An Ethical Dilemma: Find a Solution (Or Two!)

BY: Maria Ferance Beth Theve

Our Dilemma

Luvin’ Care manufactures skin care and hair products. We test these products on animals. We have two facilities – a 250 employee factory to make and distribute products, and a 50 employee animal testing lab containing 550 test subjects.

Recently we had a major problem in one of our labs and accidentally exposed our entire group of test subjects to a chemical with disastrous effects. Many of the animals suffered horrible deaths and the rest of the animals had to be euthanized as a result of the exposure (in total 550 animals were killed).

We state in all of our public documents that animals are important in the process to protect human health and that although we do use animals in our testing, we treat them with dignity and respect. This incident was far from dignified for our animals.

Although this incident is one of our largest disasters, it is not the only problem we have had in our labs.

One of our lab assistants has gone to the press. 60 minutes has called for our response to allegations of animal cruelty and poor lab conditions. The press on this issue could be potentially devastating.

How will we handle How will we handle this?this?

Solution Number One

The lab assistant has signed a non-disclosure agreement. We will notify the employee that if she speaks publicly, we will sue to the full measure of the law.

We will notify 60 Minutes of our intent to pursue a case for slander if the story is aired uncorroborated or to the detriment of our business.

We will release our own press statement, in response to leaked allegations of inappropriate lab behavior. Confirm that the situation has occurred. Announce new safety measures that will be taken to eliminate such

issues in the future. Reinforce that while it is our great sorrow that some of our test animals

have died, we are relieved to say no unsafe product has been released to the public. We understand that these deaths may seem senseless, but the safety of our customers is of paramount import to Luvin’ Care, and the role of these animals is to assure that safety.

Solution Number One (con’t)

We will hire new lab audit personnel, who’s job it will be to ensure quality of care for the testing animals in our labs.

We will first audit this particular event to discover who is responsible for this situation. The people responsible will be immediately fired without severance.

We will create an “Animal Retirement” plan for test animals who have been in the program for more than 5 years. Animals will be offered to the public for adoption. Animals that are not adopted will be sent to a company sponsored

Retirement Ranch, to live the rest of their days under the care of special trained animal care professionals in a homelike setting.

We will create an “In Their Honor” animal trust fund. This fund will receive $500,000 per year that will be awarded to animal rescue groups working with animals who were previously used in animal testing, as our way of thanking the animals who died to make our product safer.

Current marketing efforts will be refocused to announce these initiatives to the public.

Solution number One (con’t)Potential CostsPotential Costs

$16.7 Million$16.7 MillionTotal Potential Cost of Solution One:Total Potential Cost of Solution One:

$1 Million for setup,$750,000 annually.

Retirement Ranch (Building, cost of state certification, employing personnel, providing appropriate food and sanitary needs, as well as comfort and entertainment items.)

$500,000, annually.The “In Their Honor” fund.

$1.5 MillionThe expedited audit process and resolution of this Event. (May include revamping current lab for comfort of animals)

$1.5 MillionRecruiting and employing 10 new Lab Audit Professionals.

$5 MillionRevamped Marketing Efforts (Again, we have a Marketing team, and they have a budget for emergency issues, but we want to make sure this message is especially effective, and saturates our market.)

$5 MillionLegal Fees regarding Lab Assistant and Press (We have a Legal Team on retainer and have budgeted legal fees, but will go over budget)

Solution Number One (con’t)

We feel morally obligated to ensure absolute safety of our product to our customers. Luvin’ Care has never had a product recalled from the market. The way that we maintain this level of safety is by testing on animals, not people.

We understand the ethical obligation we have to the animals used in our testing process, to keep them as pain free and comfortable as possible.

We have an ethical obligation to the animals used in testing, as well as to the public, to eliminate employees who are making our testing labs unsafe and potentially ineffective.

We have an obligation to all of our employees and investors and their families to do whatever we can to stay in business.

Moral/Ethical ConsiderationsMoral/Ethical Considerations

Solution Number One (con’t)

There may be a few more people unemployed in our community, especially after the audit, but it will not be an enormous number that will threaten the local economy.

There is the potential for more employment, not only in replacing fired individuals but also in the new positions created.

The Retirement Ranch will need to be situated far enough away from the city not to become an eyesore, but not so far away as adoption becomes difficult.

New animals will be introduced into the community, giving the community a sense of having rescued them and pulling the community at large together.

Effect on the CommunityEffect on the Community

Solution Number One (final)

We may lose a significant amount of money due to consumers involved in or influenced by PETA and other animal organizations.

Media coverage, good or bad, often increases interest in a product. If we are sensible about our response, and reassure the public of our concern for their safety, we may be able to weather this event.

Other ConsiderationsOther Considerations

Or maybe, instead…Or maybe, instead…

Solution Number Two

We will cease all animal testing. A public relations team will be assigned to

address our concern over, and response to, this situation in the media. This team will handle interviews with 60 Minutes

and other media outlets. This team will hold press conferences. The message of this team will be that we have

learned our lesson, and we are changing our ways.

Solution Number Two (con’t)

We will change our formulas to use only products that have been proven to be safe for use on humans.

We will close the animal testing lab, and all employees associated with this lab will be laid off. Animal lab employees will be given severance packages, and will

be eligible to apply for other positions within the company if desired.

After defining the new formulas, we will redesign our factories to manufacture these products. Temporary lay-offs may be necessary during factory remodeling.

We will pay these employees a portion of their income while they are unemployed.

Remaining animals will be offered for adoption to the public at large, and if not adopted, we will pay for each one to have a place in a animal rescue program for life.

Solution Number Two (con’t)

$23.8 Million$23.8 MillionTotal Potential Cost of Solution Two:Total Potential Cost of Solution Two:

$3 MillionRenewed Marketing Materials to Reflect New Products

$500,000Adoption Process/Finding Rescue Homes

$10 MillionRevamped Plant/Factory

$350,000Severance packages, and payment for temporary lay-offs. (Animal testing employees will receive 4 week severance package. Other employees will earn 50% of income while temporarily laid-off [no more than two weeks]).

$5 MillionRevamped Product Formulas (Getting information on products that have already been tested by other companies and been proven effective and safe, partnering and fees and research.)

$5 MillionPublic Relations efforts (We have a Public Relations team, but the team for this project will be highly specialized, incurring travel expenses, and will require overtime bonuses.)

Potential CostsPotential Costs

Solution Number Two (con’t)

We have a moral obligation not to harm or take life to produce our product.

We have a moral obligation not to release products that will harm our consumers.

We have an obligation as a company to our employees and their families, to make sure they are adequately provided for and will not suffer as we redefine our products due to our mistakes.

We have an obligation to the animals that might have been wounded to see that they are safe and comfortable for the rest of their lives.

Moral/Ethical ConsiderationsMoral/Ethical Considerations

Solution Number Two (final)

We may still lose consumers who are involved/influenced by PETA, but we hope to loose less of them because our drastic action and commitment to the animals shows our desire to make this right.

The public will respect our policy for handling this situation with open and forthright communication, which may improve business.

Revamping our product lines and factories are going to cause a decrease in profits for a considerable period of time. Research and construction needs to be quick, and to allow

some parts of factory to continue working while others are closed down.

Other ConsiderationsOther Considerations