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Article for Managment Course

In: Business and Management

Submitted By chiefdowney35
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Article 2 I chose to read an article titled “Lawmakers accuse GM of possible criminal cover-up.” General Motors has been accused of covering up a problem of defective ignition switches in some of their cars. The problem with the ignition switch is that it can move from the “run” position to the “accessory” position if a heavy key chain is attached to the key. If the ignition switch changes positions, it can cause the engine to shut off, which in turn causes several other problems. This problem has been linked to thirteen deaths and many more accidents. General Motors has been accused of covering up this problem because they waited a decade to recall cars with this problem. A replacement switch was approved in 2006, but General Motors did not change the part number to indicate that there was a problem with the first part. Senator Claire McCaskill said General Motors had “a corporate culture that chose to conceal rather than disclose.” General Motors had ample opportunity to tell owners about the recalled cars, but chose not to. General Motors asserts that they are now more focused on their consumers and their safety, but this statement is unconvincing to lawmakers. I would have a hard time trusting General Motors after hearing about the cover-up of this problem. Being dishonest shows a lack of ethics. In a society where safety and honesty is valued, General Motors has not shown that their cars are safe for customers or that they care about their customers. Anytime there have been several accidents and deaths linked to a product, the company should take responsibility by informing customers and recalling the product. Instead of letting customers know about the faulty ignition switches, General Motors tried to cover up the problem by fixing the switches without telling owners that they had defective switches in their car. This most likely caused more deaths and accidents that could have been prevented if General Motors had admitted their mistake when it was first discovered. I believe this cover-up has created a bad reputation for General Motors. Because of their lack of honesty, customers will be lost and competitors will end up gaining some of their business. If General Motors wants a chance to regain customers and their reputation, they will have to rebuild the trust that they lost. Being honest in difficult situations would help them in the future.

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