There is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without. The ford motor company has faced a good deal of criticism for their choices in that case. This article details the personal involvement of the author in the early stages of the infamous pinto fire case. In the pinto case, fords decisionmaking framework is a great example of why it is not a good business strategy to employ an egoist whom recklessly views consumers as a means to their selfish ends. Gioia on august 10, 1978, three teenage girls died horribly in an automobile accident. As a thorough study, this book provides material that enriches the entire idea of. Ford had the design to reduce the possibility of ford pinto from exploding. This paper recounts the ford pinto case, describes various ethical. Hoffmans treatment of the case raises some of the questions about the difficulty of determining relevant standards that will be raised later in this paper. Case study analyzing ford\s ethics during the 1970\s pinto debacle. Ford engineers began their duties and in 25 months the ford pinto was on showroom floors for sale in 1971. Perrault slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Ford followed the federal safety standards as they where current written. Can be used as part of a series, managing product safety, the opportunity to compare and contrast the social response strategies employed by companies involved in a catastrophic product safety controversy as intended to be used.
During the 1970s there were many documented cases of ford pintos bursting into flames as a result of rearend collisions. The placement of the cars fuel tank was the result of both conservative industry practice of the time as well the uncertain regulatory environment during the development and early sales periods of. The ford pinto has been cited and debated in numerous business ethics as well as tort reform case studies. These are the sources and citations used to research the ford pinto case. The major blow to ford in the grimshaw case was the discovery that it knew of the potential vulnerability of the ford pinto design but. The evidence suggests that ford relied, at least in part, on costbenefit reasoning, which is an analysis in monetary terms of the. Act utilitarianism applied to the ford pinto release. The paper first presents an insider account of the context and decision environment within which he failed to initiate an early recall of defective vehicles. The ford pinto was completely engulfed in flames and the accident resulted in the death of the three young girls.
Ford motor company manages ethics and social responsibility. This paper recounts the ford pinto case, describes various ethical decision. An alternative account of the ford pinto case pdh online. The cases involving the explosion of ford pinto s due to a defective fuel system design led to the debate of many issues, most centering around the use by ford of a costbenefit analysis and the ethics surrounding its decision not to upgrade the fuel system based on this analysis. The ford pinto case and the development of auto safety regulations, 18931978 article pdf available january 1998 with 2,620 reads how we measure reads. Pdf case study ford pinto case jose calel academia.
The purpose of this paper is to look at three different types of ethical theories and they are applicable to ford pinto case. It is a perfect example of white collar crime where profit is prioritized over ethical concerns. The ford pinto case is today considered a classic example of corporate wrongdoing and is a mainstay of courses in engineering ethics, business ethics, philosophy, and the sociology of white collar crime. Fords decision was based on the results of a costbenefit analysis contained in the notorious pinto memo, written by ford engineers to guide design decisions.
Ethical theories applicable to ford pinto case philosophy. Ford pinto caseevents in the 1970s related to the ford pinto automobile illustrate some of the ethical issues related to technology and safety. The ford pinto is a subcompact car produced by the ford motor company for the model years 19711980. A cognitive script analysis of the personal experience is then offered as an explanation of factors that led to a decision. Ford knows the pinto is a firetrap, yet it has paid out millions to settle damage suits out of court, and it is prepared to spend millions more lobbying against safety standards. Ford pinto case ethical issues on august 10, 1978 three young girls died in a 1973 ford pinto after being stuck from the rear by a driver in a van. Ford motor company manages ethics and social responsibility introduction ford motor company, one of the big three automakers, was established in detroit, michigan, on june 16, 1903. Michael hoffman, was included in the first edition of business ethics, ed. Ford decided, however, not to change the position of the gas tank primarily in order to reduce production costs. Driving a 1973 ford pinto to their church volleyball practice in goshen, indiana, they were struck from behind by a chevrolet van. On august 10, 1978, a tragic automobile accident occurred on u. Mounted in this position, the tank was punctured during tests by projecting bolts when hit from the rear at 20 niph.
