Class Notes (1,100,000)
CA (620,000)
UTSC (30,000)
Lecture 9

MGSC14H3 Lecture Notes - Lecture 9: Deontological Ethics, Consequentialism, Trunk Space


Department
Management
Course Code
MGSC14H3
Professor
Prof.Constantinou
Lecture
9

This preview shows half of the first page. to view the full 3 pages of the document.
Ford Pinto Case
Relevant Facts:
1968 -NHTSA proposed rules & regs to guide cards
Before 1961 - internal struggle b/w president Knudsen & VP Iacocca ,
VP's view was to compete on the lower end segment w/ the germans &
the Japanese
Knudsen said they should focus on the medium to higher end - whats
making us money
Henry Ford 11 decided w. Iaococca & Knudsen was forced while
Iacococca was promoted to President
Iaccocca came to the fort & reduced the production time for the Ford
Pinto from 2.5 yrs to 2 years
40 crash tests are performed, each one failed
However, they decided to continue it w/out making changes
Structure of the pinto was the problem with the placement of the fuel
tank , it ruptured in rear end colissions
It was placed behind the rear axel not above it
oDone in order to create more trunk space for consumers
oGas tank and rear end was only separated by 9 inches
oFuel filler pipe would get detached during a colission itself, which
would lead to fire & explosion
In 1972 - May - car exploded, 30 miles per hour impact, an accident
where survival was very likely If there has been no fire
Cost benefit analysis done by Ford, keeps their model
Compensated
1973 - recall coordinator recevied information
Iaccocaa came up w. the rule of 2000- cost of 2000 & weigh no more than 2000
ounches
1978 - 1.5 million pintos are recalled after another tragic accident
ETHICAL DILEMMA
Ethical culture of the company
Happened prior to the release of the pinto
Ford motor company decided to manufacture pinto due to presurre from
German & Japanese car manufacturers
In the small car segment
Due to Iacocca's win over Knudsen, the time span for production was
shortened
Safety testing was sacrificed
Very comepetive culture
Profit seeking
"Safety doesn’t sell" "Trunk space sells"
Ford looks after consumers & what they wanted
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version