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Organizational Ethics and Social Responsibility

Essay by   •  July 25, 2012  •  Essay  •  927 Words (4 Pages)  •  1,220 Views

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Managing Business Ethics

When individuals go to purchase a new vehicle we, never ask the salesman if the car was built by cutting costs. The Ford Pinto was built by cutting costs and this cause hundreds of people to lose their lives. A few of the key factors regarding the Ford Pinto would make anyone question the ethics of the builders, the managers, and the designers. With access to a new design it would have lowered the risk of the car exploding and the cost of this would have been in the ball park of $11 per car which would have resulted in 180 less deaths. Also Ford felt they were justified because they did follow the rules and regulations of building a car. The monetary value in whole would have been in excess of $137 million with the modifications, whereas without the modifications the costs to build the cars were $49.5 million. Ford felt the money was more important to stay inhouse rather then it being spent.

Many people lost their lives due to the Ford not doing the modifications including three teenage girls on a highway. Their reasoning for this was to keep costs of the vehicle under $2000 and 2000 pounds in weight. The Ford Pinto was built with the gas tank between the rear bumper and the rear axle which at the time was standard, but with the Pinto studs would puncture the gas tank which is what cause the explosions.

Ford's current missions, values, and guiding principles is working together as team for automotive leadership, measured by employee, investor, supplier, dealer, community satisfaction and customer. Ford's mission statement is to provide personal mobility and develop new products that customers want and value. The Ford Motor Company is working aggressively to restructure and manage profitably for changing reproduction and the current demand. There plan is to work together successfully as a team and family to improve the company's balance sheet and finance a plan for this improvement. The Ford Motor Company's main goal is to become the leading automotive company in the world for services and products.

The Ford Motor Company is determined and focused on creativity, consumers, and resourcefulness. The company is a diverse team that values and respects everyone's opinion and contribution. The safety and health of consumers is paramount. The company continues to strive to be the leader in environmental responsibility. The Ford Motor Company constantly strives to become better at everything they do.

In the 1970's there was a high demand for affordable vehicles and the need for these kinds of vehicles grew in popularity and it forced automakers to meet these demands. Ford decided to make a vehicle that was small, affordable and that met the demand of the people. They decided to make the car small, light and inexpensive so they cut some corners in order to meet these needs. In order to make a car that would meet these needs but still

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