Business Ethics and Organization Social Responsibility

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Case Questions

Put yourself in the role of the recall coordinator for Ford Motor Co. It’s 1973, and field reports have been coming in about rear-end collisions, fires, and fatalities. You must decide whether to recall the automobile. What will you decide?

1. Identify the relevant facts, pertinent ethical issues, and points of ethical conflict.

2. Identify the relevant affected parties, the possible consequences of alternative courses of action.

3. Identify relevant obligations, the relevant community standards that should guide you as a person of integrity, and Check your gut.

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Answer preview

In response to the introduction of cheap Japanese-made cars in the U.S. market, Ford decided to develop the Pinto. The car was designed to weigh a maximum of 2,000 pounds, while its costs were not to exceed $2,000 (Gioia, 2013). Ford also compressed its production process from a period of three and a half years to two years. Before Pinto’s production started, Ford tested whether the car met the safety standards set by the National Highway Traffic Safety Administration. However, the Pinto failed to meet the safety standards. Since the production process’s compression implied that there was limited room to make design changes in the car, Ford proceeded with its plans to produce the car. Among the ethical issues in the case include how Ford proceeded to produce the Pinto despite the car posing serious safety concerns to the users. It was estimated that improving the safety of the car would cost $11per vehicle. This also raises an ethical conflict on how Ford would compromise the car’s safety because of money since the value of human life cannot be estimated.(626words)