The Recall Of Both Ford And General Motors Essay

Submitted By leanderzaf
Words: 2457
Pages: 10
Open Document
The Recall Of Both Ford And General Motors And the Ethical Implications.
Leander Andreas Zapheriou
Lindsey Wilson College
Business Ethics
4/25/14

Author Note
Leander Andreas Zapheriou, Student Athlete, Lindsey Wilson College.
Leander Andreas Zapheriou is currently studying Business Administration concentrated in Management.

Abstract
This paper discusses the events leading up to the recall of both the Ford and General Motors. Both these vehicle companies dispatched faulty vehicles after, previously engineers warned against this. Both companies were involved in ethical dilemmas where they utilized the Cost-benefit analysis to weigh up the option of a recall. In this paper we will discuss the event, which might have forced these companies into dispatching faulty vehicles and how they handled the aftermath of various lawsuits and allegations. We will also compare these companies and see what these events have in common and similar ethical approaches that were taken.

Business Ethics according to Investopedia is the study of proper practices and policies regarding potential controversial issues, such as corporate governance, insider trading, bribery and corporate social responsibilities. Law subsequently governs business Ethics and provides a basic framework in which businesses can gain public acceptance through their ethical practices. Over the years business have all tried to adapt some form of corporate culture, which is a specific approach a business conducts its business. Most business nowadays try to conduct business in a way that will make them look good in the public eye which in return will increase their sales and increase the amount of businesses whom will want to conduct and formulate a relationship with them. If Corporate Culture plays a big role in business, my question is - What happens when big corporations such as Ford and General Motors do not disclose information, which can, and has killed individuals? Is that linked to Cooperate Culture, Business Ethics or both, what are the repercussions for such large companies? In the following paper we will discuss both cases and look at the Ethical Theories behind the decisions made, and how they relate to each other.
In one of the most recent articles written by Agostinho Ribeiro, disclosed that as of 6 April 2014 General motors has already recalled up to 1.6 million vehicles after publicizing that all the cars sold between the periods of 2001 to 2013 have faulty ignition switches (Ribeiro 2014). This faulty ignition switch causes the car to switch off in mid motion rendering the cars engine, electrical system and airbags basically unusable. Obviously General Motors did not see or should I say chose not to see the immediate harm this can have on an individual’s life.
General Motors will soon be seeing the implications of their decisions to ignore the problem. The business Journal reports that up to 300 deaths are related to ignition switch problem. “ General Motors said on Wednesday that it had received reports as early as 2001 , three years earlier than previously disclosed” (IVORY 2014). In 2003 a service technician observed that the car had switched off while driving. After further analysis it was realized that a heavy key ring attributed to the faulty switch. The technician then replaced the switch and closed the inquiry about the problem. The continuous reports about faulty ignition switches were ongoing and eventually reached the top executives. In a meeting with corresponding engineers, top executives chose to ignore the initial problem against the wishes of various employees in the room. Moral and ethical questions have to be raised about General Motor’s practices and the median in which they conduct business. At what point does a $10 part to fix the problem become more valuable than an individual driving the vehicle, a customer of General Motors. After a Cost Benefit analysis was conducted by the company it was concluded
Show More

Related Documents: The Recall Of Both Ford And General Motors Essay

The Automobile Industry Essay

auto industry has been quite volatile over the last decade. It was arguably the hardest industry hit by the recession, but it has climbed back with the rest of the economy. However, the outlook for the “Big Three” US automakers (Chrysler, Ford, and General Motors) is not as promising as the Asian automakers (Toyota, Honda, Hyundai, Nissan). The Big Three have lost major US market share over the last half-century. The ability to expand globally is what will allow companies to survive in this industry…

Words 2663 - Pages 11

Swot: Plug-in Hybrid and Ford Motor Company Essay examples

COMPANY PROFILE Ford Motor Company REFERENCE CODE: 4E3AD1B7-04B2-4E87-BB09-7DC916B9230F PUBLICATION DATE: 30 Nov 2012 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Ford Motor Company TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts..................................................................…

