Under consumer protection act, there are a number of legislations that help to safeguard the consumer from defective products that does not attain the required level of safety. The consumer protection Act requires the manufacturers, distributers and the marketers to ensure that the product that supply are safe (Horvath, Villafranco, and Calkins 77). They are also required to supply the consumer with correct information and relevant warnings about any risks involved. In this case, the challenge is upon Warner-Lambert Company the manufacturer and distributor of Listerine antiseptic mouthwash to back up their marketing and advertising claims with scientific evidence. Failure to do so, the company will be liable and Guilty of fraud.
It is not easy to tell whether Johns-Manville was liable for negligence with the complexity of insidious injuries case which involved thousands of people who worked for the company and clients who come into contact with asbestos which was later medically proved to cause asbestosism a fatal lund disease (Craig 54). It was ethical for the company to file for bankruptcy so as to marshal the capacity to pay the compensation to the victims of latent disease. Johns-Manville’s bankruptcy reorganization was not a travesty of justice. While filing for bankruptcy, the company argued that if it did not, the company would be destroyed and thousands of its workers would be out of a job. It also argued that if they did not file bankruptcy, only the first few that filed the lawsuit would gain millions leaving nothing for the others.
In this case, the company did meet its duty of social responsibility because the company donate money towards funding the payment of current and future claimants as part of the release from bankruptcy- although the contribution was not sufficient to cover the full amount of the claims owed to injured persons.
The companies owe a social duty to withdraw from South Africa. Any company that value principle of corporate ethical and social responsibilities need to scrutinize the stipulated corporate code of ethics to ensure that it is compliant with the firm’s aspirations (Kennedy and Schulz, 354). The involvement of the individual US companies is of essence since their actions or inactions will have an effect on the conduct of other firms. Withdrawal of US companies will ensure that the code of regulation conforms to the legal provision and other regulations. The companies should work together to ensure that the implementation of the code of ethics is effective. The Companies will therefore play an active role in implementation of code of ethics and regulations. Everyone has a role and responsibility in ensuring the success of the ethical culture within the corporate society. The US corporations involved should work through consultation as this will bring about more commitments to the organizations core values.