Case Analysis Of The Ford Motor Company

Great Essays
A grand Jury indicted the Ford Motor Company on charges of reckless homicide and criminal negligence that played a part to the death of three teenage girls on August 1978 in Elkhart, Indiana. They were killed in a fiery crash when their Ford Pinto was struck from the rear by a van driver on U.S Highway 33 near Goshen Indiana. Their automobile exploded and burst into flames. The Elkhart County grand Jury argued that Ford Company had previous knowledge that the fuel tank of pinto in which Judy Ulrich, 18; her sister Lynn, 16 and their cousin Donna Ulrich, 18 was hazardous. The grand jury stated that Ford Motor Company “had the legal right to warn the general public," - a legal obligation that ford failed to regulate.
The Elkhart County grand
…show more content…
By not redesigning the tank and its position, or to change the tank product that would cost $11, but they decided to stick to their previous model because to amend the tank’s design and position is time and money consuming. Mother Jones magazine, got hold of a copy of the cost/benefit analysis which revealed Ford comparing the cost of $11 repair against the cost of paying off potential law suits, which is known as the Ford Pinto memo. Is amazing that ford failed to adhere to moral compass to carry out proper ethical decision instead they took a wrong approach. Ford decided it would be cheaper to pay off possible lawsuits for resulting deaths than to change or alter the design. …show more content…
So their influence on Mr. Iacocca’s decision to continue the pinto production would have been prevented. For starters, Ford Motor Company and its engineers failed to use the ultimate goal of Utilitarianism during the development and production of the Ford Pinto. Because Utilitarianism is based on the premise that our ethical choices, like other types of decision, should be based on their outcome......it consider both short-and long-term consequences when making ethical determination (Craig E.J., 2016). The ethical dilemma of lack of Altruism emerged from the engineers’ action once it became known that the result of the crash was a design flaws from the pinto; their interest was more on profit than saving life. They choose to disregard ethics of Moral Sensitivity whether or not they profit from doing so. Is quite obvious those involved with the Ford Pinto dilemmas experienced deontological ethics.
To express my perspective of organizational citizenship in the case of ford pinto. I understand that organizational citizenship is best described as the expectation of society from business, governments, and nonprofit organizations. In conducting business, is ethical to be transparent and truthful. My question is does the society view those actions taken by Ford Company justifiable? I do not think they made a responsible decision to protect the society. Because they failed to consider rational goals, respect and moral principles that governs a person's or group

Related Documents

  • Decent Essays

    Case Study Henry Inc.

    • 463 Words
    • 2 Pages

    To continue growth and remain competitive in the global market, Henry Inc., should expand its business into Canada. The country is financially stable with positive business trends and trade agreements with the U.S. Oil and energy competitors of Henry Inc. in Canada are doing very well due to the high demand for oil and energy products. Henry Inc. can compete with them in the United States, I am confident that Henry Inc. will be able to compete with them in the Canadian market. The research I have done for this report indicates the expansion will be profitable because Canada’s economy is growing and will continue to grow in the following years.…

    • 463 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Built Ford Tough. When one thinks of a company that manufactures pickup trucks, one would envision a company that builds the toughest, meanest, longest lasting truck ever- huge four wheel drive off road machines, with poor gas mileage-a tool to get the job done. This is definitely what I envisioned. Similarly, one could assume the target audience for a pick-up would be brawny, blue-collared construction workers or farmers who tow huge loads on dirt roads with ruts galore. They require a machine-better yet-a tool for work, something that is tough, manly, and no-nonsense.…

    • 497 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    “George Williams owns an automotive parts supply company in Southfield, MI. His largest customer is General Motors. Recently, George has set up a parts distribution center in Thailand due to cheap labor, a highly skilled workforce, and central access to a shipping port. He also hired a local consultant to help him set up. On arrival, George was faced with a dilemma, his consultant Mr. Sumardi, was unable to get the parts moved from the dock that is partly owned by the government and a private company named Sati Shipping.…

    • 993 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Now that Stark vs. Ford Motor Co. has been resolved it is important to review both the ethical and business implications resulting from the decision. In particular, was Indiana’s law just in the judgement of this case or should it be different? I believe Indiana law was reasonable in distributing remedies for contributory negligence because there was material evidence unlike in Whitted vs. General Motor Corporation. In this case, a man whom was in a car crash was injured because his seatbelt broke and therefore did not restrain him. However, the court declared, “Motorist failed to present evidence that seat belt was flawed in its design and failed to illustrate that better design was cost-effective, as required to have maintained cause of action on basis of duty to design product free of flaws that cause injury” Whitted v. General Motors Corporation, (U.S. App.…

