Case Ford and Firestone

THE FORD/FIRESTONE DEBACLE

Introduction:

Everywhere, people are daily exposed to a high level of risk from the use of customer products.

No matter what kind of customer product is used people can always be abandoned to a high level of risk by using those. This issue can be more intensified by unwary customers, careless products constructions, products that immediately breakdown and warranties that are not honored.

Based on ethical principles many companies act unethically and in their advantage- customer have unsystematic information. Often companies don’t mind for their injuries and don’t take responsibility. Companies should change their behavior and take care about customers needs and do more than harbor good intentions. Companies should implement policies that include the corporate culture with ethical values. Also stakeholders, producer, seller, and distributer and even employees should behave ethically to provide a save and reliable product or service.

1. Ford

The Ford Motor Company is an American multinational corporation based in Dearborn, Michigan. The automaker was founded by Henry Ford and incorporated on June 16, 1903. The company manufactures and distributes automobiles in 200 countries across six continents, with about 300,000 employees and 108 plants worldwide. Ford is currently the second largest automaker in the U.S. and the fourth-largest in the world based on number of vehicles sold annually, directly behind Volkswagen.

On 1990 Ford Explorer was introduced and soon became the most popular SUV in America. This product is marketed as a spacious, safe, and reliable four-wheel-drive vehicle for the family. During 1990 - 2000 the Explorer proved to be among the safest SUV on the road. The Explorer fatality rate is 27% lower than passenger cars overall and 17% lower than other SUVs. The profit margin is $ 8000 per vehicle, unlike their sedans’ profit which is only $ 1,000 per vehicle.

2. Firestone

The Firestone Tire and Rubber...