The stakeholders in this particular case include:
- Ford stockholders
- Ford employees
- Ford engineers
- customers and their families
- factory workers and their families
- the communities around their production facilities
- and perhaps the American automobile industry.
Who are the stakeholders in the Ford Pinto case?
The case of the Pinto is concerning because it appears that Ford sacrificed the safety and well-being of their customers for the well-being of their stockholders. The stakeholders in this particular case include: the communities around their production facilities
What would happen if Ford delayed the Pinto?
The stockholders might face reduced profits in the short-term if Ford were to delay the Pinto. The Ford employees (including the engineers) might not face any negative consequences from the delay. In fact, it might create more work for them to do which might make their jobs more secure.
Why do we care about the Pinto?
Let's start doing that right now. The case of the Pinto serves us well because it is far enough in the past that we don't have to guess about the consequences of their actions, and we have some documentation of the factors which lead them to make the decisions that they did. In this case, Ford had a need to compete.
Who are the stakeholders of Ford Motor Company?
The stakeholders in this particular case include: Ford stockholders. Ford employees. Ford engineers. customers and their families. factory workers and their families. the communities around their production facilities. and perhaps the American automobile industry.
What did Ford test with the Pinto?
Why is the Pinto case concerning?
What is the purpose of the Pinto?
What is the best choice for Ford to make for the stockholders?
What would happen if Ford delayed the Pinto?
What about the communities that existed around the Ford production facilities?
Why is Ford responsible for the cost of the car?
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What are the ethical issues in the Ford Pinto case?
Ethical considerations of Ford engineers working on the Pinto project. The extent to which cost and schedule pressures led to the decision not to fix the Pinto fuel system problem. How well the engineers in the Pinto case met their obligation to hold paramount the safety, health, and welfare of the public.
What was the problem with the Ford Pinto?
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 lawsuits brought by injured people and their survivors uncovered how the company rushed the Pinto through production and onto the market.
What was the main problem with Ford's cost benefit analysis for the Pinto car?
Ford's conclusion, following the crash tests, was that the rear end structure of the car was not satisfactory because of several types of damage deformation of the gas tank, leakage and damage to the filler pipe. Suggested changes to repair the defects were not expensive, something in the range of $11 per car.
What laws did the Ford Pinto violate?
Three Laws Violated by Ford The case of the Ford Pinto violated many types of laws; three of them are criminal law, consumer protection law, and tort law.
How many people were affected by the Ford Pinto?
While the NHTSA determined in 1974 that a recall was not merited, Ford ultimately issued its own recall in 1978. The recall affected approximately 1.5 million Pintos with model years from 1971 to 1976 (as well as the similar Mercury Bobcat, from 1975 to 1976).
Was Ford punished for the Pinto?
In the Richard Grimshaw case, in addition to awarding over $3 million in compensatory damages to the victims of a Pinto crash, the jury awarded a landmark $125 million in punitive damages against Ford. The judge reduced punitive damages to 3.5 million.
What impact did Ford have on society?
Henry Ford (1863 – 1947), one of the most influential industrialists in history, ushered in the era of mass-production at the turn of the century, making the automobile available to the middle and working classes. In doing so, he shaped the culture of America forever.
How did Ford affect the economy?
In January 1914, Henry Ford started paying his auto workers a remarkable $5 a day. Doubling the average wage helped ensure a stable workforce and likely boosted sales since the workers could now afford to buy the cars they were making. It laid the foundation for an economy driven by consumer demand.
Why Ford Pinto falls into failure of science and technology?
There's a reason the Pinto was one of our 10 cars that deserved to fail. Ford neglected to add reinforcements to protect the easily ruptured fuel tank, endangering drivers while earning the Pinto a reputation for catching fire that persists today. The automaker's public relations black eye lasted for years.
Was Ford found guilty in the Pinto case?
The rural jury found Ford innocent of a charge of failing to warn about or offer to repair fuel system defects in the Pinto before Aug. 10, 1978 -- the day three young women were fatally burned when the fuel tank of their 1973 Pinto exploded in flames after a rear-end collision with a van near Goshen, Ind.
How much would it have cost to fix the Pinto?
In sum, the cost of recalling the Pinto would have been $121 million, whereas paying off the victims would only have cost Ford $50 million.
What were some of the social consequences of Ford's production line?
The assembly line also changed the way people worked and lived, accelerating the shift from rural areas to cities, and increasing the number of people doing repetitive, low-skilled jobs.
Was Ford found guilty in the Pinto case?
