ROLLING DEFICIENT VEHICLES FROM

ASSEMBLY LINE
BUSINESS ETHICS GROUP PROJECT
GROUP PROJECT-BUSINESS ETHICS
Rolling Defcient Vehicles fo!
Asse!"l# Line
Iss$e%The Automobile indust! is "ull o" ethi#$l dilemm$s% Not onl! this
indust! but $lmost e&e! indust! h$s some o" the s#$nd$ls% This s#$nd$l
#omes $s $ #o'o$te obli($tion "o the industies to do )h$t is ethi#$l% *ost
o" the times #om'$nies "$ll do)n on this in ode to s$l&$(e thei bottom
line%
One ethi#$l dilemm$ th$t "$#es Tu#+ m$+es ,*-HC. Se(ment/ e&e! d$! is
s$"et! &esus #ost% These s$"et! "e$tues $e embedded to the '$ts $nd
'o#ess used "o m$nu"$#tuin( these &ehi#les% The issue dis#ussed hee is
the ollin( o m$nu"$#tuin( ,$ssembl!/ o" Tu#+s o $n! &ehi#le o" the
Se(ment *-HC. in de0#ient #ondition 0st $nd then 0t the '$ts $t the time
o" dis'$t#h to the end #ustomes%
This is the &e! 'elimin$! 'h$se o" the issue% The $(($&$ted st$(e is1
dis'$t#hin( the de0#ient &ehi#les to 2e$les $nd the 0tment is done )hen
the &ehi#le is e$d! "o deli&e! to the #ustome% This is done m$inl! to ($in
shot tem bene0ts in tems o" #$'tuin( the m$+et sh$e $nd m$+in(
'o0ts% Althou(h the s$id indust! is $lso di&en b! its ston( &$lue s!stem1
but the hie$#h! $t $lmost $ll le&els do not #onside the $#t o" de0#ient
ollin( $s m$3o ethi#$l #on#en% This is due to the to' (u! sittin( $t the to'
h$s his 0n$n#i$l (o$ls )hi#h is dilled do)n to the lo)est le&el in hie$#h!%
But $t the s$me time it is ne&e thou(ht $bout the t$(et in ethi#s% Althou(h
m$n! $ times it is dis#ussed th$t in ethi#s thee is no $n! de&i$tion but it is
ne&e me$sued in tems o" $dheen#e le&el% Althou(h thee $e Ris+
o&esi(ht #ommittee $nd inten$l $udit te$ms )ho $e loo+in( "o the
$dheen#e le&el to the ethi#$l &$lues1 but the e$l issue em$ins s$me%
This $#t o" de0#ien#! ollin( o" &ehi#les is mu#h 'e&$lent in NPI ,Ne)
Podu#t Intodu#tion/ models% Com'$n!4s intention is tue $ (ood in tem o"
t$+in( shot time to 'odu#e ne) models but the methodolo(! $do'ted is
not tue to the ethi#$l &$lues set b! the #om'$n! itsel"% In 5de&elo'in( $
ne) Tu#+1 )h$t )ill the b$l$n#e bet)een ollin( $ de0#ient &ehi#le $nd #ost
is6 Cet$inl!1 thee is $ dem$nd "o hi(h end Tu#+s in Indi$ $nd $ound the
)old% But thee7s $lso $n in#e$sin( dem$nd "o s$"e Tu#+s%
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Anothe dilemm$ )hi#h "o#es the #om'$n! to $do't the de0#ien#! ollin( o"
&ehi#les is outsou#in( the 'odu#tion o" #et$in #om'onents% Ou #om'$n!
"$#ed b$#+l$sh in 89:: )hen )e h$d $ sto#+ o" o&e 8999 tu#+s )$itin( "o
the #om'letion )ith es'e#t to the '$ts shot$(e "om the lo#$l &endo
b$se% It #$n be #onsideed $s t$+in( is+ )hile outsou#in( 'odu#tion o"
#et$in #om'onents "o thei Ti#+s1 )ithout sol&in( o $ddessin( the ethi#$l
dilemm$ el$ted to the outsou#in( $#ti&it!%
The issue $nd el$ted $#ts ,ethi#$l dilemm$/ #$n be summ$i;ed $s<
2e0#ient ollin( o" &ehi#le "o ($inin( shot tem 'o0t%
2e0#ient ollin( o" &ehi#le "o ($inin( m$+et sh$e%
Rollin( o" &ehi#les due to shot$(e o" '$ts "om su''lies%
Rollin( $nd +ee'in( &ehi#les in sto#+ $"te e$li;in( th$t dem$nd )ill
'e$+ u'%
The ollin( o" de0#ient &ehi#le le$d to non#om'li$n#e o" s$"et!
st$nd$ds% This is $n issue "o the end #ustomes%
Ethi#s t$inin( to the 'esons )o+in( in $ssembl! lines1 e=e#uti&es
$nd em'lo!ees%
Go$' E('eiences % One o" the most im'ot$nt issues e($din(
the >u$lit! '$$mete is the 0st shot oll out &ehi#le "om the &ehi#le1 )hi#h
is $ must "o 'o'e oll out o" the &ehi#le "om the $ssembl! ?ine% The
(e$te the issue - 'oblems in the ?ine the lesse $e the &ehi#les )hi#h $e
olled out "om the ?ine% But the issue is the :99@ oll out o" the &ehi#le "om
the line% *ost o" the &ehi#les )hi#h $e olled out no) in the #om'$n! $e
olled out )ith de0#ien#! )hi#h is e#ti0ed outside the line% Re$sons $e
m$n!%
:% Not 'o'el! desi(ned so th$t due to outin( issues the 0tments $e
not 'ossible )ithin the t$#+ time%
8% 2oesn4t h$&e the m$tei$l )hi#h is e>uied "o 0tment $t the time o"
oll out%
A% *$tei$l is o" not e>uisite >u$lit!1 )hi#h needs e0tment%
B% *$tei$l be#omes ust! $"te 0tment%
C% *$tei$l (ets 2$m$(ed $nd need Re#ti0#$tion
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Althou(h &ehi#le $e 0tted )ith 'o'e 0tments but i" the &ehi#le 0tments
$e #h$n(ed thei )ill $l)$!s be the s#en$io o" unde#uttin( 1 *et$l to *et$l
#ont$#t1 Pl$sti# *et$l #ont$#t )hi#h #$n h$''en duin( e#ti0#$tion1
e'l$#ement et#% )hi#h m$! #$use some +ind o" m$l"un#tionin(
This is unethi#$l )hi#h should not be done $s the #ustome )ho is bu!in( the
&ehi#le is #onsidein( th$t the &ehi#le h$s been olled out #oe#tl!% Eithe it
should be de#l$ed th$t it is not 0st shot o+ o (i&en some +ind o"
#on#ession e($din( $n! e#ti0#$tion "o the s$id 'eiod in the 0tments
)hi#h $e e#ti0ed duin( the 'o#ess%
An)l#sis )n* Disc$ssion%Till $ "e) !e$s $(o1 SAP ?AB h$d $
s!stem )heeb! em'lo!ees )ee (i&en $)$ds "o inte(it!1 $ '$#ti#e it h$s
no) sto''ed% The thin+in( behind the de#ision )$s th$t inte(it! )$s $
(i&en1 so thee )$s no need "o s'e#i$l e#o(nition% It )$s e='e#ted "om
e&e! em'lo!ee $nd the s$me $lso $''lied to ethi#s% Th$t4s not $ll% SAP ?$bs
is no) #omin( u' )ith 'odu#ts th$t $#tu$ll! hel' #lients me$sue $nd
edu#e thei #$bon "oot'int1 in the belie" th$t sust$in$bilit! h$s $ 'ositi&e
ub-oD on ensuin( th$t the #om'$n! is indeed "ollo)in( ethi#$l '$#ti#es%
ET$ns'$en#! is $ #iti#$l element o" sust$in$bilit!1 $nd )hen !ou $e
e>uied to be t$ns'$ent1 !ou $utom$ti#$ll! be#ome moe ethi#$l% Besides1
it is not 3ust $bout doin( (ood but $lso m$+in( business senseE s$!s .R
Feose1 m$n$(in( die#to% Glob$ll!1 SAP is $mon( the "e) th$t 'ublishes $
dedi#$ted sust$in$bilit! e'ot $nnu$ll!%
Ethi#s "om the "ound$tion o" ho) #om'$nies "un#tion but 'eo'le $e
e$li;in( th$t ethi#s $lone $en7t (ood enou(h% The ne) bu;; )od is bein( $
'in#i'led business1 $nd th$t in&ol&es bein( ethi#$l1 $lon( )ith $ he$lth!
dose o" sust$in$bilit! tho)n in%
Adi Gode31 #h$im$n1 Gode3 Gou' s$!s1 EI am a frm believer that to be
successful in the long run, all aspects of a business need to be
looked at. These are ethical business practices, strategy, and
sustainability and consumer centricity. I know businesses that have
survived over the short term not being ethical, but for long term
success, all four are crucial.E
This is $ &ie) e#hoed b! F$h$d Fobes1 die#to1 Fobes *$sh$ll< EEthics
are something that is a part of your normal culture and way of
working, not something you can switch on and of. It is a part of our
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philosophy. You may lose out a bit in the short term, but in the long
term perspective, it is the right thing to do.E
Th$n+s to the 0n$n#i$l $nd #o'o$te (o&en$n#e s#$ms th$t h$&e
domin$ted he$dlines o&e the l$st "e) !e$s1 #om'$nies h$&e )o+en u' to
the "$#t th$t 3ust h$&in( $ #ode o" business #ondu#ts $nd $ set o" &$lues is
sim'l! not enou(h% A die#t im'$#t h$s been $ sh$' in#e$se in the numbe
o" #om'$nies no) #e$tin( Chie" Ethi#s OG#e Positions1 somethin( th$t )$s
some)h$t o" $n oddit! till $ "e) !e$s $(o%
The ethi#s oG#e h$s been $ound in the US sin#e the e$l! H9s1 but th$t )$s
moe to t$+e $d&$nt$(e o" $ e(ul$to! loo'hole )hi#h )ould ensue
'e"eenti$l te$tment "o those #h$(ed )ith )hite#oll$ #imes i" the
#om'$n! h$d $n ethi#s oG#e%
To be sue1 thei ole h$s sin#e e&ol&ed $"te s#$nd$ls li+e Enon $nd Athu
Andeson1 but some s+e'ti#ism em$ins% Anil Sin(h&i1 #h$im$n1 I#$n
In&estment Ad&isos ubbishes the ide$% EIt7s idi#ulous to $''oint $ 'eson
to )$t#h o&e the #h$$#te o" the em'lo!ees% This is somethin( th$t h$s to
#ome "om the $#tions $nd beh$&io o" the 'omotes $nd o)nes1 $nd
'e#ol$te do)n to the em'lo!ees% S$dl!1 the! o"ten don7t set the i(ht
e=$m'le tod$!1E he s$!s%
2ell1 $mon( the #om'$nies th$t h$&e $n ethi#s oG#e s$!s the ide$ is to use
the #om'$n!7s 'u'ose $nd &$lues $s de#ision 0ltes to (uide beh$&io% An3u
Sheno!1 die#to-ethi#s $nd #om'li$n#e1 2ell Indi$ s$!s1 EIe $e #ommitted
to m$+in( ethi#s 'eson$l b! ensuin( e$#h te$m membe undest$nds )h$t
is e='e#ted o" them $nd 'o&idin( them )ith the tools $nd esou#es to be
su##ess"ul%E
And this seems to be the "oemost e$son )h!1 e&en thou(h ethi#s $e $n
intinsi# '$t o" $ #om'$n!7s #ultue1 the! need #onst$nt ein"o#ement% Jish
Sh$n+$1 e=e#uti&e die#to - HR1 Bh$tiAitel s$!s% E.$lues $e im'ot$nt $s
the! hel' (uide em'lo!ees in ho) to beh$&e in diDeent situ$tions% I" it is
e$ti#1 the! )on7t +no) ho) to $#t% Ethi#s hel' set $ #onsistent sense o"
)hee the #om'$n! is (oin(%E
Sue enou(h1 thee is some sot o" #onsensus on the "$#t th$t 'eo'le do
need to be eminded ho) to diDeenti$te bet)een i(ht $nd )on(% EIe $e
"$#in( $n ethi#s de0#it $nd the ole o" ethi#s in the )o+'l$#e h$s ne&e
been $s ele&$nt $s it is i(ht no)%E s$!s 2e& B$3'$i1 e=e#uti&e die#to-le($l
$nd #om'$n! se#et$!1 Hindust$n Unile&e% The #om'$n! h$s $ sti#t #ode
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o" business 'in#i'les )hi#h sh$'e ho) em'lo!ees beh$&e1 both $t )o+ $nd
outside%
In#ident$ll!1 these 'in#i'les $''l! to $ll st$+eholdes in#ludin( su''lies $nd
distibutos $nd B$3'$i s$!s th$t thee h$&e been inst$n#es )hen
el$tionshi's )ee se&eed $s $ esult o" $ be$#h in the #ode% Gi&en the
tumultuous en&ionment #om'$nies o'e$te in1 lon( tem sust$in$bilit! o"
the business is eme(in( $s $ to' #on#en%
As is the e$li;$tion th$t bein( $ 'in#i'led o($ni;$tion is one )$! to
#ounte it% EThis is $t the #oe o" ou belie" - i" )e $e not ethi#$l1 )e #$nnot
be sust$in$ble% To su&i&e1 !ou need the tust o" st$+eholdes $nd )ithout
ethi#s1 th$t tust #$nnot be thee1E s$!s R$3ee& 2UBEK1 'esident ,(ou' HR
- $"te m$+et/ - membe1 (ou' e=e#uti&e bo$d1 *$hind$ - *$hind$%
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Concl$sion+To em$in tul! #om'etiti&e1 honestl! $dhein( to )old
#l$ss >u$lit! is ultim$te e>uiement% It is ultim$te need o" o($ni;$tion to
"oste $n ethi#$l #ultue to build $ '$th)$! o" su##ess% Ou o($ni;$tions
&$lues must lie $t the "ound$tion o" "ou 'ill$ stu#tue $s sho)n belo)%

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:/ Le)*eshi'
?e$deshi' st!le stimul$tes ethi#$l '$#ti#e% ?e$deshi' must 'o&ide the
die#tion $nd "ollo) $n ethi#$l $''o$#h b! #e$tin( distin#ti&e ethi#$l &ision1
stimul$tin( ethi#$l le$nin( $nd indu#in( is+ t$+in( $bilit! in ethi#$l )$!% A
&e! hi(h le&el o" #ommitment is needed "om the le$deshi' o" the
o($ni;$tion%
8/ Co!'li)nce st$ct$e
This e>uies $ "un#tion$l #om'li$n#e stu#tue th$t in#ludes m$n$(ement
business ethi#s o($ni;$tion #h$t $nd the )o+ No) o" m$n$(in( business
ethi#$l issues% These $lso in#lude 'o#esses )hi#h )ould (ene$te1 m$n$(e
$nd stimul$te ethi#$l '$#ti#es%
8/ Co!!$nic)tion )n* T)ining
Business ethi#s #ommuni#$tion $nd t$inin( $e t)o im'ot$nt 'ill$s "o the
su##ess"ul im'lement$tion o" ethi#$l #ultue% Peo'le should be t$ined )ith
#ultu$l t$it th$t nutue $nd sust$in ethi#s $nd hel' to emo&e b$ies in
ethi#$l de#ision m$+in(% Communi#$tion $nd t$inin( )ould be su#h th$t it
)ould enh$n#e $(ilit!1 hel' in seein( situ$tion ethi#$ll! $nd m$n$(in(
ethi#$l is+%
B/ Me)s$e!ent )n* e,ecti-eness
A (ood monitoin( s!stem is needed so th$t ethi#$l #on#en #$n be #he#+ed
"o desied out'ut b! le$deshi' o" the o($ni;$tion%
All this #$n le$d to (ood >u$lit! 0n$l 'odu#t $nd #ustome s$tis"$#tion%
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