An organization has the responsibility of ensuring the goods it produces are safe to the consumers

An organization has the responsibility of ensuring the goods it produces are safe to the consumers

An organization has the responsibility of ensuring the goods it produces are safe to the consumers. If by any chance, the products are not secure or are not the quality they perceive to have, the company may suffer legal lawsuits. In the company scenario, the company needs the acquisition to go through but will also have to tackle the issue of the issued helmets.

The organization has to make a decision that will ensure customers get safe helmets, and the acquisition goes ahead. In providing this happens, the company will adopt the second option. The company will suffer in terms of profitability but will still be profitable, and the acquisition will go through. The company paying the shipping costs for all the helmets so that they are remodified to be safe is the correct move, and it shows the organization is socially responsible for its doings. The organization could go ahead, assume, and let the helmets sold remain in various markets, but that move shows organization profitability greed. Recalling the helmets shows the organization is responsible for its doing.

Choosing the option will raise eyebrows from the government and may put more efforts to inspect the products because they may think all the products are defective and they can penalize the organizations.

The shareholders will be harmed in this move because there will be less profitability meaning the dividends distributed will lower. The acquisition will go ahead, but the acquisition cost will likely decrease. The consumers will be the beneficiaries because they have safer helmets.

Choosing the option is sound because it balances different stakeholders. It is ethical to produce safe products to the consumers, and recalling them is a sign of showing the organization is ethical and sacrifices its profits for the safety of consumers. The move also will help in ensuring the acquisition goes ahead to help the company grows in the future. The organization will link short term goals and long term.