Ford Explorer Defective Tires - Essay Example

Ford Explorer – Defective Tires Task Ford Explorer – Defective Tires Introduction In order to attain managerial goals in the most suitable manner, high-level administrations within organizations utilize many models. This paper offers an analysis of Ford Explorer while focusing on the concept of CSR. Moreover, aspects of the Carroll Model, which are closely linked with CSR are evident in the paper. Meaning of Corporate Social Responsibility (CSR) The above phenomenon refers to instances in the business field when companies must participate in non-profitable activities. Consequently, the above activities should focus on benefiting the direct and peripheral participants. For example, a business entity could spare some of its profits and build a charity instead of using the funds to expand its business operations. It is imperative to note that it is both a legal and social obligations for companies to engage in such Cooperate Social Responsibility (CSR) activities. Consequently, most organizations focus on similar responsibility actions for example supporting activities that seem to protect the environment (Pomering & Johnson 2009). In addition, there are many strategies, which companies employ in order to execute the above CSR phenomenon in a successful manner. For example, a business organization could opt to outsource a company, which in turn assists in the company’s societal responsibility. Alternatively, the company could include a permanent department in its structure. Such a permanent structure could perform all activities, which involve improving the public relations of the company. Evidently, the aim of most activities is to increase the individual company’s profits by improving its diverse public image. Finally, individuals who benefit from activities of corporate responsibility always aspire to engage in business deals with the respective companies hence the importance of CSR (O’Malley, & Robertson, 2001 P. 2). Explication of Carroll model on CSR According to Charles, & Hill (2004), Carroll’s model is a detailed development of an early model of CSR by Sethi. Evidently, Carroll’s model gives a highlight of such facets of responsibility as economic, legal ethical and philanthropic orientations. Consequently, the above facets follow a universal pyramid of significance. Most reports indicate that in the past companies displayed bias in choosing the corporate responsibility activities hence the relevance of Carroll’s Model (Evans, Geraldine & Robertson, 2001). Moreover, recent modifications of the model suggest the inclusion of stakeholders in achieving the company’s social responsibility activities. In particular, the above model gives much attention to the economic dimension of CSR because most operations require monetary assistance in order to realize their successful execution. With the help of this particular model, top management is able to realize the importance of including the four facades of CSR. When they do that, there is a significance reduction in complaints about prejudice in the operations of the organization. Further, the model includes the concepts of moral managers whose work is to avoid the company facing such allegations as unethical claims. In addition, the model mentions moral, immoral, and amoral categories of managers whose approaches to issues of CSR are different (Govindaraj, Jaggi & Lin 2004). Summary of what happened in the situation Ford Explorer is a company that began its operations in Michigan on June 16 1903 although it had its foundation in 1899. The main product of the Ford Company is different varieties of motor vehicles, which it improves, from first generation to sixth generation vehicles. Consequently, the company trades with the Brazilian regime, monetary institutions and different motor shows (Good news for ford explorer owners 2000). Moreover, the organization’s profits decrease because of mismanagement issues. There was a recent restructuring of the company’s operations in 2009 to facilitate an increase in profits. During the catastrophic situation, there were many accidents by the Firestone models. According to (Charles & Hill 2004), the situation was because of defects in the tires from design and manufacturing issues. For instance, the designs of the tires facilitate a distinctive separation in the tire threads. Consequently, the faulty design destabilizes the function ability of the tires. In addition, there was an ineffective manufacturing process, which resulted to the faulty tires. Analysis of company’s response to event using Carroll’s models There was a recall of an average of two thousand defective tires when the emergency stroke. Therefore, the response of the company was in accordance with Carroll’s model. For instance, the there was an economical responsibility through the recall because it would be unwarranted for persons to buy faulty tires. The legal dimension of the response to the fateful crisis is evident because if the Ford Company could not accept liability there were plausible lawsuits that it would face (Charles & Hill 2004). When one adopts the ethical dimension of the model, there is a comprehension that it would be unethical not to display their corporate social responsibility. Finally, the philanthropic comprehension of CSR informed the company’s decision during the tire crisis. In particular, the model by Carroll enabled this company to please its clientele even after the tragic loss of both the company and its other shareholders (L’Etang, 1994). Determination and explication of whether the company’s reaction was ethical or not The reaction of the company was ethical because there was an acceptance of responsibility of the situation. Moreover, there was an immediate commencement of a tire replacement program that sort to compensate its clientele. In addition, the company display of the ethical stunt emanates from the fact that there could be a share in acceptance of the responsibility. For example, the company could still opt to shift the blame to other parties in its production units. In particular, management of the company could refuse the responsibility by such allegations as an outsourced company (Bowe 2000). What I would do differently I would advice the company to offer relevant compensation to all the victims who experienced the tragedy. For example, I would cover the bills of individuals who survived deaths but had serious injuries. This suggestion is logical to me because replacing a tire does not aid the victim after an accident. In fact, the victim cannot drive his or her car because of the accident. I would also issue a public apology and a declaration of my company’s responsibility. The public apology would serve the purpose of maintain a perfect public image of the company which accepts liability. What the company has done to become more CSR In order to become more CSR, the Ford Company has had its management release detailed reports, which seek to offer explications of the diverse causes of the separation of treads in the tires. This is an exemplary strategy because when a company shows such responsibility there is a consequent approval from the same public (Schnietz & Epstein 2005). The above response involves its stakeholders largely because the released reports indicate that the entire Ford organization (which includes their stakeholders) register their acceptance to responsibility. Consequently, the model fits in the CSR model by Carroll because of the unanimous involvement of every individual who constitute the Ford Company. Conclusion It is significant for companies to use their profits in supporting less privileged individuals. Consequently, whenever a company causes damage to its clientele, there is a need to make necessary rectifications in order to prevent further damage. Moreover, there ought to be establishment of effective sub-departments to avert such issues as poor public image List of References Evans, C., Geraldine, H, & Robertson, M 2001, Assessing the role and efficacy of communication strategies in times of crisis. European Journal of Training and Development, 25(6), 297-309. Viewed at http://search.proquest.com/docview/215394907?accountid=45049 Govindaraj, S., Jaggi, B., & Lin, B 2004, Market overreaction to product recall revisited--the case of firestone tires and the ford explorer. Review of Quantitative Finance and Accounting, 23(1), 31-54. Viewed at http://search.proquest.com/docview/210311518?accountid=45049 L’ Etang, J 1994, Public relations and corporate social responsibility: Some issues arising. Journal of Business Ethics, 13(2), 111-111. Viewed at http://search.proquest.com/docview/198108239?accountid=45049 Charles, G., & Hill, T. D. 2004, Towards an iso for corporate social responsibility. ASQ World Conference on Quality and Improvement Proceedings, 58, 135-145. Viewed at http://search.proquest.com/docview/214387331?accountid=45049 Schnietz, K. E., & Epstein, M. J 2005, Exploring the financial value of a reputation for corporate social responsibility during a crisis. Corporate Reputation Review, 7(4), 327-345. Viewed at http://search.proquest.com/docview/231534055?accountid=45049 Pomering, A., & Johnson, L. W 2009, Advertising corporate social responsibility initiatives to communicate corporate image. Corporate Communications, 14(4), 420-439. doi:10.1108/13563280910998763 Good news for ford explorer owners. (2000, Sep 19). PR Newswire, pp. 1-1. Viewed at http://search.proquest.com/docview/447301449?accountid=45049 Bowe, C. (2000, Sep 20). German group to recall tyres. Financial Times, pp. 13-13. Viewed at http://search.proquest.com/docview/248843121?accountid=45049 Read More