Business Ethics and Social Responsibility
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
Ford Pinto’s case presents a struggle between ethics and financial gain. The company decided to forego repairing the fuel tank system referencing that the cost to repair was higher than compensating victims (Regis University College for Profession Studies, (n.d.). Although the decision was legally right, it was unethical. It compromised the value of human life with the company’s value for making profits. The company could have rectified the defect even though it would be costly to save customers’ lives and maintain their market share. This means businesses should consider the social obligation…
(650 words)