Case Study Opinion Essay
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Opinion essay: Hoffman Pinto case study
Cecilia Sanchez
TAMUC
ORGL 3322-0cw Organizational Ethics
Dr. Beth Bailey
1/25/2024
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Opinion essay: Hoffman Pinto case study
In the records of corporate history, there have been few cases that garnered as much attention and controversy as much as the grand jury case against Ford and the Pinto, the first case
of homicide, against an American corporation. The case was brought on after the Ford Pinto, driven by the Ulrich teenagers, were struck in the rear by a 4,000-pound van, which caused the gas tank to rupture, leading to the three teens untimely and horrific burning death. This large legal battle between Ford and Elkhart County brought out shocking evidence and conclusions that led to a spotlight on the company’s decision, made consciously, to prioritize the profits over consumer safety. The legal battle revolved around the Pinto's fuel system and its susceptibility to
rupturing in rear-end collisions and leading to an explosion and fire causing death or at the least, burns, scars and disfiguration. While Elkhart county charged Ford with reckless homicide, Ford was convinced that the Pinto was just like any other vehicle on the market when it came to ruptured gas tanks when hit by a 4,000-pound vehicle at 50 mph, and felt that they were within the parameters of safety. This opinion essay explores the ethical and legal dimensions of Ford's actions and the implications of the corporate giant's decisions on the priority of profit, and the price tag they put on their disregard for human life. Analysis Ford Undertook
Ford’s used a cost-benefit analysis that outlined the cost of making an $11 change to the vehicle to make the vehicle safer, versus the cost of lawsuit settlements for accidents, and determined that it ws mare cost-effective to pay for the lawsuits and settle, rather than make the safety improvements needed. This analysis showed that it was more cost effective to pay out settlements and put off the improvements for at least 8 years, in order to reach maximum profits.
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Ethical Perspective Ford could have used
Ford had a plethora of perspectives that they could have used in their decision-making process that could have led to a better ethical decision in the production and safety improvements
of the Pinto. Two major perspectives are that Ford could have reflected on their own values and beliefs when making a decision on the Pinto’s fuel tank. Ford could have also implemented the “do no harm” principle, and how prioritizing their profits aligned or contradicted the ethical guideline.
Alternative Ethical Perspectives
Alternative ethical perspectives include Care ethics, Communitarian ethics, and rights-
based perspectives. Care ethics would have considered the potential harm the fuel tank could cause, and prioritized the well-being of consumers, by seeing them as individuals that deserved protection from the company while using their products, rather than just viewing them as a dollar
sign. Ford could have used Communitarian Ethics by considering the impact of their decisions on the community and realizing that compromising the safety of the consumer in order to cut costs for the company would affect the consumer view in a negative manner, they would have balanced the interest of the company and the values of the communities in which Ford advertised. Disagreement on Fords Handling of the Case There are many points that shaped my perspective and opinion on the way the Ford handled the grand jury case. This argument touches on the leadership practices that were not followed in the decisions surrounding the design of the Pinto, and the consequences that came from the decision making process as well as the influence that those decisions had on the consumer.
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Leadership practices
Ethical Leadership practices were not followed. Ford prioritized cost-cutting over the safety improvements, which led to a controversial decision-making process which in turn compromised the safety of its consumers. Ford was not transparent, they failed to openly disclose
the safety issues with the Pintos fuel tank and their test results showing that the fuel tank would explode with a hit at as low as 20 mph. They also did not disclose their cost-benefit analysis. Ford showed inadequate risk assessments, downplaying the safety concerns and avoided changed
to the design of the Pinto. Ethical Perspective I would have followed
Had I been a top executive at Ford during this time, I would have fostered a perspective that adhered to ethical principles and duties regardless of the consequences in profits. This would
mean prioritizing the safety of Ford’s consumer versus trying to maximize the profit margin. Decision making would be guided by my moral duty to protect individuals from harm and align with the ethical principles and societal expectations. There should have been a safety recall and improvements made to the fuel tank and a change in design for the pinto’s that were still in production. Ethical dilemmas and course of Action
Ford had the ethical dilemma of concerns over consumer safety versus the loyalty to their
corporation. Employees that worked on the Pinto likely faced the dilemma between their knowledge of the safety issue caused by the fuel tank and the loyalty to the company to maximize the profit margin. Whistleblowing on the design flaw could jeopardize their job with the company. Both the Assembly line workers and the machine engineers may have been made aware of the fuel tank issue and were in a dilemma to follow the orders of the executives instead
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of taking on the responsibility for the harm that would be possibly caused by the faulty fuel tank.
