The Ford Pinto Case Analysis - 1576 Words

The Ford Pinto Case Milton Friedman believed a free-market system, in which goods and services are exchanged and controlled by individuals and privately-owned businesses without government authority, was the only way to achieve personal freedom. Adam Smith, a 18th century philosopher and economist, held the belief that in a free society, the role of government should be limited to the protection of the people, the administration of justice through the court system, and the maintenance of all public resources. Adam Smith developed the concept of the â€Å"invisible hand† theory, which says within a society that is free of government interference, individuals can pursue actions out of their own self-interest, and the collective result of this†¦show more content†¦Ford executives were under a great deal of pressure to produce a smaller, more gas efficient automobile. Japanese and German automobile sales were rapidly increasing. These competitive forces drove Ford’s executive team to respond by rushing the design process of the Ford Pinto. By 1973, the Pinto was well into production when engineers discovered a flaw in the gas tank, which was located just under the rear bumper. They discovered that if the vehicle suffered a rear-end collision over 20 mph, the gas tank could break and spill gasoline into the passenger compartment, potentially resulting in a fire. The remedy for the flaw was a part that cost $11.00 per vehicle. Executives at Ford knew the company had followed all safety standards and regulations. At that time, automobile safety standards only needed gas tanks to withstand a collision under 20 mph. An internal cost-benefit analysis revealed the costs would be substantially higher to fix the design flaw that the costs associated with any potential damages due to collisions and loss of life. The public remained unaware until Mother Jones journalist, Mark Dowie broke the story in 1977. Fueled by the media, what followed was a frenzy of public outcry a nd court trials. Friedman’s free-market approach to business ethics and how it relates to the Ford Pinto case. Friedman, who had a gift for explaining complex concepts, believed theShow MoreRelatedThe Ford Pinto Case Analysis Essay1553 Words   |  7 Pages The Ford Pinto Case Iyanda S. OConnor American Military Universtiy BUSN623 The Ford Pinto Case In 1978 a tragic car accident involving three teenager driving a Ford Pinto, model year 1973, caused their car to burst into flames (Hoffman, 1982). The car was struck from behind and the gas tank immediately ruptured (Hoffman, 1982). The Ford Company was then charged for criminal homicide which was historically the first to occur for an American company (Hoffman, 1982). The Judge presidingRead MoreCost Benefit Analysis : The Ford Pinto Case1666 Words   |  7 PagesCHEN 4090 Senior Seminar The Ford Pinto Case Naif Alotaibi Mohammed Alkhoraimi April 18, 2016 Cost Benefit Analysis The Cost benefit analysis is a financial model where companies or government establishments implement on their decision making. The model simply evaluates costs and benefits of a certain decision which enables the organization to choose the â€Å"right† option. (O’Farrell, R.,n.d.) The beauty of the CBA model lies in its simplicity, the chosen optionRead MoreCase Analysis : Ford Pinto Incident1223 Words   |  5 Pagesthe Ford Pinto incident in the 1970’s. First, I will validate why the stakeholder theory is the best theory to use when making business decisions, and why the liability should fall on the people regulating the market interactions, not the producer of the products. Second, I will come from a different angle and analyze the objections that some people may have about the Stakeholder theory. Last, I will analyze the ethics and consequences of taking a different course of action as the CEO of Ford. ByRead MoreCase Study : Ford Motor Company1220 Words à ‚  |  5 PagesThe Ford Motor Company fell into a trap of greed that resulted in the loss of many human lives. Before the disaster of the Pinto fires, Ford had a reputation as being the safety pioneer in the automobile industry with additions such as the seat belts even raising awareness of their safety. However, as the invention of small cars began to take emerge Ford began to lose market shares to the foreign market causing Ford to construct a small compact to satisfy this emerging market. Ford’s stance on â€Å"safetyRead MoreFord Pinto Ethics Essay1660 Words   |  7 PagesFord Pinto Case: The Invisible Corporate Human Pricetag In this essay, I will argue that Ford Motor Company’s business behavior was unethical as demonstrated in the Ford Pinto Case. Ford did not reveal all the facts to consumers about a harmful gas tank design in the Ford Pinto. They tried to justify their decision to sell an unsafe car by using a Cost-Benefit Analysis which determined it was cheaper to sell the cars without changing to a safer gas tank. The price of not fixing the gas tanksRead MoreFord Pinto953 Words   |  4 PagesResponsible Commerce (COMM 101) Case 2.3 (The Ford Pinto) Week 4 1. What moral issues does the Pinto case raise? Moral issues that Ford Pinto case raises included producing dangerous products which are not safe to use it without informing the dangerous of the products to the public. In addition, lobbying the NHTSA to delay the safety measure of the products is also one of the moral issues that Ford Pinto case raises. (53 words) 2. Suppose Ford officials were asked to justifyRead MoreFord And The Government Of The Pinto Case1747 Words   |  7 Pages Was Ford to blame in the Pinto case? Christeen Olsen Business Ethics Social Issues 1122 Anoka Ramsey Community College April 26, 2015 Abstract This paper explores several published articles and an overview of the court cases, that bring up the question of ethics and the responsibilities of Ford and the government in the Pinto gas-tank issues of the 1970’s. This paper is intended to ask questions of ethics regarding manufacturers responsibilities when there might be a potentialRead MoreLegal Analysis Grimshaw V Ford Motor Company1449 Words   |  6 PagesLegal Analysis Grimshaw v. Ford Motor Company Facts In 1972 a Ford Pinto, purchased six months prior, unexpectedly stalled on the freeway in California. The Pinto was hit from behind by a Ford Galaxy, erupting into flames instantly. The driver of the car, Lilly Gray, suffered from fatal burns and died a few days later in the hospital. The passenger, a 13-year old boy named Richard Grimshaw, was also severely injured from burns, which caused his face and body to be permanently disfigured. AfterRead MoreFord Pinto Fires Case Study and Executive Summary Essay1208 Words   |  5 PagesFord Pinto Fires Case Study and Executive Summary John Bonner, Scotti Greenleaf, Rose Scarbrough MGT216 University of Phoenix October 18, 2010 Sarah Nelson Ford Pinto Fires Case Study and Executive Summary Introduction 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’sRead MoreCase Study Pinto681 Words   |  3 Pages1. What moral issues does the Pinto case raise? I think Pinto case raised some serious issue of abusing human rights and not behaving ethically in the world of business. Any business/service should never ever put a value on human life and not take consideration of a known deadly danger. Ford had an option as well as the solution to design the car in a way that prevented cars from exploding; however they refused to implement it.    They thought that it was cost effective not to fix dangerous condition