Ford Pinto Case Running head: FORD PINTO CASE STUDY

Ford Pinto Case Study Andrea Pompa Byron Giron James Pytlak Kathryn Alexander Rosanna Manzano Miguel Manzano University of Phoenix Organizational Ethics and Social Responsibilities MGT 216 Dean Clark April 13, 2010

Ford Pinto Case Abstract In business there are ethical issues that may arise in the decision making process. Team B analyzes the decision made by Ford Motor Company in1971 to produce an unsafe automobile that

led to hundreds of deaths. The team recommends alternative solutions, explains external pressures that influence their decisions, and examines the case with a period eye.

Ford Pinto Case Ford Pinto Case Study The Ford Pinto Case is a perfect opportunity for individuals to analyze their values and their ethical theories of analyzing an ethical issue. The Ford Motor Company made a decision in which they put a dollar value on human life and valued the monetary profit of their actions more than the lives of their customers. Team B has an opposite view on the issue and their recommended solutions give more value to a human life. Andrea Pompa Recommended Solution If I was involved in the dilemma involving the Ford Pinto, I would have been completely

against selling the car knowing that it was unsafe. My decision would have been to insert the baffle even though we would lose money by not selling them right away, and by spending on it. Because of the accelerated production schedule, the Pinto was not tested for rear-end impact until after it was produced (Newton & Ford, 2007, p. 298). Although competition with the Japanese was tough due to their smaller car imports to America, I still would have sent the cars back to production to insert the baffle and make the car completely safe to customers that are willing to spend the money on my company. I understand that inserting the baffle would cost me and that it would take time, but at the end I would have known that I did the right thing and that my company would be known for having a good reputation for putting customers safety first. External Social Pressures External pressures like the Japanese imports wouldve not influenced me to sell the Pinto when I knew it was unsafe. I think I wouldve felt pressured by my morals and values in wanting to do what is right.

Ford Pinto Case Byron Giron Recommended Solution Whistle blowing as morally permitted is an employee somehow revealing information or concerns about his or her firm in the hope that the firm will change its product, action, or policy

that the whistle blower feels will harm, or has harmed others, and needs to be rectified (DeGeorge, 2005, p. 307) My decision in the Ford Pinto case would have been to install the baffle between the gas tank and the bumper. Ford ran positive test with that baffle indicating it will reduce or eliminate the chances of fire in the case of a rear collision. The cost of this item installed in the Ford Pinto would have been less than $11 per unit which would have made the whole thing affordable for the manufacturer and the consumer. I would have been obligated to report about this possible safety hazard against the consumers. External Social Pressures Ford executives have been pressured to come up with a new model that will help them compete with Volkswagen and Japanese compact cars. The Ford Pinto needed to stay on budget ($2,000.00) and should not pass the 2000 pounds to stay within the companies requirements (Newton & Ford, 2007, p. 297). However, I believe that is not a valid reason to over look the consequences of endangering individuals because the cost benefit analysis showed it was a risk the company could take. I believe no profit margin is worth risking an individuals life. James Pytlak Recommended Solution First I would have started off by not going into production with a 25 month period. I would have gone with the transportation safety test. It would have brought up any safety issues, and make

Ford Pinto Case the vehicles safer and helped with the production process. Making sure the vehicle was to the up most standard in safety. External Social Pressures With everything that has happened with Firestone and the tire mishap, blowing up at highway speeds and making vehicles rolling over; Toyota and their knowledge for the brake system failure is another great example, both companies did not take charges with the information that was appetent. They chose to push the mishaps under the rug for a period of time until it was made public and after the event was brought to the attention of millions prospective consumers putting questions in their minds weather their products are reliable. If they had handled the problems in the being by fixing and owning up to their responsibilities people would have respected them more. Kathryn Alexander Recommended Solution In the Ford Pinto case I would have decided to put in the baffle between the gas tank and the bumper; this was estimated to cost between $6.65 and $11, the actual cost was $5.08 per vehicle. Ford conducted a study concluding that if a baffle were placed between the bumper and the gas tank, the Pinto would be comparable to other cars of its class with respect to the danger of fire from rear-end impact (De George, 2006). I would be compelled by a moral obligation to protect the consumer from potential serious harm or death, knowing the dangers associated with low impact rear end collisions in Ford Pintos. The threat to the general public would have called for external whistle blowing; concern to the general public, because it is people or the general public rather than the firm that are threatened with harm (De George, 2006).

