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SHRM-SCP: Ethical Dilemma in Manufacturing: How Should HR Director Respond?

Discover the appropriate first step an HR Director should take upon learning employees are skipping a critical quality control process, according to SHRM-SCP standards. Ensure ethical manufacturing practices and client trust with this expert guidance.

Table of Contents

Question

Scenario: A manufacturer has secured a contract from a large hospital to build and supply operating room equipment. The hospital specifies the steps in the manufacturing and quality control processes that it expects, and the manufacturing company has contractually committed to meet these specifications. The production line employees discover that they can skip one of the steps in the quality control process when building respirators without any noticeable change in the final product.

The client unknowingly accepts the finished respirators as meeting specifications. During an exit interview, a departing employee reveals to the senior HR director that his entire unit is skipping a critical step in the quality control process for building the respirators. No one in the production’s supervisory line or management is aware this is happening.

What is the first thing the HR director should do?

A. Report information to the operations manager to decide how to proceed.
B. Confer with counsel’s office to determine what information should reported to the hospital.
C. Review the business case to determine if eliminating this step causes product failure.
D. Initiate an investigation to swiftly determine the accuracy of employee’s claim.

Answer

B. Confer with counsel’s office to determine what information should reported to the hospital.

Explanation

When faced with a potential breach of contract and ethical violation of this magnitude, the HR Director’s first action should be to consult with the company’s legal counsel. Skipping a contractually obligated quality control step could have severe legal and financial repercussions for the manufacturing company, as well as jeopardize patient safety.

By conferring with the counsel’s office, the HR Director can receive guidance on the company’s legal obligations, the extent of information that needs to be disclosed to the hospital, and the appropriate manner in which to do so. This step ensures that the company takes swift action to rectify the situation while protecting its legal interests.

Reporting the information to the operations manager (Option A) may delay necessary action and could be seen as an attempt to cover up the issue. Reviewing the business case (Option C) is not the most pressing concern when facing a potential breach of contract and ethical violation. Although initiating an investigation (Option D) is essential, it should be done in coordination with the counsel’s office to ensure that the company meets its legal obligations and gathers information in a manner that minimizes legal risk.

In summary, consulting with the counsel’s office is the most appropriate first step for the HR Director to navigate this ethical dilemma effectively, ensure transparency with the client, and protect the company’s legal interests.

SHRM Senior Certified Professional (SHRM-SCP) certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the SHRM-SCP exam and earn SHRM-SCP certification.