Submitted by: Submitted by jurika
Views: 973
Words: 379
Pages: 2
Category: Business and Industry
Date Submitted: 03/31/2010 06:15 AM
Chapter 5
Ford Pinto Case
Question 1
The decision not to install the rubber bladder was not appropriate for Ford ethical or profitable.
5 question framework
1. Was it profitable?
a. Not in the short run but in the long haul it would have saved Ford millions in lawsuits and saved their reputation and credibility towards society human lives opposed to monetary value.
Legal
Yes it was legal that did not break any laws
Fair?
Not at all to individual rights/ had they installed would have saved several hundred families lives
Right?
No this was not ethically right because it disregarded the injured rights/ to install the rubber bladder would have cost $5.08 per car and saved millions in lawsuits and the company’s credibility as a car manufacturer
Going to further sustainable development?
No Ford motto was all about cost benefit and not the safety of the lives of their consumers
Ford Pinto
Question 1: Was the decision not to install the rubber bladder appropriate?
Answer: No, it was not appropriate to value financial gain above that of human lives.
1. Profitable? Yes, based on Ford’s cost-benefit analysis. But the analysis did not include the financial impact of lost reputation on the Ford brand if the decision was revealed to the public.
2. Legal? Yes, because there were no government regulations for mandatory crash tests.
3. Fair? No, it was not fair to sale the public a car and hide the dangers of owning that car.
4. Right? No, it was not right for the public or for the long term growth of Ford.
5. Going to further sustainable development? No, the decision may have brought immediate profits but would only have one long term outcome, and that was to damage the Ford reputation with its consumers.
2. - What faults can you identify in Ford’s Cost- Benefit analysis?
They didn’t count (measure) the effect on the market for the fact to sell a defective car. It is not only the cost to cover Human life; it is the...