Question
want help with this The Ford Motor Company has come under fire recently for its handling of transmission problems in the Ford Fiesta and Ford
want help with this
The Ford Motor Company has come under fire recently for its handling of transmission problems in the Ford Fiesta and Ford Fusion models. Ford has agreed to settle a class action lawsuit for $35 million to compensate customers for the losses. Critics say that amount was too small and they went to court to settle $35 million in favor of a much larger sum. Google the case to read the latest rulings in the case.
What would the authors of the special text suggest regarding CSR in this case. Explain the responsibility that Ford has to its various stakeholders.
11- fords ethics
When making business decisions, managers must consider the claims of all stakeholders. The right choices will lead resources to be used where they can create the most value (Jones, 89). In 2011, the MyFord Touch System was released. Designed to control features ranging from navigation to telephone calls. Although top Ford officials including Chairman Bill Ford knew it was deeply flawed (Forbes). In a class-action suit filed against the automaker on the behalf of owners of MyFord Touch and MyLincoln Touch; The suit claims that the automaker was aware that the system had massive problems but sold it anyway. Ford does not seem to be very concerned with their actions unless there's a lawsuit involved. Ford should consider the claims of all stakeholders.
https://www.forbes.com/sites/jensen/2017/03/24/ford-given-award-for-ethics-but-was-marketing-a-flawed-system-like-myford-touch-ethical/?sh=44a3893b6752
12-ford ethics
Corporate social responsibility is a model that helps companies stay socially accountable to itself, its stakeholders, and the general public. A company that practices corporate social responsibility operates in ways that benefit society and the environment. There are four pillars of corporate social responsibility: ethical,environmental,philanthropic, and financial. The author of this article clearly feels that Ford's actions in relation to the defective transmissions were in violation of the ethical pillar. The author references the lawsuit and discusses how Ford has never actually acknowledged that a transmission defect exists and instead concealed the defect while continuing to market and produce vehicles with the defect. Ford disregarded their own lawyers and a lead engineer's warnings that the cars were unsafe. In doing so Ford broke the moral rights rule to ethical decision making and therefore did not make an ethical decision. An ethical decision protects people's rights to freedom, life and safety, property, privacy, free speech, and freedom of conscience (Jones 90). The unethical decisions made put innocent consumers safety at risk and demonstrated a lack of corporate social responsibility by Ford.
https://www.freep.com/story/money/cars/ford/2022/07/29/ford-fiesta-focus-owners-sue/10172567002/
13-
Corporate social responsibility
As we know Ford is caught up in a know public issue related to transmission issues in their Ford fiestas and fusions. Corporate social responsibility is known to be the company taking a positive role in the business and making the correct and proper decision are being made. Company managers should have an organizational commitment when handling such important factors in a business. "Organizational commitment can be especially strong when employees and managers truly believe in organizational culture,(pg.70)". Ford being caught up in the situation of producing poor transmissions show there was poor management and planning. Clearly, there was not proper watch over the process of producing cars which shows poor management by the ones in charge at Ford. In the textbook it also says "Committed managers are more likely to go above and beyond..., (Pg.70)". Not to say that there aren't any managers highly committed to work but when there is such a large issues then there is something deeper going on for something like that to pass through. Having committed and hard working employees would stand for a much better chance of something the severe to happen. The ones employed at Ford are needed to take responsibility for their mistakes and understand as a large corporation their needs to be more organizations and the company needs to take social responsibility for their actions.
14-Poor ethics on fords parts
What can be observed about this situation is that Ford had bad ethics. What are ethics? Ethics are described as "the inner guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what is the right or appropriate way to behave" (Jones, p485). The Free Press launched an investigation with many articles noting the faults Ford had made regarding vehicles with theDPS6 transmissions. They "knowingly launched two low-priced, fuel-efficient cars with defective transmissions and continued selling the troubled Focus and Fiesta despite thousands of complaints and an avalanche of repairs."
