Pinto Fires

Pinto Fires

The Pinto Fires case involved an explosion of a ford car due to a defective design of fuel system. The event sparked numerous debates across the country. Most of them centered on the ethics surrounding Ford’s decision not to upgrade fuel system design based on the cost-benefit analysis (CBA). Pinto Fires case study demonstrates that greed is the root of all evil. It motivates large multinationals such as Ford to abandon ethical decision making for financial gains. In the end, the move cost several human lives. Prior to the Pinto disaster, Ford had a remarkable reputation as a safety pioneer in automobile industry because it introduced safety belts.  The use of an 8-step model of ethical decision making in Pinto Fires case study will assist in deciding whether the vehicles should be recalled or not (Loe et al., 2012). If the decision maker can follow the 8 steps, he is informed on the ethical dilemmas and how to solve them effectively.

Step 1: Gathering facts

            The first step entails gathering factual information from checklists, surveys, or documentation review. Observation of particular processes in case studies such as Pinto Fires can also come into play in the first step. In Pinto Fires case, three teenage girls died in August 1978 from Ford Pinto’s fire explosion (Trevino & Nelson, 2010: pp. 64).  The sale of Ford Pinto began in 1970. Immediately, victims of car crashes pressed reckless homicide charges against the automaker. Pinto manufacturers planned that the car will not cost more than $2,000 and would weigh less than two thousand pounds. During the subsequent crash tests, gas tanks ruptured nearly every time. Besides, a 1976 research indicated that tens of thousands of Ford Pinto burned every year. Consequently, the company introduced a rapture-proof fuel tank in 1977. However, the improvements gas tanks were hardly justified, given that each cost $11 and were done on dying cars. Ford’s preferred trunk space to fixing gas tank in a safe location. According to the company’s estimates, the cost of human loss in the society is $200,275.  

Step 2: Definition of Ethical Issues

            This step entails weighing cons and pros with divulging and holding certain facts. Essentially, the step reflects on the facts that harm an individual, a business entity, or the society.  On the consequentialist perspective, this case provides a view of Ford, especially if the car recall happened a year after Pinto’s release. Further, the individuals that conducted failed crash test lost jobs while the company is disgraced. Chaos and public outcry arose as well. On the deontological perspective, human lives and the estimated price per individual were lost.

Step 3: Identification of the Affected Parties

This step analyzes the parties that lost or won during the court process. Ford is at risk of losing credibility, customers, and financial resources. From a Deontological point of view, the attention is focused on the vehicles’ drivers and the passengers rather than Ford’s reputation or monetary losses.  Moreover, the attention will shift to the community where the accident occurred in and the contribution of the victims to the society. In fact, the family members of the crash victims are affected because of loss of loved ones. In the short-term, Ford’s continued gains from the sale of cost-effective automobiles seem beneficial, but in the long run, the firm has a dented reputation as the society realizes the extent of damage caused by defective Pinto. In the end, Richard Grimshaw was compensated and cars were recalled.

Step 4: Identification of Consequences

In this step, the short-term consequences are identified against the long-term impact. It is probable that the incident was an isolated case and would never happen again. In this case, it is arguable that Ford’s recall coordinator was right in his decision not to recall defective Pintos despite constant complaints of gas tank rupture (Trevino & Nelson, 2010: pp. 65). In this way, Ford retains its reputations and continues the sale of cost effective cars for higher profit. However, the company loses in the long run because its employees lose jobs due to unethical practices. Some of the workers involved in the test program are likely to face the full force of law for ignoring safety procedures.

Step 5: Identification of the Obligations

The Ford motors chose to design trucks and cars to transport humans from one destination to the other. Therefore, they accepted all the responsibilities that come with human transport means. Not only does the company have an obligation n customer safety, but also the environment and the society. The initial obligations include redesigning of the fuel tank for safety. After frequent reports of accents due to designer’s negligence, Ford has an obligation to compensate Victims and to recall all Pintos in service.

Step 6: Consideration of Character and Integrity

            With the knowledge of this step, I can define my character and core values for ethical decision making and sound judgment. My integrity is based on treating others equally as I would have them treat me. I am convinced that business people should not allow their humanity to be replaced by greed and burning desire for financial gains. Instead, the business culture must revolve around transparency, ethics, and concern for customer’s wellbeing.

Step 7: Thinking Creatively about Potential Actions

Step 7 involves identification of possible solutions to Pinto Fires case. Ideally, finding a lasting solution to a problem such as that of Ford is not easy. Consequently, the decisions made should suit both the organization and the affected customers. Still, Ford made profits from the sale of Pinto for more than 5 years. At the same time, the customers purchased affordable lighter Pinto with a large trunk space.

Step 8: Checking my Gut

Despite the financial implication to the company, I would have recalled all the Ford Pintos to eliminate any case of injury or loss of life due to explosions and fires.

Lessons Learned

Pinto’s case teaches the importance of exercising ethical business practices to ensure customer satisfaction and to uphold the organization’s image. If Ford’s leadership had acted ethically on the recommendations from the crash test, the incurrence in the redesign of fuel tank would have been dismal. Furthermore, the reputation will have remained intact. It calls for the elimination of greed that can lead to a future demise of the corporation and its values.

Reflection

Pinto Fires case study provides a chronological occurrence of ethical failures that resulted in massive losses to Ford. Before the accident occurred, Ford had a clean record of safety and application of best business practices. However, managerial flaws and deterioration in decision-making resulted in negligence that cost hundreds of lives. Eventually, Ford’s reputation was stained. By Tracking Ford’s actions, I can  highlight business practices that must be avoided when making ethical business decisions.

References

Loe, T. W., Ferrell, L., & Mansfield, P. (2012). A Review of Empirical Studies Assessing Ethical Decision Making in Business. Journal of Business Ethics, 185-204.

Trevino, L. K., & Nelson, K. A. (2010). Managing Business Ethics. London: John Wiley & Sons: 60-68.