Solving Ethical Dilemmas: How Ford’s Leadership Achieve a Five-Peat

analytical Essay
1081 words
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 Modica, M. (2014). Why some Americans will never buy a GM vehicle. National Legal and Policy Center. Retrieved June 14, 2014, from 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.
Continue ReadingCheck Writing Quality

Harness the Power of AI to Boost Your Grades!

  • Haven't found what you were looking for? Talk to me, I can help!
Continue Reading