Because Ford knew there was a problem before selling the cars (and they chose not to fix them), it is obvious that the only guiding principle to them was profit. Kirkpatrick said,"This is about deceptive practices...And these problems actually can't be fixed. Ford kept giving extended warranties. Why isn't that good enough? Because this isn't like having worn out brake pads and replacing the pads. These cars are notorious for transmission problems. It's because Ford lied." If they had any value in the safety of their consumers, in the standard of their name and brand, or in simply doing the right thing, then they would have done what was morally right. Many people claimed that Ford was not only unwilling to make reparations, but they even went to the extent of lying and denial; practices that are irresponsible and misleading. With this set of ethics, how could they expect future buyers to fully trust in their brand? Don't Ford's buyers deserve that-especially if the buyers are entrusting the safety of their lives to these cars? They reduced their efficiency, and they reduced their effectiveness of production and trade. Ford quietly sent notices to dealerships to handle part of the mess they made-however it was not enough to cover their costly mistake.
https://www.freep.com/story/money/cars/ford/2019/07/18/ford-focus-dps-6-transmission-fiesta/1766990001/
https://www.freep.com/story/money/cars/ford/2019/05/09/ford-focus-fiesta-transmission-lawsuit/1119773001/
15-
Fords responsibility
Ford as a company has a lot to worry about within their business including stockholders. When situations as significant as they did this can cause issues within the business one being problems with their stockholders and the possibility of Ford losing some. It had come out that Ford had reportedly know, and hid the transmission issues while continuing to release the cars. In the Detroit Free Press a a statement, "More than 1.9 million unhappy customers who purchased or leased a Ford Focus or Fiesta say the company lied to unload cars with faulty transmissions on unsuspecting buyers and then blamed the drivers for problems they experienced". Ford knowing and trying to cover it up goes to show to lack of organizational commitment. Ethics are defined as "The inner guiding moral principles, values and beliefs that people use to analyze or interpret a situation". (Jones,95). When releasing with the know fact that the vehicle is not complete or properly built in order to be sold but continuing to shows the poor ethics behind Ford. As a company providing for people they should take more concern and care in providing for their customers and making sure they arr safe. Disregarding the rules in order to mass produce cars in order to gain money but the wrong way. And to go as far as to blame the customers willing to support the brand shows the poor ethics of Ford and its employees.
Howard, Phoebe Wall. "Lawsuit: Ford HID Focus, Fiesta Transmission Problems - Then Blamed Customers."Detroit Free Press, Detroit Free Press, 10 May 2019,https://www.freep.com/story/money/cars/ford/2019/05/09/ford-focus-fiesta-transmission-lawsuit/1119773001/.
16-what is ford empowering
In the realm of business, what you allow is what you empower. This can apply to both positive and negative instances. If you allow things that push greatness, you'll produce greatness, but if you allow corruption, you will produce corruption. So what is Ford empowering? They were aware of the shortcomings of the Focus and Fiesta transmissions, yet they overlooked them and sold them anyway.
Not in every way, but in many ways, Ford missed the mark for providing quality; quality cars, quality customer service, quality communication, and quality safety standards. Quality is an important factor of successful and transparent businesses. Quality is defined as "the goods and services that are reliable, dependable, and psychologically satisfying. They do the job they were designed for and do it well, or they possess some attribute that gives their users something they value" (Jones, p450). The vehicles with theDPS6 transmissions did not do what they were supposed to do. Customers"told federal regulators about the cars bolting forward, including reports of injury accidents that the Free Press found in an analysis of more than 4,300 consumer complaints about the DPS6 to the National Highway Traffic Safety Administration. Many of the cars shudder and jerk and frighten and irritate owners."Some customers that were loyal to Ford, decided not to purchase from them again because they had to repair their car an outrageous number of times. A quality product, especially a new car, should not need to be fixed often for the same problem. It is actually concerning that a business as large as Ford would violate some professional ethics at such a large level. They chose not to go with quality. They chose to make an immediate profit rather than to put out a product that would benefit both them and their stakeholders.
https://www.freep.com/story/money/cars/ford/2019/07/18/ford-focus-dps-6-transmission-fiesta/1766990001/
17- ford ethics
From my perspective Ford motors have the best cars in the market but they always have transmission issues which means they can improve it but they don't do that because they need their customers to come back to fix their cars. Ford Mustang is a series of cars manufactured by Ford since 1964, and it's like other vehicles Ford Mustang have few issues like the car vibrates while driving over 60mph it also appears that its a common issue in the 2016 model more than the other models. Usually the vibrate problems come from their tires or wheels. But if the vibration continues after the vehicle has stopped then it might be transmission issue, it could be from a broken engine or a loose transmission mount. Ford Mustang also have Engine oil leaks problems, this problem is mainly available in the 90s models especially the 1994 models. Also the Ford expedition 2021 have common issues like the back camera doesn't always work or it cuts out. Ford expedition also has some electrical system problems like the check engine light turns on while the mileage on the car was only 3000miles.
