In any organization, business laws and ethics play a vital role in making decisions that permeate everyday life. On analyzing the business ethics, a who-how (WH) framework is usually used. This framework comprises ethical rules and guidelines that urge the organization to consider whom the actions affect, the view of its morality, and the action purpose. This framework is typically utilized when making ethical decisions requiring primary factors such as stakeholders and how the action will be conducted. This paper will analyze the Ford Pinto case, which is often discussed when it comes to business ethics.
Indeed, the Ford Company's decision was unethical because failing to repair the defective Pintos' fuel tank does not comply with the ethical guidelines. According to the WH framework, this is a lose-lose situation for both the customers and the company stakeholders. The who-how framework normally identifies the affected people and how they are affected by a particular decision or action. In the case of the Ford Pinto, the affected people are the customers. For Ford to make an ethical decision, some guidelines would have helped them. First, the company would have comprehended that Pinto was a death trap and therefore make an effort to redesign Pintos' engine regardless of the cost the company would incur. Redesigning the engine would have been a better move by the company than selling defective vehicles, putting their lives and those of their families at risk.
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Secondly, Ford Company would have disclosed to the public that Pintos' fuel tank had a higher capability of catching fire. Disclosing this disclaimer to the public would have been an ethical decision by the Ford Company because this critical information would have made the customers have the option of purchasing the car or not. In business, the customer has a right to have an alternative option. Knowing that Pinto's vehicle had some defection and not disclosing it to the public was unethical because the Ford Company did not consider all what-ifs before selling it.
I think Ford found it cheaper to compensate for Pinto's damages than the cost that would have been used to repair the Pintos engine. This was an absurd decision by the company making the Ford Pinto case a popular one. The company's decision compromised many innocent people's lives for their monetary gain and saved many dollars. In making the ethical decision, the lives of the innocent people could have been prioritized rather than the company's cost-benefit analysis. Also, I think that ford did not realize the fact that foregoing repairs would negatively impact the company from the public. Redesigning the fuel tank would have been the best decision the company could have made.
The Need for Promoting Social Responsibility
Promoting business social responsibility is vital in reputation building, which generates positive publicity for a company or an organization. Exceptional social responsibility has a mediating relationship with its competitive advantage ( Fish & Wood, 2017 ). When the reputation of the company or an organization is outstanding, many customers are attracted and retained, which is essential for long-term company success. A company with a good reputation attracts qualified employees who are ready to make a difference in the world, thus promoting an organization's productivity.
Promoting social responsibility builds stronger client and community relations. When a company engages itself in charitable work, they inspire other organizations to follow suit. This action allows shrewdness in corporations to work with other companies, thus developing valuable relationships of great importance.
Reference
Fish, A. J., & Wood, J. (2017). Promoting a strategic business focus to balance competitive advantage and corporate social responsibility – missing elements. Social Responsibility Journal , 13 (1), 78-94. https://doi.org/10.1108/srj-04-2016-0054