    • 1535 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    Corporations as People: Canadian Business Corporations Act According to the Canadian Business Corporations Act, “A corporation has the capacity and, subject to this Act, the rights, powers and privileges of a natural person” (CBCA R.S.C., 1985, c. C-44). This enables corporations their own entity, with benefits individuals themselves do not possess. Corporations have full maturity upon creation, or ‘birth’. They also have the capability for eternal life.…

    • 937 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    In the late 190s, it was a challenging period for Newell Company. By 1997, three chains controlled roughly 80% of the discount retailer market. One of the strategic issues Newell facing is how to address the pressure of the customer buying power increasing. Another strategic issue in the 1990s was the acquisitions of Calphalon and Rubbermaid. These two acquisitions are the major stepping stone for them whether Newell Company has greater global presence and brand recognition in the market.…

    • 608 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    Lastly, the executives chose to use the theory of Relativism /Subjectivism. Basically, there is not an unique moral that applies the Pinto controversy. In reality, it could be interpreted by the person position in the mix of the…

    • 469 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Ford Ethical Dilemmas

    • 1068 Words
    • 5 Pages

    When it comes to the auto industry, one of the largest ethical questions is whether a company can put a dollar amount on human lives. Throughout the history of the automobile industry, there is to be case after case where automotive manufactures try to walk the fine line of using specific parts in a car to try and lower their costs, but also while making the vehicle more dangerous for the passengers. The idea of safety versus cost in the industry has many factors that must be considered to fully understand the ethical dilemmas. Multiple stakeholders are affected by the safety versus cost dilemma. The most important stakeholder in the case of safety versus cost is the customer.…

    • 1068 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    MEMORANDUM Subject: The current global manufacturing positon of the Caterpillar Corporation To: Board of Directors of the Caterpillar Corporation From: Jordan Hyatt, Corporate International Business Development Manager Date: November 28, 2016 ________________________________________ Executive Summary: There have been several questions from the Board of Directors of the Caterpillar Corporation regarding our current global manufacturing position. As you know we have had much success over the past two decades with expanding our network of foreign manufacturing operations. Our globalization strategy has allowed for the reduction of the impact of fluctuations in the value of the dollar on its profits.…

    • 921 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Corporate Level Strategy The Corporate Level Strategy employed by Ford Motor is a bit challenging in that they are not diversified in the sense that they have acquired other different types of business’s in order to grow their business and diversify. They in fact do have Ford Credit that provides financing as well as risk management services to dealerships and customers. Ford does operate under the Lincoln brand as this brand sells the luxury cars in order to compete in that market however it is not their main…

    • 2094 Words
    • 9 Pages
    Great Essays
  • Improved Essays

    Ford’s Product Offering & Classification Ford believes that they have state of the art dealerships which enable them to display their impressive Ford range the best. These automobiles are being displayed in an exclusive and immaculate setting. Their sales personnel are friendly, competent and well trained as they have to walk people through every aspect of procuring a new vehicle. Some of these aspects involve show the prospective buyer the potential products available and their specifications including package options available.…

    • 703 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Business Level Strategy (Exxon Mobil) Definition :( Business Level Strategy) “Business- Level strategies are actions firms take to gain competitive advantages in a single market or industry”. (BLS, 102).ExxonMobil is one the few companies that has been able to lead the oil and gas industry through its cost leadership. Its large economies of scale makes it dominant firm in the market as well as cost leader in the industry.…

    • 768 Words
    • 4 Pages
    Decent Essays
  • Superior Essays

    Volkswagen Case Analysis

    • 937 Words
    • 4 Pages

    Product Risk: A type of mortgage pipeline risk that occurs when a lender has an unusual loan in production or inventory but does not have a sale commitment at a prearranged price. Production is the process of combining various material and immaterial inputs to create an output for consumption or use. The output is a good or service which has value and garners demand. In the production lines of automobiles, the resources needed include raw materials such as steel and glass, machinery and human labour. Any error or mistake incurred during the production line is considered production risk.…

    • 937 Words
    • 4 Pages
    Superior Essays
  • Improved Essays

    This utilitarian approach is helpful for making ethical issues. For example in this Ford Pinto case, the economic cost is the main problem in this company. The choice between two safety devices in product design in determining which is more likely to reduce death and injury. Therefore, the utilitarian determination brings a high moral level, though, in some cases, they turn out to be…

    • 1009 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    1. What moral issues does the Pinto case raise? The Pinto case raises many moral issues. First, the case states that Ford knew of the faults of the Pinto and continued to sell them – even after they failed testing.…

    • 2054 Words
    • 9 Pages
    Great Essays