A newly established car manufacturing company sold 1000 cars of new variant; but subsequently it was found that the product has a major defect, which can be fatal in certain cases. If the company calls back its products

This area of business ethics deals with the duties of a company to ensure that products and production processes do not cause harm. There is usually a degree of danger in any product or production process and it is difficult to define a degree of permissibility, or the degree of permissibility may depend on the changing state of preventative technologies or changing social perceptions of acceptable risk. Defective, addictive and inherently dangerous product sand Ethical relations between the company and the environment including pollution, environmental ethics, carbon emissions trading. Ethical problems arising out of new technologies for e.g. genetically modified food. Product testing ethics. It is a case of ethical dilemma. This decision needs to be cross checked with the company seniors and policies and prevailing legal provisions. A win-win situation is attainable if the new technology adopted by the entrepreneur benefits the clients and business. What matters in the end, are profits and customer satisfaction. There is nothing wrong about growing and automating and bombarding the market with newer models. However, the company must take steps to mobilize its resources and to maintain his/her reputation the company's goodwill might suffer a major setback in the market share owing to the mass sales of defective and inferior product. Instead, the company may try to avail any beneficial schemes for writing off at least some part of such losses. In fact, may offer customer higher exchange value of those defective models. Specifically, steps for resolving ethical dilemma are: 1. Considering the options available 2. Considering the consequences of each option 3. Analysing the Actions 4. Decision making and commitment 5. Evaluate the system.