Solving Ethical Dilemmas: How Ford’s Leadership Achieve a Five-Peat
analytical Essay
1081 words
Ford Motor Company (FMC) is an American automobile manufacturer with over 100 years industrial experience. Major competitors in the United States (US) include General Motors (GM) and Chrysler Corporation (CC). At the peak of the 2008 global financial crisis, these three automakers faced possible bankruptcy. The Troubled Asset Relief Program (TARP) was created in 2008 by the US government to provide funding for private sector corporations facing bankruptcy. The stated objective of this social intervention was to protect the US economy from devastation. Horton (2009, p. 221) argued that this type of government intervention in the free market economy has been a historical mistake that stifled competition and both economic and legal luminaries concurred that this approach is a hindrance to economic growth. It is widely known that the 2008 crisis stemmed from unethical behavior in the subprime mortgage market. The question that FMC leaders faced at that juncture was whether to accept the TARP funds or not. In the following sections, I demonstrate why this was an ethical dilemma, and provides an incisive analysis of how FMC used this defining moment to transform the company into one of the leading ethical company worldwide. Ethical Decision Making at FMC According to Ferguson (2012, p. 230) FMC has its sights set on becoming the world leader in quality, safety and sustainability. FMC repeated demonstration of ethical leadership propelled the company from the brink of bankruptcy in 2006 into an enviable dominant position in the automobile industry today. How did they achieve such a phenomenal turnaround? Firstly, in 2006 they mortgaged most of their valuable assets. Then, in 2008 they did not accept TARP funds. Their earl... ... middle of paper ... ...d stepping down as automaker’s Chief Executive. New York Times. Retrieved June 15, 2014, from http://www.nytimes.com/2006/09/05/business/05cnd-ford.html?_r=0 Modica, M. (2014). Why some Americans will never buy a GM vehicle. National Legal and Policy Center. Retrieved June 14, 2014, from http://nlpc.org/stories/2012/06/14/why-13-americans-will-never-purchase-gm-vehicle Priester v. Ford Motor Company, 131 Supreme Court of United States. 1570, 179 L. Ed. 2d 471 (2011). Rinallo, D., Basuroy, S., Wu, R., & Jeon, H. J. (2013). The media and their advertisers: Exploring ethical dilemmas in product coverage decisions. Journal of Business Ethics, 114(3), 425-441. doi:10.1007/s10551-012-1353-z Selart, M., & Johansen, S. T. (2011). Ethical decision making in organizations: The role of leadership stress. Journal of Business Ethics, 99(2), 129-143. doi:10.1007/s10551-010-0649-0
In this essay, the author
- Opines that fmc's decision was an indication of their willingness to serve the american people rather than being a drain on scarce resources.
- Opines that the magnanimity of justice demands a central focus for the principle of fairness in its contributory role in ethical decision making. cranston, ehrich, and kimber argued that it is paramount to ensure that there is equity amongst stakeholder communities.
- Analyzes how the mass media plays a critical role in shaping opinions and values in the knowledge-based economy.
- Opines that fmc's decision was an indication of their willingness to serve the american people rather than being a drain on scarce resources.
- Opines that the magnanimity of justice demands a central focus for the principle of fairness in its contributory role in ethical decision making. cranston, ehrich, and kimber argued that it is paramount to ensure that there is equity amongst stakeholder communities.
- Analyzes how the mass media plays a critical role in shaping opinions and values in the knowledge-based economy.
- Analyzes how the executive chairman's actions in 2006 underscored his duty and obligation to country, family, shareholders, employees, management, customers, and other key stakeholders. this type of inspired commitment is needed to protect the rights of individuals and promote justice.
- Argues that justice is the cornerstone of the highest levels of ethical behavior. selart and johansen argued that rewards, both quantitative and qualitative, appeared to influence ethical decision-making.
- Explains that fmc made ethical decisions consistently over time and earned a ranking by (ethisphere institute, 2014) as one of the world’s most ethical companies.
- Explains that the troubled asset relief program (tarp) was created in 2008 by the us government to provide funding for private sector corporations facing bankruptcy.
- Explains how fmc's ethical leadership propelled them from the brink of bankruptcy in 2006 into an enviable dominant position in the automobile industry today.
- Explains the role of work engagement and machiavellianism in the ethical leadership process.
- Cites ferguson, b, horton, m. e, trevio, l. k., & finkelstein, s.
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1333 wordsRead More - Looking at Henry Fordanalytical essayWhen we think of the successes in the automotive industry Henry Ford comes to mind. Almost every automotive industry book highlights the positive impact Henry Ford had on automotive manufacturing and all label him as a visionary and ethical leader. Anyone striving to become a more influential leader need not look any further than Henry Ford for inspiration. His story highlights his strong self-beliefs, hardworking mentality and a visionary approach of what the automotive industry could be and he believed that vision was achieved through ethical leadership decision-making. While being a leader alone is a tough task in it’s own right, Henry Ford understood where his industry was at the current time, saw where he wanted it to be in the future and created specific, achievable goals and articulated it with great inspiration. In doing so, his vision became a reality.
