PHL 3314 Business Ethics

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School
San Francisco State University **We aren't endorsed by this school
Course
BUSINESS 1150
Subject
Business
Date
Nov 9, 2023
Pages
7
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1 Final Case Study Review: Ford Pinto Case Study Name University Affiliation Instructor Course Date
2 Final Case Study Review: Ford Pinto Case Study The Ford Pinto case study is a fascinating and important case study that examines how corporate ethics, decision-making processes, and negligence can all interact to create a tragedy. The case study focuses on the events that surrounded the infamous Ford Pinto, a cheaply made and quickly produced car that was released in 1971. The case study examines the poor decisions that were made by the Ford Motor Company in the development and production of the Pinto and the devastating consequences that resulted. However, the discussion provides an in-depth discussion and summary of the Ford Pinto case study by Hester and Adams (2017). The Ford Pinto was released by the Ford Motor Company in 1971 as an inexpensive and fuel-efficient car that was intended to compete with other small and foreign cars like the Volkswagen Beetle. The Ford Pinto was hastily produced in an effort to be the first company to produce a car in the subcompact market and Ford Motor Company sacrificed safety in order to get the car to market quickly (Pinto & Adams, 2017). The Ford Pinto was produced with a faulty design and poor-quality materials that resulted in numerous tragic consequences. The critical events of the Ford Pinto case study began in 1968 when the Ford Motor Company began to design and produce the Pinto. The company was under immense pressure to be the first company to produce a car in the subcompact market and as a result, safety was sacrificed in order to get the car to market quickly (Pinto & Adams, 2017). The car was produced with a faulty design and poor-quality materials that resulted in numerous tragic consequences. The first critical event occurred when the car was released in 1971 and numerous reports of fires began to surface. The car was designed in such a way that the fuel tank was located directly behind the rear axle and was prone to rupture in rear-end collisions. This design flaw resulted in numerous reports of horrific fires and deaths due to the faulty design of the Pinto.
3 The second critical event occurred in 1972 when Ford Motor Company became aware of the safety issues with the Pinto and began to analyze the costs associated with the recall and redesign of the car. The company conducted a cost-benefit analysis and concluded that it would be more financially beneficial to pay out damages in lawsuits than to recall and redesign the car. This decision has been heavily criticized and is often cited as an example of corporate negligence and unethical decision-making (Pinto & Adams, 2017). The third critical event occurred in 1978 when the Pinto was involved in a highly publicized trial. The trial resulted in the conviction of Ford Motor Company for criminal negligence and the company was ordered to pay out millions of dollars in damages. The trial brought global attention to the faulty design of the Pinto and the unethical decision-making of the Ford Motor Company. Central ethical issue This case study involves a number of central ethical issues such as job security, meaningful work, whistleblowing, marketing & advertising, and corporate social responsibility. The Ford Pinto case is a prime example of the ethical implications of job security. In this case, the company was under pressure to quickly produce a competitive product in order to maintain its market share. To do this, they made a decision to cut corners on safety and design, which ultimately led to an unsafe and defective product. This put the safety of their customers at risk, but also put their employees' jobs at risk (Pinto & Adams, 2017). This is an example of how companies can face difficult ethical dilemmas when they are forced to choose between protecting their employees' job security and protecting their customers' safety. The Ford Pinto case also raises ethical questions about meaningful work. Employees need to have meaningful work in order to be satisfied in their jobs and have a sense of purpose. In the
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