BBA 3210 CSU Case Analysis Unit 2 Reading Assignment
TheFord Pinto case is a well-known case that is often discussed in the context ofbusiness ethics. To summarize, Ford’s design of the Pinto’s fuel tank wasdefective, causing fires if the Pinto was involved in even minor rear-endcollisions. Ford came to learn of the defect, but the company failed to correctit; Ford then predicted, based on a cost-benefit analysis, that it would costmore to repair the defect ($11 per vehicle, or $137 million total) than itwould to pay for damages resulting from burn deaths, burn injuries, and burnedvehicles ($47.5 million). Consider the Ford Pinto case in light of the who-how(WH) framework for business ethics.
WouldFord’s decision to forego repairing the defective design comply with theseethical guidelines? If so, why? If not, then what actions should Ford havetaken to satisfy them? Explain your reasoning.
Yourresponse to this question should be a minimum of 500 words. Cite any directquotes or paraphrased material from outside sources. Use APA format.
Textbook:
Kubasek, N., Browne, M. N., Herron, D. J., Dhooge, L. J., & Barkacs, L. (2016). Dynamic business law: The essentials (3rd ed.). New York, NY: McGraw-Hill Education.
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