Ethics & Credibility in Business Communications, Essay Example

The car manufacturer General Motors (GM) recalled over 2.6 million vehicles after finding that they had defected ignition switches (Naughton, 2015). These defections have resulted in a total of 124 deaths and 248 injuries. Each of these victims has filed claims for compensation. Another issue arose after Anton R. Valukas, an independent lawyer from Jenner & Block, released an internal investigation showing that GM had information regarding ignition defects as early as 2010. Rather than reporting this defect to the National Highway Traffic Safety Administration, GM withheld this information and settled early cases rather than going to trial (Henning, 2015).

General Motors, as well as similar manufacturers, has an obligation to release information surrounding possible safety hazards to the public via governmental organizations. The basic ethical practices that GM should follow are providing proper information that protects their customers, following the law, and refraining from conflicts of interest (Cardon, 2013, p. 27). Since GM’s main product are automobiles, they should hold public safety as the highest ethical obligation to the public. This can be achieved by provided accurate information quickly and intelligently in order to protect consumers.

There is evidence that GM released several statements and information regarding their ignition defects to the National Highway Traffic Safety Administration and in turn to the general public. However, GM had this information as early as 2010 and waited until 2014 to initiate a recall (Henning, 2015). Within that timeframe, there has been deaths and injuries associated with this defect. This gap in communication and lack of transparency has ultimately led to consumer deaths and injuries.

Another ethical issue present in this event is the fact that GM had communicated with their lawyers about this defect in 2010. The law offices hired by GM, King & Spalding, had knowledge of the defects as well as the deaths associated with the defects (Henning, 2015). Although lawyers and their clients communications protected by the attorney-client privilege, if there is evidence that a client had asked their lawyers to help continue a crime, than the privilege is lost (Henning, 2015). This is another example of how not only GM’s but also King & Spalding’s actions resulted in preventable deaths

General Motors’ communication has led to the decrease in public trust and the credibility of the company. Rather than communicating with the public and/or governmental organizations, GM tried to cover up the defects as long as they could to ensure profitability. This prioritization of profit over consumer protection can destroy a company’s image. King & Spalding should have also spoken up when they saw that that GM’s products were resulting in death and injury. The lack of transparency of both organizations has ultimately deteriorated their credibility and can have potential serious consequences (Cardon, 2013, p. 31).

Both GM and King & Spalding should have communicated with the public after they realized the potential hazards. GM should have reported the defects back in 2010 and implemented a recall much sooner than 2014. King & Spalding should have spoken up and advised GM to initiate a recall sooner. An employee and organization has an obligation to speak up if there are any ethical violations. If GM didn’t comply, King & Spalding have an ethical obligation to report their findings and not work with GM. This has benefits in the long run because customers and other private/public organizations will see a positive reputation when ethical dilemmas arise (Cardon, 2013, p. 32).

References

Cardon, P. (2013). Business Communication (1^st ed.). New York, New York,: McGraw-Hill Education.

Henning, P. (2015, July 13). Lawsuit Against General Motors Tests Attorney-Client Privilege. Retrieved July 15, 2015, from http://www.nytimes.com/2015/07/14/business/dealbook/lawsuit-against-general-motors-tests-attorney-client-privilege.html?_r=0

Naughton, N. (2015, July 13). GM ignition-switch death toll reaches 124. Retrieved July 15, 2015, from http://www.autonews.com/article/20150713/OEM11/150719948/gm-ignition-switch-death-toll-reaches-124