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Ethics in Marketinf

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Submitted By kml261
Words 827
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The ability to determine what is right and what is wrong is known as moral philosophy. These ethics are learned through friends, family, and formal education. However, moral philosophy can be influenced by business and corporate culture. This is why it is important for all of society that business and corporate leaders understand and manage their firms with the highest ethical respect possible. It is the social responsibility of these companies to be aware that they are accountable for their actions and what they may or may not do can echo an eternity into the world’s future. In 1972, Ford Motor Company released the Ford Pinto, a small cheap car that could financially compete with the new economic cars from Asia. The Ford Pinto got a lot of attention because it was the first American made car to rival the Asia automobiles. However, the Pinto had a design flaw in that the position of the fuel tank was poorly placed and as a result was highly susceptible to car fires. This flaw was recognized by ford but was deemed an economic step backwards. If the production to fix the flaw was put in place, it would raise the overall price of the car. Thus, making the car less attractive to potential buyer. Ford decided to push the car despite the recognition of the fatal flaw. To make this decision Ford ultimately broke it down in terms of money. Ford determined that to go back and fix the design flaw to would cost $137 million as oppose to $49.5 million for those who will lose their life because of the design flaw in the Ford Pinto. (bizcovering) What Ford did in the 1970s was awful and very unethical. Yet, if one is to look at this situation strictly from a business standpoint Ford did the greatest good for the greatest number of people. As Lacey states: “The question is whether Ford and Iacocca [Executive vice president] exhibited all due care for their customers’ safety

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