Ford pinto ethics when it comes to ethics, safety and car companies, more recent events like the protracted toyota or general motors recall issues or the fordfirestone fiasco probably come pages. Kramer the ford pinto ethical dilemma in this presentation, a very important case that transpired from 1971 to 1978 with the ford motor company, under the. However, the company refused to implement it, although it can prevent 180 deaths from. To monetize human life for the purpose of a costbenefits. The lawsuits brought by injured people and their survivors uncovered how the company rushed the pinto through production and onto the market. When ford began development of the pinto in 1968, the company hoped that the cars smaller size and price tag would help it compete with japanese and. Pdf despite a long tradition of ethics training in business colleges. The ford pinto ethical dilemma written by learning team b. Ford and the auto industry in general convinced nhtsa regulators that a costbenefit analysis would be an. Abstract, in designing its 1971 pinto, the ford motor company.
Provides an accounting of the ford motor company handling a product security controversy 19701977 his surroundings pinto subcompact. The ethical dilemma in the ford pinto case essay 1604 words. Ethics is a general term which involves the aspects of rights and wrongs which determines the way in which humans live together in harmony in any given society. The pinto case brought up issue of abusing human rights and behaved unethically in business. Between 1971 and 1978, approximately fifty lawsuits were brought against ford in connection with rearend accidents in the pinto. In an effort to produce a stylish but affordable subcompact automobile with a low operating cost, ford motor company management made a questionable decision regarding the positioning of and protection for the fuel tank. Sisters judy and lynn ulrich ages 18 and 16, respectively and their cousin donna ulrich age 18 were struck from. Ford did not reveal all the facts to consumers about a. The model t, in particular, was the one turning point that put ford on the map.
The normal time to produce an automobile is 43 months ford took 25 for the pinto. Iacocca viewed people as objects to be manipulated and harmed in order to achieve his ultimate end of high pinto sale numbers. The pinto, a subcompact car made by ford motor company, became infamous in the 1970s for bursting into flames if its gas tank was ruptured in a collision. This bibliography was generated on cite this for me on monday, january 23, 2017. The conventional account of the case goes something like this.
Ford pinto the case over here is that of pinto a car launched by ford motor company. The ethical dilemma in the ford pinto case essay 1610. The quality of most japanese products usually was as low as their price. In fact, few imports could match their domestic counterparts, the. The case of the ford pinto in the early 1970s when competition from japans auto makers was heating up, gas prics were easing, the demands for energy conservation were just around the corner awaiting the arab oil boycotts that arrived first in 197374, ford motor company with lee iacocca as its president, introduced a new line of cars, the. The ford pinto and the dominant view this car became legendary, though perhaps infamous is a better word for the pintos reputation. In designing its 1971 pinto, the ford motor company. Before production, ford engineers discovered flaws in the cars design. The ford pinto case businessmarketing bibliographies.
In the ford pinto case, what moral issues does the pinto case raise. The pinto was a subcompact car manufactured by the ford motor company for the model years 19711980. So, milton friedman gives us what has become the dominant view of business social responsibility. During the development of the pinto, ford and other automakers faced increased safety requirements for the federal government and consumer groups. The invisible corporate human pricetag in this essay, i will argue that ford motor companys business behavior was unethical as demonstrated in the ford pinto case. Center for the study of ethics in the professions, illinois institute of technology.
The cases involving the explosion of ford pintos due to a defective fuel. Ford pinto full details and analysis report with references 1. Taylor gray brenda greenwell christopher macintyre leanne marks university of phoenix mgt 216 march 17, 2010 table of contents introduction 3 recommended solutions and supporting information to the ford pinto case 3 traffic safety and accident data 4 ethical opinion 5 influences from external social pressures 5 case examined with the period eye 6. The ford pinto scandal is now part of the lore of american culture. In nearly all rearend crash test collisions the pintos fuel system would rupture extremely easily. Founder henry ford converted an old wagon factory to house his new inventions. The main controversy surrounding the ford pinto case was the ford motor companys choices made during development to compromise safety for efficiency and profit maximization. In designing its 1971 pinto, the ford motor company decided to place the gas tank behind the rear axle. As a thorough study, this book provides material that enriches the entire. A paper i wrote for my business ethics class, not particularly a particularly creative or exciting assignment but i wanted to show some of my more formal writing. Read this free business coursework and other term papers, research papers and book reports. Revisiting the ford pinto case fhsu scholars repository. Ford pinto full details and analysis report with references. Price organizational ethics and social responsibility 16 aug 2010 paul a.
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