...Utilitarianism is a moral principle that holds that the morally right course of action in any situation is the one that produces the greatest balance of benefits over harms for everyone affected. So long as a course of action produces maximum benefits for everyone, utilitarianism does not care whether the benefits are produced by lies, manipulation, or coercion (Andre,Velazques). Gene G. James in his book Business Ethics:Readings and Cases in Corporate Morality, defines whistle blowing as, “the attempt of an employee or former employee of an organization to disclose what he or she believes to be wrongdoing in or by the organization” (Griffin). How does one choose if wrongdoing has happened in a utilitarianistic view? To present the process of utilitarian theory in a whistleblowing case, I ran across documentation referencing Ford Motor Company’s manufacturing of the Ford Pinto the early 1970’s. Petersen and Farrell discuss the ethical dilemmas faced by engineers highlighted by the 1980 Winamac, Indiana trial of Ford Motor Company (1986, p.3). The Pinto was created as a response to the Japanese competition emerging in the US. Due to competition, Ford was eager to get the subcompact car released in 1971. Changes were made, and Ford was able to reduce the lead time of production by a year and a half to get the car on the road. Frank Capps, a principal design Engineer charged that management’s weight and price goals along with time requirements resulted in engineers having to place...
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...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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...Utilitarianism and Business Ethics INTRODUCTION Welcome to philosophicalinvestigations - a site dedicted to ethical thinking (rather than one page summaries!!! Though I'm afraid I do add those at exam time - market pressures!). I hope you enjoy this case study which also has a powerpoint that goes with it. There's plenty of other useful material on this site - case studies, handouts, powerpoints and summaries, and also I have written a number of books including best-selling revision guides and a useful book on 'How to Write Philosophy Essays". Click here for details. If you're worried about exams you might at least print out my strengths and weaknesses summaries under each moral theory. I deliberately quote only from my five favourite ethics books, click here to find out which they are - because you might like to buy one of them to supplement your study. Of course, it's important to quote the philosophers themselves in their own words - see my handouts, or for what academics say about them - see the key quotes section under the topic area of each moral theory. And if you'd like to blog on anything in the news send it to me - I'd be delighted to read it and - if it fulfils the criterion of good ethical thinking (!), post it!!!!! Utilitarianism is a normative, consequentialist, empirical philosophy which links the idea of a good action to one which promotes maximum pleasure or happiness, found by adding up costs and benefits (or pains and pleasures). It has two classic formulations...
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...moral issues does the Pinto case raise? The moral issues about the Ford Pinto is that they take their profit is more important than human life. They also did not inform the consumer about the facts of the Pinto. Lastly, they also lobbied the safety of the car to lowest standard.The Pinto case brought up issue of abusing human rights and behaved unethically in business. Ford had the design to reduce the possibility of Ford Pinto from exploding. However, the company refused to implement it, although it can prevent 180 deaths from happening at a cost of $11 per car according to the cost-benefit analysis. 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 than to spend the money to save people in spite of the fact that the only added cost was $ 11 per vehicle. Suppose Ford officials were asked to justify their decision. What moral principles do you think they would invoke? Assess Ford’s handling of the Pinto from the perspective of each of the moral theories discussed in this chapter. The Ford officials would probably invoke the principles of utilitarianism. Ford had claimed that the...
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...In the case of the ford pinto Lee Iacocca wanted to produce a car to meet with the competition of the Japanese market. The car was to be designed and produced in a condensed time 25 months vice the 43 which would have been the usual. Ford motor company completed the task. At the time there was not a standard from the national highway traffic safety committee as to a rear-end impact, that requirement was not in place until after production. I find Ford was not acting un-ethical in the design and production of the vehicle. The un-ethical part of the event started at the point when the rear-impact test was performed and it was found that the pinto was not up to par. Ford was on the correct path as to the testing of the pinto. There will always be a new regulation in any process of production. Any company has an ethical and moral obligation to meet or want to exceed regulations as to quality of a product. Understanding there will be a cost analyst as to procedures in production, cost of materials and life expectancy of the “product”. Further explanation here as to procedures the production of the product may need to be weighed as to the best economical or the requirements of inspection points during the process, next the needed quality of materials as if to manufacture a dish with a non-toxic finish for food use. And the most confused life expectancy of the product, whether it be a car or a prosthetic hip joint. In an article from NBCNEWS Herb Weisbaun found that consumer reports...
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...public sector) that have a relevant reference to the key principles and approaches of the business ethics. However, in this assessment, we need to critically evaluate its performance by applying an appropriate criteria that may identify the extent to which ethical issues are being managed or resolved. With this, we need to include two of the following approaches in the assessment and that is by (1) including an identification and evaluation of ethical dilemmas within the organization by linking to the theories and approaches that has been covered in the module and (2) evaluate a possible ways in which the dilemmas can be managed and resolved. Therefore, I have chosen “Ford Motor Company” as the choice of organization that have a reference to the key principles and approaches to the business ethics. Ford Motor Company is an American automaker and the...
