Ford and Firestone Case Study

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  • Topic: Ford Motor Company, Goodyear Tire and Rubber Company, Ford Explorer
  • Pages : 10 (3793 words )
  • Download(s) : 351
  • Published : April 2, 2013
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Summary

Ford motor Company is an American multinational automaker headquartered in Dearborn, Michigan, a suburb of Detroit. It was founded by Henry ford and incorporated on June 16, 1903. the company sells automobiles and commercial vehicles under the Ford brand and luxury cars under the Lincoln brand. The Firestone Tire and Rubber Company is an American tire company founded by Harvey Samuel Firestone in 1900 to supply pneumatic tires for wagons, buggies, and other forms of wheeled transportation common in the era. Ford-Firestone case is a unique and an appropriate example of violation of business ethics my two renowned corporation, Ford Motor Company and Firestone Tire Company, each of which was the manufacturer of a different product. This essay talks about as to how the leading car manufacturer Ford, can be held morally accountable for the various accidents and deaths which occurred in US due to vehicle rollovers of its popular SUV known as the For Explorer, However, Ford executives somehow managed to put most of the blame on Firestone by saying that the accidents and deaths occurred mainly due to tire blowouts, and therefore it is a Firestone tire problem and not a vehicle problem. On the other hand firestone claimed that many of the accidents were mainly due to the vehicle's lack of stability and were not due to its tires. Indeed much of the essay is about opposing statements made by the executives of Ford and Firestone. therefore, in order to have a better understanding of the case, it is important to understand the difference between when an item is a product in its own right and when it is component of another product. when thousands of parts cane into a Ford assembly plan, firestone tires were also like those other components that were acquired by Ford. Therefore it can be presumed that the tires were manufactured in a manner to suit the Ford specifications, and they did become a part of the assembly process. At the time of assembly Ford should have checked that whether the tires had the same high quality as other components. even according to the Utilitarian Approach, the manufacturer of the product should be held reasonable for the defects rather than the retailer, and it is the duty of every producer to ensure that it produces the safest products possible. Therefore based on the Utilitarian Approach, it can be concluded that Ford was unethical because it was controlling the process through which Explorer was produced, and therefore it is to be held morally as well as legally responsible for the defects which were present in the vehicle. End of Ford/Firestone relations on 2001. Chairman and CEO of Bridgestone/Firestone announced in a 2001 letter to Ford motor Company Chief Executive that Firestone would no longer enter into new contracts with Ford motor Company, effectively ending a 100 year supply relationship.

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The major ethical issue in this case is the ignoring an obvious crisis for so long, one in which people are being injured and in cases killed.   The minor ethical issues include the organizations involved in this case pointing fingers at both the consumers and each other and covering up evidence proving there is a problem. Ethics is a term that describes a whole set of values around now to behave morally, and treat people in ways that show respect for them. on the other hand Business Ethics can be defined as moral principles and values that govern decision and actions of a company. In the most basic terms, the definition of business ethics comes down to one thing for example distinguishing between right and wrong and opting to do what is right. Ford-Firestone case is a unique and an appropriate example of violation of business ethics by two famous corporations, Ford motor Company and Firestone, each of which was the manufacturer of a different product. The case gives an overview of the controversy involving the US automobile giant, Ford and the Japanese tire manufacturer, Firestone. By 2001,...
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