Ford and Firestone have been working together for over 100 years. Both companies began working together when their founders build a friendship in the beginning of the automotive revolution. Both companies were able to work together for many years without to many problems. But in 2001 both companies ran into an ethical dilemma that left both their reputations on the line. In 2001 Ford started selling their Ford Explorer. Problems started to arise when the vehicle 's tires tread separated causing the vehicle to roll over. There was 203 deaths linked to this issue as well as 700 injuries reported. When the problem came to light for both companies instead of reacting to the problem they became on the offense for the …show more content…
Ford then fired right back by stating that Explorers that were equipped with other tires were not running into the issues that the vehicles with Firestone tires were. Each company was denying responsibility for their actions in this ethical concern. Both companies acted unethically when it came to their actions. First Ford acted unethically when it decided to ignore the engineer’s remarks on how to lower the roll over risk. Then they acted unethically again when they asked Firestone to jeopardize the integrity of their tires to meet lean manufacturing requirements Ford was trying to produce. Both companies should have stopped and notices that they were violating their ethical duty to provide safe products for the consumers to buy. Throughout this class we have learned about the different theories that surround ethics. Utilitarianism theory is the one to make an action or a choice that creates the most good for everyone involved (Boatright, 52). Considering the facts in this case it seems that Ford made the choice to put the outcomes of their company before the outcome that would create the most good. Based on the Utilitarianism approach this would mean the Ford is the one to blame for all of the issues. Since Ford produced the vehicle with the faulty tires it was their responsibility to test those tires before the vehicle was placed for sale. Ford has a duty to people who buys, drives, or
When you hear the word “Ford” more often then not people are going to think of automobiles. This is not surprising because a man gave
Utilitarianism is a practical doctrine that is widely accepted in modern society’s economics, politic, and ethics. Utilitarian is driven by the pursuit of happiness. For a utilitarian, everything that will be helpful in the pursuit is considered good. In utilitarianism, an action is good or evil based on its consequences on the happiness of an individual and the happiness of the community. Similar to other doctrine, utilitarianism is not without a flaw. Bernard Williams, in his paper Utilitarianism and Integrity, voices his primary concern in regard to utilitarianism by providing two concrete examples to demonstrate how utilitarianism is only concerned about the consequences of the action and not about the means used to get there. Williams argues that utilitarianism fails to acknowledge the integrity of a person because the ultimate goal of utilitarianism is to produce the greatest happiness overall.
There are a few concerns about harmful behavior of the FMC that should be discussed. A behavior is harmful when it wrongfully sets back the interest of others and has a high risk of harm. Obviously, the gravity of harm in this case is very high being that it is life threatening. Once a consumer has purchased the Pinto and drives it off the lot he is at risk to getting rear ended, and burned to death by a car fire or explosion. Since the weight of this harm is very severe, the low probability of the consumer having an accident doesn’t discount Ford’s unethical behavior. Indeed, driving a Ford Pinto would place a consumer’s life at risk. Also at stake are the interests of Pinto passengers and drivers of other vehicles who certainly are not willing to risk their lives so Ford can make an extra buck. Everyone has an interest in not getting injured or killed. Setting back the interest of consumers isn’t the only thing Ford Motor Company was responsible for.
Ford executives were under a great deal of pressure to produce a smaller, more gas efficient automobile. Japanese and German automobile sales were rapidly increasing. These competitive forces drove Ford’s executive team to respond by rushing the design process of the Ford Pinto. By 1973, the Pinto was well into production when engineers discovered a flaw in the gas tank, which was located just under the rear bumper. They discovered that if the vehicle suffered a rear-end collision over 20 mph, the gas tank could break and spill gasoline into the passenger compartment, potentially resulting in a fire. The remedy for the flaw was a part that cost $11.00 per vehicle. Executives at Ford knew the company had followed all safety standards and regulations. At that time, automobile safety standards only needed gas tanks to withstand a collision under 20 mph. An internal cost-benefit analysis revealed the costs would be substantially higher to fix the design flaw that the costs associated with any potential damages due to collisions and loss of life. The public remained unaware until Mother Jones journalist, Mark Dowie broke the story in 1977. Fueled by the media, what followed was a frenzy of public outcry and court trials.
