Final answer:
An auto manufacturer knowingly not recalling dangerous vehicles is committing white-collar crime. This illegal action is different from blue-collar crime and can lead to severe consequences including legal action, injuries or fatalities among customers, and substantial financial and reputational damage to the company.
Step-by-step explanation:
An auto manufacturer that has knowledge of a vehicle being dangerous and chooses not to recall those vehicles is engaging in what is termed as white-collar crime. This type of crime involves illegal activities primarily conducted by individuals in professional occupations or in business. It is distinct in nature from blue-collar crime, which typically involves more direct forms of harm such as theft or assault. White-collar crimes can have severe consequences, not just legal ramifications for the company, but also can result in harm to consumers, such as the case with the Firestone/Ford tire controversy, where product faults led to accidents and fatalities. Moreover, not addressing such issues can lead to significant financial losses for the company and damage to its reputation, as was the case with Wells Fargo.
Recent legislation allows employees to raise confidential complaints against their employer, particularly in situations where there are health and safety hazards that could potentially endanger workers and the public. If a company knowingly cuts costs in manufacturing processes that compromise the safety of a product, they not only face legal penalties but also the possibility of long-term profit damage. Companies are accountable for these oversights and have a responsibility to correct any identified violations or face government-imposed fines, as highlighted in the Firestone/Ford tire case.