The Chrysler Corporation: Stakeholders Sue Case Report (Assessment)

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Introduction

The stakeholders, in this case, include the U.S government which issued a sixteen count indictment suit against the Chrysler corporation and two of its executive officers; based on the allegation that the Odometers of cars were disconnected to allow for personal use by the executives. The other stakeholders involved in this case are the two high-level executives; who were sued together with the company for the offense of disconnecting the new cars and trucks to allow for personal use.

The other stakeholders involved in this case include the company executives, who were unlawfully allowed the use of the new cars and trucks for a period of up to six months. The dealers to whom the cars after the use were sent for selling; also form part of the stakeholders in this case as they were directly affected by the instance of being an issue with used cars for them to sell.

The case

Other minor stakeholders involved in the Chrysler case though much indirectly; are the members of the public who were involved in the accidents that were caused by the smuggled use of the Chrysler cars. The extent of involvement gets deeper than in obvious cases because; the accidents could not be reported to the police or the owner, as this would result in the uncovering of the unlawful practice. The other stakeholders involved in this case are the clients who bought the already used cars; as sooner or later the cars would show signs of having been used more than the customers thought of.

The other stakeholder involved in this case is Baron Bates the Chrysler vice president; as he stood his ground to refute the fact that their cars were being offered to company executives for an extensive period of personal use. One of the major stakeholders involved in this case was the Chrysler Corporation; as its products were the ones in question; its staff was accused of unlawful behavior, and the reputation of its image was tarnished from the case.

Another stakeholder involved in this case was the Chrysler corporation president Lee Iacocca; who stood his ground on behalf of the company defending it for the unprofessional practice and vowed that it was an act they would not engage in again. Another minor stakeholder involved in the Chrysler case was the media houses; whose T.V broadcasting channels were used to air various views about the company in the pursuit to salvage the case.

Some of the ethical principles violated by the Chrysler Company were that of beneficence where stakeholders are urged to do well and avoid evil, which not the case here is. The other ethical principle violated is that of the common good; which would not allow them to use the unsold cars at the expense of the buyers and sellers of the cars. The other ethical principle violated by the company is that of double effect; as it sought to make the executive staff happy at the irredeemable expense of the company’s reputation, the clients, and the dealers of their cars.

Lacocsa’s response to the case was effective because he accepted the mistake and promised the dealers, customers, and any other interest parties that it would not happen again. The response was also effective because he made a gesture capable of proving the correction of the mistake by extending the warranty on their cars; as this would compensate for the pre-sale use. This also was evident that since the company would not want to bear the burden of the corrupt executives; they would not allow the vice again.

If I were Lacocca I would have dismissed the officials who had planned for and executed the vice in question; to show based on the example to the other employees that I would not entertain such behavior again.

Conclusion

What could have been done to avoid the practice from happening was that, the company would allow for the testing of the cars with the odometers not disconnected; as it would alert the buyers, dealers, and the company of any extensive use of the vehicles in the name of testing them.

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IvyPanda. (2021, December 19). The Chrysler Corporation: Stakeholders Sue Case. https://ivypanda.com/essays/the-chrysler-corporation-stakeholders-sue-case/

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"The Chrysler Corporation: Stakeholders Sue Case." IvyPanda, 19 Dec. 2021, ivypanda.com/essays/the-chrysler-corporation-stakeholders-sue-case/.

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IvyPanda. (2021) 'The Chrysler Corporation: Stakeholders Sue Case'. 19 December.

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IvyPanda. 2021. "The Chrysler Corporation: Stakeholders Sue Case." December 19, 2021. https://ivypanda.com/essays/the-chrysler-corporation-stakeholders-sue-case/.

1. IvyPanda. "The Chrysler Corporation: Stakeholders Sue Case." December 19, 2021. https://ivypanda.com/essays/the-chrysler-corporation-stakeholders-sue-case/.


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IvyPanda. "The Chrysler Corporation: Stakeholders Sue Case." December 19, 2021. https://ivypanda.com/essays/the-chrysler-corporation-stakeholders-sue-case/.

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