The Takata Airbag Recall
Ethical Issues
Airbags are fixed in motor vehicles to save lives and not to be the source of death. Manufacturers of safety devices have a duty of care to put injury ahead of profits. The responsibility is even more significant when there is an injurious reliance on a product based on law. It is a legal provision to fix all new motor vehicles with airbags. Takata ignored ethical and responsibility standards in the pursuit of higher returns. The company also failed to disclose the defects discovered in 2004 to avoid the recall process’s damaging effects. What Takata ignored is that abiding to ethical standards has mutual benefits for the company and the customers. Takata’s decision to ignore risk concerns was based on short term insights to make profits and protect the brand using data predicted on falsifications and unethical practices.
Liability of the company
The Takata airbag recall is a case of both negligence and breach of warranty. Defects in the airbags were discovered in 2004, but the company officials decided to conceal the evidence and continue manufacturing them. The concealment amounts to negligence because the officials were aware of the impending dangers. When people buy cars with airbags, the assumption is that the airbag will provide protection and function as required. There is an implied warranty that the product will meet certain specifications. The defective airbags did not meet the required standards amounting to a breach of warranty.
What I would do as CEO of Takata
As the CEO, I would have ceased the production of airbags at that point. Continuing with the manufacturing of defective is like delaying an impending danger. I would further initiate the recall process for motor vehicles fitted with the faulty airbags, especially those in the supply chain before they reach the consumers.