The American Automobile And The Foreign Car Manufacturers

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What is business ethics? It is formally defined as the critical, structured examination of how people & institutions should behave in the world of commerce. Specifically, it examines self-interest and profits, versus moral values and ethics. The Ford Pinto was a new stylish car, which gave Ford an ultimatum.
Save money or save lives. In this paper I will explain the ethical problems with the Ford Pinto and why it’s imperative for corporations to incorporate ethics into their companies.
The American automobile and the foreign car manufacturers were battling in 1960-70s attempting to create a more efficient car at bargain prices. Another problem that was haunting the industry was the gas consumption, which, in the period of the Arab oil embargo in 1970s, became a really critical issue. The survival for the American automobile industry was in designing and building of subcompact cars, which would be affordable for masses, consuming as less gas as possible. Such car for the Ford Motor Company became Ford Pinto that was presented to public in September of 1970.
Since competition between domestic automobile manufacturers was very intense, the Ford Motors Company decided to build Ford Pinto in only 25 month versus normal 43 months. The General Manager of Ford Pinto project, Lee Iacocca, was so obsessed with the idea of creating an affordable car and winning the market, that he specifically set a certain goal for Ford Pinto development team. The goal was that the car should
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