Ford Case Study Discussion & Executive Summary Case Study

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Case Study Discussion & Executive Summary Objectives Identify ethical problems faced managers. Apply steps ethical moral decision-making address management issues. Use ethical perspectives make management decisions.

Ford Pinto case study discussion & executive summary

Managers must continually balance their own, personal sense of ethics with the need to render a company profitable. In the case of Ford, the pressure to create an affordable car resulted in the company making unethical decisions that hurt customers and also hurt Ford's reputation and bottom line. While setting certain benchmarks of quality and cost are vitally important, Ford's stubborn refusal to install a basic safety control device in the Pinto is an example of how a failure of diverse sources of information and unwillingness to deviate from the chosen path of an organization can result in folly.

Ethical and moral decision-making must be integrated into the managerial decision-making process. Just as Ford set benchmarks for the Pinto's cost and its weight, it should also have set ethical objectives in terms of customer safety. As a company, rather than making safety one of its core values, it aggressively fought against government regulation that could have made the Pinto safer, as well as other vehicles on the road much safer.

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The excuse for this was that safety didn't 'sell' and the average consumer was more concerned about cost than safety.

Ethical questions will arise in every company's history. It is incumbent upon the corporate leaders to have an ethical mission statement to enable them to cope with such crises. Ford had no clear ethical belief system to guide it, other than the need to make a profit with its cars. That is why it literally put profits above people. On a personal level, Ford's decision-making is abhorrent, and even more so because it persisted for so long. Ford's lack of ethics consistently, and for many years, contributed to the deaths of thousands of people in a needless fashion, and the mechanism that could have prevented their deaths was voluntarily withheld, simply to make the car a bit more attractive in terms of its price. Modifications to the design of the car could have made the Pinto even safer, but it was feared that consumers would not like the reduced trunk capacity and, once again,….....

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