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Ford Ethical Leadership Challenges

Decent Essays
Yes, there are challenges when it comes to Ethical Leadership: Ford has many challenges when it came to ethical leadership, such as, public duty verses loyalty to the company, choosing money over life and the responsibility to the employer verses the responsibility to the public. Ford rushed the Pinto into production even though engineers had discovered the potential danger of ruptured fuel tanks in preproduction crash tests. The assembly line was ready to go, and the company’s leaders chose to proceed with production. Many people saw Ford’s decision as evidence of the greed and mendacity of the leaders. I would suspect that few if any of the executives involved in the Pinto decision believed that they were making an unethical choice when they decided to continue with production. The leaders made their decision based purely as a business decision rather than an ethical one. Ford engineers did not consider that they were taking calculated risks with the consumers. The Ford leaders did not worry about potential lawsuits when deciding on design questions, and they did not refuse to correct perceived problems because settling lawsuits would be cheaper. When communicating with non-engineers within the company, Ford engineers and managers formulated rationales expressed in financial terms (“corporate profits”). Within their own group, engineers and managers understood “acceptable risk” to be the key factor in decision making. When memos using financial rationales became
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