Case Study of Ford Motor Company

1147 WordsJan 31, 20185 Pages
Tim Randall "Ford Motor Company has been recognized as one of the world's most ethical companies by the Ethisphere Institute, a leading business ethics think tank" (Ford Motor Company.com. Home Page. 2012. PP. 1). This 2010 award of excellence highlights a fundamental transformation for a company that in the mid-1970s was immersed in a scandal regarding the safety of its Ford Pinto sub-compact. The issue which "led to major lawsuits, inconclusive criminal charges, and a costly recall of all affected Pintos" (Corporate Narc.com. N.D. PP. 1); was due to a structural design that in "rear-end collisions would rupture the Pinto's fuel system"¦leading to a serious fire hazard" (Dowie, M. September/October 1977. PP. 1). This design flaw has been linked "by conservative estimates to have caused 500 burn deaths to people who would not have been seriously injured if the car had not burst into flames" (Dowie, M. September/October 1977. PP. 1). Beyond engineering schematics however, the Ford Pinto saga unveiled the importance of Corporate Social Responsibility and the connected relationship between customers and business. Ford's Current Mission, Values, and Guiding Principles Ford's promotion of a sound ethical environment shines within its industry and shows a clear understanding that operating under the highest standards for business behavior goes beyond goodwill and lip service and is intimately linked to performance and profitability," said Alex Brigham, executive

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