales support besidesother thing.
Business obligations to consumer never cease, for they
imply fair dealing and product safety all the times. People have a right to adequate information of the
goods they purchase and a fundamental right not to beharmed by the goods and services they purchase.
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Environmental protection and product safety
It is the second order moral obligation of the
organisations to ensure environmental protection inthe manufacture of their product
However, it is equally clear that people will acceptsome degree of risk or harm in return for greater
comfort or good.
If the main question on environmental protection is,how much harm is safe?
On product safety it would be, how much safe issafe?
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Safety Standards
How much safe is safe?
How much safety is demanded with respectto a particular product or activity?
Whether the product comes up to thestandards set by the government or public?
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The Corvairs had a significant design causingsteering difficulties. This led to several seriousaccidents. No improvement was made and GMrefused to recall the cars made. ConsumeristRalph Naders Book Unsafe at any speedcriticized it most and the resulting fight betweenhim and GM which cost company heavily,tarnishing its image and giving it a reputation for
unconcern for customer safety due to this salesand profit were affected.
General motors and Firestones flirting withthe danger with their 500 series radical
tyres.
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In October 1978 Firestone was forced torecall its 500 series radical tyres after the US
National Highway Traffic SafetyAdministration Had received 14000consumer complaints and hundreds ofaccidents.
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For obtaining benefits of free market followingcharacteristics exists.
There are numerous buyers and sellers.
Everyone can freely enter and exit market.
Everyone has full and perfect information.
All goods in the market are exactly similar. There are no external costs.
All buyers and sellers are rational utility
maximizers. The market is unregulated.
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Adequate information about products. Can also be obtained from consumer union.
Consumers are inconsistent and irrational.
Still high profits are extracted fromconsumers.
Consumer laws for consumer protection.
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The contract view of business
duties to consumers Both the parties to the contract must have full
knowledge of the nature of the agreement they areentering.
Neither party to a contract must intentionallymisrepresent the facts of the contractual situation tothe party.
Neither party to a contract must be forced to enterthe contract under undue influence.
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Four main duties to consumers
Duty to comply
It is the duty to provide consumers with aproduct that lives up to those claims that thefirm expressly made about the product, which
led the customer to enter the contract freely. Duty of disclosure
This implies that the seller who intends to entera contract with a customer has a duty todisclose exactly what the customer is buyingand what the terms of sales are.
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Duty not to misrepresent
Misrepresent implies when the seller represent it in
a way deliberately intend to deceive the buyer intothinking something about the product that the sellerknows is false.
Duty not to coerce
It is when the seller takes advantage of a buyersfear or emotional stress to extract consent to an
agreement that the buyer would not make if thebuyer were thinking rationally.
Th D C Th
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The Due Care TheoryThe duecare theory of the manufacturer's duties to consumeris based on the idea that consumers and sellers do not meet as
equal and that consumers interests are particularly harmed bymanufacturer who has a knowledge and an expertise that theconsumer lacks
The due care view is that consumer must depend on the
greater expertise of the manufacturer.
Due care must enter into the design of the product, the reliablematerial , the manufacturing processes, labels and instruction
attached to the product.
Failure to take such steps is a breach of the moral duty toexercise due care
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The Duty To Exercise Due Care
Design
Production
Information
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Problem With Due Care
There is no clear method for determining whenone has exercised enough "due care
It is assumes that the manufacturer cannot
discover the risk that attend the use of a productbefore the consumer buys and uses it
The due care view appears to some to bepaternalistic
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Manufacturers obligation to inform customer of..
The potential risk of the danger to which they are
exposing themselves
The nature and source of risk and the conditionunder which the risk arises
How great is it and how to get rid of it , prevent orovercome it
If there is any alternative and if so what theircomparative merit lies in.
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THE SOCIAL COST VIEW OFMANUFACTURERS DUTY
The view that a manufacturer should pay the costof any injuries sustained through any defects in theproduct even when the manufacturer exercised all
the due care in the design and manufacture of theproduct and has taken all reasonable precaution towarn user of every foreseen danger .
