Pinto Fires Case Study example

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Pinto Fires Case Study

The correct decision should have been implementing the safety repairs at the cost of $11 per vehicle and $137.5 million in total. Ford executives based their action on the consequentialist theory by evaluating the various alternatives available to them. The total cost of a single life according to NHSA was $200,725. The estimated deaths from fires after accidents was 180 per year thus the benefits paid would amount to $49 million. The impact of safety repairs to the stakeholders at Ford would be more than the cost’s the company would pay in compensations. This decision yielded the greatest harm to the society and most significant benefit to the enterprise. The number of fatalities caused by this ruling was approximately 500 and up to fifty lawsuits against Ford from 1971 to 1978 (Shaw & Barry 83-86).

The right decision would focus on the duties, obligations, and principles from the deontological theories. Ford was not honest, fair and right in its decision. Firstly, Ford did not acknowledge the fact that the Pinto was unsafe in comparison to other vehicles of this type. Its duty was to ensure safety in all of its cars including the Ford Pinto. The right thing to do would have been ensuring the security of the vehicle (Shaw & Barry 83-86).

According to virtue ethics, Ford’s lacked integrity by placing more value in profits at the expense of human life. Their decision was immoral based on the community’s standards. This is evident by the amount of compensation paid to the victims’ families and a number of punitive damages awarded. Ford should have been transparent and provide accurate safety reports (Shaw & Barry 83-86).

The lack of ethics by Ford caused greater harm to the society and damaged the company’s reputation. The company’s decision was a reflection of a lack of morals and integrity. The appearance of a choice can be misleading in decision making. Only when a careful assessment of consequences, impact on stakeholders, character, harms and benefits can a decision be made.

WORK CITED

Shaw, William H., and Vincent Barry. Moral issues in business. Cengage Learning, …

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