The use of utilitarianism during ethical business decisions dictates that with all things considered equally, the consequences of both good and bad must be examined for everyone that will be affected by the decision. Unfortunately, using utilitarianism in corporate America can prove quite challenging because executives are in the business of making money. One such example is the Ford Pinto case. The late 1960s and early 1970's found the United States losing footing in the automobile industry against
American made cars. Ford motor company wanted to produce a subcompact car to “meet the threat from abroad head on” so Ford came up with the Ford Pinto. These cars were made to be affordable and domestic, in order for a large quantity of Americans would be able to afford them. With the idea originating in 1968 to meet the deadline Ford they “decided to compress the normal drafting board to showroom time of about three and a half years into two”. After numerous crash-tests of Pinto prototypes that ended
In the late 1960s to early 1970s Ford was losing market share to overseas car manufactures. In order to regain lost ground in the subcompact car category, they decided to rush their design and development of their new car the Pinto. Design started in 1968 and with a completion goal of 1971, Ford slacked on testing requirements set by the National Highway Traffic Safety Administration (NHTSA). When a rear collision occurs the gas tanks would rupture resulting in dangerous leaks. This results failed
Until the late 1960s Ford Motor Company was only manufacturing large metal, gas draining vehicles. During this time foreign automakers were capitalizing on a not so competitive subcompact market. These vehicles weighed less, more fuel efficient, and also cost less than the average American made vehicle. Ford Motor Company was not in the business to be second to anyone. President of Ford Motor Company Lee Iacocca decided to push the envelope and create a car that would beat any other subcompact on
issues or risks into account that might jeopardize the success of the business. Ethical business practice, using utilitarianism, would consider the good and the bad consequences for everyone. This action would affect how everybody is treated as having equal rights, with no bias towards self, and would use it as an unprejudiced way to make a moral decision. If we consider the Ford Pinto case then the main issue was: • The company