Sunday, April 20, 2008

Ford's Lack of Ethics

Between the years of 1971 and 1976 Ford Motor Company produced and sold the Pinto, a cheap, compact car which they knew would erupt in flames from any rear collision. Before the car was ever sold to the public, Ford watched it go up in flames in nearly every collision test they performed. The Pinto was planned and produced in under half the time it normally takes to produce a car. The reason for this was to compete with similar cars from other companies.

It would take $11 per car to fix the Pinto, but according to their calculations, this would be more cost than their profits. They chose to produce the Pinto the way it was.

I don't care how long ago it was, there is a good chance I will never buy a Ford in my lifetime. This is just one example of how people deny ethics because of selfish motivation. However big or small the decision is, I hope people learn from Ford. I don't know what the legal punishment is for lack of ethical decision making, but I think it should be steep. I have not been able to find official writing from Ford on this issue but I am curious if it acknowledges the possibilities of death. Ethics in business are essential.
-Ned

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