Essay on Ethical Analysis of General Motors Ignition Switch Scandal

     In 1903 the Ford Motor Company was incorporated after two unsuccessful attempts. Henry Ford was the vice-president and the chief engineer. The company started out only making a few cars a day at the Ford factory, with two or three men working on a car at a time and having to use parts made to order from other companies.2

Volkswagen is one of the largest automakers in the world and it has a global reputation as a high-quality German auto brand. Social responsibility is included in VW’s corporate culture and it seems that Volkswagen made some advances in Corporate Social Responsibility because the corporation was ranked 11th 2015 in the Global CSR Rep Track 100, which listed companies by reputation (Reputation Institute, 2015).However, the company has been threatened by an emission scandal which broke in September 2015, when the Environmental Protection Agency (EPA) disclosed that Volkswagen had installed defeat devices on diesel cars which were sold in the US. These devices equipped on VW cars cheated regulators in such a way that it could detect

General Motors Corporation (NYE: GM) is the leading American automaker in the world with its operations spanning in 157 countries. The car manufacturer was established in 1908 in Michigan and today it is headquartered in Detroit, the United States of America. Besides the domestic industry of the United States of America, General Motors manufactures cars and trucks in other 30 countries around the world. Among its brand products are Cadillac, Buick, Chevrolet, GMC, GM Daewoo, Hummer, Holden, Opel, Saab, Pontiac, Vauxhall, and Saturn. Besides these brands that are owned by the automaker, GMC also operates joint ventures in China and Japan. That is, Shanghai GM and SAIC-GM-Wuling

In this essay, I will argue that Ford Motor Company’s business behavior was unethical as demonstrated in the Ford Pinto Case. Ford did not reveal all the facts to consumers about a harmful gas tank design in the Ford Pinto. They tried to justify their decision to sell an unsafe car by using a Cost-Benefit Analysis which determined it was cheaper to sell the cars without changing to a safer gas tank. The price of not fixing the gas tanks is human injuries and fatalities. By choosing not to make the Pinto a safer vehicle Ford placed a price on the head of every consumer. Ford’s primary concern was to maximize profits. Ford had a duty and ethical responsibility to customers to

Louis Chevrolet created the first Chevrolet Car in his garage in Flint, Michigan with the help of founder of general motors, William C Durant. They called it the Classic Six and sold it for $2500. That was a lot of money back then, Which led to poor sales. Louis knew that in order to compete with Ford, he had to make an affordable, but high end car. In 1917 Chevrolet joined General Motors

On August 10, 1978 three young girls died in a 1973 Ford Pinto after being stuck from the rear by a driver in a van. The Ford Pinto was completely engulfed in flames and the accident resulted in the death of the three young girls. Today, the debate continues regarding whether or not The Ford Motor Company was responsible for this case and many other cases involving the Pinto bursting into flames resulting in disfigurement or death.

General Motors (?GM? or ?the company?) has a rich history longer than a century starting with its corporate organization in 1908. Following its organization, GM acquired its first brand, Old Motor Works, which was followed in 1909 by the purchase of Cadillac for $5.5 million. Two years later, GM organized both General Motors Truck to handle sales of GM?s Rapid and Reliance products and General Motors Export Company to handle export sales out of the US. In 1918, GM purchased Chevrolet Motors. In 1926, GM entered Australia, New Zealand, Japan, Egypt, Uruguay and Argentina through the General Motors Export Company. General Motors Truck became the modern GMC in 1943 when GM acquired the assets of Yellow Truck & Coach. In 1945, GM finally established all of its historical core brands (Buick, Chevrolet, Cadillac, GMC, Oldsmobile, and Pontiac) when the Buick-Oldsmobile-Pontiac Assembly Division, which would be renamed the General Motors Assembly Division in 1965, was formed.

On April 1st, 2014 in Washington D.C., General Motors (GM) Chief Executive Officer Mary Barra testified in front of a panel of senators regarding the company’s late delay in addressing a defect in ignition switches, causing cars to lose power and injuring or killing the drivers. While GM has issued a recall on cars that are known to have this defective product, the problem lies in the delay of action on the part of GM, who are accused of knowing about the defect as early as 2001.

