people to question its business research and ethical practices. The controversy came about with the development of the Ford Pinto. The Ford Pinto was manufactured as a response to the overwhelming competition from Volkswagen, Toyota, and Datsun in the abundant small car market. Lee Iaccoca was the vice president for Ford Company during the development of the Ford Pinto, and was very influential in launching the project. He had the credit of the Ford Mustang to his name, and was involved with
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business, could invariably save your business far more than money. Here we will explore the ethical decisions made by Ford Motor Company after research found their Ford Pinto to be unsafe in rear-end collisions. In an effort to beat out strong foreign competition from in the small car market, Ford Motor Company produced the Ford Pinto in 1970. Before this time, Ford dominated in the production of larger vehicles and never was considered a contender in the small car market. Lee Iacocca wanted to change
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decision to implement the baffle comes from a human element that seems to be missing from Ford’s decision. Human life is priceless, but Ford did manage to place a number on it. The loss of life is enough external pressure to influence the recall of the Pinto and add a part that cost less than a trip to the movies. “One Ford engineer, when asked about the dangerous gas tank said, “Safety isn’t the issue; trunk space is” (De George, 2005, p. 116). The Ford Company did not operate with a concern for the
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Can we trust corporations that they will not produce what will jeopardize the human life? Was Ford to be blame in the pinto case? Must we wait for the characters like “Erin Brokovich” to fight on behalf of the helpless consumers? Who is to be blamed for the McDonald’s hot coffee case-the producer, the consumer or the regulators? Almost thirty years has passed since the Pinto accidents and what followed from it. We still don’t know how “safe” a
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Ford Pinto: Setting the precedent for corporate crime Caleb Bede Accounting 573: Accounting Fraud, Criminology, & Ethics Joan Moore
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THE FORD PINTO CASE: THE VALUATION OF LIFE AS IT APPLIES TO THE NEGLIGENCE-EFFICIENCY ARGUMENT Christopher Leggett Law & Valuation Professor Palmiter Spring, 1999 Abstract Text of Paper Abstract The cases involving the explosion of Ford Pinto's due to a defective fuel system design led to the debate of many issues, most centering around the use by Ford of a cost-benefit analysis and the ethics surrounding its decision not to upgrade the fuel system based on this analysis. ISSUE Should
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limits of2,000”. This meant the Ford Pinto would not cost more than $2,000 and will not weigh more 2,000 pounds] (Trevino & Nelson, 2007, pg. 116). Despite faulty test results, Ford went forward with introducing the Pinto to the public. The results were disastrous. The problem with the Pinto was that the tank was not properly protected and if a rear end crash were to happen at speeds as low as 20 miles per hour the design would cause the gas tank to rupture and a fire or explosion to ensue. [To upgrade
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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
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M. Panganiban Sir. Sammy P. Pagaduan MBA-1 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
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The Ford Pinto Case In the late 1960’s Ford Motor Company wanted to produce a small model car to compete with small Japanese and German imports like Volkswagen, Datsun and Toyota (Danley). In 1969 Ford’s Board approved the plan to produce the Pinto. The CEO, Lee Iacocca, wanted a car that was low weight, under 2,000 pounds, and low cost, under $2,000. Lee “Iaccoca imposed the 2000/2000 rule, i.e., the Pinto could weigh no more than 2000 pounds and cost no more than $2000” (Danley). The engineers
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