The Costs of Failing to Know – More on GM’s Ignition Switch Issues
GM’s reputation losses continue to grow, increasing the price for what is most kindly referred to as inaction. One new example is a tough, detailed Business Week article on its handling of a whistle blower. GM also is derided in a broader June 16, 2014 article by Joe Cahill in Crain’s Chicago Business. And of course the renewed Congressional hearings are generating adverse headlines, and more lawsuits are underway.
For the long-term, the risks and costs of failing to know appear to grows larger and more expensive every year. But others might argue the valuations and risks differently, especially employees with short-term interests. For so long as short-term decision-making can win out, the litigation industry will continue to thrive and grow based on short-sighted decisions that provide plenty of grist for defense lawyers and plaintiff lawyers.