I am trying to find a website or other reference detailing the
following example, used by a lecturer when I  was at uni, in subject
"organisational communication" - (essentially about communication
within corporations).  The features I remember were:

- Bean counters at the company realised that they could shave quality,
and even if 1in 5 or 1 in 10 (not sure what the proportion was) of
machines (reasonably sure it was a computer / parts manufacturer) had
to be replaced for the consumer, it would still be cheaper than making
sure they were right in the first place.

What the beancounters didn't bargain on was having the workforce
productivity drop as a result of their awareness of the shoddiness of
the product, which eliminated any cost-savings they thought they'd
make.

Failing this, I will pay for other substantiated examples of "name"
companies who experienced similar "false economies" - those who cut
costs in the short term by eg lower employee benefits or practices,
environmental standards, ethical practices etc and faced unanticipated
costs as a result.  However the result needs to be 1) a direct causal
relationship - eg not a general loss of market share as a result of
poor reputation 2) not reasonably forseeable (for instance, not a fine
or other penalty)