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Case Analysis #23

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Case 22 Analysis
Firestone and Ford; The Tire Tread Separation Tragedy

1. What are the major and minor ethical issues involved in this case?
The major ethical issue is Ford and Firestone’s negligence of the technical problems. They knew that something was wrong yet they did not do anything about it and therefore ignored their consumers’ safety and health. They used a utilitarian decision model where they were looking to accomplish the greatest good for the greatest number. Another major dilemma is that Firestone did not report deaths and injuries to the government and they were very reluctant to recall their defective tires even though it was clear that they were a danger to the consumers. In addition to this, Ford failed to inform that the Ford explorer had been recalled in other countries than the US due to danger. Another key issue is that none of the companies agreed to take responsibility of their products as well as their actions.
Minor issues were the fact that the companies tried to cover the news and evidence to reach the public. Firestone had an issue with how they responded and dealt with the crisis. Firestone was also very ignorant with their manufacturing property in Decatur, Illinois. They did not take necessary actions to manage it properly. We can also see a problem in the way they handled the relationship between the two companies. Instead of working it out they had a corporate divorce that resulted in major damages for the both companies as well as the industry as a whole.

2. Who are the stakeholders and what are their stakes? Do these companies care about consumers?
In the Ford and Firestone case there are several Stakeholders that are involved.
We have the two companies Ford and Firestone, which had many stakes particularly money and their brand name. Both of them lost huge profits because of their damaged reputation and the

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