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The theory is strong version of caveat vendor
The theory is based on legal doctrine of strictliability
STRICT LIABILITY
A legal doctrine that holds that manufacturermust bear the cost of the injuries resulting fromproduct defects regardless of the fault
THE SOCIAL COST VIEW OFMANUFACTURERS DUTY
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SOCIAL COST VIEW AND SOCIETY
This view argues that injuries are externalcost that should be internalized
Internalization of the costs results in
increased prices of the product whichsociety has to pay
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POSITIVE IMPLICATION
Efficient use of scare natural resources
Manufacturer will strive to cut down the socialcosts of injuries
Manufacturer will be able to distribute the lossesamong all the user of the product by increasing theprices
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PROBLEMS It is unfair to manufacturer
-it violates the compensatory justice
It is unfair to consumer also
It will encourage carelessness in consumers
It focuses on financial burdens on manufacturerand insurance carriors
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ADVERTISEMENTS BY TOBACCOCOMPANIES IN PAST
There is no proof that the cigarette smoking is oneof the causes
A cause and effect relationships between smokingand disease has not been established
Nicotine is not addictive
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OTHER PRODUCTS THAT POSES THREAT TOCONSUMER SAFETY
ALCOHOLIC DRINKS
SOFT DRINKSPROCCESSED FOOD
USE OF PRESERVATIVES IN FOOD
USE OF ADDICTIVES IN FOOD TO ENHANCE THECOLOR AND TASTE
DYES USED
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The Ethics of Consumer safety
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Introduction
A product is more than just a physical object.
The degree to which it satisfies customerexpectations will be the most powerful and lastingcommunication of all.
A product displays essential physical attributes suchas quality, performance and design.
Also it entails implied attributes such as reliability,warranty with assured after sales support besidesother thing.
-
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Contd.
Business obligations to consumer nevercease, for they imply fair dealing andproduct safety all the times.
People have a right to adequate
information of the goods they purchaseand a fundamental right not to be harmedby the goods and services they purchase.
Environmental protection and product
-
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Environmental protection and product
safety
It is the second order moral obligation of theorganisations to ensure environmentalprotection in the manufacture of their product
However, it is equally clear that people willaccept some degree of risk or harm in return forgreater comfort or good.
If the main question on environmental protection
is, how much harm is safe?on product safety it would be, how much safe is
safe?
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Whether the product comes up to thestandards set by the government orpublic?
From this it follows that as knowledge andtechniques advance the level of acceptance
risk will diminish
General motors and Firestones flirting with
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The Corvairs had a significant design causingsteering difficulties. This led to several seriousaccidents. No improvement was made and GMrefused to recall the cars made. Consumerist
Ralph Naders Book Unsafe at any speedcriticized it most and the resulting fight betweenhim and GM which cost company heavily,tarnishing its image and giving it a reputation for
unconcern for customer safety due to this salesand profit were affected.
General motors and Firestone s flirting withthe danger with their 500 series radical
tyres.
-
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In October 1978 Firestone was forced to recall
its 500 series radical tyres after the USNational Highway Traffic SafetyAdministration Had received 14000consumer complaints and hundreds of
accidents.
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MARKET AND CONSUMER
PROTECTION
Free market approach.
Buying safer products. Turning down unsafe products.
Meeting the demands.
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For obtaining benefits of free market followingcharacteristics exists.
There are numerous buyers and sellers.
Everyone can freely enter and exit market.
Everyone has full and perfect information.
All goods in the market are exactly similar. There are no external costs.
All buyers and sellers are rational utilitymaximizers.
The market is unregulated.
-
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Adequate information about products. Can also be obtained from consumer union.
Consumers are inconsistent and irrational.
Still high profits are extracted fromconsumers.
Consumer laws for consumer protection.
