All companies have a code in which they adhere to when running their business. Monitoring the ethical practices of a company’s business practices and functions is ideal in establishing a successful brand. As such, it is essential to analyze the way in which a company handles the good and bad events that they experience. The paper provides a summary of the article which talks about the 1994 Intel crisis.
1994 was an inventive time for Intel Corporation owing to the introduction of Pentium 5 microprocessors. One of the distinctive factors the new computer had is that they incorporated the (Floating- Point Unit). The FPU was known as the math processor and was intended to solve any mathematical problems faster than the previous version. One of the issues in this case is that the Intel processor is that the normal flow was compromised and in turn multiplied the floating point units. Despite the fact that there was a problem in the calculation of the figures, the difference in the final result was not significant. As such, users could not notice the problem easily during the performance of calculations. Ideally, persons in charge of testing the product in the Intel Company noticed and filed a formal report to the Intel managers. However, the Intel managers did not react to the new information on the basis that users would not notice the difference.
Ethical Analysis
To the disadvantage of the company, Thomas Nicely who was a math professor at the time noticed a difference in the computers calculations and made the choice to report the issue to Intel management. Despite this, the company did not respond to the claims thereby braking one of the ethical codes protected by the IEEE code of ethics. This was not a good move on the part of the company considering the repercussions one minor mistake would make in terms of their credibility. The main issue arose when Nicely posted an issue on the effectiveness of the company on the internet stating how they did not respond to the issues when it was raised earlier. To add on, he mentioned the fact that the complaint was made before the release of the new version. The company had no choice but to pull the product and accept the responsibility.
How Intel Handled the Pentium Chip Crisis
The company was faced with the dilemma on whether to pull the product from the market or continue its distribution. After a series of complaints, the company decided to collect the computers in order to correct the situation. At this time, the company faced a considerable amount if bad publicity. Furthermore, a large number of the population lost their confidence in the company and opted to purchase products from an alternative source. This served as a setback to the company as a whole. The company did not let the negative publicity affect its growth. It managed to rectify the issue and distribute computers which did not have any issues. As a result, the company has managed to gain back the respect that it had before the defect.
To summarize, the role audience played in this scenario was to listen to the case and to form their own opinion of the issue at hand. This involved analyzing the facts of the case and the overall response to the case. As such, the ethical issue was solved with regard to the introduction of new forms management and strategy.