Ford Pinto - Executive Summary

Topics: Ford Motor Company, Ford Pinto, Ford Mustang Pages: 4 (1239 words) Published: March 8, 2011
Ford Pinto - Executive Summary

Executive Summary
Ford Motor Company introduced the Ford Pinto into the consumer market place and the end result was profit over human life. Ford Motor Company analyzed the cost of replacing an inexpensive part and found that it was cheaper to pay for suits resulting in accidental deaths and injuries. This summary will provide details and the factors surrounding the Ford Pinto case, the results of the production of the car and how Ford Motor Company changed its mission, values and guiding principles. The Ford Motor Company created what they felt would bring them a lot of profit, and in the end cost them more that just money, but their reputation.

People are faced with making practical and ethical decisions. These decisions do not always entail choosing right from wrong but at times, depend on a person’s choice or preference. However, in the business world, companies make decisions that affect their employees, stakeholders and most importantly, consumers.

An example of a business decision gone wrong is the Ford Pinto Case from early 1970’s which literally affected the lives of many people. Ford Motor Company manufactured supposedly an affordable car for the typical American. Unfortunately safety issues were overlooked which could have prevented the loss of innocent lives. An internal corporate struggle between two executives on which vehicles to market for the company and keeping up with the foreign competition, resulted in not only financial losses but the loss of human lives due to corporate greed. (De George, 2010 p. 13).

Ford’s production of the Pinto was solely responsible for injuries and deaths which resulted in lawsuits. Ford’s approach on handling business matters was about the bottom line. They overlooked standards and neglected the customer. These actions tainted there reputation. Senior executives, like Lee Iaccoca should have taken the utilitarianism approach of...
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