Ford Pinto Case Study
Ford Pinto Case Study
MGT 216
Ford Pinto Case Study The purpose of this paper will be to determine whether Ford was to blame in the Ford Pinto Case. This paper will provide possible solutions as well as supporting statements. This paper will examine all external social pressures and determine how external pressures affect individuals’ points of view. Further, this paper will discuss how the issue would be viewed differently in today’s society.
In today’s society ethical issues are under heavy scrutiny. To examine this case thoroughly, the time and social norms of the time must be taken into consideration. The big question with the case is whether or not the Ford business acted ethically when designing the Pinto’s fuel system. The case was put under a microscope and analyzed because the company did not upgrade the integrity of the system until 1978 because of the cost benefits analysis. In determining whether or not to make the production change, the Ford Motor Company defended itself by contending that it used a risk/benefit analysis. Ford stated that its reason for using a risk/benefit analysis was due to the fact that the National Highway Traffic Safety Administration (NHTSA) required them to do so (Leggett, 1999).
Business people should not forget that they have a social responsibility as well as a responsibility of maintaining business ethics. If faced with an ethical dilemma similar to that in the Pinto case, it would be important to consider the factors and remind management that it is unethical to knowingly market a car with unsafe parts to the public (De George, 2006). Taking the time to put in a bit more money to make a quality product is more important than building a car that will eventually be recalled and decline in future profits. Quality and safety are on the minds of consumers when purchasing a car. When the cars are made of good quality, it shows the consumers that the values and ethics of a company are solid and
MGT 216
Ford Pinto Case Study The purpose of this paper will be to determine whether Ford was to blame in the Ford Pinto Case. This paper will provide possible solutions as well as supporting statements. This paper will examine all external social pressures and determine how external pressures affect individuals’ points of view. Further, this paper will discuss how the issue would be viewed differently in today’s society.
In today’s society ethical issues are under heavy scrutiny. To examine this case thoroughly, the time and social norms of the time must be taken into consideration. The big question with the case is whether or not the Ford business acted ethically when designing the Pinto’s fuel system. The case was put under a microscope and analyzed because the company did not upgrade the integrity of the system until 1978 because of the cost benefits analysis. In determining whether or not to make the production change, the Ford Motor Company defended itself by contending that it used a risk/benefit analysis. Ford stated that its reason for using a risk/benefit analysis was due to the fact that the National Highway Traffic Safety Administration (NHTSA) required them to do so (Leggett, 1999).
Business people should not forget that they have a social responsibility as well as a responsibility of maintaining business ethics. If faced with an ethical dilemma similar to that in the Pinto case, it would be important to consider the factors and remind management that it is unethical to knowingly market a car with unsafe parts to the public (De George, 2006). Taking the time to put in a bit more money to make a quality product is more important than building a car that will eventually be recalled and decline in future profits. Quality and safety are on the minds of consumers when purchasing a car. When the cars are made of good quality, it shows the consumers that the values and ethics of a company are solid and
References: De George, R. (2006). Chapter 12 Whistle blowing. “Business Ethics”, 6thed. New Jersey: Prentice Hall Leggett, C. (1999). Life as it applies to the Negligence-Efficiency. Retrieved from http://www.wfu.edu/~palmitar/Law&Valuation/Papers/1999/Leggett-pinto.html on February 9, 2011