The assumption that ‘it’s easy to be ethical’ assumes that individuals automatically know that they are facing an ethical dilemma and that they should simply choose to do the right thing. But decision makers may not always recognize that they are facing a moral issue. Rarely do decisions come with waving red flags. Dennis Gioia was recall coordinator at Ford Motor

In its early years the automobile industry consisted of hundreds of firms, each producing a few models. William Durant, who bought and reorganized a failing Buick Motors in 1904, determined that if several automobile makers would unite, it would increase the protection for the group. He formed the General Motors Company in Flint, Michigan, in 1908.

Ford Motor company, founded by Henry Ford, is one of the longest lasting automobile companies in the world. Just like any business, corporation, or establishment, Ford Motors has a vision and a mission statement in which makes up the principals that they stand upon. The mission statement in simple terms is “One Team. One Plan. One Goal.” It is also called the “One Ford” mission, in which basically says that anybody that is connected with Ford has the same mission, in which metaphorically spells “unity” (Thompson, 2017). “People working together as a lean, global enterprise for automotive leadership, as measured by: Customer, Employee, Dealer, Investor, Supplier, Union/Council, and Community Satisfaction,” is what exemplifies one team. “Aggressively restructure to operate profitably at the current demand and changing model mix; Accelerate development of new products our customers want and value; Finance our plan and improve our balance sheet; Work together effectively as one team,” exemplifies one plan. Finally, the goal of Ford Motors is “An exciting viable Ford delivering profitable growth for all” (Thompson, p.1, 2017). The vision statement of Ford Motor Company is, People working together as a lean, global enterprise for automotive leadership.” The leadership of the automotive is ultimately measured by everyone who is connected to the company in which includes the employees, suppliers, communities, customers, investors, and dealers,” (Business, 2015). In order to carry out a vision, one must have a plan of action in order to carry out the vision that has been set. Ford Motors constantly works toward their vision by building, “great products, a full family of vehicles – small, medium and large; cars, utilities and trucks – with best-in-class quality, fuel efficiency, safety and smart design; strong business, based on a balanced portfolio of products and global presence; and better world, accomplished through our sustainability strategy,” (Business, 2015). The mission and vision statement of Ford Motor Company is definitely effective.

Mr. Lutz, I can understand why you are puzzled by the Ad Age articles. The truth is that you are in an unprecedented executive position at General Motors and the future of this all-American company rests in your hands. You see Mr. Lutz, the function of marketing is about satisfying the needs of your customers; developing a brand experience, if you will. Although marketing is an extremely broad organizational function, it’s purpose is to create, communicate and deliver value to its customers while maintaining those relationships in ways that benefit the organization and its stakeholders. Where General Motors has failed is in its ability to connect with their customers. Undeniably, GM has become a company focused on serving itself. To ensure GM’s profitability in this highly commoditized economy, you must refocus your attention on who keeps you in business; your customers. Indeed, there must be a shift from the GM’s current sales (how can we sell more aggressively) & production (what can we make best) orientation, to a more holistic market orientation. By utilizing the holistic marketing concept, we refocus the list of marketing mix activities to include people, processes, performance and programs (Kotler, P., & Keller, K. L., 2012). This change in orientation will improve GM’s market position as it includes four all-encompassing parts: relationship marketing (processes), performance marketing (performance), internal marketing (people), and integrated marketing (programs)

Creation, acceleration and emotion are the key components for any automobile industry to deliver its goods to the expected standards. General Motors, popularly known as GM has been a pioneer in the global autoindustry for more than 100 years. Developing from horseless carriages to the latest sports cars, innovations have always excelled at putting the world on wheels. In fact, there are a lot of exciting things to share about the company. GM’s corporation started in 1892 by R.E. Olds, with a solid financial foundation, which enabled him to produce great vehicles for customers and build a bright future for employees, partners and shareholders. GM slowly initiated its staff of experts in the factories which are located in different parts of the globe and acquired the brands like Chevrolet, Pointiac, GMC, Buick, Cadillac(General Motors Corporation, 2015). Leading the way is their tailored leadership team who set high standards for the company so that they can produce the best cars and trucks. This means that GM is committed to deliver vehicles with compelling designs, flawless quality and reliability, leading safety, fuel economy and commercial features. All are intended to create that special bond that can only happen between a driver and a vehicle. General Motors is a customer driven company and aims at earning customers

• Mission: General Motors is committed to be a leader in providing transportation products and services of such quality that its customers will receive superior value, its employees and business partners will share their success and their shareholders will receive a sustained return on their investment.

"GM’s vision is to be the world leader in transportation products and related services. We will