Preview

Business Ethics January 2013

Better Essays
Open Document
Open Document
1705 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Business Ethics January 2013
Business Ethics CA

by Brendan Traynor
D00110015

Introduction

In the following article we will discuss how multi-national organisations such as Ford, and Nestle saw fit to exploit Customers through clever lobbying, marketing, and pricing to buy their product over nature and competitors at the expense of human lives. We will discuss how Ford placed a price on human life, and how Nestle manipulated millions to die, as the provided false information. We discuss the ethical dilemmas around these issues.

The Ford Pinto

Infamously remembered as the very definition of 'Business ethics gone wrong '. Ford, in a bid to compete in the American small-car market, rushed their production of their Pinto model, this was to catastrophic repercussions, as in nearly all rear-end crash test, the car 's gas tank would explode. After been reported as a flaw, Ford decided that correction would be too time consuming and costly, $11 too costly. The general public were outraged by Ford 's sheer disregard for human life.

For every Ethical decision, one must consider the three steps to decision-making involved:

Analyze the consequences:

A report by Mark Dowie in 1977 entitled 'Pinto Madness ', claimed that Ford had knowingly put an unsafe car on the road, a car in which hundreds of people needlessly suffered burn deaths. Dowie goes on to explain that Ford engineers discovered, after testing, that rear-collisions would rupture the Pinto 's fuel system extremely easily. Ford owned the patent for a much safer fuel tank design, however, deemed that because production procedures were already in place, they would proceed with the original, unsafe tank. Dowie claims the result of all this claimed at least 500, if not 900 lives, 42% of all road-burn tragedies.

Ford admitted the fault and in-tastefully remarked 'Pinto leaves you with that warm feeling '. Their admission of failing the rear-collision standard test, prompted Ford to conduct a



References: Maeve McArdle (2013). Business Ethics January 2013. DkIT: DkIT College . 56.

You May Also Find These Documents Helpful

  • Good Essays

    During the trial there were four factors indentified that proved negligence and strict liability by Ford Motor Company. The design of the Pinto fuel system, the knowledge or failed crash tests by the Pinto prior to placing the car in the market, the Ford Motor Company cost benefit analysis, and the management’s decision to go forward…

    • 1441 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Mgmt 301

    • 386 Words
    • 2 Pages

    The Ford Motor Company contended that by strictly following the typical approach to cost-benefit analysis, they were justified in not making the production change to the Pinto model. Assuming the numbers employed in their analysis were correct, Ford seemed to be justified. The estimated cost for the production change was $11 per vehicle. This $11 per unit cost applied to 11 million cars and 1.5 million trucks results in an overall cost of $137 million.…

    • 386 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    * Ford Pinto: it had defects and automobile products that contributed to accidents and fatalities despite greater attention to safety features.…

    • 2303 Words
    • 10 Pages
    Good Essays
  • Good Essays

    2. Ford discovered that the fuel tanks position was in a 'vulnerable place' and the car failed to met crash safety standards.…

    • 747 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Ford Pinto is the worst car ever made and it was discontinued in 1980. The car was available as in three models, hatch, wagon, and coupe, whose design was not appealing. However, the main problem was the fuel system that was faulty and Ford had ignored designs to fix it. The poor design led to ignition and explosions of the fuel tank after minor rear or front collisions. The fuel tank was placed behind the…

    • 503 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    References: McGhee, T. (2014, November 11). Denver veterans file discrimination complaint, say housing is dangerous. Denver Post. Retrieved from http://www.denverpost.com/news/ci_26911272/denver-vets-file-discrimination-complaint-say-housing-is…

    • 817 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Pinto Fires

    • 453 Words
    • 2 Pages

    Another ethical issue in this case is rushing to get the Pinto in production and ignoring the failed crash-tests. They had prior knowledge that the fuel tank could rupture and continued production anyway. Once production was completed, and vehicles were on the road, a third related ethical issue started; the attention the recall coordinator was paying (or not paying) to reports of fuel tanks exploding from collisions.…

    • 453 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Ford Pinto

    • 1014 Words
    • 5 Pages

    In this ethical dilemma the team agrees it would have been handled differently. Within our group it seems that there would be different opinions of how it would have been handled. As an industry professional, ones moral obligation and responsibility of every employee within the organization to do everything he or she can within his or her power to ensure the company is providing a safe product for customers.…

    • 1014 Words
    • 5 Pages
    Better Essays
  • Good Essays

    It was further determined that when these elements are working together, they could have significant impact on reducing collisions. Alongside automakers, federal and local government agencies and other safety organizations agreed with the findings and began making changes. However, neither of the organizations would accept responsibility as to the cause of injuries or deaths due to the lingering liability issues. “If you don’t get into an accident you don’t have to worry about getting killed,” said Alex Haynes, an Executive Engineer for Vehicle Safety at Ford (Wetmore, 381). Many organizations continued to develop and push the three known elements to make driving a safer experience for…

