Ford pinto case study university of phoenix mgt 216 december 21, 2010 ford pinto case now more than ever it seems that organizations face ethical or moral dilemmas. Therefore, his decision not to recall the defective pinto for further improvements to its safety standards is unethical. The aim of this chapter is to provide a cradletograve case study which illustrate the entire multimethodology developed in the text. Lee department of sodology and cdrainal justie university of delavaare in an influential 1977 article in mother jones magazine, journalist mak dowie accused ford motor company executives of callously deciding to. Center for the study of ethics in the professions, illinois institute of technology. Many parties were affected is this case including the ford motor company employees.
The ford pinto case analysis, managing product safety. The ford pinto is constantly brought up as an example of poor business ethics. Ford pinto case study delio medina mgt 305, section xx insert the section you are enrolled in professor bill frank february 16th, 2015 ford pinto case study questions. Ethical theories applicable to ford pinto case philosophy. The case study focuses on the ford pinto and the national highway transportation safety administration. Ford pinto fires case study and executive summary case. The pinto case brought up issue of abusing human rights and behaved unethically in business. Pdf the ford pinto case and the development of auto. Ford pinto caseevents in the 1970s related to the ford pinto automobile illustrate some of the ethical issues related to technology and safety. The vehicle engineers were tasked to develop the vehicle and put it into production within 25 months, which was nearly half the time in which the average new vehicle is put into production.
May 12, 2014 ford pinto full details and analysis report with references 1. In prelaunch tests, ford discovered that rear end collisions propelled the gas tank onto the real axle, which had protrusions that ruptured the tank and caused the car to. Although the costbenefit analysis has its uses, it should immediately be seen as unethical to see a certain amount of. This, more than likely, contributed to the business decision made by ford management to produce, market, and sell the ford pinto. Ford pinto case study ford pinto case and unethical decision making according to the article, tioga is inclined to make unethical decisions due to the nature of his work. Ford motor company manages ethics and social responsibility introduction ford motor company, one of the big three automakers, was established in detroit, michigan, on june 16, 1903. The ford pinto being made affordable is also a pleasure. The placement of the cars fuel tank was the result of both conservative industry practice of the time as well the uncertain regulatory environment during the development and early sales periods of the car. Problems problem solving approaches clashes of values what would we do. Jan 21, 2014 1977 dodge colt hemi comparison ford pinto chevy vega chevette datsun b210 promo duration.
More specifically, it was ford s decision to use the costbenefit analysis detailed in section 11 to make production decisions that translated into lost lives. The ford pinto case and the development of auto safety regulations, 18931978 article pdf available january 1998 with 2,695 reads how we measure reads. Ford was not obligated to stick to the safety standards in question regarding the ford pinto. There are a variety of facts that are presented in the ford pinto fires case study that are relevant to the situation. Between 1971 and 1978, approximately fifty lawsuits were brought against ford in connection with rearend accidents in the pinto. Ford pinto full details and analysis report with references 1. Ford pinto case study questions2 ford pinto case study. There is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without. The ford pinto is a subcompact car that was manufactured and marketed by ford motor company in north america, sold from the 1971 to the 1980 model years. This only applies to the customer and the ford motor co. Ford engineers began their duties and in 25 months the ford pinto was on showroom floors for sale in 1971. The dilemmas that an organization can see are both issues. The pleasure produced by this is relatively small, when spread out over everyone affected by the decision.
The ford pinto case is today considered a classic example of corporate wrongdoing and is a mainstay of courses in engineering ethics, business ethics, philosophy, and the sociology of white collar crime. In relations to ford pinto, the case study shows that is was about an accident which took place involving a ford pinto and a chevrolet van which hit the ford pinto from behind. The pinto, a subcompact car made by ford motor company, became infamous in the 1970s for bursting into flames if its gas tank was ruptured in a collision. The pinto was being driven by an 18 years old judy ann ulrich accompanies by her sister lynn marie who was 16 at the time and cousin called donna ulrich was also 18. The pinto was marketed in three body styles through its production. At one point ford found itself in a criminal trial. Founder henry ford converted an old wagon factory to house his new inventions. With its dinkster fourcylinder engine, the pinto was battling the volkswagon beetle and the toyota corolla for the hearts and minds of those who wanted sewingmachine engines under their hoods. The ford pinto was ford motor companys entrance into the subcompact car market in the 1970s. During the development of the pinto, ford and other automakers faced increased safety requirements for the federal government and consumer groups. While ford was found not guilty in that one specific case where they were charged with criminal homicide, the fact that roughly 50 lawsuits were brought against ford.
Initially offered as a twodoor sedan, ford offered runabout hatchback and wagon models the following year, competing in the u. Because of the hasty production, it left ford with a flawed, dangerous. The situation began in 1968 with the increasing competition being felt by ford motor company, by german and japanese auto manufacturers. The ford pinto case study solution, gifts accounting treatment of ford motor company on the dispute product safety 197077, the surrounding pinto subcompact car. Pdf the ford pinto case and the development of auto safety. Ford pinto the case over here is that of pinto a car launched by ford motor company the ford pinto is a subcompact car produced by the ford motor company for the model years 19711980.
