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Ethical Dilemma

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Introduction

The unfortunate tragedies involving the explosion of Ford Pinto's due to a design defect led to a main debate regarding the use of a cost-benefit analysis and the ethics revolving around the company’s decision to go further with the initial, defective prototype.

Ethical Dilemma

Ford was completely aware of the safety issues the prototype was facing, but solving the issue would cause great disadvantage for the company: production schedule had to be modified, resulting in delays to bring the new car on the market, and also production costs would increase. In this context an ethical dilemma raised, so two crucial issues were addressed: either go further with the production of Pinto regardless the defects and the danger to future customers, or delay the production and modify the original model to assure safety and reliability, regardless the higher costs?

Ford’s decision was to continue the production of the defective design while basing it on a cost-benefit analysis. In this context another dilemma was created: should such an analysis be used in situations where defects could lead to death or cause tremendous harm, such as in the Ford Pinto situation?

Utilitarianism

Based on the information provided by Ford, the company assumed and decided that the most benefit would come from going ahead with the production of the initial design.

Utilitarianism is defined as a normative, empirical philosophy that is based on the principle that “the right thing to do, in any situation, is whatever would produce the best overall consequences for all those who will be affected by the action”, so basically it defines right or acceptable actions as those that maximize total utility, or the greatest good for the greatest number of people. Utilitarianism can be used when considering a business decision that seeks to maximize positive effects and minimize

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