• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Business ethics - After reading a case The Ford Pinto I came to the conclusion that Ford acted unethically in resolving the issues with a gas tank in the cars.

Extracts from this document...


The business ethics includes three main theories: utilitarianism, deontology and theory of justice. One of the most influential in business ethics is the concept of utilitarianism (Act Utilitarianism) which states that morally justified action is an action which eventually leads to the maximum benefits for everyone who is involved. After reading a case "The Ford Pinto" I came to the conclusion that Ford acted unethically in resolving the issues with a gas tank in the cars. As I understand, Ford calculated that human life is not worth enough for them to spend extra $8 on the production cost of each car. Ford's economists did the following: using the statistics of accidents, they estimated approximately how many such accidents will happen in all the years of exploitation of Pinto, and how many people will be burnt alive. ...read more.


What Ford had to do is to add this $8 dollars to the price of the car and the problem could have been solved ($8 in 1970 was equivalent to $44.20 in 2009). Let's say that it still doesn't cover Ford's expenses, in this case Ford's economists should have uses logic thinking, since the car ignites from the bump on the rear bumper, people will get hurt and families of the victims will want the answers or money compensations. Since the Ford didn't solve this issue by using an Act Utilitarianism theory, damages of the company included brand reputation and significant financial losses. Regarding the lawsuits, in my opinion lawsuits don't create difficulties for American companies to be competitive. I think the only reason why we have high quality products and why the companies are trying to create high quality and healthy products for people is because they are afraid to be sued by the customers. ...read more.


which would create danger on the road and people would get hurt. However, I think that there must be limitation of the lawsuits, because we don't want people to start suing big corporations because of silly claims. My personal moral standing would not change because of my involvement in the company which was involved in wrong doing towards its customers. The reason why I have chosen Act Utilitarianism theory as a support of my opinion in the Ford's case is because; this theory supports my understanding of how that situation should have been solved. Regarding the company that is partially owned by governments, it would also be unethical to choose financial data over human life. Shaw, William H., and Vincent Barry, Moral Issues in Business, 11th edition, Wadsworth Publishing Co., 2010. Goodden, R., Total Quality Management: Quality of Products. 2001, Vol. 12 Issue 5, p623-628, 6p http://www.measuringworth.com/ppowerus/result.php http://topics.law.cornell.edu/wex/Products_liability ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Understanding business ethics- BP and the Gulf of Mexico oil spill

    The customer gets value for money. Local communities receive benefits from investment, from jobs and from the company's involvement in local activities such as money raising schemes. Suppliers benefit through winning business and learning new skills. And employees benefit through training and experience as well as through wages and pensions.

  2. Social implications of business ethics. The main areas I will be highlighting are ...

    This reaction was a response to public concern over pay raises which were not based on their work done or effort given towards the business. This option at least gives shareholders within a company the ability to know exactly what their money is going towards and how much the top executives are earning.

  1. Proctor & Gamble, Inc. (Scope Case)

    Also, to get the approval for reducing gum inflammation and fighting gingivitis, especially for the CDA, Scope has to submit their packaging and advertising for approval to the HPB. They also require products to demonstrate effectiveness against cavities or plaque/gingivitis .

  2. Business plan. The business that I am going to produce is a personalised logo ...

    The business lifecycle is the system of which all businesses go through at the selling life on the market. All stages of the cycle are measured by profits from the business over a certain period of time. However every type of business goes through different stage of the lifecycle each at different times.

  1. Identify and describe a selected case significant stakeholder influence over a business. (P2)

    2. Consumers (concerned over pesticides) 3. Shareholders (concerned over reputation, profits and shareholder value) 4. Managers/Directors ( concerned about profit levels) 5. Suppliers (concerned about providing M & S with quality produce) 1. These take the form of groups such as Greenpeace and Oxfam had their say with Marks and Spencer's via many meetings and discussions, joint projects and plan A meetings.

  2. PEST is a planning tool which is used by a business to evaluate and ...

    will increase profits as they will not have to give supermarkets like Tesco's money to sell their products also they may increase the amount of customers that they have, this is because they have a unique selling point over their competitors meaning people may be more inclined to buy Ginsters products.

  1. NHS change management

    As the change at NHS is incremental, things are always changing. Thing are in a constant state of flux which means that there are reduced levels of motivation and commitment from the staff. This also implies that NHS has not reached a stage where they can freeze.

  2. The Theory of Scientific Management.

    This quote brings in Maslow's theory of motivation, tying along with the growth, happiness and satisfaction of every person. He believes to be motivated that it is not driven by reducing tension or avoiding frustration that people look for a positive view.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work