18-impact of fords mistakes
Being such a large company of course Ford is going to continue to grow as a large corporation but there will be a loss in many customers especially their loyal ones. The mistakes Ford had made especially not owning up to them and trying to pin it on the customers just makes it worse for them. Ford was hit with "unconscionable and misleading or deceptive conduct"(Phobe Wall Howard Detroit Free Press). as well as "false or misleading representations in its response to customer complaints"(Phobe Howard Detroit Free Press). This just proves that Ford is in the complete wrong and goes to show the poor ethics of Ford. Trying to pin this on the customers when there is obvious knowledge of poor transmissions wether they are over heating slipping, jolting the car, or even reducing the acceleration. There is clear and obvious knowledge of poor transmissions and many problems coming up and Ford needs to take responsibility. This will show for long in the future Ford is unable to be trusted and will have a loss in customers because of this. People are going to be unwilling to buy from a brand they know they can't trust especially with the issues Ford continues to wrap themselves up in revolving false information they provide to the public regarding their vehicles.
Press, Phoebe Wall HowardDetroit Free. "Lawsuit: Ford HID Focus, Fiesta Transmission Problems - Then Blamed Customers."St. Augustine Record, St. Augustine Record, 10 May 2019,https://www.staugustine.com/story/business/automotive/2019/05/10/lawsuit-ford-hid-focus-fiesta-transmission-problems-then-blamed-customers/5194109007/.
20-fords thoughts
Being such a large company you must wonder why they decided to do this. Do they need the money from selling cars with poor transmissions with the possibility of being caught and getting in trouble? Clearly not. Ford as a company needs to take a second to focus on their front line in the office and come to a understanding of why this was allowed or even thought to be done. They need to put in mind of their stockholders who can also be affected by their actions. " Stockholders can directly benefit or be harmed by company actions" (Jones pg.97). When Ford makes decisions especially such poor ones as they did they need to understand their is more at risk then just them. They have stockholders in the company that are also affected by the company and its name. When Ford makes such a poor mistake as they it can be very bad for the stockholders which will cause problems throughout the business."Customers are often regarded as the most critical stakeholder group because if a company cannot attract them to buy its products, it cannot stay in business"(Jones, pg,101). In order for a business tosucceedthey are needed to please their most importantstockholders, their customers. In order to keep and maintain a proper business you need loyal customers that believe and trust in their business. When they get caught up in allegations like such they put a bad reputation to their business and do much more harm than good.
21- mistakes in ford ethics
Customers are the most critical stakeholder group. Managers and employees must work to increase efficiency and effectiveness in order to create loyal customers and attract new ones. They do so by selling customers quality products at a fair price and providing good after-sales service (Jones p.87). So what are some flaws within Ford's Ethics? Ariel Myers of Los Angeles was awarded $550,000 from the California Jury because Ford was acting with ''malice and committed fraud by concealing that the transmission in his 2014 Ford Focus was seriously defective, inducing him into purchasing the car, despite a history of massive numbers of transmission failures''(Free Press). Within three days of purchasing the car, the transmission began to slip and shudder. He needed the car to get to and from work and he needed to take his mother to her appointment for dialysis. When the transmission overheated, his mother missed her appointment and they were sitting on the side of the road for help. ''When Myers sought a refund, Ford refused. Just before the trial jury was selected, Ford admitted it had violated lemon laws''(Free Press). Ford was being unethical towards the customer. They knew the car they were selling was defective and still sold it, then tried to refuse a refund.
https://www.freep.com/story/money/cars/ford/2019/05/09/ford-focus-fiesta-transmission-lawsuit/1119773001/
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started