The ford pinto case

Assignment Help Business Management
Reference no: EM133177148

The Ford Pinto Case

The Ford Pinto, a compact car produced during the 1970s, became notorious for its tendency in rear-end collisions to leak fuel and explode into flames. More than two dozen people were killed or injured in Pinto fires before the company issued a recall to correct the problem. Scrutiny of the decision process behind the model's launch revealed that under intense competition from Volkswagen and other small-car manufacturers, Ford had rushed the Pinto into production. Engineers had discovered the potential danger of ruptured fuel tanks in preproduction crash tests, but the assembly line was ready to go, and the company's leaders decided to proceed.

Few executives involved in the Pinto decision believed that they were making an unethical choice, apparently because they thought of it as purely a business decision. They argued, "Our role entitles us to act in a certain way, which might not always be ethical or sensitive to other stakeholders." Furthermore, taking an approach regarded as rational in most business school curricula, they conducted a formal cost-benefit analysis - putting dollar amounts on a redesign, potential lawsuits, and even lives - and determined that it would be cheaper to pay off lawsuits than to make the repair.

Do you agree with the argument by Ford executives, "Our role entitles us to act in a certain way, which might not always be ethical or sensitive to other stakeholders."(Explain your answers sufficiently)

Reference no: EM133177148

Questions Cloud

Determine the amount of operating income : In September, Numbers Incorporated sold 40,000 units of its only product for $240,000, Determine the amount of operating income
Australia caused by artificial intelligence : What are the current problems in Australia caused by artificial intelligence?
What is devon tax basis in the stock he receives : Assume Devon received 25 percent of the stock in the corporation in return for his services. What is Devon's tax basis in the stock he receives
How long will it take for your credit card loan to paid off : You have a credit card loan of $17,600 that you plan to make monthly repayments of $2,800. How long will it take for your credit card loan to be paid off
The ford pinto case : The Ford Pinto, a compact car produced during the 1970s, became notorious for its tendency in rear-end collisions to leak fuel and explode into flames.
Leadership theory assignment : Describe your current or future leadership role and explain how you measure up on each of the managerial leadership skills listed in your readings.
What is sanju outside basis after the distribution : Questions - Sanju is a partner in the STL partnership. His outside basis is $250. What is Sanju outside basis after the distribution
Financial manager considering the time value of money : The time value of money calculations found in the Connect content covered the core math related to the concept. Yet, the time value of money is explicitly conne
Discuss the role of hrd professionals in a diverse : 1) Explain three terminologies, concepts, and trends in the (Diversity, Equity and Inclusion) DEI field.

Reviews

Write a Review

Business Management Questions & Answers

  Perform a cost-benefit analysis

Think about your class as a company. The Trainer and Assessor (CEO of the company) has asked you to evaluate the opportunity to improve the equipment used to de

  Cash fow financial perspective relevance stakeholders1 what

cash fow financial perspective relevance stakeholders1 what might be the difference in managing the cash flow of a

  Action to set up a transition monitoring team

What would be your plan of action to set up a transition monitoring team (guiding coalition), what would be this team's role, and how would you know when their work is completed?

  Advantages of the food truck business

What value does a food truck business bring to the communities it serves? What are the advantages of the food truck business? What are the risks involved in the food truck business?

  Increase the return on equity of company

Assume that your financial advisor is suggesting to you that you issue debt and repurchase shares in order to increase the return on equity (ROE)

  Develop a presentation to the board and upper management

Develop a presentation to the Board and Upper Management that provides appropriate background information and a set of reasoned explanations.

  Critical assessment of comparative general claim

Critical assessment of comparative general claim - Over a somewhat longer period the endowment of the Hoover Institution has increased from $2 million to $70 million.

  What is the methodology from the beginning to the end

What is the methodology from the beginning to the end, step by step involved in the negotiation process

  Challenging hr issue for managers

Here's a challenging HR issue for managers: the use of medical marijuana by employees. Although pot is still illegal at the federal level, 30 states plus the Di

  Summary of recommendations and implementation sections

A short paraphrase/summary of the Recommendations and Implementation sections (Sections III and IV) of the final consulting report you submitted in the previous

  What have you learned of significance

What have you learned of significance? What would you change in the class and what would you keep the same?

  What are the strategic and organizational risks

What are the strategic and organizational risks of doing the deal Blackstone and Merrill lynch? What could go wrong?

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