Question

Read the following case about Ford Motor Company Manages Ethics and Social Responsibility and answer the following questions

1. How did Mulally’s leadership transform Ford’s corporate culture?

2. What are the problems with using a cost-benefit analysis to analyze a problem dealing with human life?

3. What actions has Ford taken to restore its reputation as an ethical company?

Answer 1

A1.

When Alan Mulally took over as CEO of Ford, the company was shattered with low stock prices and rising debts among many other problems. Mulally helped in turning around the company in the industry by showing exemplary leadership skills. He changed the corporate culture where employees followed their self-interests to focusing on what's best for the team and hence, the whole organization. This focus on the vision of the organization helped in uniting the efforts of the team towards the greater good of the organization.

Similarly, Mulally formed better relationships with the suppliers of the company who were responsible for the quality of raw materials and influenced the ultimate price of the products. By offering them a share in the profits of the business, Mulally made them bigger stakeholders which increased the quality of the products and services and helped in reducing the prices of the materials.

Through these exemplary skills, Mulally was able to turn the company around and helped it in becoming successful again in the industry.