Discussed in the context of business ethics

Assignment Help Financial Management
Reference no: EM132570897

Case Analysis

The Ford Pinto case is a well-known case that is often discussed in the context of business ethics. To summarize, Ford's design of the Pinto's fuel tank was defective, causing fires if the Pinto was involved in even minor rear-end collisions. Ford came to learn of the defect, but the company failed to correct it; Ford then predicted, based on a cost-benefit analysis, that it would cost more to repair the defect ($11 per vehicle, or $137 million total) than it would to pay for damages resulting from burn deaths, burn injuries, and burned vehicles ($47.5 million). Consider the Ford Pinto case in light of the who-how (WH) framework for business ethics.

Would Ford's decision to forego repairing the defective design comply with these ethical guidelines? If so, why? If not, then what actions should Ford have taken to satisfy them? Explain your reasoning.

Reference no: EM132570897

Questions Cloud

Describe the evidence to guide decision making : Providing safe and effective patient care is critical for all health care organizations. Many acronyms related to quality improvement exist, and multiple.
Find what do believe the amount represents : Find Yahoo! reports $33.21 million of deferred revenue. Based on your understanding of Yahoo!'s operation, what do you believe this amount represents?
Assuming that the sustainability activities of nike : Assuming that the sustainability activities of Nike increase its expenses and therefore decrease its profit, how does Nike convince its stockholders
Determine what is npv profile : Determine What is NPV profile? Illustrate using graph. Do you agree that NPV rankings depends on the cost of the capital? Illustrate with example.
Discussed in the context of business ethics : The Ford Pinto case is a well-known case that is often discussed in the context of business ethics.
What should Medina report at December : Assuming no other equity transactions occurred during 2017 what should Medina report at December 31, 2017 as capital in excess of par value
Topic of the ethics of drug testing : Choose an article within either the ABI/INFORM Collection database or the Business Source Ultimate database on the topic of the ethics of drug testing
Prepare journal entries on the December and January : On December 1, 2017 Jog, Inc., declared and paid cash dividends of $100,000. Prepare journal entries on the December and January
What is role of transfer pricing in a decentralized firm : Determine the gross profit for each division and for the company as a whole if transfer price is £12 per kg. What is role of transfer pricing in a decentralized

Reviews

Write a Review

Financial Management Questions & Answers

  About how much money in retirement accounts

After 30 years, together you would have about how much money in retirement accounts?

  Find the optimal risky portfolio

Find the optimal risky portfolio and its expected return and standard deviation. Find the slope of the CAL supported by T-bills AND the optimal portfolio.

  What is so ominous about the combination of events paul sees

Several of the company's compensation arrangements, including that of the controller and the company president, were based on reported net income.

  Involve initial investment in equipment

Fairfax Pizza is evaluating a 1-year project that would involve an initial investment in equipment of 27,100 dollars and an expected cash flow of 28,700 dollars

  The investment continues to earn this same average

If the investment continues to earn this same average, what the total amount be after 30 years?

  The computer hardware sector have high debt ratios

Why do companies in the computer hardware sector have high debt ratios? For example, what does that mean one company has almost 88%?

  Effective rate of interest

A mortgage company offers to lend you $85,000; the loan calls for payments of $8,391.23 at the end of each year for 30 years. What interest rate is the mortgage company charging you?

  Describe and interpret the assumptions related to problem

Describe and interpret the assumptions related to the problem. Apply the appropriate mathematical model to solve the problem.

  What is average cost per burger when the firm produces

In a slow year, Deutsche Burgers will produce 2.0 million hamburgers at a total cost of $4.1 million. In a good year, it can produce 5.0 million hamburgers at a total cost of $5.6 million. What are the fixed costs of hamburger production? What is the..

  How much must you save each year to meet retirement goal

You believe you will need to have saved $ 500,000 by the time you retire in 40 years in order to live comfortably. If the interest rate is 6% per year, how much must you save each year to meet your retirement goal?

  Similar-risk investments

Now, assume that you can only earn 6% on similar-risk investments. How much would you now be willing to pay for Milford Masonry’s stock?

  What is the ph of the water solution

If 0.001 M of CO2 is introduced into a closed container which is full of pure water and has no headspace for air, what is the pH of the water solution

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd