The capacity to write coherent project about a case study or an actual research about ethics
Assignment Instructions:
General Motors’ Failure to Consider Stakeholders
General Motors (GM) has struggled with its brands and its image. Over the years, it has jettisoned some of its once-popular brands, including Oldsmobile and Pontiac, sold many others, and climbed back from a 2009 bankruptcy and reorganization. The automaker was hiding an even bigger problem, however: The ignition switch in many of its cars was prone to malfunction, causing injury and even death. The faulty switches caused 124 deaths and 273 injuries, and GM was finally brought to federal court. In 2014, the company reached a settlement for $900 million and recalled 2.6 million cars.
The case exemplifies the tension between the concept that “the only goal of business is to profit, so the only obligation that the businessperson has is to maximize profit for the owner or the stockholders” on one hand, and the ethical obligations a company owes to its other stakeholders on the other. GM’s failure to consider its stakeholders and consumers when choosing not to report the potential for malfunction of the ignition switches led to an ethical breakdown in its operations and cost the company and its customers dearly. In addition, by treating customers as only a means toward an end, the company turned its back on a generation of loyal buyers.
Questions
Read the above Case Study and answer the following Questions:
How do you think that betrayal affected the company’s brand and the way car buyers felt about the firm? How might it have affected its shareholders’ views of GM? (Not less than 600 words) 2.5-Marks
Requirements: clear answer
the references at least 3
Answer preview
The identity and appearance of a firm have always been important aspects of corporate reputation. Image is how external observers perceive a company, whereas identity is how the employees and shareholders perceive the company. The public’s attitude toward a company is influenced by its image. The perception of others on the concepts such as message, reputation, perception, attitude, trustworthiness, and belief all affect an organization’s image. It refers to the behaviors that differentiate an organization from other entities and how various organizational functions interpret such behaviors (García-Madariaga, and Rodríguez-Rivera, 2017). The betrayal by General Motors may have had a significant impact on its brand and image.