The rural jury found Ford innocent of a charge of failing to warn about or offer to repair fuel system defects in the Pinto before Aug. 10, 1978 -- the day three young women were fatally burned when the fuel tank of their 1973 Pinto exploded in flames after a rear-end collision with a van near Goshen, Ind.
Why did Pintos explode?
The poor design of the Pinto's fuel tank and rear end made it vulnerable to crashes, even at low speeds, in which the fuel tank would suffer extreme damage and catch on fire, often trapping the car's occupants inside. Twenty-seven people died in Pinto fires and countless others suffered serious burns.
Ford Pinto Case Study and Executive Summary - Law Essays
Semon Knudsen argued that Ford should focus its attention on the more lucrative medium and larger vehicles. The success of the Mustang elevated Iacocca’s status and ideas and eventually forced Knudsen out.
Ford Pinto Fires Case Study and Executive Summary
During the Late 1960’s the Ford Motor Company was one of the leading auto manufactures in the United States. Ford was credited with revolutionizing the muscle car era of the 1950’s and 1960’s. During the mid 1960’s Lee Iacocca helped Ford establish itself in the late 1960’s with the introduction of the Ford Mustang.
The Ford Pinto - Business Ethics Case Study - PlatinumEssays.com
CASE 2.2 THE FORD PINTO Discussion Questions 1. 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 low-speed collisions, thus it was unsafe to drive the car without any technical improvements implemented.
Handout: Utilitarianism and Business: Ford Pinto case
Utilitarianism and Business Ethics Introduction. Welcome to philosophicalinvestigations – a site dedicated to ethical thinking (rather than one page summaries!!!
Ford Pinto Case Ethical Issues - Law Essays - LawAspect.com
On August 10, 1978 three young girls died in a 1973 Ford Pinto after being stuck from the rear by a driver in a van. The Ford Pinto was completely engulfed in flames and the accident resulted in the death of the three young girls.
Ford Pinto Case: The Invisible Corporate Human Pricetag Analysis
Get help on 【 Ford Pinto Case: The Invisible Corporate Human Pricetag Analysis 】 on Graduateway A huge assortment of FREE essays & assignments Find an idea for your paper!
What did Ford test with the Pinto?
The tests that Ford did with the Pinto showed them that the car posed a danger to the occupants in certain situations, but Ford also knew that all cars could pose a danger to their occupants in some situations. We have seen in recent years that this is still true. SUVs have a higher risk of rolling over than sedans. Sports cars pose a greater risk to pedestrians when they hit them. Trucks sometimes lose traction in slippery conditions because their rear end is light when they are empty. Small, cheap, cars are (or were) less resistant to impacts. We have designed complicated systems for the frames of cars to increase safety, computer control over drive systems and brakes to increase traction, and several other features that make our cars safer to drive, but these systems were not available in the 70s.
Why is the Pinto case concerning?
The case of the Pinto is concerning because it appears that Ford sacrificed the safety and well-being of their customers for the well-being of their stockholders. The stakeholders in this particular case include: Ford stockholders. Ford employees.
What is the purpose of the Pinto?
Stockholders. The Pinto was a car with a mission. It was supposed to be the car that kept Ford abreast of the times. People wanted small, cheap cars, and the Pinto was a small, cheap car. If Ford is interested, primarily, in creating greater profits for their stockholders, then producing the Pinto is one way to do this.
What is the best choice for Ford to make for the stockholders?
It appears, then, that the best choice for Ford to make for the stockholders is to make the car as it was originally designed. By doing so, they were creating a situation in which their car was able to hit the market in time to compete with foreign competition and compete with those low-priced cars while still meeting the safety requirements that were currently in place. They might be able to argue that they were acting in the best interests of their stockholders by doing this and, if Friedman is correct, this is all that they are morally obligated to do.
What would happen if Ford delayed the Pinto?
In fact, it might create more work for them to do which might make their jobs more secure.
What about the communities that existed around the Ford production facilities?
What about the communities that existed around the Ford production facilities? They depended on the factory to bring jobs, training, and wealth into the community. If they were shut down for a year, then that is another year without the funds (jobs, taxes, etc.) that the Ford plants would have brought into the community. Their interests are best served by allowing them to produce cars as soon as possible, even if that car is not the best that could be made.
Why is Ford responsible for the cost of the car?
Since the cost of the car is the primary draw for consumers, and Ford’s responsibility is to produce profits for their stockholders, Ford needs to keep the costs of design and production at very low levels.
What is the dominant view in business?