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- Explains ford's value chain is characterized by its infrastructure, human resource, technology development and procurement. bur aggressive marketing and advertisement has restored high value in its brand and mended relations with suppliers too.
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- Explains that the automotive industry suffered a crisis in the united states economy during the 2000s, when the price of oil per barrel rose from $30 to $135. congress proposed an auto bailout to help the industry.
- Explains that the $80 billion auto bailout was to stimulate the growth and production of the automotive industry.
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In this essay, the author
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- Explains that ford's passion is to deliver great value to its customers in the fields of environment, safety, valuing the community, and becoming a global leader.
- Explains that ford's "vision and strategy pyramid" is based on consumer focus, strong global brands, leading quality and values, corporate citizenship, and a passion for growth.
- Explains that ford has had to find ways to keep ahead of the following major companies: banc one, bank america, bmw, budget group, chrysler, daimler-benz, enterprise rent-a-car, general motors, honda, hyundai, isuzu, mack trucks
- Explains that ford's passion is to deliver great value to its customers in the fields of environment, safety, valuing the community, and becoming a global leader.
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- Explains that transformational leadership is based on inspirational and motivational qualities that drive leaders to guide others in a way that promotes the goals of the common good.
- Explains that transformational leadership is a relatively new concept in leadership theory but it's rooted in vitally important and utilitarian context.
- Explains that transformational leadership emerged in 1978 with the publication of the book leadership by james macgregor burns.
- Opines that an authentic transformational leader is vital in order to provide more ethically driven decisions to be made in an organization.
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- Explains that auditors should first consider certain conditions or events in evaluating potential going-concern uncertainties, such as negative financial trend, internal matters, labor difficulties, and external matters. management's plans should be taken into account.
- Analyzes how the recurring operating loss, negative cash flows from operating activities and the stock price reduced to all-time low in 2008 showed the negative financial trend.
- Opines that deloitte & touche should have issued a going-concern opinion before 2008. the stockholder's equity declined drastically since 2005, and became negative in both 2006 and 2007.
- Explains that the 2008 economic crisis accelerated deloitte & touche's decision to issue an audit opinion modified to disclose going-concern uncertainties.
- Opines that the financial situation, economic condition, incentive policies, and debt restructuring process should be considered in evaluating gm's ability to continue as a going concern.
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- Explains that potential investors are unwilling to purchase the company's stock because of the going-concern opinion. existing investors will sell the stock to avoid future loss.
- Opines that general motors co. needs an audit of its financial statements to improve internal control and avoid accounting frauds.
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- Explains ohmae's five stages of global operation support general motors aspirations.
- Explains that lordstown is a lean manufacturer because reduction of waste and non-value added activities are continuously driven. general motors is flexible because of its ability to utilize human assemblers.
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- Explains ohmae's five stages of global operation support general motors aspirations.
- Explains that lordstown is a lean manufacturer because reduction of waste and non-value added activities are continuously driven. general motors is flexible because of its ability to utilize human assemblers.
- Opines that general motors needs to embrace and implement its gms (global manufacturing system) process to achieve world class performance.
- Explains the global manufacturing revolution: product-process-business integration and reconfigurable systems by yoram koren, john wiley & sons, inc.
864 wordsRead More - Lehman Brothers Case Studyanalytical essayCompanies whose success and continuous operation prove vital to the economy and financial systems should receive auditor scrutiny and regulation oversight. It is clear that Lehman Brothers required oversight and possible prohibition of its liabilities financing practices using repo borrowing. Likewise, AIG deserved more review of its credit swap business practices. The negligence of these institutions cost the United States and foreign economies billions of dollars. The federal government chose not to intervene on Lehman Brothers’ behalf, for reasons that some say are inconsistent with other bailout decisions (Smith, 2011). However, the government did find that an AIG failure would constitute systemic risk and chose to rescue the insurance company. The government created incentives to increase depositor confidence by guaranteeing market-based fund-raising. The financial crisis of 2008 offered lessons learned to both government and banking
In this essay, the author
- Analyzes how the federal government's inconsistency in implementing bailout efforts led to lehman brothers' insolvency.
- Analyzes how the credit crisis of 2008 caused investment banks to suffer enormous losses on their holdings of mortgage-backed securities. lehman brothers failed to find a willing company in time to save them.
- Explains that some blame lehman brothers' downfall and the collapse of the investment banks on short-selling, which means a profit to the investor who repurchases the shares.
- Analyzes how the federal government's inconsistency in implementing bailout efforts led to lehman brothers' insolvency.
- Analyzes how the credit crisis of 2008 caused investment banks to suffer enormous losses on their holdings of mortgage-backed securities. lehman brothers failed to find a willing company in time to save them.
- Explains that some blame lehman brothers' downfall and the collapse of the investment banks on short-selling, which means a profit to the investor who repurchases the shares.
- Analyzes how lehman brothers received government support in the jp morgan chase acquisition of bear stearns, and the federal government rescued fannie mae and freddie mac.
1782 wordsRead More