Crisis Management and Ethical Decision-Making

A company producing meatless burgers faces a crisis after three deaths linked to its products. The police suspect criminal tampering. The company must choose between three strategies: do nothing, recall products citywide, or recall them worldwide. Ethical considerations and stakeholder impacts are analyzed, with reference to Johnson & Johnson's historical response to a similar crisis. The decision involves balancing customer safety with financial implications.

What was the initial crisis faced by the meatless burger company?

• A competitor launched a similar product.

• A natural disaster destroyed their main factory.

• Three people died after consuming their burgers.

• The company faced a financial audit.

Which of the following was NOT one of the strategic options considered by the company?

• Pull products worldwide.

• Do nothing.

• Launch a new marketing campaign.

• Pull products citywide.

What was the primary reason the company lawyer recommended doing nothing?

• It was the fastest solution.

• It would improve brand image.

• A recall could be seen as admitting fault.

• It was the cheapest option.

What is the main concern with choosing the 'do nothing' option?

• It could lead to more customer deaths.

• It would damage relationships with suppliers.

• It would be too costly.

• It would require significant layoffs.

Which option provides the greatest customer protection according to the transcript?

• Launch a new marketing campaign.

• Pull products worldwide.

• Pull products citywide.

• Do nothing.

Which ethical test asks you to consider how you would feel explaining your decision to your family?

• Mentor Test

• Family Test

• Utilitarian Test

• Newspaper Test

What philosophy is concerned with maximizing the greatest good for the greatest number of people?

• Egoism

• Virtue Ethics

• Utilitarianism

• Deontology

What was the outcome of Johnson & Johnson's decision to recall Tylenol worldwide?

• They regained customer trust and sales rebounded.

• Sales never recovered.

• The company went bankrupt.

• They faced legal action from the government.

What was a significant outcome of the Tylenol crisis for Johnson & Johnson?

• They developed tamper-resistant packaging.

• They stopped producing Tylenol.

• They faced a major lawsuit.

• They merged with another company.

What was the impact of the Tylenol recall on the company's sales?

• Sales increased immediately.

• Sales dropped permanently.

• Sales rebounded within a year.

• Sales remained unchanged.