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Case Study: Business and Society

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1. What are the major and minor ethical issues involved in this case?

2. Who are the stakeholders and what are their stakes? How do legitimacy, power, and urgency factor in? Do these companies care about consumers? Discuss.

4. Who is at fault in the tire separation controversy? Bridgestone/Firestone? Ford Motor Company? The NHSTA?

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The solution discusses a business and society case study and discussing the ethical issues involved.

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1. What are the major and minor ethical issues involved in this case?

In the case, both Firestone and Ford did many ethical violations. It was due to negligence of both companies that so many deaths occurred in U.S. and globally. Ford said it was Firestone's problem due to tires blow out leading to deaths. Firestone said it was Ford's problem and not theirs. The problem had started much earlier than the year 2000 when it started catching public's eyeballs. Before this both companies tried to keep the number of deaths under wrap. There were consumer complaints but they were not addressed.

Major ethical issue was cover up of facts and misleading government, regulators and public. Firestone was sued multiple times before due to tire problems. But Firestone used legal protective orders to hide the data that was generated when consumers filed Warranty claims with the company. Deaths and serious injuries could have been prevented if the data was not hidden. Ford, on the other hand was deflecting the blame on Firestone. However the main reason for accidents was stability problems with Ford Explorer.

There were problems not just in ...

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