{"id":72,"date":"2011-03-15T09:36:38","date_gmt":"2011-03-15T09:36:38","guid":{"rendered":"http:\/\/jobshuk.com\/yoni67\/2011\/03\/15\/business-history-and-ethics-the-fatal-ford-pinto-and-why-it-s-crucial-to-test-your-product-before-selling-it\/"},"modified":"2011-03-15T09:36:38","modified_gmt":"2011-03-15T09:36:38","slug":"business-history-and-ethics-the-fatal-ford-pinto-and-why-it-s-crucial-to-test-your-product-before-selling-it","status":"publish","type":"post","link":"https:\/\/jobshuk.com\/yoni67\/2011\/03\/15\/business-history-and-ethics-the-fatal-ford-pinto-and-why-it-s-crucial-to-test-your-product-before-selling-it\/","title":{"rendered":"Business History and Ethics: The Fatal Ford Pinto and Why It’s Crucial to Test Your Product Before Selling It!"},"content":{"rendered":"
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Business History and Ethics: The Fatal Ford Pinto…<\/strong><\/font><\/p>\n

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and Why It’s CRUCIAL to Test Your Product Before Selling It!<\/strong><\/font><\/p>\n

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An original Business blog article by Yonatan Maisel<\/a> exclusively at JobShuk<\/a><\/font><\/strong><\/p>\n

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Produced by the Ford Motor Company<\/a> beginning in 1971, the Pinto<\/a> was a sub-compact model introduced and marketed as…<\/font><\/font><\/strong><\/p>\n

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"The Carefree Little Car!"<\/font><\/strong><\/p>\n

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The problem was that several hundred people perished, some burning to death inside of their vehicles, when the cars burst into flames. <\/font><\/font><\/strong><\/p>\n

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You see, a strange thing happened to the Ford Pinto on the way to market. This sprightly little car, meant to cost less than $2,000 was rushed into production by Ford. Rear-end collision tests, mandated by the National Highway Traffic Safety Administration<\/a> never took place. Ford, on a strict deadline, decided that the tests could and would be conducted after the car went on sale.<\/font><\/font><\/strong><\/p>\n

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The problem was that the Pinto’s design left the fuel tank vulnerable to "explosion upon impact." Internal Ford memos later proved that those "in-the-know" at Ford knew of the design flaw. Further documentary evidence proves that designers at Ford suggested a steel "flak suit" protective device could be added to the Pinto at the cost of less than $10 per-vehicle. As inexpensive as that may sound to you and me, Ford decided that the proposed $10 investment was too much. Harold MacDonald, Ford Vice President of Car Engineering, thus nixed the flak suit…Ford would take its chances.<\/font><\/strong><\/font><\/p>\n

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In<\/font> what <\/font>became <\/font>known as the "Ford Pinto Memo<\/a>," the folks at Ford decided that it would be cheaper to pay off lawsuits than to bring the car up to safety-standards. What the memo was, was a cost-benefit analysis of human-life.<\/font><\/strong> <\/font><\/p>\n

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Grimshaw vs Ford Motor Company<\/em>:<\/font><\/strong><\/font><\/p>\n

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The lawsuit,<\/strong> resulting from a deadly 1972 accident which left a woman dead and her son burnt over most of his body resulted in a a $6 Million judgement against Ford. The California Court of Appeals for the Fourth Appellate District ruled that Ford<\/strong> "had been aware of the design defects before production but had decided against changing the design."<\/em> This was only one of a large number of cases brought against Ford.<\/strong><\/font><\/font><\/p>\n

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Business Lessons Etched in Blood:<\/font><\/strong><\/p>\n

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Hundreds of deaths have been attributed to the Ford Pinto FIASCO. So, what unfortunate lessons can be gleaned from this tragic episode of Business history?<\/font><\/font><\/strong><\/p>\n

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Firstly, and perhaps most obviously, though most of us in business don’t hold the balance of life in our hands, is that cost-benefit analyses are a good way of conducting business. But when lives are at stake…they are unforgivable!<\/font><\/font><\/strong><\/p>\n

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Secondly, simply conducting the required tests would have uncovered the Pinto’s fatal flaw before lives were lost. <\/font><\/font><\/strong><\/p>\n

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In business, we can all test our products before they go to market to make sure they meet the standards of quality necessary to satisfy the consuming public. AND necessary to keep our clients and customers SAFE!<\/font><\/font><\/strong><\/p>\n

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Tweet<\/strong><\/a><\/p>\n

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