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Social Cost View

In: Business and Management

Submitted By bellalily
Words 390
Pages 2
Social Costs View Theory
The last theory of ethical duties of manufacturer is social costs view. In the social costs view, manufacturer are responsible towards consumer in any probability occurring in the products even though manufacturer has carried out their duties appropriately. Through this theory, manufacturer are shoulder the great responsibilities. Therefore, manufacturer will design, manufacture their products and take reasonable precautions to alert users of every predicted of hazards. Besides, manufacturer have a responsibility to take over the risks that inherent from a defect in product that is unreasonable expected.

Responsibility of the manufacturer to the customer much wider than just providing goods or services. As a manufacturer, they will have full responsibility when are producing and selling the products. The theory is a strong version of the doctrine caveat vendor which is the seller will take care of. For example, between April 2004 to June 2008, Proton having a Safety Recall Exercise for certain models that have been sold due to the presence of a possible defect in the clock spring, which connects the switch and the airbags in the steering with the electrical system of the car. It will cause sign such as noise when turning the steering wheel, unable to start car because of short circuit of electronic components and others. The recall shown that Proton are concern towards their customers’ safety.

A part from that, manufacturers are strictly liable for anything and all risks related with their product. Then, by internalizing the external costs of products, manufacturing having to bear the full cost of production. This would force the manufacturers to cut the risk towards consumers to reduce the cost and which will result in products being safe as a whole. However, sometimes the social costs view is not fair to the manufacturers or

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