You will need to examine the ethics of the case, research the background behind the lapse, as well as the specific decisions that are being made. You will identify ethical themes across the event, and provide recommendations on how the event could be avoided in the future.
Background: Provide a brief overview of the facts of the case and any assumptions you needed to make in your analysis
Problem research: What occurred? Where? What were the root causes? Draw on course materials to help make your arguments.
Analysis / Identification of top ethical themes across the research: Based on what you learned in this class, what are some of the top themes in the lapse? Was it an individual lapse or a combination of forces?
Recommendations for improvement: What should the company do to prevent such a lapse in the future?
I've included the case study as an attachment
Global Jesuit Case Series May 2018, Vol. 36, No. 3, p. 9 Special Issue of the Journal of Case Studies ISSN 2162-3171 www.sfcrjcs.org “It is Just Not Enough”: The Tragedy of a Manufacturing Defect John Monteleone, Le Moyne College Tracy Couto, Le Moyne College Abstract Victaulic Company (“Victaulic”) is a privately-owned, third generation, American family business. The company makes mechanical pipe-fittings especially for heating and cooling systems. A contracted overseas producer constructed one of their products, but without notice to Victaulic, substituted cheaper materials that had the potential to fail under pressure. One of the faulty products cracked while a heating system was being tested. As a result, a worker was severely burned and died several days later. Joe Savage, Vice President of Finance, was tasked to work with the insurance company to ensure a fair payment, which had previously attempted to minimize claims. Savage met the family and their lawyers in person to admit the company’s responsibility in the accident, apologize, and negotiate a fair payment. Afterwards, based on a recognition that the initial settlement was “just not enough,” the owners and management of the firm had to decide whether to give additional compensation. Learning Outcomes In completing this assignment, students should be able to: 1. Articulate the dilemma faced by a business in the wake of an accident caused by its product. 2. Identify what ethical justifications are relevant to the decision-making process for a business in the wake of an accident caused by its product. 3. Develop an argument for or against relying on emotional intelligence as a leadership competency. 4. Critique the management team’s core leadership competencies during this crucible. Application This case is most appropriate for undergraduate classes on ethics, advanced undergraduate- and graduate-level classes on business ethics, and graduate-level classes on leadership. Keywords Supply-chain management, corporate culture, ethics Contact John M. Monteleone, Department of Philosophy, Le Moyne College, 1419 Salt Springs Road, Syracuse, NY 13214. Email
[email protected]. Phone 315-445-4495. Tracy Couto, Global Jesuit Case Series, Le Moyne College, 1419 Salt Springs Road, Syracuse, NY 13214. Email
[email protected]. Phone 315-445-4251. http://www.sfcrjcs.org/ Global Jesuit Case Series May 2018, Vol. 36, No. 3, p. 44-52 Special Issue of the Journal of Case Studies ISSN 2162-3171 www.sfcrjcs.org Page 44 “It is Just Not Enough”: The Tragedy of a Manufacturing Defect John Monteleone, Le Moyne College Tracy Couto, Le Moyne College This case was prepared by the authors and is intended to be used as a basis for class discussion. The views represented here are those of the authors and do not necessarily reflect the views of the Society for Case Research. The views are based on professional judgment. Copyright © 2018 by the Society for Case Research and the authors. No part of this work may be reproduced or used in any form or by any means without the written permission of the Society for Case Research. Introduction Joe Savage, Vice President of Finance for Victaulic Company (“Victaulic”), sat and reflected on the tragedy that had just taken place, and how best to move forward. A product manufactured for Victaulic failed, and as a result, a worker lost his life. After negotiations with the insurance company led to an amount that Victaulic perceived as too low of a settlement for the worker’s family, Savage and the management of Victaulic wondered whether there was more they could do to help the worker’s widow and her two small children. In the opinion of the company, the insurance money was not a personal ‘I’m sorry.’ This case shows how a manufacturing defect can entangle a company in classic philosophical debates on making the commercially expedient choice versus acting for the sake of others. Company Background Victaulic Company began in 1919 in London, England as the Victory Pipe Joint Company under the direction of Mr. Ernest Tribe and Dr. Henry Selby Hele-Shaw. Like many entrepreneurs, Tribe and Hele-Shaw had seen an opportunity to innovate. Prior to 1919, the piping industry relied primarily on welders for joining pipe. It was an expensive and time-consuming method. Additionally, there were problems about how reliably to join pipes to one another in an industrial setting, where the contents of the pipe often vary in temperature and chemical composition. Tribe and Hele-Shaw’s innovative design was a grooved, bolted mechanical coupling that used a gasket seal for water and air tightness. This concept, called the “victory joint,” proved to be an efficient, economical way to assemble pipes more quickly, more safely, and over longer distances than had ever been possible before. In 1922, the Victory Pipe Joint Company combined the words “Victory” and “Hydraulics” to become Victaulic Company, and in 1925 the company known as Victaulic Company of America was founded in New York City. Their pipe joining solutions were used extensively during World War II due to high demand for the quick construction of long water and fuel lines to supply the Allied forces. Since that time, the company has developed numerous military and industrial applications of their original victory joint design. It has also designed and manufactured complementary pipe installation products such as adapters, diverters, end caps, and http://www.sfcrjcs.org/ Global Jesuit Case Series May 2018, Vol. 36, No. 3, p. 44-52 Special Issue of the Journal of Case Studies ISSN 2162-3171 www.sfcrjcs.org Page 45 diffusers, among others. The company continued to expand nationally throughout the next several decades after the war and in the 1960s began efforts to expand into global markets. As a result, Victaulic is now the world’s leading producer of mechanical pipe-joining solutions. Currently located in Easton, Pennsylvania, Victaulic has manufacturing and distribution facilities worldwide and employs more than 4,000 people (Victaulic, 2010). Its stated focus is “making piping installations faster, easier,