California Baptist University
News Analysis: General Motors Recall
BUS520 Section B Managerial Ethics
Dr. Jim Bishop
Daniel Garcia
General Motors issued a recall for repair due to a defect in the ignition systems switch that could cause security problems in hot conditions. The recall covers certain models from 2011 and 2012, and some from 2007 to 2014 that were repaired with defective parts. General Motors said actuators lock on may be too broad , making it difficult to turn the key when the vehicle is hot. Last year , GM called Repair 2.6 million small cars due to faulty ignition switches , to which at least 42 deaths and 58 people injured were linked . The American company faces a lawsuit in federal court in California accused the automaker by the devaluation of the vehicles, that have suffered as a result of the constant recalls. The lawsuit seeks to compensate General Motors firm owners million cars and trucks up to 10 billion dollars before the devaluation of their vehicles after a series of calls to review by misfiring . According to the lawsuit filed in federal court in Riverside , California, General Motors harmed their clients to hide from them known defects and choose to reduce costs rather than provide security . Just this year , the US automaker has made about 40 calls for review of more than 20 million vehicles . These requests have made the late model cars lose between $500 and $2200 on its resale value . The case could see more than 10 billion dollars and seeks to force General Motors to pay about 15 million owners of cars and trucks not only to vehicles who were called to review by damage to their brand and reputation. General Motors spokesman declined to comment on the lawsuit and said many customers and analysts recognize the strength of the brand and that recognition has resulted in higher sales prices and residual value. The applicant, a resident of La Quinta, California, said he would not have bought a used 2010 Buick LaCrosse , or would have paid less for it , if General Motors had done a better job in disclosing defects in vehicles . His lawsuit seeks compensation for people who own or rent vehicles from General Motors sold between July 10, 2009 and April 1, 2014 , or subsequently sold those cars at discounted prices. The vehicles affected by known prior to review by a fault in the ignition system are not included in the application, which are linked to thirteen deaths. Our Lord Jesus Christ taught that business should be conducted with honesty and integrity , are a legitimate enterprise. Today more than ever , greed motivates most of the unethical behavior.The rhetoric of organizations leads to trite speech that social responsibility is strategic, but few reveal how much they invest in their development and implementation. Therefore , although the ethics and responsibility are close concepts should define them to define the real corporate responsibility , eliminating the reductionist view and taking a more holistic version where all behavior count. Just imagine how characters like Steve Jobs, Warren Buffett, with the sole goal of profitability. There are other aspects as would be the historical significance or responsibility for all stakeholders involved. Sure, we could also identify negative elements like greed or power, which inevitably lead to serious errors in the decision making and unethical.
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