It was interesting when we were discussing this case on the class. At the beginning, I find it a bit technical as I have no extensive knowledge on cars and its parts. The case was very specific on parts’ placement as the reason behind accidents and loss of lives. Fortunately, we have a passionate car enthusiast in the class who is generous enough to share details and deeper background of the case through history of the brands involved and their manufacturing process. The Ford-Pinto case is a classic example of corporate malpractice. A company prioritizing profits over safety of its products which resulted to further losses. There is a clear violation of business ethics.
In mid 1960’s, Ford wanted to compete with Volkswagen on the subcompact category and capitalize it. The company decided to expedite their production process and disregarded critical safety concerns that were raised by its engineers. In wanting to meet their design objective, the gas tank had been located behind rather than on top or front of the rear axle. As a result, the Pinto was highly vulnerable to deadly fires in cases of collision at a certain speed. There is no way for the passengers to escape when this happens and they will be trapped in the fire. They knew it would cost them additional time and resources if they address the issue and redesign the model, so they proceeded and marketed the product to the public. When launched, a number of fire-related deaths using the model were reported that reaffirmed the danger of the fuel-tank design that they ignored during production. Deliberately, Ford’s top management still continued to market the product without modifying it based on a cost benefit analysis made by Ford’s engineers. The conclusion was that spending $11 to fix the tank placement issue proved to be more expensive than the computed loss of life and injuries that may arise. These documents were then made available to the public which cause outraged that forced the government to mandate immediate recall for the Pinto.
I found myself frowning when reading this case, how could they put certain amount on people’s lives? That is extremely heartless and plain cruel for the sake of profits. Human life, pain and suffering is something that cannot be bought by money or be measured by dollars. Big corporations such as Ford should be bridging the problematic gaps in the society but they did the complete opposite. This is a great and relevant lesson for every business, quality assurance and regulations must be strictly monitored especially if it involves wellness and life of an individual. It is imperative to put safety as a top priority in every company’s mission in delivering goods and services to its customers.
Discussing this case is eye opening to the harsh realities of the world. Business leaders especially those who are in charge of making decisions must learn from this case. Human life must be respected and dignified.
REFLECTIONS ON LASALLIAN BUSINESS LEADERSHIP 