Gm Company Case Study

Brief Description of Week 3 Tutorial Submission

The responsible of business in my viewpoint is the corporate social responsible or corporate responsibility. Corporate social responsibility (Wood, 1991) is a form of corporate self-regulation integrated into a business model. However, CSR is corporate philanthropy. This includes monetary donations and aid given to nonprofit organizations and communities but excluding political contributions and commercial event sponsorship.

Case Study Question

1. What did GM do?

GM produced the numerous of defective vehicles, which caused 13 accidents, many people was injured and even dead. GM engineers found the problem and suggested fixing that, but executives decided against it, because according to the stakeholders view, executives want to earn more and get more profit, so they adopted some wrong methods to solve this problem (Jensen, 2014).

 (Word count: 59)

1. How did GM do it?

Firstly, G.M. engineers find the fault, but executives against fixing it. Then, there was another idea for a fix, the proposal was initially approved, but later canceled. After that, G.M. didn’t recall the vehicle; instead the automaker sent a service bulletin. Next, G.M. announces they will solve the problems as soon as possible, but spend almost seven more years. Finally, G.M. made twice apologize and recalled car was total was nearly 1.4 million (Jensen, 2014).

 (Word count: 74)

1. How do you feel after reading the case?

Firstly, I feel very sad about the cars accidents by the security problems, because this is the tragedy could have been avoided occurred, and GM already impact the human life due to their self- interest. Then, I was very angry of the reaction given by the company. Because, firstly, GM engineers suggested a fix the fault, but executives decided against and ignore that. After that, GM receive another idea for a fix, this proposal was initially approved, but later canceled. At the same time, I think GM is not a very responsible company because GM in order market sales to reduce the costs, and ignoring the security issues. Although GM Company has been known accident has happened, but it did not withdraw that series cars, the company in an attempt to ignore the truth, these leads to more accidents. As Margie Beskau said “G.M. didn’t do their jobs”. So, for my viewpoint, I think as a well-known company, they should ensure they are responsible; shareholders should not in order the self-interests to ignoring the citizens’ safety (Jensen, 2014).

(Word count: 178)

1. In which other occasions have your felt like this?

The recent example is Volkswagen, DSG transmission used by the State Administration of Quality Supervision identified as having a design flaw, and was asked to recall by the government. DSG fault this problem for a long time but has not been solved. Later, Volkswagen announced the fault involves two gearboxes to extend the six-year or 10,000 km warranty period but did not mention the cause, at the same time it also refused to recall.

(Word count: 73)

1. If you were the CEO of GM, what would you have done differently?

If I were a CEO, I would give top priority to citizens’ security because to run a business, profit is not the most important things, contribution to society and responsibilities is paramount. So I would from a security point of view, the situation is allowed to go to reduce costs. When the security problem happened, I would solve this problem from a positive viewpoint, not always avoid the problem. I will let resellers check this batch of car problems arise, and to recall problems cars, and improve his defects. For the cars has been sold out, I will issue a bulletin to remind consumers to check their cars, if the consumer finds the problem about that, they can go to the 4S shop to repair and solve that problem.