Social Responsibility Issues Associated with PI’s Production and Distribution of Unsafe Products

1. The major social responsibility issue associated with Producto International (PI) is the production and distribution of unsafe and unhealthy products. The scenario reveals that Betel, which is one of the products produced and distributed by PI, has negative health consequences. For example, the case reveals that Myron was learning more about the betel nut, he came across the different reports that implicate betel to oral cancer and other health conditions. This is a social responsibility issue because it shows that the PI marketing betel is not ethical. Similarly, Khat, which PI intends to introduce also has some negative health effects on the users. Companies are expected to provide safe and health products to the citizens. However, in PI’s case, it is clear that the products are not health. This is an issue that must be addressed.

2. The first decision that Myron could make is to accept the new post and by doing so, he will facilitate the marketing of betel and Khat. There are three main advantages of this decision. Firstly, Myron will get additional allowances and will be promoted. Secondly, the PI company will register additional sells because of the introduction of the khat. Thirdly, Myron will have a chance to live with his wife in Hong Kong. The only disadvantage of the decision is that many consumers may have their health negatively affected by the addictive drugs sold by PI. The fact that studies have shown that the chewing of the spiced betel nut can lead to oral cancer implies that the prevalence of oral cancer may go up due to the fact that many consumers would access betel (Ferrell, Hirt, Ferrell & Ferrell, 2017).

The second decision is for Myron to decline the offer. The advantage of this decision is that if the company will not get another person to market the two products, the rate of consumption of betel and khat will reduce and the incidence and prevalence of oral cancer might go down. The disadvantage of the second decision is that Myron will not get promotion. In addition, Myron may end up losing the job.

3. Traders, companies and even state government often have a dilemma on whether to market products that are legal but have addictive properties. On one hand, such products may pose negative health consequences to consumers and on the other hand, such products are important source of revenue (Ferrell, Fraedrich & Ferrell, 2013). In such instances it is necessary to achieve synergies between the State, the companies involved and consumers, where the public interest always prevails (Ferrell, Fraedrich & Ferrell, 2010). If consumers lack information about the consequences of products for society as a whole and for the environment, it is necessary to complement this individual dimension of consumer ethics with an institutional one that makes information accessible to all (Ferrell, Fraedrich & Ferrell, 2012).

References

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2010). Business ethics: Ethical decision making and cases : 2009 update. Mason, OH: South-Western Cengage Learning.

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2012). Business ethics: Ethical decision making and cases. Boston: Houghton Mifflin Co.

Ferrell, O. C., Hirt, G. A., Ferrell, L., & Ferrell, O. C. (2017). Business foundations: A changing world. New York, NY : McGraw-Hill Education

Ferrell, O.C., Fraedrich, J., & Ferrell, L. (2013). Business ethics ethical decision making and cases (8th ed.). South-Western Cengage Learning.