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. The customer trusts that the company who manufactured their vehicle …show more content…
Ford and their investors are also stakeholders in this case, as the sales of their vehicles determines profit and directly influences the value of investors’ investments. While a car company generally has the power to piece together a vehicle however they please, investors are salient, and they could bail out of their investments if they see lower sales. According to investor behavior, once one investor flees, others will follow suit, so it is imperative that Ford and other car companies maximize profit. The companies clearly feel competitive pressure in these situations, and this can lead to ethical failures …show more content…
So is it ethical to put a dollar value on human safety? In cases such as the Ford Pinto case or cases related to this one, it is important for companies to follow specific ethical performance standards such as honesty and transparency in the parts they use in their vehicles. The world was a different place in the 1970’s, and harmful incidents like cars exploding because of collision would not be as well-known because of the lack of access to news and information. In today’s world, consumers are becoming much more informed and will do their due diligence before making a large purchase like a vehicle. If a company like Ford is trying to hide a defect or flaw in one of their vehicles, they will be discovered by consumers, leading to bad press and sales through sales reviews, word of mouth, etc. It’s crucial for large organizations to have solid ethical performance standards such as honesty and transparency. The ability to cover up flaws in a design is a thing of the past and today’s consumers wants to know that they can trust the manufacturer they are buying their vehicle from
Multiple stakeholders are affected by the safety versus cost dilemma. The most important stakeholder in the case of safety versus cost is the customer. The customer trusts that the company who manufactured their vehicle …show more content…
Ford and their investors are also stakeholders in this case, as the sales of their vehicles determines profit and directly influences the value of investors’ investments. While a car company generally has the power to piece together a vehicle however they please, investors are salient, and they could bail out of their investments if they see lower sales. According to investor behavior, once one investor flees, others will follow suit, so it is imperative that Ford and other car companies maximize profit. The companies clearly feel competitive pressure in these situations, and this can lead to ethical failures …show more content…
So is it ethical to put a dollar value on human safety? In cases such as the Ford Pinto case or cases related to this one, it is important for companies to follow specific ethical performance standards such as honesty and transparency in the parts they use in their vehicles. The world was a different place in the 1970’s, and harmful incidents like cars exploding because of collision would not be as well-known because of the lack of access to news and information. In today’s world, consumers are becoming much more informed and will do their due diligence before making a large purchase like a vehicle. If a company like Ford is trying to hide a defect or flaw in one of their vehicles, they will be discovered by consumers, leading to bad press and sales through sales reviews, word of mouth, etc. It’s crucial for large organizations to have solid ethical performance standards such as honesty and transparency. The ability to cover up flaws in a design is a thing of the past and today’s consumers wants to know that they can trust the manufacturer they are buying their vehicle from