Throughout history, there have been many different cases in which businesses have made unethical decisions that have caused profound consequences. One of those cases had to do with the Ford Motor Company, and their Ford pinto vehicle. In the year 1968, Lee Iacocca along with other executives decided to manufacture and produce the Ford Pinto model to be sold to the public (Shaw & Barry, 2001). Knowing of a defect in the fuel tank, they still decided to provide their product to consumers in the market (Shaw & Barry, 2001).
Their vehicles began to portray their defects on crashes leading to the deaths of many people. Therefore, the people affected, the family members of the deceased, and states began to present lawsuits to the Ford Motor Company
Ford is one of the most honorable automobile manufacturers in the world today. Henry Ford (July 30, 1863 - April 7, 1847), founded this prestigious company in 1903. In the year of 1908, he made the Ford model T car, and developed an assembly line as a means of production. This development revolutionized the industry, and allowed Ford to be able to sell millions of automobiles and become known all across the world. This company has impacted so many families' lives by giving them a great means of transportation and a product that will be trusted. However, investors need to understand companies as much as possible because strengths, weaknesses, opportunities, and threats arise within every industry. In some areas, ratings may be higher than others.
Another corporation that operated unethically was Ford Motor Company with the production of the Ford Pinto. To compete with international competition and achieve Lee’s goal of producing the Pinto within a small time frame led to designing and manufacturing flaws. This resulted in a fuel tank design that would put the Pinto in a combustible situation should rear end accidents penetrate the poorly designed fuel tank. Realizing the design malfunction and deciding how to fix the fuel tank
Ford Motor Company is America's one of the largest car manufacturer and seller. In year 1987 it faces an external business environment change in the form of new warranty policy announcement by its major competitors General Motor, which changes the current philosophy of warranty in U.S car market. This policy change may have implications not only on Ford’s sales and market share but also on various departments within organization (such as manufacturing, quality assurance, parts and service, and extended service plans) and their dealer network. In answer, Ford executives have to respond through a best suitable course of action by carefully analyzing the current market variables.
ANS: The Pinto case raise the moral issues of what is the dollar value of the human life. That the businesses should not be putting a value on human life and disregard a known deadly danger. In order to perform a risk/benefit analysis, all costs and benefits must be expressed in some common measure. This measure is typically in dollars, as the Ford Motor Company used in its analysis. This can prove difficult for things that are not commonly bought and sold on the open market. Therefore, totell someone that there is a certain price for their life is a preposterous notion. There are numerous things which individuals consider priceless. Ford thought they could get
“Unethical thinking is not just “bad business”; it is an invitation to disaster in business, however rarely (it may sometimes seem) unethical behavior is actually found out and punished” (Solomon, 1997:17) An ethical dilemma happens when an intricate circumstance which often originates from a struggle amongst the moral requirements of two persons.
Ford entered into the automobile market many years ago and became the oldest car manufacturers. It is the first company which specialized in large scale manufacturing of the cars. The production of Ford cars is done in highly engineered way with the help of moving assembly lines.
What made the United States the great and successful nation that it has grown to be? Well there are multiple events, innovations, and ideas that were contributing factors to the growth of this country. Making it out on top of World War One, World War Two, and beating the great depression definitely made the nation stronger in the long run, or as the famous quote would put it; what doesn’t kill you makes you stronger. But those events aren’t what this paper is about, the genius inventions and ideas from great Americans such as Henry Ford are what really allowed the country to become what it has. At the start of the 20th century Henry Ford sought after a way to quickly and affordably assemble a motor vehicle that would be viable and feasible to the working middle-class of America. By constructing and designing the Ford Model-T, he was able to change the way American’s commute from 1908 to present day. The production of the affordable Model-T changed the face of American travel evermore.
Ford Motor Company has tough competition with European and Japanese manufacturers, therefore the company did not respond well and suffered
ANS: The Pinto case raise the moral issues of what is the dollar value of the human life. That the businesses should not be putting a value on human life and disregard a known deadly danger. In order to perform a risk/benefit analysis, all costs and benefits must be expressed in some common measure. This measure is typically in dollars, as the Ford Motor Company used in its analysis. This can prove difficult for things that are not commonly bought and sold on the open market. Therefore, totell someone that there is a certain price for their life is a preposterous notion. There are numerous things which individuals consider priceless. Ford thought they could get away
The Ford automobile company began producing the Ford Pinto line up in 1968. The Chief Executive Officer (CEO) at the time of the pinto production was Lee Iacocca. The reason for the decision to mass produce the pinto in a short amount of time is because American automobiles were losing market share to smaller Japanese imports. Lee Iacocca wanted his engineers to design and manufacture a compact car that weighed less than 2,000 pounds and cost less than 2,000 dollars. Because of this monumental task from Lee Iacocca, that meant the ford pinto automobile would have to be built within 25 months instead of the typical 43 months. There are many safety test that is mandated by the National Highway Traffic Safety Administration before a vehicle
One of the biggest automotive news stories in the latter part of the 1970’s dealt with tales of exploding Ford Pintos and the considerable awards civil court juries were presenting to victims of accidents involving the cars.
Moral issues that Ford Pinto case raises included producing dangerous products which are not safe to use it without informing the dangerous of the products to the public. In addition, lobbying the NHTSA to delay the safety measure of the products is also one of the moral issues that Ford Pinto case raises.
Gun control in America is a tough business. Second amendment advocates love to flourish their rights to bear arms. However, their stubbornness is causing many unnecessary complications that could be easily solved if they would cooperate more with legislators. The need for more a more thorough background check, more rigorous restriction on purchases and less selfishness is paramount to the evolution of our country.
Is the deception of consumers worth making a profit? The Ford Pinto, popular car of the 1970s, made a profit off of a vehicle that endangered the lives of hundreds of people. In his essay “Pinto Madness” Mark Dowie, author and Pulitzer Prize nominee, exposed the unethical decisions made by Ford Motor Company. When it came to their customer’s safety and profit for the company, Ford made a decision that led to consequences their customers had to pay the price for. Should the business be held accountable for these actions? In his essay “The Social Responsibility of Business Is to Increase Its Profit” Milton Friedman, powerful economist, discusses what a business should prioritize in the economic system. Friedman declares what a business is responsible for and the guidelines they must follow. Due to Friedman’s view, he would not have condoned the actions and decisions that the executives at Ford Motor Company took.
Business ethics since the beginning of this decade has been slowly eroding; if we are to believe what we see and hear in the media. Several times a day, one can view some derogatory piece of information concerning a business. However, it must also be considered that these companies are contributing to that stigma. There have been a variety of companies and individuals who have figured prominently in the media concerning their unethical behavior.