Case Analysis #23

1038 Words Apr 4th, 2013 5 Pages
Case 22 Analysis
Firestone and Ford; The Tire Tread Separation Tragedy

1. What are the major and minor ethical issues involved in this case?
The major ethical issue is Ford and Firestone’s negligence of the technical problems. They knew that something was wrong yet they did not do anything about it and therefore ignored their consumers’ safety and health. They used a utilitarian decision model where they were looking to accomplish the greatest good for the greatest number. Another major dilemma is that Firestone did not report deaths and injuries to the government and they were very reluctant to recall their defective tires even though it was clear that they were a danger to the consumers. In addition to this, Ford failed to inform
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The customers are also stakeholders. They may not be as financially affected but their wealth and welfare was in great danger. The financial affect it had on some of the consumers were to cost of medical bills due to the faulty products. Suppliers are indirect stakeholders since the decline in the companies’ market share also affects the demand of their materials. Shareholders, creditors, and investors’ share is the money they have invested in the company. As Ford and Firestone made huge losses so did they. The stock price went down causing a great loss of money. Together with this owners and founders of the companies had major losses and attained a damaged reputation. Ford and Firestone’s employees were also affected. The tragedy led to a decline in production and consequently their job security dropped and many lost their job. The job cuts had a direct affect on the communities the production plants were located, Decatur, Illinois in particular.

Based on this case I reached the conclusion that Ford and Firestone’s care for consumers was only based on money. They care about their costumers’ ability to spend and thus an increased profit. Their actions do not reflect any care for the consumers’ well being. Now, one cannot make the judgment that the company as a whole shares this value. I believe that it is the people in charge that have ruled these decisions. They might feel obligated to do well and impress their stakeholders. For…

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