Human Resources Task 2

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To: Candy Land Toy Company CEO and Executives From: Rodney Wright, Elementary Division Manager Date: 09/28/2012 Re: Product Test Failure due to presence of lead Overview: A large shipment of our elementary toy collection is scheduled to be released and shipped at the end of the week. One of our products in this shipment has failed quality control testing for exceeding the legal limits of lead set by the federal government. This shipment is scheduled to be delivered to South African Schools. Federal regulation guidelines dictate that our toys not contain lead with more than 100 parts per million. (Gabler, 2011) The levels tested at 103 parts per million which is slightly higher than federal regulatory guidelines. The invoices…show more content…
It also affects our dealers and distributers as well. Other companies may be eyed for replacement of like products by our customers, costing us millions in revenue. At the same time, our customers are smart and believing in a company that ensures our products meet Federal and State guidelines for the safety of their kids may bring in millions more. We meet our due diligence in ethical behavior by doing the right thing and making the right choices in business. Risk is good, but not at the risk of potentially killing kids. We have the obligation to ensure lead levels are below 100 parts per million. Acting on our obligation avoids fines listed in the U.S. Regulatory Guidelines, (Affairs, 2009) and protects our company, employees, stakeholders, customers, and most importantly the children. 3. We cannot protect bad risks or dismiss all our losses, but we can diminish them for minimal business impact; allowing us to soar over risks of fines and lawsuits. Let me break this down a little more: a) Notify the customer of our intent to remove the whistle from the elementary toy collection, replacing it with a like product and shipping it on-time. (this cost is considerably less and avoids the cost of reproducing the whistle) b) If they elect shipment without the whistle and no replacement, credits will be issued reflecting a 12% in overall loss of profit compared to a 36% loss reproducing the whistle. c) If the customer (we have multiple shipments to
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