The dominant view in business has been the Stockholder view. This view requites that businesses (and publicly-traded corporations in particular) have an obligation to increase profits for the benefit of stockholders. They don't have an obligation to save lives or prevent deaths unless this is required by laws or it leads to greater profits. According to this view, the Ford Motor Company had a duty to follow the law, and they did not have any obligation to make the Pinto any safer than the law demanded.
Why did Ford come up with the Pinto?
In this case, Ford had a need to compete. They were in danger of being beaten in the marketplace by foreign imports. At the time, Ford was making a variety of large cars (like the , and smaller, cheaper, lower-quality cars were entering the US market. If Ford wanted to compete with these rivals, they needed to come up with a car that fit into that bracket. They came up with the Pinto. This car would have strict price and weight criterion. It also needed to be out soon. This necessitated that Ford compress the development schedule for this car. If Ford didn't push that development schedule, then the car would not be able to hit the market before new NHTSA safety regulations went into effect. Ford knew that the Pinto had failed those tests, so they needed to get it into the hands of consumers as soon as possible so that they could meet their price criterion and avoid costly redesigns and alterations.
Why did Ford put the Pinto on the road?
Ford judged that they would make the most money by putting the Pinto on the road as-is. They judged that they would be able to sell enough of the un-altered Pintos to make up for any civil liability they might incur as a result of their customers dying in fires caused by the Pinto's dangerously flammable design.
What would happen if Ford didn't push the development schedule?
If Ford didn't push that development schedule, then the car would not be able to hit the market before new NHTSA safety regulations went into effect.
Why is the Pinto case important?
The case of the Pinto serves us well because it is far enough in the past that we don't have to guess about the consequences of their actions, and we have some documentation of the factors which lead them to make the decisions that they did. In this case, Ford had a need to compete.
Does Ford have a duty to save lives?
They don't have an obligation to save lives or prevent deaths unless this is required by laws or it leads to greater profits. According to this view, the Ford Motor Company had a duty to follow the law, and they did not have any obligation to make the Pinto any safer than the law demanded.
Is the Ford Pinto infamous?
The Ford Pinto and the Dominant View. This car became legendary, though perhaps "infamous" is a better word for the Pinto's reputation. The Ford Motor Company has faced a good deal of criticism for their choices in that case. In this class, we're going to be looking at the decisions, motivations, and options available to corporations, businesses, ...
Why is Ford immoral?
By Kantian standards, Ford would be immoral/unethical because they were using people as a means instead of an end by putting monetary analysis to justify their actions, which killed their customers. People can argue that Ford always knew that the Pinto was unsafe and it is the customers who should have asked about how safe the vehicle was. Although the customers should have asked before purchasing the vehicle, Ford should be responsible in the first place to assure their customers at the vehicle was dangerous, instead of being clandestine about it. In addition, their commercial on the Pinto misleadingly made the Ford Pinto look bulky and safe. In a way, Ford was lying about their product, which is also immoral and unethical by the Kantian standards.…
What happened to the Pinto?
The most famous incident involving the Pinto was three teenage girls collided with another car which killed them all (Bennet, 1990). Despite the fact that Ford reimbursed the victims families, that compensation does not mean their morals are set straight. Ford 's character could then be perceived as greedy and unsympathetic by putting profits before human lives. Ford could have avoided the backlash only if they had gone with the original, safer patent they had on the Pinto which would have saved them compensation money and prevent many…
Why did Volkswagen not take into account the reputational damage that would occur?
Volkswagen did not take into account the reputational damage that would occur, the fact that they would lose numerous amounts of customers due to their dishonesty as a result of them cheating on emission tests. They also did not take into account the financial risks, such as loss of earnings due to customer loyalty loss and the financial compensation that had to be paid out to their customers who purchased these cars. It conveys how important the role of risk management plays in organisations today. If Volkswagen went through its production process correctly it would have been more confident in predicting how this computer software would have positively or negatively affected the organisation. As in Nancy Leveson article she says “For example, increasing the reliability (reducing the failure rate) of a tank by increasing the burst pressure –to-working pressure ratio may result in worse loses if the tank does rupture at the higher pressure.” (Leveson, N, 2007).…
Why was Joseph Michael Kehrer imprisoned?
This was due to the fact that kehrer failed to notify regulatory authorities regarding movement of asbestos material. Prior to this incident, kehrer was guilty of felony violation of the federal clean air act. It was specified that kehrer would be monitored for one year after his release from imprisonment. A criminal fine of fifty thousand dollars was also imposed on Kehrer. Kehrer accepted that he was the owner of a building in February and March 2015. This building was formerly the Oakville elementary school. There was a renovation activity during that time. Kehrer removed asbestos which were greater than 160 square feet. It was mandatory to notify this to the regulatory authorities i.e. ten days prior to moving asbestos. Kehrer agreed that he knew this law and it was his mistake that he did not notify the concerned authorities prior to construction activity. This case is a clear example that those who put community on risk because of their unlawful actions have to face consequences for their actions (Clinton County Man Sentenced for Unlawful Asbestos Removal, 2018).
