1. BUSINESS & SOCIETY Ethics and Stakeholder Management
Chapter 13
BUSINESS & SOCIETY Ethics and Stakeholder Management
Carroll & Buchholtz 6e
CONSUMER STAKEHOLDERS: PRODUCT and SERVICE ISSUES
Prepared by Deborah Baker Texas Christian University
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Business and Society: Ethics and Stakeholder Management, 6e • Carroll & Buchholtz Copyright ©2006 by South-Western, a division of Thomson Learning.  All rights reserved

2. Chapter 13
Chapter 13 Outcomes
Describe and discuss the two major product issues: quality and safety.
Explain the role and functions of the Consumer Product Safety Commission and the Food and Drug Administration.
Enumerate and discuss the reasons for concern about product liability and differentiate strict liability, absolute liability, and market share liability.
Outline business’s responses to consumer stakeholders to include TQM programs and Six Sigma.
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3. Chapter 13 Outline Two Central Issues: Quality and Safety
Consumer Product Safety Commission
Food and Drug Administration
Business’s Response to Consumer Stakeholders
Summary
Two Central Issues: Quality and Safety
The Issue of Quality
The Issue of Safety
Consumer Product Safety Commission
Food and Drug Administration
Business’s Response to Consumer Stakeholders
Consumer Affairs Offices
Product Safety Offices
Total Quality Management Programs
Customer Satisfaction Measurement
Summary
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4. Critical Dimensions of Product Quality
Perceived Quality
Aesthetics
Serviceability
Features
Reliability
Conformance
Performance
Durability
Dimensions of Quality
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5. Top 10 List of Safety Principles
Build safety into product design
Do product safety testing for all foreseeable safety hazards
Keep informed about and implement latest developments in product safety
Educate consumers about product safety
Track and address products’ safety performance
Fully investigate product safety incidents
Report safety defects promptly
If a defect occurs, offer a comprehensive recall plan
Work with the CPSC to make sure your recall is effective
Learn from mistakes
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6. Consumer Product Safety Commission
Develop voluntary safety standards
Issue and enforce mandatory standards
Ban consumer products if no feasible standard would protect the public
Obtain the recall of products or arrange repair
Conduct research on potential product hazards
Inform and educate consumers through government, organizations, and respond to consumer inquiries
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7. Total Quality Management
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8. Selected Key Terms absolute liability
Consumer Product Safety Commission (CPSC)
contractual theory
delayed manifestation cases
due care theory
Food and Drug Administration (FDA)
market share liability
product liability reform
Six Sigma
social costs view
strict liability
tort reform
total quality management (TQM)
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