Transcript Chapter 13

Chapter 13
Prepared by Deborah Baker
Texas Christian University
Chapter 13-1

CONSUMER STAKEHOLDERS:
PRODUCT and SERVICE ISSUES
BUSINESS & SOCIETY
Ethics and Stakeholder Management
Carroll & Buchholtz 6e
Business and Society: Ethics and Stakeholder Management, 6e • Carroll & Buchholtz
Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Chapter 13 Outcomes
1.
Describe and discuss the two major product issues:
quality and safety.
2.
Explain the role and functions of the Consumer
Product Safety Commission and the Food and Drug
Administration.
3.
Enumerate and discuss the reasons for concern
about product liability and differentiate strict
liability, absolute liability, and market share liability.
4.
Outline business’s responses to consumer
stakeholders to include TQM programs and Six
Sigma.
Chapter 13-2
Chapter 13 Outline





Chapter 13-3
Two Central Issues: Quality and Safety
Consumer Product Safety Commission
Food and Drug Administration
Business’s Response to Consumer Stakeholders
Summary
Critical Dimensions of Product Quality
Performance
Perceived
Quality
Aesthetics
Features
Dimensions
of
Quality
Serviceability
Conformance
Durability
Chapter 13-4
Reliability
Top 10 List of Safety Principles
1. Build safety into product design
2. Do product safety testing for all foreseeable safety hazards
3. Keep informed about and implement latest developments
in product safety
4. Educate consumers about product safety
5. Track and address products’ safety performance
6. Fully investigate product safety incidents
7. Report safety defects promptly
8. If a defect occurs, offer a comprehensive recall plan
9. Work with the CPSC to make sure your recall is effective
10. Learn from mistakes
Chapter 13-5
Consumer Product Safety Commission
1.
Develop voluntary safety standards
2.
Issue and enforce mandatory standards
3.
Ban consumer products if no feasible standard would
protect the public
4.
Obtain the recall of products or arrange repair
5.
Conduct research on potential product hazards
6.
Inform and educate consumers through government,
organizations, and respond to consumer inquiries
Chapter 13-6
Total Quality Management
Chapter 13-7
Selected Key Terms






absolute liability
Consumer Product
Safety Commission
(CPSC)
contractual theory
delayed manifestation
cases
due care theory
Food and Drug
Administration (FDA)
Chapter 13-8







market share liability
product liability reform
Six Sigma
social costs view
strict liability
tort reform
total quality management
(TQM)