Decision-making in an organization
In any organization, business laws and ethics play a vital role in making decisions that permeate everyday life. On analyzing the business ethics, a WH framework is normally 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. Also, this framework is normally 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 decision by the Ford Company was unethical because failing to repair the defective Pintos’ fuel tank does not in any case 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 people who are affected and how they are being 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 of redesigning Pintos’ engine regardless of the cost the company would incur. Redesigning of the engine would have been a better move by the company rather than selling defective vehicles putting their lives and those of their families at risk.
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 to the public was unethical because the Ford Company did not consider all what if’s before selling the vehicle.
I think Ford found it cheaper to compensate for the damages caused by Pinto compared to 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 decision by the company compromised many innocent people’s lives for their monetary gain and saving a lot of dollars. In making the ethical decision, the lives of the innocent people could have been prioritized rather than the cost-benefit analysis of the company. 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 in turn generates positive publicity for a company or an organization. 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. Also, a company with a good reputation attracts qualified employees who are ready to make a difference in the world and thus promoting the productivity of an organization.
Promoting social responsibility build stronger client and community relations. When a company engages itself in charitable work, they inspire other organizations to follow suit. This action allows shrewdness corporations to work with other companies thus developing valuable relationships of great importance.