    • 694 Words
    • 3 Pages
    Good Essays
  • Good Essays

    When the modern car was invented in Britain, the government enacted the Red Flag Act that required three people at all times to operate the vehicle: a driver, a person to fuel up the vehicle, and someone to stand in front of the car and wave a red flag. The government was worried that cars would endanger civilians, and enacted a two mph limit in urban areas. Soon after, the commercialization of vehicles shifted to the United States, and Henry Ford would initiate Ford, the car company, in 1903. Without having to be concerned with regulations similar to the Red Flag Act, Henry was able to create vehicles that traveled up to forty-five mph. This more efficient method of traveling would later on prove to be disruptive for the horse and buggy industry, causing the number of horse to decline tremendously over the course of forty years. Nonetheless, the invention of the horse-less carriage was an easy target that acquired multiple technological problems in the process of development. Even more true, past supporters of the Red Flag Act had a reason to worry because cars were dangerous, and in today's times, they are the leading cause of accidental deaths. However, despite such worries, Ford did not have to be rules of the horse and buggy business trying to stifle the emergence of…

    • 875 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Firetone Collapse

    • 903 Words
    • 4 Pages

    However, there was no definitive evidence to indicate that Ford's design specification for Explorer's tires was to blame. A lawyer representing some of the victims said, "There are a lot of smoke and mirrors going on, Ford can say it's Firestone's fault, and Firestone can say it's Ford's fault."5…

    • 903 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    During this time the competition and pressure were intense. Wanting to be able to compete with the Japanese imports Ford created and rushed the production for their new Pinto. In making a reliable and safe car, production time usually last 43 months. The production for the pinto was finished in 25 months. The rush production and designed kept the price to sell less than $2,000. The test for rear end impact wasn’t tested until after it was produced and it failed. Ford Engineers knew that the testing for the rear end impact was a standard safety procedure. Engineers also knew of the major flaw on the car’s design. The fuel system was highly susceptible to rupturing and could lead to explosion. Because cars were already being assembled and wanting to meet the non-negotiable specifications set by Lee Iacocca Ford went ahead and released the car just to beat the competition. So the Ford Pinto went on sale with dangerous faults in the position of the fuel tank and the tendency for the fuel valve to leak in accidents if het from the rear (Leggett 1999). The car sold well, seven years after the release date through 1978 when it was finally recalled to have the baffle inserted. The cost benefit analysis demonstrated an abuse of utilitarian principles and the engineers were fully aware of the flaws yet the company continued to sell the car as it was with safety modifications. For $6.65 to $11 per car a baffle could’ve been placed between the bumper and gas tank and the Pinto would have compared to other cars of its class with respect to the danger of fire from rear end impact. Ford weighed the risk of harm and the overall cost of avoiding it. Did Ford put a price on human lives or was Ford trying to compete with foreign car companies to put an American vehicle made fuel efficient on the…

    • 903 Words
    • 4 Pages
    Good Essays
  • Better Essays

    The Ford/Firestone Case

    • 1211 Words
    • 5 Pages

    Ford and Firestone knew that they were having problems with their products before all of these accidents happened. For instance "Ford internal documents show the company engineers recommended changes to the vehicle design after it rolled over in company tests prior to introduction."(www.ratical.org/corporation) Moreover, "In 1998, mounting insurance claims already had indicated to financial staff members at Firestone that a problem existed with the tires." (www.ombuds.org.) But Ford and Firestone did not take any action to fix the problem. So it was obvious then that they were not concerned for the well being of the people. Even staff members who knew that the safety of customers was in danger due to the defect of these…

    • 1211 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Ford was primarily motivated by profit and market share, evidenced by their decision to not recall the car and choice to pay lawsuits instead of fixing the gas tank issue. Ford completely disregarded their responsibility to produce a safe product by foregoing the universal safety standards in order to increase profit – this action is not intrinsically valuable as it acts for the good of the company. If this maxim of foregoing car safety in order to increase profit was applied universally, there would be obvious contradiction from the employees of Ford who drove a pinto and would not agree to this rule. This contradiction implies that the maxim to forego safety standards in the interest of profit is not morally valid, and Ford using this maxim to make the decision to not recall the cars is morally…

    • 338 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Ford vs. Firestone

    • 373 Words
    • 2 Pages

    Bridgestone-Firestone should be given some of the blame for the deaths caused in the case. Especially since their tires were witnessed to have been made from foreign and faulty ingredients such as dried out rubber and cigarette butts. But, most of the blame should be placed on Ford's shoulders. Ford was so concerned with the bottom line that it used lower grade C tires instead of the more heat resistant type B tires. Ford engineers should have been aware of the danger in not using a more heat resistant tire, especially after the first few reported cases of blowouts and flipped SUV's. A company that considered itself to be an industry leader in safety overlooked something as basic as the tires.…

    • 373 Words
    • 2 Pages
    Good Essays