The Case Against Corporate Crime

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Fascinating article about the Ford Pinto criminal case:

http://www.multinationalmonitor.org/hyper/issues/1987/05/maakestad.html

Here's the intro:

Redefining Corporate Crime
by Willilam Maakestad


0n August 10, 1978, three teenage girls driving in a Ford Pinto were hit from behind on Highway 33 in northern Indiana. Within moments their car burst into flames and Lyn Ulrich, 16 and her cousin Donna Ulrich, 18, were burned to death. Eight hours later, Lyn's 18-year-old sister, Judy, who had third degree burns over 95 percent of her body, also died.

When an Indiana grand jury looked into the accident a month later, they voted unanimously to indict not the driver of the van that had rear-ended the three girls, but Ford Motor Company - then the country's third largest industrial corporation - on three counts of reckless homicide. The automaker was accused of recklessly designing, manufacturing and marketing the Pinto's unsafe fuel tank system.

Although Ford was ultimately acquitted, the criminal prosecution of Ford Motor Company reestablished an important precedent: In certain cases involving huyman health and safety, corporations and their executives could be required to submit not only to the scrutiny and sanctions of traditional federal agencies, but to state criminal courts as well.

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William Maakestad is legal counsel and associate professor of management at Western Illinois University. He is co-author of the book, Corporate Crime Under Attack: The Ford Pinto Case and Beyond.
 
It's pretty amazing that 40 years after the design of the Pinto, we are still talking about decisions that they made in the early 70's. Just goes to show we Toyota might be haunted by this recall for decades to come.
 
Was thinking of the Pinto yesterday on the way to work.

When the Monaro went to the US to be rebadged the GTO, it had to be re-designed to move the fuel tank in a post Pinto word.

And I was sitting next to a Wrangler with a petrol tank half a foot in front of the rear bumper.
 
The laws governing corporations need to be improved. They get away with murder and no one is ever held responsible and if the corporation itself is found guilty, they often just go bankrupt to avoid paying fines.
 
OTOH in the USA a warrant can be issued by Congress and corporate leaders can be hauled away with no warning, and very little suspicion. Guilty without formal charges.
 
Now that you mention it, this is inherently political.

The topic really is about political control.

Quote:
....corporations and their executives could be required to submit not only to the scrutiny and sanctions of traditional federal agencies, but to state criminal courts as well


Drawing that line is very political.
 
If memory serves me correctly in the PINTO case, didn't FORD choose to not tell customers of the problem even though they had advanced warning of potential fires? I do recall something about weighing the cost benefit and they concluded that it was cheaper for them to wait for the challenges in court. This would make this much different from the current case against Toyota who for me anyway, seems to be taking appropriate action. Yes,I do own Toyotas.
 
Originally Posted By: H2GURU
If memory serves me correctly in the PINTO case, didn't FORD choose to not tell customers of the problem even though they had advanced warning of potential fires? I do recall something about weighing the cost benefit and they concluded that it was cheaper for them to wait for the challenges in court. This would make this much different from the current case against Toyota who for me anyway, seems to be taking appropriate action. Yes,I do own Toyotas.


No, it was an internal investigation done after the issue of fire risk was discovered. They determined it would be less expensive to pay off the people and families who would potentially get hurt, versus issuing a recall.

This information got leaked and things got very bad for Ford. Putting a value on human life is a no-no.

Toyota has done the same thing.
 
Yep, why did anyone think Toyota was any different then other larger corporations where the bottom line is all that matters. The cost to settle the lawsuits was probably projected to be less then the cost to fix the problems and the bean counters won out as they usually do.

Greed is Good in the corporate world!
 
It should be noted that the Pinto as first built met the federal rear crash standards at the time. The 11 internal rear crash tests that Ford conducted in 1970 or 1971 were at the newer higher speed rear collision standard. Standard 310 or 301, I cant remember. The new standard increased the speed for the test to 30+ mph.


It was in these initial 11 tests that Ford realized their car would have a problem with the new standard. A standard that went into effect in 1978 after much wrangling between the feds and the big four. In the 11 tests, the Pinto failed and the tank ruptured 8 out of 11 times. In the three non rupture tests, a number of "fixes" were applied. In one a steel plate was placed at the rear of the car, in another a rubber liner was applied to the gas tank, in the third a rubber ball was placed over the rear end bolts that punctured the tank.

Since the Pinto passed the existing standard and since the infamous cost study said that the lawsuits would be cheaper than a recall, Ford figured they were in the clear. WRONG.

When the document clearly showing Ford weighing the costs of human life vs a recall got out, it was over. It didnt matter in any court of law that the Pinto DID in fact meet the current rear crash standard. The only thing that mattered at that point, was that Ford had done rear crash tests at the NEW standard and it failed and that Ford had made the weighted decision to "live with" the few inevitable lawsuits.

Ford has paid dearly for this mistake for the last thirty years, but they also learned a very valuable lesson.
 
Originally Posted By: OVERK1LL

No, it was an internal investigation done after the issue of fire risk was discovered. They determined it would be less expensive to pay off the people and families who would potentially get hurt, versus issuing a recall.

This information got leaked and things got very bad for Ford. Putting a value on human life is a no-no.

Toyota has done the same thing.


I posted for this reason. Design flaws will always occur in industry. Some will threaten lives. When a corporation acts to conceal, or fails to correct, that which places its customers, or the overall public at risk, then it has acted with malice.
There is no inherent bias against Toyota because it is a foreign automaker. There was no inherent bias against Ford at the time either. It simply was big news, in its time, and rightfully so. The United States has always taken safety seriously, particularly auto safety. For this we should be thankful.
I own a Toyota and a Ford. I love them both. I don't feel threatened that the media or the government is going after my brand. I would feel more threatened if they weren't.
 
Officers of a company certainly should be held criminally liable. Otherwise people could incorporate/depersonalize with a simple fee and get off scot free... making poison liquor, hazardous toys, saturday night special guns that blow up in your hand, etc.

It's been rare to see someone convicted though as the civil process is easier to win (something about reasonable doubt vs preponderance of evidence) and paying $$$ already strikes near and dear to every profit making enterprise.
 
While I'm a fan of FORD, I've heard that some years of the Crown Victoria has a similar problem to a lesser degree.
A few LEOs have gotten burned real bad; a few deaths, form gas tank punctures during a rear end collision resulting in a fire ball.
 
Originally Posted By: dwendt44
While I'm a fan of FORD, I've heard that some years of the Crown Victoria has a similar problem to a lesser degree.
A few LEOs have gotten burned real bad; a few deaths, form gas tank punctures during a rear end collision resulting in a fire ball.


Not really a similar problem. The Panther cars being hit at 60+Mph on the side of the road were known, every once and a while, to catch fire due to the tank being punctured by the rear diff. Ford came up with a shield to prevent this from happening.
 
I was born in 1977. I can't really say I ever saw a pinto in person before. I heard the jokes about the Ford pinto growing up and saw photos of them. when was the last year they were made?
 
The fire prone Pintos had to be before 1974 where they also wore the Mustang badge. I don't recall a Mustang fireball issue. That was probably also the year of the 500lbs of "road hugging weight" that bumper and whatnot added.
 
I don't remember them wearing a mustang badge, but I didn't pay much attention I was a Chevy guy back then. I do remember the Mustang II but wasn't that in 1975/76?
 
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