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...Introduction The unfortunate tragedies involving the explosion of Ford Pinto's due to a design defect led to a main debate regarding the use of a cost-benefit analysis and the ethics revolving around the company’s decision to go further with the initial, defective prototype. Ethical Dilemma Ford was completely aware of the safety issues the prototype was facing, but solving the issue would cause great disadvantage for the company: production schedule had to be modified, resulting in delays to bring the new car on the market, and also production costs would increase. In this context an ethical dilemma raised, so two crucial issues were addressed: either go further with the production of Pinto regardless the defects and the danger to future customers, or delay the production and modify the original model to assure safety and reliability, regardless the higher costs? Ford’s decision was to continue the production of the defective design while basing it on a cost-benefit analysis. In this context another dilemma was created: should such an analysis be used in situations where defects could lead to death or cause tremendous harm, such as in the Ford Pinto situation? Utilitarianism Based on the information provided by Ford, the company assumed and decided that the most benefit would come from going ahead with the production of the initial design. Utilitarianism is defined as a normative, empirical philosophy that is based on the principle that “the right thing to...
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...exciting assignment but I wanted to show some of my more formal writing.) When Ford began development of the Pinto in 1968, the company hoped that the car’s smaller size and price tag would help it compete with Japanese and German competition, who were mounting their takeover of the subcompact auto market. Ford president Lee Iacocca wanted the Pinto to be less than 2,000 pounds and less than $2,000 so it could stand out when released into a division of automobiles Ford did not have much experience in. In order to get the Pinto released as soon as possible, the design and manufacturing process was cut from three and a half years down to two. While testing the Pinto, it became apparent that due to the gas tank in the car was at great risk for fire hazard when struck from the rear, even at low speeds. The necessary improvements to make the Pinto safer were not complex or costly; they simply needed a barrier between the gas tank and the bumper of the car, which meant an added $5 to $8 to produce each car. To prevent the gas tank leaking during rollovers, another $11 would have to be spent on production. Ford was presented with a dilemma: to release the Pinto as scheduled and risk the safety of those who purchased it or spend more time designing the car, thereby seceding more of the subcompact auto market to the competition. After a cost-benefit analysis of the safety improvements and the potential death toll, Ford decided to release the model without the safety improvements. Their estimation...
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...Ethics 368 22 June 2014 The Ford Pinto Case from a Utilitarian Perspective “Utilitarianism adopts a teleological approach to ethics and claims that actions are to be judged by their consequences” (DeGeorge 44). When looking at an decision from this view, we are to be impartial that decisions are not right or wrong by themselves, but also that we must analyze the results to determine if actions are good or bad. We know that Ford became more completive in the subcompact market from the Pinto sold in 1971 thru 1978. Ford also captured their fair share of the market for subcompact. There are several things about utilitarianism that make it appealing as a standard for moral decisions in business. One of them being “act utilitarian”, which holds individual actions to a test. “A theory developed by Jeremy Bentham and introduced to the world in his book An Introduction to the Principles of Morals and Legislation, released in back in the 17th century” (Bentham, Jeremy). There are many ways to determine the outcome of an action. Our reactions to pain and pleasure is a measure. The good that an action provides for the majority of those involved or the greatest number of people is another. Ford had a product to deliver and consumers wanted it. In determining whether this action produces more pain or pleasure for the majority, hedonistic calculus can be used. It is easier to be impartial, when using this calculus on an ethical decision. The calculus weighs all the factors involved...
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...Analysis The Case of the Ford Pinto The Ford Pinto first rolled off the Ford Motor Co. production lines in 1971 and stayed in production in its original state until 1978. The vehicle engineers were tasked to develop the vehicle and put it into production within 25 months, which was nearly half the time in which the average new vehicle is put into production. The Ford engineers were aware that rear-end impact safety tests were pretty standard at the time, but they were not required by the National Highway Traffic Safety Administration at that time. The vehicle was rushed into production anyway to compete with foreign compact cars being developed by the Japanese during that time period. Only after the vehicle was made available to the public was the vehicle tested. The Ford Pinto ended up failing the rear safety test, due to the fact that it was susceptible to fire from rear end collisions. Ford engineers determined that the problem could be resolved by installing a baffle, which protected the gas tank from being punctured during rear-end collisions. The part would have only cost between $6.65 and $11 to be install, but the Ford Motor Co. determined through cost-benefit analysis that the cost of lawsuits would be less than the cost of installing the baffle and decided not to install the baffle. Ford Motor Co. also failed to notify customers of the problem and offer them the option to have the baffle installed. Between 1971 and 1978 the Ford Pinto would be involved in...
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...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 than to spend the money to save people in spite of the fact that the only added cost was $ 11 per vehicle. 2. Suppose Ford officials were asked to justify their decision. What moral principles do you think they would invoke? Assess Ford’s handling of the Pinto from the perspective of each of the moral theories discussed in this chapter. I think Ford officials would invoke the principles of utilitarianism. They claimed that they used cost benefit strictly based on data provided by National Highway Traffic Safety Administration (NHSTA). Moreover Ford also quantified a human life as a commodity at cost of approximately $ 200,000. As per their analysis, the $49.5 million benefits and $137.5 million cost suggested that Ford implementation of safety improvements would totally outweighed their benefits. 3. Utilitarian’s would say that jeopardizing motorists does not by itself make Ford’s action morally objectionable. The only morally relevant matter is whether Ford gave equal consideration...