Ford Pinto Case External Social Pressures Social pressures such as the responsibility Ford has to build positive and loyal customers. Social pressure also exists from the press; the company must make ethical decisions in order to receive positive press, or worse yet, suffer the consequences of negative press due to unethical decisions. At the time the Pinto came on the market there was pressure to carve out a niche in the small car market in record time, an ambitious and costly goal. Rosanna Manzano Recommended Solution Looking at the Ford Pinto Case only from an ethical stand is important to point out how unethical the company proceeded. As a staff member, I would have definitely not been part of

such decisions and procedures. Ford had the moral obligation to be ethical and loyal to consumers, and beyond that to Americans. As part of the decision-making team, I would have fought to install the baffle between the gas tank and the bumper without any analysis of the cost if it would endanger human life. I would have used the deontological approach not the utilitarianism. Deontologists maintain that actions are morally right or wrong independent of their consequences. Utilitarianism is an ethical theory that holds that an action is right if it produces, or if it tends to produce, the greatest amount of good for the greatest number of people affected by the action (De George, 2006). Ford decided that it was more beneficial to a greater number of people to have an affordable car at the expense of a smaller number of lost humans lives. External Social Pressures The external factors Ford was facing were not only European car makers; they also had the demand for small cars. However, they were greedy and inhuman. Ford was mainly influenced by

Ford Pinto Case

internal factors and special interest of the people in control of the company. They did not consider any external ethical responsibilities with the community. Miguel Manzano Recommended Solution As a member of the decision making I would have definitely opposed the selling of the Pinto with the known gas tank defect, even though this would have meant big losses for the company. I would have mandated the installation of the baffle before any of the Pintos went out for sale to the public. The Ford company took a utilitarian way of thinking by placing a dollar value on human life and conducting a cost-benefit analysis. I would rather have adopted the deontological theories associated with Immanuel Kant. Deontologists maintain that actions are morally right or wrong independent of their consequences (De George, 2006). It doesnt matter how much money Ford can save by not fixing the Pinto, even saving one individual life is worth the economic loss because saving a life is more ethical than making more money. External Social Pressures Ford was pressured by competition and the hopes of maintaining their leading position in the automobile industry. There are many people that depend on the success of a company and I understand the difficulty of making such a decision. However, none of these external social pressures are enough to oppress the social pressure and ethical responsibility of making sure we produce a safe car that does not harm our customers.

The Period Eye The recommended solutions given by our team may not have been the most popular in 1971, when top Ford officials rushed to production, ignoring reports of the failing gas tank in low

Ford Pinto Case impact collisions. Safety standards are much higher today than they were in the 1970s and todays consumers are more knowledgeable and safety oriented about auto purchases. Still, we dont agree with sacrificing human lives for monetary profit would maintain our viewpoint. Conclusion Team Bs view gives an opportunity for a company to gain profits through alternative decisions. The loss of profits at the moment and external social pressures give Ford an excuse for their decision. However, what matters at the end is doing the right thing and any external social pressure would be relieved by the trust and good relationship built with our customers.

Ford Pinto Case References DeGeorge, R. T. (2005). Whistle blowing. In Business Ethics (p. 307). Upper Saddle River, NJ: Prentice Hall. Newton, L. H., & Ford, M. M. (2007). Was Ford to Blame in the Pinto Case. In Taking Sides: Clashing Views in Business Ethics in Society (p. 297). hightstown, NJ: McGraw Hill/Dushkin. DeGeorge, R. T. (2005). Business ethics (6th ed.). Upper Saddle River, NJ: Prentice Hall.