Categories: Ethics

Pinto Fires Case Analysis

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify">The concept of ethically responsible business is evident from the historical writings of Socrates and Confucius&comma; however during the end of 20th century&comma; business ethics has gained wide-scale acknowledgement as an important component of academic and corporate domains&period; There has been an increased emphasis on managers in organizations making decisions that reflected moral values &lpar;Bradburn&comma; 2001&rpar;&period; Businesses in today’s era increasingly rely on corporate social responsibility to create a positive image in the target market&comma; which ultimately helps the organization to gain a stronger position&period; This paper is based on the case of Ford Pinto&comma; offering a summary of the case study&period; Moreover&comma; three key ethical issues presented in the case have been identified&period; <&sol;p>&NewLine;<h2>Case Summary<&sol;h2>&NewLine;<p align&equals;"justify">The case discusses the fatalities that had occurred due to the fault in the fuel tank of Ford Pinto&period; The designing of the vehicle and significantly increased the risk of rupture of fuel tank and the vehicle being engulfed by flames&period; There have been different cases where the passengers have been critically injured due to the accident and succumbed to the burn related injuries&period; The case has specifically discussed the accident in 1978&comma; which involved Lynn Marie Ulrich&comma; Donna Ulrich and Judy Ann who died as a result of their car being hit from behind and the fuel tank bursting into flames&period; Another incident included in the case occurred in 1972&comma; involving Richard Grimshaw who got 90&percnt; burns on his body due to the rear end collision and ruptured fuel tank which caught fire&period; The case has pointed out the issues that the management has faced during the production of Ford Pinto&period; Furthermore the dilemma of lowering cost and product features has been discussed&comma; identifying the position taken by the management&period; &lbrack;sky&rsqb;<&sol;p>&NewLine;<h2>Ethical Issues<&sol;h2>&NewLine;<p align&equals;"justify">Ethical decision making involves analysis of the intensity of the ethical dilemma and making a judgment that appropriately addresses the ethical issue &lpar;Ferrell&comma; Fraedrich&comma; Ferrell&comma; 2013&rpar;&period; The case study illustrates that the decision making process adopted at Ford Motors reflected flawed judgment in terms of understanding of ethical and moral business responsibility&period; There are three key ethical issues that have been identified in the case&period; <&sol;p>&NewLine;<h2>Product Safety<&sol;h2>&NewLine;<p align&equals;"justify">The first ethical issue in the case is the lack of product safety&period; According to Shaw &lpar;2016&rpar;&comma; businesses have a core responsibility to ensure that the product they present to the market is safe for the consumers&period; Since managers in organizations are involved in the product development process&comma; they have a greater degree of knowledge about product safety issues and they have ethical responsibility to resolve those issues&period; The management was aware of the flaws existing in the fuel tank design&comma; however no remedial action has been taken to address the issue&period; The management has decided not to invest the &dollar;11 per fuel tank to being the needed improvement&period; The main emphasis of the management was on reducing the price of Pinto&comma; which resulted in their decision to deliver a vehicle that was low cost&comma; had a considerable trunk space&comma; but carried high risk of injury and mortality due to faulty tank design&period; Moreover&comma; the production time was reduced in order to effectively compete with the rival companies&comma; which further compromised the safety of vehicles&period; <&sol;p>&NewLine;<h2>Lobbying for Organizational Gain<&sol;h2>&NewLine;<p align&equals;"justify">The second ethical issue identified in the case was the act of lobbying against the federal safety standards for vehicles for organizational gains &lpar;Trevino &amp&semi; Nelson&comma; 2010&rpar;&period; Different vehicle manufacturing firms including Ford have created pressure on National Highway Traffic Safety Administration &lpar;NHTSA&rpar; to review the safety standards&period; This lobbying has resulted in delayed approval and implementation of the safety guidelines&period; During this time Ford continued to product Pinto&period; <&sol;p>&NewLine;<h2>Cost-benefit Analysis of Human Life<&sol;h2>&NewLine;<p align&equals;"justify">Management at Ford has adopted the method of conducting cost benefit analysis to decide whether to invest in making changes in the fuel tank&period; The analysis reflected that adjustment to fuel tank were not a necessary step&comma; therefore encouraging the management to pursue with the production of a high risk vehicle&period; Profit making took precedence over increasing product safety to protect human life &lpar;Weiss&comma; 2014&rpar;&period; Critics have raised concerns about the cost-benefit analysis implemented to the scenario as it didn’t take ethical responsibility into consideration &lpar;Trevino &amp&semi; Nelson&comma; 2010&rpar;&period; <&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<h2>References<&sol;h2>&NewLine;<p align&equals;"justify">Bradburn&comma; R&period; &lpar;2001&rpar;&period; Understanding business ethics&period; USA&colon; South-Western Cengage Learning&period;<br &sol;>Ferrell&comma; O&period; C&period;&comma; Fraedrich&comma; J&period;&comma; Ferrell&comma; L&period; &lpar;2013&rpar;&period; Business ethics&colon; Ethical decision making &amp&semi; cases&period; USA&colon; South-Western Cengage Learning&period;<br &sol;>Shaw&comma; W&period; &lpar;2016&rpar;&period; Business ethics&colon; A textbook with cases&period; USA&colon; South-Western Cengage Learning&period;<br &sol;>Trevino&comma; L&period; K&period;&comma; &amp&semi; Nelson&comma; K&period; A&period; &lpar;2010&rpar;&period; Managing business ethics&period; USA&colon; John Wiley &amp&semi; Sons<br &sol;>Weiss&comma; J&period; W&period; &lpar;2014&rpar;&period; Business ethics&colon; A stakeholder and issues management approach&period; USA&colon; South-Western Cengage Learning&period; &NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;

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