Ford Pinto- Ethics Essay

September 6th, 2010

Pilum O'Dell

Current Ethical Problems in Business: The Ford Pinto Fires

In early 1968, the Ford Motor Company chosen to take on the foreign car competition by launching a compact, affordable vehicle they will named the Pinto. What began since the decision to enter the competition for the top small car ultimately generated an unmatched court circumstance wherein the Ford Motor Company identified itself incurred with reckless homicide and was the first company charged with criminal carry out. In this conventional paper, the authors delve into the tragedy with the Ford Pinto fires plus the ethical specifications and boundaries of the Ford Motor Business at that time. Record

For two years, then-president Semon " Bunky" Knudson and Lee Iacocca engaged in a battle of power about the Pinto (Gioia, n. d. ). Knudson was of the opinion that Ford should certainly stay out of the tiny car market and concentrate instead on the more successful areas of medium and large model vehicles. Iacocca, on the other hand, placed firm in the belief that Ford need to one-up the competition and join the race in the small car arena. Ultimately, Iacocca was authorized to maneuver forward with production from the Pinto (Gioia, n. deb. ).

Mainly because Iacocca needed the Pinto released while using 1971 automobile models, the availability planning period was drastically reduced by three and one-half years to roughly two years. Additionally , he applied a specific objective known as " the limits of 2, 000" (Gioia, n. m. ). This kind of goal meant that the Pinto could not be more expensive than $2, 000 and can not consider more than two, 000 pounds. Consequently, the rush for achievement led to the Pinto's limited gas tank style resulting in the tank exploding upon get in touch with in rear-end collisions. In spite of crash check results that made Kia fully mindful of the faulty tank design and style, Ford opted to stick having its original gas tank design instead of spend the extra $11 per vehicle. To correct the faults in design as recognized in Ford's cost benefits analysis assuming that the $11 to improve the tank style was an unjustifiable expenditure, despite the understanding gleaned via Ford's personal crash assessments indicating that deaths and burn off injuries were imminent, (Schwartz, 1990).

By 1973, field reports were surfacing proving the fact that Pintos had been susceptible to exploding and getting fire when ever in posterior collisions at speeds under 25 mls per hour. Naturally fact as well as the increase in this sort of reports in future years, zero recall was issued right up until 1978 once Ford finally recalled 1 . 5 million Pintos created between 70 and 1976. Unfortunately, it was too little past too far as many persons had currently suffered horrific deaths and burn traumas, their lives forever transformed as a result of Ford's unwillingness to bypass their particular cost benefits analysis and invest $11 per automobile to prevent pointless death and injury (Schwartz, 1990). Issue

In the 1960s and 1970s, consumers were not excessively concerned with vehicle safety (Gioia, n. d. ). Iococca was noted for regularly remarking " Safety will not sell. " This was a lesson he previously learned in the 1950s after his attempt to put costly safety features to Honda vehicles failed. Ford tried relocating the gas tank, but eliminated those options when it became obvious that the useful trunk space was damaged.

Had Honda responded to the field reviews in a appropriate, ethical way by taking the time to recall and repair the gas storage containers already traveling and those gonna be produced, multiple deaths, and accidental injuries could have been averted. Instead, Ford chose avarice over basic safety. There were several ground rules that manifested the ethical problems that the Honda Pinto was then facing. To begin, Lee Iacocca had not been concerned intended for safety; the primary ground guideline was that " the Pinto was not to weigh an ounce above 2, 1000 pounds and not cost a nickle over $2, 000” (Peabody, 2009). Certain product aims that were then manifested to be able to stay within the ground regulation. The goals were, " true subcompact...

References: Casotti, L., Lafler, N. & Lindaman, L. (2004, В October). Ford Pinto Case [PowerPoint slides].

Right (4th ed. ). Hoboken, NJ-NEW JERSEY: Wiley

Peabody, M. В (2009). В Once there was a way to settle back home. В Mugsy Peabody On the net. В Retrieved

via http://mugsypeabody.blogspot.com/search?q=ford+pinto

Schwartz, G. To. В (1990). В The Myth in the Ford Pinto Case. В Point of Rules.

RetrievedВ fromВ http://www.pointoflaw.com/articles/archives/000023.php

Valdes-Dapena, P. В (2010). В Tagged: twelve cars with bad reputations. В CNNmoney. com. В Retrieved



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