The Ford Pinto example 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. Explain the need for promoting business social responibility.
Your response to this question must be at least two pages in length. One source is required. Include an introduction in your paper. Adhere to APA Style when creating citations and references for this assignment.
See attached documents (1) Ford Pinto, A Pre Law Case Study in Product Liability (2) Source – Ethical Decision Making in a Business Environment
Answer preview
Business social responsibility entails an ethical framework in which businesses are sensitive to the social, environmental, and economic concerns. It is important to promote this framework to avoid the probability of making unethical decisions that are motivated by financial gains. Bandura, (2016), mentions that market forces such as the desire to remain as the leading company in the market promote self-enhancement goals that lead to morally disengaged behaviors. This explains Ford’s scenario that eventually led to an unethical decision. A business should have a structural framework of decision making to ensure that the decisions consider the social, economic, cultural, and environmental concerns. This would help to avoid ligation cases and, in turn, improve customer loyalty since the products would offer sufficient satisfaction. In other words, promoting social responsibility in a company helps to integrate humanity in decision making, which ultimately curbs harmful impacts to customers and organizations.
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