University Of Phoenix
Learning Team Assignment: Case Study Discussion & Executive Summary
In 1968 the Ford Motor Company decided to introduce a new subcompact car to compete with foreign imported vehicles in the subcompact category. The Vice-President of Ford at the time Lee Iacocca felt that in order to grab a larger share of the market Ford must remain competitive and a decision on putting money before human lives. The Ford Motor clearly exercised poor ethics, the studies that Ford conducted showed a clear flaw with the gas tank in the Ford Pinto, and the gas tank had a propensity for rupture from rear impact at very low speeds. The lack for …show more content…
In examining the Ford Pinto Case, it is clear that the decisions the company made in the production of their subcompact vehicle were unethical, negligent, and detrimental to the image of the brand. In business, companies are always looking for different ways to be cost effective and successfully compete within the market. However, these strategies should not jeopardize the credibility of the company as a whole, and certainly should never endanger the lives of its customers.
When Ford introduced the Pinto, they did so in a manner that was socially irresponsible as they rushed the process and ignored the safety issue concerning its gas tank in order to meet their financial goals. After conducting crash tests, it was known that the tank was vulnerable even at low speed impact, but instead of easily addressing the defective vehicle by investing $11 on each modification, Ford president Lee Iacocca’s gross negligence and immoral judgment lead to disaster as the company was brought up on criminal charges for murder. This case serves as a prime example of the damage that can be done to a brand’s reputation via the consequences of poor ethical decisions and immoral judgment in the eyes of the public. Only time and taking the right actions can win back lost customers and ultimately repair a reputation that has been tarnished. This is a much taller task than addressing the financial harm done in the courts, as