Words 3135 - Pages 13

Ford: Ford Motor Company and Ford Essay

Ford “In 1903 with $28,000 in cash, Henry Ford started the Ford Motor Company, whose automobiles changes how the world moved.” Ford motor company is an American automaker and it is currently the world’s third largest automaker being based out of Dearborn, Michigan. The company was founded by Henry Ford and incorporated on June 16, 1903. During its early years, the company manufactured many vehicles in a short amount of time. Because of this, Ford motor company would go on to become one of the largest…

Words 2059 - Pages 9

Issues and Case Analysis Essay

company understands the strength and weaknesses in itself, its market and its environment. This paper analyzes two competitors in the auto manufacturing industry that have entirely different approaches to production and management. Ford Motor Company SWOT analysis Ford Motor Company is a manufacturer of automobile, trucks and several other motorized devices. They are a global corporation that is headquartered in Dearborn, Michigan. The current CEO is Alan Mulally. They generated $134.3 Billion in revenue…

Words 2319 - Pages 10

Essay Ford: Company Analysis

ABSTRACT Ford Motor Company have been around since 1903, and although in the past they lost market shares due to production and marketing scandals, they remain robust in 2005. This paper has been written to thoroughly analysed Ford through PESTEL analysis to comprehend the macro environment in, Porter’s Five Forces analysis to determine the competition and lastly SWOT analysis to depict the micro environmental factors of the company in question. It has been concluded that due to the fierce competition…

Words 3080 - Pages 13

assignmnt on hyundai 2 Essay

worldwide Large manufactures Product recalls Shortage of spare parts Production losses Low sale in Japan Opportunities Threats Hybrid cars Provide training to dealers Develop fuel efficient cars Boosting fuel efficiency Exchange rates Inflation High fuel prices Competition SWOT analysis for General Motors (GM) - Strength Weakness Global presence New vision and strategy Well performing brand Strong brand portfolio High cost structure Car recalls Opportunities Threats Changing consumer…

Words 4857 - Pages 20

Salle Daniel Industry Analysis Paper

10/16/14 Overview The automotive industry in the United States is dominated by five firms, being General Motors, Ford, Honda, Hyundai, and Toyota. These companies assemble automobiles and manufacture chassis, and together these companies make up 70% of the total market share of a $102 billion industry that has 202 companies (refer to figure 1). The types of…

Words 3171 - Pages 13

Essay about Ford Motor Company

Big Three, are Ford, General Motors, and Chrysler. The Ford Company, founded in 1903 by Henry Ford, is an American automaker headquartered in Dearborn, Michigan. The Ford Company sells automobiles and commercial vehicles under the Ford brand and luxury vehicles under the Lincoln brand. Ford also owns Troller, a Brazilian SUV manufacturer, and FPV, an Australian performance car manufacturer. Ford has joint ventures in China, Thailand, Turkey, and Russia. After General Motors, Ford is the second largest…

Words 3987 - Pages 16

Swot Analysis Of General Motors

General Motors Phase 5 IP Colorado Technical University Betty Thompson MGMT455-1402B-03 Professor Gregory Smith June 23, 2014 General Motors Section 1 Introduction General Motors is the leaders of automotive advance technology and serve its products throughout the globe. General Motors serves the automobile industry for more than 100 years. It plays a pivotal role in automobile industry. This company designed to build and sell cars trucks and automobile parts nationally and internationally. General…

Words 5996 - Pages 24

Micro: Marginal Cost and non Price Competition Essay

are relatively inflexible? Under what conditions will oligopolists acting independently raise or lower their prices even though their demand curves may be kinked? "Kinked" demand curves and traditional demand curves are similar in that they are both downward-sloping. They are distinguished by a hypothesized convex bend with a discontinuity at the bend - the "kink." Therefore, the first derivative at that point is undefined and leads to a jump discontinuity in the marginal revenue curve. Classical…

Words 2248 - Pages 9