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...Identify the relevant facts of the Ford Pinto case: In 1970 Ford introduced the Pinto, a small car that was intended to compete with the then current challenge from European cars and the ominous presence on the horizon of Japanese manufacturers. The Pinto was brought from inception to production in the record time of approximately 25 months, where a normal car usually takes 43 months. This showed an expedited time frame for the Pinto. On top of time pressure the team was also required to follow a limit of 2000, that meaning it could not exceed $2000 in cost and it could not weight more than 2000lbs. When it came to routine crash testing of the Pinto, it was revealed that the Pinto’s fuel tank often ruptured when struck from the rear at a relatively low speed. This was because the fuel tank was positioned between the rear bumper and the rear axle, and when impact was made studs from the axle would puncture the fuel tank, spilling gasoline that could be ignited by the sparks. In crash testing 11 vehicles, 8 of the cars suffered potentially catastrophic gas tank ruptures. There were several possibilities for fixing the problem, but given the restrictions of limit of 2000, they made no changes. The most controversial reason for rejecting the production change was because of Ford’s cost-benefit analysis. Ford believed that the cost of rebuilding the Pinto to make it safer were far more expensive than the cost of life for each fatality. Due to schema, the Pinto was found okay to sell on the...
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...Case 10: Ford’s Pinto Fires: The Retrospective view of Ford’s Recall Coordinator Ford motor company, North America’s subcompact automobile company; design Pinto in 1971 in order to compete with fuel efficient Volkswagen and Japanese imports. Pinto’s major design flaw- a fuel tank prone to rupturing with moderate speed rear-end collisions- surfaced not too long after the Pinto’s entrance to the market. In April 1974, the Center for Auto Safety Administration (NHTSA) to recall Ford Pintos due to the fuel tank design defects. As a result of tests performed of NHTSA, as well as the extraordinary amount of publicity generated by the problem, Ford Motor Company agreed to recall Ford Pintos. Dennis A. Gioia was the field recall coordinator at Ford Motor Company as the Pinto fuel tank defect began unfolding. Gioia responsibilities include the operational coordination of all the current recall campaigns, tracking incoming information to identify developing problems, and reviewing field reports of alleged components failures that led to accidents. Business Ethics: In the Ford Pinto Case, what moral issues does the Pinto case raise? what is the dollar value of the human life.Business Ethics: In the Ford Pinto Case, what moralissues does the Pinto case raise? that a car that explodes when hit in the rear can be used to deliver mailBusiness Ethics: In theFord Pinto Case, what moral issues does the Pinto case raise?That businesses should not be putting a value on human life and disregard...
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...PINTO FIRES CASE The assumption that ‘it’s easy to be ethical’ assumes that individuals automatically know that they are facing an ethical dilemma and that they should simply choose to do the right thing. But decision makers may not always recognize that they are facing a moral issue. Rarely do decisions come with waving red flags. Dennis Gioia was recall coordinator at Ford Motor Company in the early 1970s when the company decided not to recall the Pinto despite dangerous fires that were killing the occupants of vehicles involved in low-impact rear-end collisions. In his information and overloaded recall coordinator role, Gioia saw thousands of accident reports, and he followed a cognitive “script” that helped him decide which situations represented strong recall candidates and which did not. The incoming information about the Pinto fires did not penetrate a script designed to surface other issues, and it did not initially raise ethical concerns. He and his colleagues in the recall office did not recognize the recall issue as an ethical issue. From the standpoint of Hooker’s test, we will start with the geralizability test. Hooker (2011) states that to pass generalizability, it must give the reasons for an action have to be consistent with the assumption that others who have the same reasons act the same way. To release the Pinto as scheduled and risk the safety of those who purchased it or spend more time designing the car, thereby seceding more of the subcompact...
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... Business Ethics Case Study: The Ford Pinto 1. What moral issues does the Pinto case raise? Answer: The Pinto case raise moral issues in human rights because even there were various ways of making the Pinto’s tank safer they refused technical improvement to prevent gas tanks from leaking. Given that number of people killed by fires from car, how they can value those individuals’ lives? Ford officials decide not to push the modification of the cars because it will be costly for them and not considering human’s life. 2. Supposed Ford officials were asked to justify their decision. What moral principles do you think they would invoke? Assess Ford’s handling of the Pinto from the perspective of each of the moral theories discussed in this chapter. Answer: With the use of risk/benefit analysis required by NHTSA, Ford officials justified in its decision not to change the Pinto model to increase vehicle safety, not considering the balance outlook on company’s perspective and human safeness. The moral principles that should invoke Ford officials is the act utilitarianism because this approach evaluates each action separately and the consequences that arise including any harms and benefits incurred by any people involved in the case. 3. Utilitarians would say that jeopardizing motorists does not by itself make Ford’s action morally objectionable. The only morally relevant matter is whether Ford gave equal consideration to the interests...
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