One of the last questions a CEO ever wants to hear—whether in a Congressional hearing, in a courtroom, or from a reporter—is: “What did you know, and when did you know it?” It’s an especially painful question when connected to deaths potentially caused by your company’s products.
General Motors is dealing with accusations that its faulty ignition switches shut down the power in cars, thereby disabling power steering, braking systems, and airbags, and possibly resulting in several deaths. GM recently acknowledged that it knew about problems with the switches for more than ten years, and plaintiffs and critics say the company failed to take timely and needed action to recall cars and fix the problem.
