Mini$-$Case $3$: A Cell Fire

Several years ago, a well$-$known cell phone manufacturer faced problems when its newly released cellphone, aimed at being an iPhone rival, began catching on fire. Consumers called for a recall of the product.

In response, the company issued a statement saying they were "committed to producing the highest quality products and we take every incident report from our valued customers very seriously. $...$ We conducted a thorough investigation and found a battery cell issue." The company's statement failed to mention the phones started on fire. ${?}^1$

Was the company's press release ethical? Be prepared to share your answers with the class. Apply the five$-$step ethical framework and discuss the following:

Is it ethical for a company to avoid mentioning problems with a product?

How should the company have addressed the problem?