Reference no: EM132428695
Assignment - Ethics in Accounting
Scenario - In August, 1978, three young women died in a horrific car crash in Elkhart, Indiana. They were riding in a Ford Pinto, a popular subcompact car at the time. The trouble is the car had a defective fuel system design. The defect was known to Ford but it did a risk/benefit analysis to determine if it should pursue changes in the car's design. Ford decided it was cheaper to pay death claims as a result of the product than to fix the problem.
Using the theories and analysis discussed in Chapters 1 and 2 the textbook:
(1) Should a risk/benefit analysis be used in situations where a defect in design or manufacturing could lead to death or serious bodily harm, such as in the Ford Pinto situation?
(2) If you owned your own company, and you were faced with this dilemma, what would you have done? Why?
(3) What do you think car companies learned from this issue?
Text Book: Ethical Obligations and Decision Making in ACCOUNTING; 5th edition; Steven M. Mintz & Roselyn E. Morris; McGraw Hill; ISBN: 978-1-259-96946-1.
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