Recall could ultimately bankrupt the company

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Reference no: EM131639095

After watching the Defective Airbag Maker Takata Faces Grilling on Capitol Hill video, imagine you are the CEO of Takata and you receive notice that there have been several defective airbags that resulted in death or severe personal injury. You order a data/risk analysis to be performed, providing you with a report of the potential costs associated with a recall versus the potential costs associated with victim litigation. The data suggests that the ratio of defective airbags to total airbags in use is very low and that it would be less expensive to pay litigation costs for the injured victims than it would be to launch a massive recall effort. You have an obligation to your shareholders to generate profits and you understand that a recall could ultimately bankrupt the company.What would you do? Why?

First post your initial response answering the questions above (150-200 words).

Reference no: EM131639095

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