Mid-level leaders likely faced the same dilemmas that individuals and followers did. They also feared loss of their job, and a bad business reputation for disloyalty to the company. Course of Action and Moral Development
A low moral development reared its head when individuals and mid-level executives from the top to the bottom of the Pinto production remained silent and followed orders to continue production against their own ethical reservations. This low moral development likely began at the pre-conventional stage where they prioritized their personal gain over ethical principles.
Ethical followership perspective
Ethical followership is when an individual within an organization processes decision based on ethical principles. Ethical followership involves questioning unethical practices and contributing to the moral of the work environment. In the Grand Jury case of the Pinto, actions of
ethical followership were individuals that raised concerns over the fuel system, whistleblowing; where employees that reported the safety concerns with the public or the prosecutors in the case, Transparency; where the employees produced reports of the faulty fuel tests to the public and prosecutors. These individuals chose to prioritize safety of the public and the consumers over their loyalty to the corporation and disregarded their personal interest in order to ensure that their
ethical obligations were upheld.
Organizational Citizenship Perspective
Fords organizational citizenship during the case of the Pinto, showed a diverse structure. Some employees showed an altruistic behavior where they raised their concerns of the faulty fuel
tank design, others showed fear of consequences for voicing their concerns from executives of
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the corporation. The analysis of the organizational citizenship at Ford involved an array of behaviors in organizational culture, ethical principles of individuals and groups, and the ethical climate within the company. Collectively, the top executives made the decision to side with profits over safety and this created a split culture within it’s organization.
Four stages of issue maturity at Ford
Denial: Upon the production of the Ford Pinto, the corporation may have been ignorant to
the safety concerns in the beginning stages of production. Since the Pinto was the first vehicle that had ever been rushed into the market at the time, Ford made concessions for the safety tests and the faulty design, while downplaying safety concerns to avoid financial loss. Recognition: As the safety concerns became more and more apparent, Ford had to acknowledge the faulty design and the risks that came with the fuel system. Managing Responsibility: Ford decided to do
a cost-benefit analysis once they acknowledged the concerns and decided it was more cost efficient to pay for settlements in regard to injuries/deaths acquired from the faulty fuel systems, rather than pay for the safety improvement for at least 8 years. Resolution: Ford did not come to a resolution, rather they learned a lesson from this experience, and what should be done in future decision-making processes.
Goals if I were a leader during the Ford Pinto case
If I were a leader during the time of the Ford Pinto production would be to foster ethical decision making. I would make safety of the consumer a top priority before beginning production, this would be accomplished by running various safety assessments, and ensuring that
there were ethical regulations in place within the organization as well as governmentally. I would
intend to foster an organization culture that encouraged ethical decision-making. I would develop
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meetings with employees to ensure that ethical principles are being followed in every step of the way concerning development and production of the vehicle, as well as meetings where employees voice any concerns or ideas along with training on ethics. I would implement a forum
where employees could voice their concerns about safety protocols and improvements without fear of retaliation. Finally, I would develop CSR program that would convey our commitment to social and environmental responsibility.
Analysis Result After analyzing the Hoffman Pinto Case Study,
I have a better understanding of organizational behavior and ethical leadership practices that go into decision-making as well as the culture that the behaviors and practices induce. The case showcased how corporate culture’s hierarchy and communication influences the decision-making process, this shows us that understanding these dynamics can become crucial to understand how individuals interact within organizational groups. In analyzing this case, I learned that an organization that prioritizes financial interests over their ethical responsibility can lead to compromised culture and behaviors within said organization. I also learned that open and transparent communication can result in a more ethical decision-making process and creates an environment where concerns can be voiced without fear of retaliation. Integrating CSR into the organization’s practices will positively impact the decisions as well as help build a positive reputation and a sense of responsibility to the consumer. Finally, Leadership must be held accountable for decisions, especially the ones with ethical implications, learning from mistakes in the past will aid in the organization’s commitment
to ongoing improvement in their ethical responsibilities.
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References
Hoffman,W. M. (1982). Hoffman Pinto Case Study, Corporate Obligations and Responsibilities: Everything
Old Is New Again