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Ford Pinto Case Study MGT 216 Kia Pinto Example The purpose of this kind of paper is to determine whether Ford was going to blame in the Ford Pinto Case. This paper provides possible solutions as well as assisting statements. This paper will certainly examine almost all external cultural pressures and determine how external pressures affect individuals’ points of view.
Further, this conventional paper will go over how the issue would be viewed differently in the current society. In the current society honest issues happen to be under large scrutiny. To examine this case carefully, the time and social rules of the time should be taken into consideration.
The top question with all the case is whether or certainly not the Honda business acted ethically when designing the Pinto’s fuel system. The case was put under a microscope and analyzed as the company did not upgrade the integrity in the system right up until 1978 because of the cost benefits analysis. In determining regardless of whether to make the production change, the Ford Motor Company looked after itself by simply contending it used a risk/benefit research. Ford stated that its reason for utilizing a risk/benefit analysis was due to the fact that the Nationwide Highway Visitors Safety Supervision (NHTSA) needed them to do it (Leggett, 1999).
Business people must not forget they may have a sociable responsibility as well as a responsibility of maintaining organization ethics. If faced with an ethical problem similar to that in the Pinto case, it will be important to consider the elements and point out to management that it is unethical to knowingly marketplace a car with unsafe parts to the public (De George, 2006). Taking the time to put in much more money to create a quality product is more important than building a car that will sooner or later be remembered and decrease in future earnings.
Quality and safety are on the brains of consumers when ever purchasing a car. When the automobiles are made of good quality, it displays the individuals who the values and values of a company are stable and that the firm puts pleasure in their operate. This makes certain that there develops a trust between buyer and firm, and possibly a long relationship between the two. In the event these findings do not convince management, it ought to be suggested to publish a caution on the risks associated with the Pinto and/or issue a remember. The last alternative would force management for taking nother check into investing even more in their autos. If administration declines the request to share with the public then the ethical decision would be to “blow the whistle. Safety should be the first matter. Putting one self behind the wheel with family will make that decision convenient. Any information will be distributed anonymously and made known in all varieties of media towards the public (Nadler & Schulman, 2006). The social pressures that Kia Motor Business faced had been: decline in sales, elevated risk of a lawsuit and legal cases, and their status being slandered.
The Ford Corporation understood from the beginning the fact that Pinto was dangerous. In case the corporation ongoing to produce the Pinto they understood there was a risk of a large number of lawsuits (class action) and litigation coming. The corporation conducted a cost-benefit analysis to determine how various deaths might occur and just how it would influence the company fiscally. The cost-benefit analysis will determine the price the company would be responsible for when a certain percentage of the deceased persons’ families sued the company and won (DeGeorge, 2006).
It had been in the best interest with the company to slice their deficits and stop manufacturing the Pinto because the issues became open public. Their standing was tarnished, despite the fact that that they corrected the difficulties. This lead to a reduction in sales/profits since the consumers wouldn’t invest in the Pinto due to prior issues. Consumers didn’t care that they corrected the difficulties. The best option pertaining to Ford is to invest in a more secure and better product and cut their particular losses. During the 1970s it may have been clear to Honda that the public was not beneficial to all of them ignoring the difficulties concerning the energy tank.
Despite the fact that they reasoned it out of their calculations with a risk/benefit analysis, safety was a factor to buyers also back then. A similar approach mentioned above could have been applied back then as well. Step one could have been stimulating management to make the right decision. Ford must have decided to certainly not produce extra cars while using issue. Submitting a warning to all customers of the (impaired) car also needs to have occurred, along with an offer of upgrading the gas tank together with the appropriate parts free of charge.
If management dropped to do some of these then coming the whistle would be ideal. As mentioned before, one particular just needs to put themselves in the driver’s seat along with their family to comprehend the importance of correcting the problem. You truly cannot place a price over a human being, regardless of hard you try. Essentially, ethics and morals happen to be nearly certain at the same hand. A vehicle, knowingly defective, could be sold day in and day out for personal and company gain. Integrity plays the part if the entire organization is knowingly and encouraging these types of actions.
A re-call over a vehicle is not the fault of the salesman selling the auto in Wheeler, TX. Is it doesn’t right and duty of the auto-maker to let the salesman in Wheeler, TX aware of the defaults inside the vehicle in order for that salesman to inform his customers of the automobile they are prepared to purchase. THIS is a great ethical violation! It becomes a great ethical problem, when the Corporates encourage the sales of these ill-made cars simply to be able to meet they’re bottom line. (Toyota).
It is amazing that when all of us speak of integrity that we hardly ever speak of ideals. The CEO’s, COO’s CFO’s have no principles in these situations, therefore they may have no honnête or ethics. Rarely can we see the mind of a Bundle of money 500 Business come out widely and acknowledge that they experienced no ethics going into this project. Values has gone by the waste-side in recent times and the corporations are not the sole ones to blame. These personnel of they’re rightful businesses have literally forced almost all of there staff to, socalled, “play ball for sales, benefits and bonuses.
Regardless of the cost or expense towards the consumer. Simple that values still lives and breathes in our company world, nevertheless until you will find morals and honesty, the American folks are simply performed buying what they are selling! Recommendations De George, R. (2006). Chapter doze Whistle coming. “Business Ethics, 6thed. New Jersey: Prentice Hall Leggett, C. (1999). Lifestyle as it applies to the Negligence-Efficiency. Retrieved coming from http://www. wfu. edu/~palmitar/Law&Valuation/Papers/1999/Leggett-pinto. html on February 9, 2011
