Multiple choice

As an Executive Director ( R & D) of a cosmetic multinational company you are besieged with the following dilemma. Your company is about to make a public launch of a sunscreen cum anti ageing cream. You are aware that a rival company is about to launch a similar cream shortly. As a marketing strategy it is important for you to launch your company’s product earlier so as to capture the market as a pioneer in this domain. But field trial reports show that nearly 10% of the human samples showed signs of allergy to the cream. Products in which allergies/ adverse reaction is observed in more than 2% of sample are not permitted to be launched. But not launching the product timely will imply economic loss to the company and may jeopardise your career. What action would you take?

  1. Ask your R & D team to conduct a fresh trial on those persons who did not have allergy to the cream. Specific selection of sample is not to be disclosed in the R & D report. This way the trial report will be successful.

  2. Launch the cream irrespective of the R & D report by suppressing it. By the time complaints of allergies are received from the consumers the R & D division will be able to identify the allergen and remove the ingredient/ find suitable substitute.

  3. Withhold the launch despite the economic consequences and ask the R & D division to identify the cause of allergy and rectify it.

  4. Present the finding to the Board of Directors in a Board meeting which is to take place in another 10 days and await their decision.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

2.5 marks for option (c) 1.5 marks for option (d) 0 mark for option (a) and (b) Rationale/ Reasoning (c) Withholding the launch and rectifying the problem is the best course of action. Although it may entail short-term economic loss, it is ethically and legally the right thing to do. Besides, it may prevent the erosion of company’s brand value if the product allergy gets noted and disclosed in the media. (d) Option (d) is the next best course to adopt. However there is a loss of 10 days time which otherwise can be used for rectifying the product. Besides, this option also implies, leaving the decision to the Board, which otherwise is primarily in the R&D domain. (a) and (b) Options (a) and (b) are legally as well as ethically incorrect. Principles/ Values tested Upholding ethics in public life

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