A Brush with Aids

A violent epidemic rapidly spreading across the world, the AIDS virus has forced doctors and healthcare professionals alike to take extensive measures when handling anything possibly contaminated. Furthermore, the Halsey Health Products line of sharps disposal containers are a necessity for hospitals across the country making up an annual market demand of 109 million containers sold. Dealing with such a potentially dangerous threat of infection the strength and reliability of sharps containers must surpass any federal standards and should be able to withstand all conditions. In addition, the integrity of this product is a key factor for the Halsey Corporation as it comprises a significant share of the targeted $900 million in sales. The main character of the case, a senior market manager, is confronted with a strong ethical dilemma between the safety and reliability of the sharps disposal containers and the corporate obligations she has with her employer The Halsey Health Products company.

Several other important factors compound the situation of the case each having separate consequences for the main character and Halsey Health Products. As the largest supplier of healthcare products across the country, Halsey Health Products focuses strictly on gross-profit-dollar-oriented company goals. As a result the main character expresses a strong corporate mentality, constantly rationalizing her options with possible consequences of missing profit goals. As a market manager she realizes there are various things at stake for her and her employer. Clearly, Halsey Health Products’ primary responsibility is providing safe products to the healthcare industry. Faulty products jeopardize the safety of both healthcare workers and patients. The main character focuses on her goals and those of her manager Phil who’s relies on her for up to 22% of his annual revenues. Both employees have bonuses that are at risk if a poor decision is made. Furthermore, disregarding the problem of faulty sharps containers also threatens the reputation of Halsey Health Products to the entire healthcare industry. The well-being of hundreds of millions of people is a major factor in this situation, as a faulty container could be the direct cause of HIV infection of an innocent hospital worker. The senior market manager is a part of a fast pace hierarchy of management where a bad decision often defines one’s future in the corporate environment. The wrong decision, affecting the company or the customer, will diminish future possibilities of employment.

The option of improving the product quality produces various other consequences that may affect profit performance and all the other strongly emphasized corporate goals expressed by the Halsey Health Products management. The direct consequence of changing the product is the risk of missing profit goals. Changing the sharps container molds incurs a 7% additional cost in materials as more plastic would be required to create a stronger container. The cost to change the molds amounts to about $400,000 for all sixteen molds. Also, a four month inventory of sharps disposal containers has been produced. This represents a $7,200,000 product write off if the containers must be replaced with a more durable mold. From a market manager standpoint this represents a significant operating cost which may threaten revenue goals. Altering normal production of sharps container will create additional expenses for Halsey but is crucial for the integrity and reputation of the product and the future of the company.

Her other option is to disregard the inflow of complaints about the sharps containers and continue her focus on sales performance and meeting revenue goals. This is the easiest choice of action for her to take for the short term, however may produce drastic consequences as time passes and Halsey continues the distribution of faulty products. It may result with a damaged reputation and future for the company and the termination of her employment as the senior management learns of her decision to take no action. In addition, it may result with further infection of HIV to healthcare workers. The option to speak with other people within Halsey is frowned upon as her manager Phil sees no impending threat of a faulty product. Although Phil is known to lack a strong independent opinion, he is positioned in the company directly above our character. In the end, this senior market