Ethics Assignment Case 10

This document contains a business ethics assignment submitted by Sameer Saurabh. It includes his answers to 5 questions regarding a case involving the Ford Pinto automobile. In his responses, Saurabh discusses that simply meeting safety standards is not sufficient for ethical companies, explains why Gioia's justification for not initiating a recall of the Ford Pinto was not valid, describes how organizational context can influence decisions, states that he would have initiated a recall in Gioia's position, and outlines 4 key decision making lessons identified by Gioia.

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Ethics Assignment Case 10

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Sachin Ganguly

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BUSINESS ETHICS ASSIGNMENT

SAMEER SAURABH
FT MBA CORE
Section E
Roll No 440

CASE 10
Q1 The Ford Pinto met federal safety standards, yet it had
a design flaw that resulted in serious injuries and deaths.
Is simply meeting safety standards a sufficient product
design goal of ethical companies?
Ans- Meeting safety standards is a very important part of
product design but it’s not sufficient. Clearly any ethical
company before launching its product tests it a number of
times for the prescribed safety measures. But it’s for sure no
one can do a 360 degree research on any of its product. So
there are a lot of chances that the product may have some
faults after being launched practically. So if there is some
such fault then again it’s the duty of the company to look after
the products and give the customer the required satisfaction.
So meeting the safety measures is not sufficient. The company
needs to give some human element also for customer
satisfaction.
Q2 Gioia uses the notion of script schemas to help explain
why he voted to not initiate recall of the Ford Pinto. In
your opinion, is this a justifiable explanation?
Ans- Actually I feel that Gioia did a wrong thing by not
opting for recall. He realised this fact after some time and
when he recalled this he came out with this theory of schemas.
Actually I feel that it’s not a justifiable argument. At the time
of not recalling it, he had only one motive that doesn’t make
the company to suffer from some types of losses. This will
degrade his reputation as well in the company. So the decision
which he took at that time was very good from the point of
view of profit making. But since we are making the products
for our customers and if they are not satisfied then it’s of no
use for the company to make the goods. So from profit point
of view also the decision was not good. Also the decision was
not ethical. If the product is causing some harm for the
persons using it then it’s the duty of the company to make a
recall. So at the first instant he should have gone for recall. So
from ethical point of view also the decision was not good.
Q3 How can organisational context influence the decisions
made by organisational members?
Ans- Clearly any person has got some morals and principles
of his own. But if the person is not much mature then it is
pretty possible that his principles are easily shaken by any
event or by some other forces which govern him. Same case
occurs with most of the employees of any company. At the
time of joining a company any person has got some morals
and principles of his own. As far as he thinks he just doesn’t
want to betray those principles. But as he joins any company
it’s for sure that he is not going to get the same set of
principles. So there comes the clash. Now a person want to
remain established in the company. So his loosely bound
principles are easily shaken by the set of principles of his
company for which he is working. Also it is true because the
main motive of any person is to live and he will get livelihood
only if he continues with the company. So he easily leaves his
principles and catches the principles of the company. Rarely
do we find some persons who for the sake of preserving their
principles left the organisation. Thus we can say that the
organisational context influence the decisions made by the
organisational members.
Q4 If you had been in Dennis Gioia’s position then what
would you have done? Why?
Ans- Clearly one thing is for sure that if I would have been in
his position then I would have gone with the recall. Although
everybody knows that how much difficult it is to do than to
say but if I would have been given the power then clearly I
would have made the recall. Also the recall is not a very bad
one because you are not calling the product permanently.
Actually you are calling the product for some modifications
and after all this is done you are going to give the product.
Also I believe in a stitch in time saves nine. So it’s better to
pay a small cost of modification now then to bear a large cost
in the form of lost reputation of the company in the future. So
clearly I would have gone for recall.
Q5 Describe the four key decision making lessons that
Dennis Gioia identifies for neophytes decision makers.
Discuss how you expect or intend to use these four lessons
in your own careers.
Ans-
1.) Develop your ethical base now. It is necessary as if we
don’t make the base now then clearly we can become prey of
others and then our ethical views will be easily captured by
the thoughts of others. So it’s necessary to have you own
views regarding what is ethical and what’s not.
2.) Everyone is a victim of his or her cognitive structuring.
Actually we think that the solutions for everything will come
to us automatically but it’s not that much true. One need to
look at the automatic results but must also keep than to form
schemas and look at them in difficult situations.
3.) Organisational structure and the way of behaviour can
really change you way of thinking and can change your moral
principles.
4.) Be prepared to face a critical responsibility at a young age.
Actually you need to know that what your values are at an
early age so that you may not get problems later in your life.