Case Study

Quality Management: Signing Off on a Substandard Product

Lauren's first job after graduation from Santa Clara University was working as a quality engineer with a highly respected technology company. She had to monitor the manufacturing process and make sure that all products met customer specifications. Just three months into her position, the company booked a very large deal with a strategic customer, helping establish the company's dominance in the industry.

Specifically, Lauren's company was designing a device that would be integrated into another company's product. The customer contracted out this work because they were experiencing rapid growth and cannot meet demand otherwise. They picked Lauren's company because of its good reputation and fast turnaround time. Lauren's role was to test the new device and make sure it met technical and environmental specifications, particularly functionality under extreme conditions, such as high humidity.

The test results showed that the products did not meet the quality standards agreed upon, but only by a very small margin. Her general manager instructed her to push it through anyway, stating that the risk of failure was not great enough to delay mass production. Moreover, the likelihood of the product ever being placed in such extreme situations was so small that the manager did not feel jeopardizing the contract was worth it.

Lauren spoke to her immediate boss, who worked under her general manager, and he also advocated pushing the product through to production. She was faced with the choice of ignoring company protocols or going against management. Sweeping the problem under the rug would require Lauren to sign off on a report that she knew to be fraudulent. She also knew that if she went to upper management her working relationships with her immediate bosses would be strained, maybe even preventing her success in the company. Not to mention, the company would have to delay production and possibly lose the contract.

What should Lauren Do?

Making an Ethical Decision

Directions: First, chose one to analyze. The 9 questions listed below will help guide you through this process.

The content of your answers will be evaluated on the basis of how well you apply the five ethical approaches as described in the The Markkula Center for Applied Ethics Center at Santa Clara University website. Be sure to use the specifics of both the case itself and the discussion of the five ethical approaches.

The Communication Rubric will be used to assess your written communication for this assignment. Be sure to respond in complete sentences and paragraphs (e.g., no bullets, no lists, not tables).

Title of Case: Quality Management: Signing off on a Substandard Product

Recognize an Ethical Issue

1. Could this decision or situation be damaging to someone or to some group? Does this decision involve a choice between a good and bad alternative, or perhaps between two "goods" or between two "bads"?
2. Is this issue about more than what is legal or what is most efficient? If so, how?

Get the Facts

1. What are the relevant facts of the case? What facts are not known? Can I learn more about the situation? Do I know enough to make a decision?
2. What individuals and groups have an important stake in the outcome? Are some concerns more important? Why?
3. What are the options for acting? Have all the relevant persons and groups been consulted? Have I identified creative options?

Evaluate Alternative Actions

1. Evaluate the options by asking the following questions:
a. Which option will produce the most good and do the least harm? (The Utilitarian Approach)
b. Which option best respects the rights of all who have a stake? (The Rights Approach)
c. Which option treats people equally or proportionately? (The Justice Approach)
d. Which option best serves the community as a whole, not just some members? (The Common Good Approach)
e. Which option leads me to act as the sort of person I want to be? (The Virtue Approach)

Make a Decision and Test It

1. Considering all these approaches, which option best addresses the situation?
2. If I told someone I respect-or told a television audience-which option I have chosen, what would they say?

Act and Reflect on the Outcome

1. How can my decision be implemented with the greatest care and attention to the concerns of all stakeholders?