Although the pinto passed the nhtsa test, ford officials knew that the pinto was prone to catch fire when struck from the rear, even in lowspeed collisions, thus it was unsafe to drive the car. Sisters judy and lynn ulrich ages 18 and 16, respectively and their cousin donna ulrich age 18 were struck from the rear in their 1973 ford pinto by a van. Jan 11, 20 the ford pinto was ford motor companys entrance into the subcompact car market in the 1970s. In an effort to produce a stylish but affordable subcompact automobile with a low operating cost, ford motor company management made a questionable decision regarding the positioning of and protection for the fuel tank. Ford had the design to reduce the possibility of ford pinto from exploding. Can be used as part of a series, managing product safety, the opportunity to compare and contrast the social response strategies employed by companies involved in a catastrophic product safety controversy as intended to be used. Ford followed the federal safety standards as they where current written. Additionally, the faulty costbenefit analysis played a role as well.
The ford pinto has been cited and debated in numerous business ethics as well as tort reform case studies. Act utilitarianism applied to the ford pinto release. This poorly made automobile came from a production race between the usa and japan, where the united states promised an affordable, fuel efficient, and reliable car. The unsafe gas tank design and a delayed change was the subject of huge controversy. Ford knows the pinto is a firetrap, yet it has paid out millions to settle damage suits out of court, and it is prepared to spend millions more lobbying against safety standards. Although ford did not break any of the existing nhtsa rules when releasing the pinto, they had been actively lobbying against new safety standards since the release of the pinto. The smallest american ford vehicle since 1907, the pinto was the first subcompact vehicle produced by ford in north america. The pinto was a small car that ford manufactured during 19711980. Ford pinto the case over here is that of pinto a car launched by ford motor company. The dilemmas that an organization can see are both issues that can be caused by internal or external factors. The main controversy surrounding the ford pinto case was the ford motor companys choices made during development to compromise safety for efficiency and profit maximization. However, later studies have made the claim that the case was a misunderstanding. I will show how this action uses the greatest happiness and greatest pleasure form of utilitarianism and the true moral flaws that it exposes. Ford pinto full details and analysis report with references.
The ford pinto case and the development of auto safety regulations, 18931978 matthew t. The ford pinto case and the development of auto safety. Pdf case study ford pinto case jose calel academia. Lee department of sodology and cdrainal justie university of delavaare in an influential 1977 article in mother jones magazine, journalist mak dowie accused. Provides an accounting of the ford motor company handling a product security controversy 19701977 his surroundings pinto subcompact. The conventional account of the case goes something like this. The ford pinto case solution,managing product safety. So, milton friedman gives us what has become the dominant view of business social responsibility. Ford pinto case study the ford pinto lasted from the 1960s to the late 1970s and was highly controversial. Ford pinto fires case study and executive summary during the late 1960s the ford motor company was one of the leading auto manufactures in the united states. In the ford pinto case study, it is very clear that the management of ford and the engineers did not aim to produce an unsafe product, and that more than likely the result of their product primarily came from the speedy design and production schedule of the ford pinto. The ford pinto is a subcompact car produced by the ford motor company for the model years 19711980. The model t, in particular, was the one turning point that put ford on the map.
Apr 23, 2017 this text has discussed a real estatefocused case study throughout in disparate pieces. Is it ethical for a company, like ford, to perform costbenefit analyses when lives are involved. In regards to the pinto memo, the public was led to believe that this was an internal ford document. More specifically, it was fords decision to use the costbenefit analysis detailed in section 11 to make production decisions that translated into lost lives. Ford was credited with revolutionizing the muscle car era of the 1950s and 1960s. On august 10, 1978, a tragic automobile accident occurred on u.
A utilitarian argument in the ford pinto case free essay. This text has discussed a real estatefocused case study throughout in disparate pieces. This is due to the fact that, people were unaware that pinto could entail great risks for their safety. The lawsuits brought by injured people and their survivors uncovered how the company rushed the pinto through production and onto the market. Although the pinto passed the nhtsa test, ford officials knew that the pinto was prone to catch fire when struck from the rear, even in lowspeed collisions, thus it was unsafe to drive the car without any technical improvements implemented. Case study ford pinto free download as powerpoint presentation. Mar 12, 20 although ford did not break any of the existing nhtsa rules when releasing the pinto, they had been actively lobbying against new safety standards since the release of the pinto. Ford pinto case and unethical decision making according to the article, tioga is inclined to make unethical decisions due to the nature of his work. The pinto automobile was marketed by ford from 1971 to 1980 to try to feed the new american appetite for smaller cars. Sisters judy and lynn ulrich ages 18 and 16, respectively and their cousin donna ulrich age 18 were struck from. With the rising popularity of imported japanese and german vehicles, which were often smaller and more fuel efficient, beginning to push into the dominance of american automakers share of the market, ford designed the pinto as a viable alternative. Ethical theories applicable to ford pinto case philosophy essay.
254 401 725 680 616 69 695 549 1031 702 178 1259 1312 1547 824 1524 824 1231 910 1065 1454 1491 645 824 77 996 75 220 67 1348 1424 888 333 213 312 1345 1201 227 1142