Reference no: EM132155689
Tesla: Current Issues
Tesla announced the delay for “Model 3” production, again.
Since March 2016, half a million people have preordered the vehicle.
In February 2017, the company said it would be able to produce 5,000 vehicles a week, but in November Musk called it a “production hell” and pushed back productivity until the end of March 2018.
In January 2018, the goal post moved again, until the end of June.
In March of this year, people received emails stating that the company was adjusting their “Model 3” delivery to a later window of late 2018 or early 2019.
Not delivering orders is not a great way to build a loyal customer base.
Issues. Continued...
Workers bring complaints about mistreating employees and harassment.
Workers have also complained about aggressive production goals leading some to “pass out” on production floors.
Workers claim that their health is secondary to tesla productivity.
Tesla is Spending more money than generating.
After 10 years of losses, in 2013 Tesla announced its first-ever quarterly profit. Then in February 2018, the company announced that it ended 2017 with its largest quarterly loss ever. $675 million
Workers bring complaints about mistreating employees and harassment.
Workers have also complained about aggressive production goals leading some to “pass out” on production floors.
Workers claim that their health is secondary to tesla productivity.
Tesla is Spending more money than generating.
After 10 years of losses, in 2013 Tesla announced its first-ever quarterly profit. Then in February 2018, the company announced that it ended 2017 with its largest quarterly loss ever. $675 million.
Ethical Quandaries
Ethical Principles (Steiner & Steiner)
The Organization Ethic- Be loyal to the organization. ( Model 3 ongoing delays )( Employee Mistreatments)
The Rights Ethic- Each person has protections and entitlements that others have a duty to respect. ( Employee Mistreatments )
The Theory of Justice- Each person should act fairly toward others in order to maintain the bond of community. ( Employee Mistreatments )
The Doctrine of the Mean- Avoid behavior that is excessive or deficient of a virtue. ( Twitter Bankrupt Jokes )( Employee Mistreatments )
The Intuition Ethic- What is good or right is understood by an inner moral sense and felt as intuition. ( Model 3 ongoing delays )( Vehicle Malfunctions )( Employee Mistreatments)( Twitter Bankrupt Jokes )
Global Business Standard Codex
Fiduciary Principle- Duty to act in the best interest of stakeholders.( Model 3 ongoing delays )( Vehicle Malfunctions )( Employee Mistreatments)( Twitter Bankrupt jokes )
Reliability Principle- Duty to honor commitments made to the firm/ organization. ( Model 3 ongoing delays )( Vehicle Malfunctions )( Employee Mistreatments)( Twitter Bankrupt jokes )
Transparency Principle- Duty to conduct business in a truthful and an open manner. ( Model 3 ongoing delays )( Vehicle Malfunctions )( Employee Mistreatments )
Dignity Principle- Respect the dignity of all individuals. ( Employee Mistreatments )
Fairness Principle- Stakeholders have a vested interest in the firm and should be treated fairly. ( Model 3 ongoing delays )( Vehicle Malfunctions )( Employee Mistreatments)( Twitter Bankrupt jokes )
Analysis of how to deal with the quandaries?