The contract view of
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The contract view of
business
duties to consumers both the parties to the contract must have full
knowledge of the nature of the agreement they areentering.
Neither party to a contract must intentionallymisrepresent the facts of the contractual situation tothe party.
neither party to a contract must be forced to enterthe contract under undue influence.
-
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Four main duties to
consumers
Duty to comply
is the duty to provide consumers
with a product that lives up to those claimsthat the firm expressly made about theproduct,which led the customer to enterthe contract freely.
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Duty of disclosure
thisimplies that the seller who intendsto enter a contract with a customer has aduty to disclose exactly what the customeris buying and what the terms of sales are.
-
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Duty not to misrepresent
misrepresent implies when the
seller represent it in a way deliberatelyintend to deceive the buyer into thinkingsomething about the product that the
seller knows is false.
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Duty not to coerceis when the seller takes advantage
of a buyers fear or emotional stress toextract consent to an agreement that thebuyer would not make if the buyer werethinking rationally.
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The Due Care Theory
The due care theory of the
manufacturer's duties to consumer isbased on the idea that consumers andsellers do not meet as equal and thatconsumers interests are particularly
harmed by manufacturer who has a
knowledge and an expertise that theconsumer lacks
-
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The due care view is that consumer must
depend on the greater expertise of the
manufacturer.
Due care must enter into the design of the
product, the reliable material , themanufacturing processes, labels andinstruction attached to the product.
Failure to take such steps is a breach of themoral duty to exercise due care
Th D T E i D
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The Duty To Exercise Due
Care
Design
Production
Information
P bl With D C
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Problem With Due Care
There is no clear method for determining when
one has exercised enough "due care
It is assumes that the manufacturer cannot
discover the risk that attend the use of a productbefore the consumer buys and uses it
The due care view appears to some to bepaternalistic
-
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Manufacturers obligation to inform customer of..
The potential risk of the danger to whichthey are exposing themselves
The nature and source of risk and thecondition under which the risk arises
How great is it and how to get rid of it ,prevent or overcome it
If there is any alternative and if so what
their comparative merit lies in.
E E
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THE SOCIAL COST VIEW OFMANUFACTURERS DUTY
The view that a manufacturer should pay the costof any injuries sustained through any defects in theproduct even when the manufacturer exercised all
the due care in the design and manufacture of theproduct and has taken all reasonable precaution towarn user of every foreseen danger .
THE SOCIAL COST VIEW OF
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The theory is strong version of caveat vendor
The theory is based on legal doctrine of strictliability
STRICT LIABILITY
A legal doctrine that holds that manufacturermust bear the cost of the injuries resulting fromproduct defects regardless of the fault
THE SOCIAL COST VIEW OFMANUFACTURERS DUTY
-
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SOCIAL COST VIEW AND SOCIETY
This view argues that injuries are externalcost that should be internalized
Internalization of the costs results inincreased prices of the product whichsociety has to pay
-
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POSITIVE IMPLICATION
Efficient use of scare natural resources
Manufacturer will strive to cut down the socialcosts of injuries
Manufacturer will be able to distribute the losses
among all the user of the product by increasing theprices
-
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PROBLEMS It is unfair to manufacturer
-it violates the compensatory justice
It is unfair to consumer also
It will encourage carelessness in consumers
It focuses on financial burdens on manufacturerand insurance carriors
ADVERTISEMENTS BY TOBACCO
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ADVERTISEMENTS BY TOBACCOCOMPANIES IN PAST
There is no proof that the cigarette smoking is oneof the causes
A cause and effect relationships between smokingand disease has not been established
Nicotine is not addictive
-
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OTHER PRODUCTS THAT POSES THREAT TOCONSUMER SAFETY
ALCOHOLIC DRINKS
SOFT DRINKS
PROCCESSED FOOD
USE OF PRESERVATIVES IN FOOD
USE OF ADDICTIVES IN FOOD TO ENHANCE THECOLOR AND TASTE
DYES USED