Ford Motor Company has been and till the date is known as the king of innovations in the automobile industry. Their research & development department and innovation of interchangeable parts in moving assembly lines resulted in extraordinary global extension for them. They are an old heritage who ruled and still doing impressive jobs in the global automobile market. Some prestigious motor brands are also owned by Ford.
Ford Motor Company and its close ally Firestone Tires faced a serious crisis when many Ford Explorers equipped with Firestone AT/ATX tires rolled over as a consequence of tire failures. In 1999 the first fatalities occurred in Saudi Arabia and not much later similar accidents were reported in Venezuela. Ford immediately reacted by blaming the weather and vehicle owners for under-inflating their tires. However, Ford also began replacing tires. It was not until March 2000 when a Ford Explorer rollover in Texas USA
The brand image of Ford was damaged due to the product recalls of the Escape Sport Utility Vehicle due to engine fires and the Ford Focus
Sapiro had evidence that Ford threatened himself with Anti-Semitic sentiments. Ford was recorded as saying, “Sapiro is a shrewd little Jew. The bible says Jews will return to Palestine, but they want to get all the money out of America first. Sapiro should be kicked out because he is trash..” The result of the trial was humiliation for the Ford company and Henry Ford himself. After a hung jury in the first trial, the case was dropped when Ford wrote a lengthy retraction and apologized for his statements. Ford’s was declining in profits and production! among the worlds best. All as a result of Henry Ford’s ego. Thus, by 1931 Ford lowered in the ranks, controlling only 28% of the market 2nd to GM with 31%.
The means were limited design time and reducing costs. By cutting costs, Ford knowingly created a product which could prove dangerous and fatal to its consumers. Does Ford’s ends justify its means? Ford did create a sub-compact that sold extremely well and competed fiercely with foreign imports. The goal of the Ford Pinto was met. The costs of this win were substantial however. The money that Ford tried to save by not recalling the vehicle was spent when Ford recalled the Pinto, and extra was spent in compensatory and punitive damages in lawsuits. So the costs that Ford tried to avoid were incurred anyway along with extra.
One of the many problems during the hearing is the emergence GM not only knowing about the defective ignition switch, but they also switched the defective product for a working one, yet still kept the same product number. In addition, during Senator Boxer’s questioning, she revealed that GM made a decision not to fix the defective product due to GM claiming that it “was not an effective business decision” due to the high cost of fixing the problem and the length of time it would take. Senator Nelson also brought up the issue of how people would be able to drive cars that are known to have the defects, citing that customers deserve compensation in a quick and effective process and are not satisfied with GM’s solution of driving “with only the car key in the ignition”.
The Ford Motor Company and General Motors have greatly influenced and shaped the global automobiles industry over the 20th Century. While there are other big car-makers both in the United States and elsewhere in the globe, the two companies have been the commonest and significant players across the entire sector. This research focuses on an argument of how competition between both companies has benefited them.
The CBA itself did not force Ford to act unethically, their greed and their sole priority to avoid extra cost even if it meant the loss of a human life drove them to an unethical decision. Ford faced a simple problem, do they fix the Pinto or do they kill innocent people. Sadly, they preferred the money saving option, which was to ignore the defect and to pay compensates to effected families and loved ones. The company defended their decision using the CBA model as if they were legally exonerated from any penalties due to their actions. Fortunately, the jury did not see it as if their decision was justifiable even if the method to evaluate the decision
Ford should produce the products that are safe to be used. Besides that, Ford should also be honest to the customer by providing the truth information to the customer. In this case, the most important moral rights is every human being has the inherent right to live. Thus, Ford should disclose the dangerous of their products to the customer.
Ford convinced NHTSA that cost/benefit analysis would be appropriate for determining not to change the fuel tank. The costs were eleven dollars per fuel tank to change which ended up equaling 137.5 million dollars. This number is very large and much bigger than the benefit if they would have not changed it, which was 49.5 million dollars.
I think Pinto case raised some serious issue of abusing human rights and not behaving ethically in the world of business. Any business/service should never ever put a value on human life and not take consideration of a known deadly danger. Ford had an option as well as the solution to design the car in a way that prevented cars from exploding; however they refused to implement it. They thought that it was cost effective not to fix dangerous condition than to spend the money to save people in spite of the fact that the only added cost was $ 11 per vehicle.