Question

With Ford Motors in mind explain the following:

Times of turmoil within a company can also be times of temptation to cut corners. Discuss one potential ethical issue the company could face as it considers strategies. Then recommend a method for counteracting this unethical behavior.

Answer 1

Ford introduced Ford Pinto in 1970s which is a small and lighter car than other small car segment; introduced as a strategy to tackle the soaring energy prices and to combat the Japanese competitors. The controversy began when a magazine exposed that car was prone to fire in the rear-end collision. Further investigation revealed that Ford knew of the problem but chose not to fix it because the company found it cheaper to pay for the injury claims rather than fixing the cars. Three teenage girls died in an incident with Ford Pinto car. The court confirmed that it was a case for negligent homicide however the company was acquitted from the case. Finally, in 1978 the company initiated to install a new filler cap and other parts to deflect contact in the event of a rear end collision of the Pinto car. Though the company has installed new parts to avoid the severity of the rear-end collision accidents, doubts have been raised as to how severe the defect actually was.

The ethical issue faced by the company is to produce cars that are economical in pricing compromising on the safety of the car. In this situation, the company should choose safety first and then produce cars based on all the safety regulations. The company could have assured safety and used it as a strategy to promote the small cars. Safety is the prime requirement for all customers who do not mind giving a higher price for safety. Pinto cars would have been a great hit if the company chose safety as a strategy to market the product.