What crimes did Madoff commit?
The criminal indulged in crimes like embezzlement, fraud, bribery, and cyber crime . This caused damage to the public information and property. Madoff engaged in white collar crimes. The consequences of Madoff’s actions were serious enough as the government had to pay back the victims billions of dollars.
How is civil law different from criminal law?
In Ohio law, civil law is different from criminal law. The criminal law is enforced by the government prosecutors to make the community a safe place to live in. The crimes are based on statutory law which is different from state to state. There are two main features of a crime i.e. actus rea and mens rea. This is actually the wrongful act and the state of mind or intention to commit a criminal act. Madoff’s case would be considered based on these features i.e. mens rea and actus rea in Ohio law. state law would also be considered.
What products caused damage and harm to the consumers?
The products which caused damage and harm to the consumers include subcompact cars like the fiat 500 FIA and Honda fit. These vehicles were the worst vehicles in terms if performance. When the vehicles were given a tough test in which the front corner of the car hits a pole, tree or another car what happens to it. There were eleven cars which were tested by the insurance institute for highway safety. The results were not acceptable as only one car won an overall “acceptable” rating. The Honda fit and Fiat 500 was the worst performers in the test. The results provoked consumers not to buy these vehicles. The consumer reports suggested that the improved version of these vehicles can pass the test in future (Seetharaman, 2014).
What can a symlink be charged with?
They can be charged with bribery, embezzlement, and insider trading.
How to find out if an EPA case has been investigated?
1. Go to the EPA - Criminal Enforcement website and find a Major Criminal Case that the EPA has investigated (within the last year). Post a link to the report and give a one paragraph synopsis explaining the outcome of the investigation.
Why is regulation important?
Regulations make sure a smooth transfer of goods and services. This is the reason why regulation is required in economies. Without regulation there are chances of confusion, or frauds, and so on. Regulations are intended to promote safety and rights of citizens.
What did Ford test with the Pinto?
The tests that Ford did with the Pinto showed them that the car posed a danger to the occupants in certain situations, but Ford also knew that all cars could pose a danger to their occupants in some situations. We have seen in recent years that this is still true. SUVs have a higher risk of rolling over than sedans. Sports cars pose a greater risk to pedestrians when they hit them. Trucks sometimes lose traction in slippery conditions because their rear end is light when they are empty. Small, cheap, cars are (or were) less resistant to impacts. We have designed complicated systems for the frames of cars to increase safety, computer control over drive systems and brakes to increase traction, and several other features that make our cars safer to drive, but these systems were not available in the 70s.
Why is the Pinto case concerning?
The case of the Pinto is concerning because it appears that Ford sacrificed the safety and well-being of their customers for the well-being of their stockholders. The stakeholders in this particular case include: Ford stockholders. Ford employees.
What is the purpose of the Pinto?
Stockholders. The Pinto was a car with a mission. It was supposed to be the car that kept Ford abreast of the times. People wanted small, cheap cars, and the Pinto was a small, cheap car. If Ford is interested, primarily, in creating greater profits for their stockholders, then producing the Pinto is one way to do this.
What is the best choice for Ford to make for the stockholders?
It appears, then, that the best choice for Ford to make for the stockholders is to make the car as it was originally designed. By doing so, they were creating a situation in which their car was able to hit the market in time to compete with foreign competition and compete with those low-priced cars while still meeting the safety requirements that were currently in place. They might be able to argue that they were acting in the best interests of their stockholders by doing this and, if Friedman is correct, this is all that they are morally obligated to do.
What would happen if Ford delayed the Pinto?
In fact, it might create more work for them to do which might make their jobs more secure.
What about the communities that existed around the Ford production facilities?
What about the communities that existed around the Ford production facilities? They depended on the factory to bring jobs, training, and wealth into the community. If they were shut down for a year, then that is another year without the funds (jobs, taxes, etc.) that the Ford plants would have brought into the community. Their interests are best served by allowing them to produce cars as soon as possible, even if that car is not the best that could be made.
Why is Ford responsible for the cost of the car?
Since the cost of the car is the primary draw for consumers, and Ford’s responsibility is to produce profits for their stockholders, Ford needs to keep the costs of design and production at very low levels.