Case analysis – Ford Pinto a. Brief Summary: In 1970, Lee Iacocca, the president of Ford Motor Co., decided to introduce a new car which is called Pinto. The final product will be produced at or below 2,000 pounds and sell for $2,000 or less. The design of Pinto was started in 1968, but the production was begun at 1970. Moreover, although Pinto project was accepted and approved by Ford’s Product Planning Committee, Many engineers of Ford resign from their supervisors, direct or indirect. There
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that this case has gotten so much attention is that Ford did not update the fuel system in 1978, because the cost-benefit analysis favored leaving it unchanged. Ford Motor Company defended their decision to not make the production changes in the Pinto by saying that they had used a risk/benefit analysis. They said that they had used this analysis because the National Highway Traffic Safety Administration (NHTSA) required it from them (Leggett, 1999). Is a risk/benefit analysis really appropriate
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Ford Pinto Case Solution The Ford Pinto was a disaster waiting to happen. The damage that the Lee Iacocca and Ford executives allow to happen was not only tragic but they were preventable. Because of Lee Iacoccas hurry and pressure of the creation of the auto was high, and this lead to the unfortunate dilemma. The Ford Pinto study has shown that Iacocca put to high of a demand on the team that was responsible for the creation of the Pinto. Fist the Pinto should never gone into production
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The first option, to do nothing, is very risky. Although most bomb threats to schools are just a hoax, the price that will be paid if there is an actual bomb, namely human life, is too high to quantify. This is similar to the Ford Pinto case, where after a cost-benefit analysis, they decided the cost of fixing the death traps outweighed the benefits. In looking at this scenario, lawsuits would occur if there was an actual bomb. There would be no way to avoid them because everyone would know the school
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“Ford Pinto Case” After watching this video about the Ford Pinto Case, I think their decision was no ethical, because of the cost-benefit analyses they applied, trying to determine if the flaw in Ford Pinto automobiles is worth the financial risk in comparison to the value in human life, which is unconscionable and indefensible. Ford estimated that each dead that could be avoided would be worth $200.000 and each major burn injury $67.000 and average for repair cost of $700 per car involved in
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Gurniak v. Nordquist, 2001 BCCA 515 (CanLII) was heard Vancouver, BC, in the Court of Appeal for British Columbia, in 2001. It was an appealed case that involved indemnity. Indemnity is the obligation on the insurer to make good the loss. This case was under the Family Compensation Act, R.S.B.C. 1979, c. 120, from a motor vehicle accident involving a pedestrian. Nordquis was the driver of the vehicle which was owned by the defendant, Domo Gasoline Corporation Ltd., which hit and killed Robert Bruce
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FORD PINTO CASE The Ford management has chosen to be unethical and morally unworthy to be trusted with the lives of its customers. Can you just imagine the number of individuals riding every day in the cars that they produced, who are unaware that they could be in an injury any moment? Ford management has chosen not to follow the safety guidelines and standards in producing such products because at that time, the government is still not that strict in implementing such rules. And because of their
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Ethics Keith A. Bates Sr. MGT/498 4 April 2012 Richard Rignall Ethics Ethics and Social Responsibility in Developing a Strategic Plan Ethics are values that guide personal thoughts and actions in knowing right from wrong. Personal conduct and behavior is based on how the individual views unethical behavior. Social responsibility is the company, management, and employees working and conducting themselves by following rules of society. Companies that include ethics and social responsibility into
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Principles of Responsible Commerce (COMM 101) Case 2.3 (The Ford Pinto) Week 4 1. What moral issues does the Pinto case raise? Moral issues that Ford Pinto case raises included producing dangerous products which are not safe to use it without informing the dangerous of the products to the public. In addition, lobbying the NHTSA to delay the safety measure of the products is also one of the moral issues that Ford Pinto case raises. (53 words) 2. Suppose Ford officials
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Right or Not Right? Back Ground In 1970’s, Ford had been criticized by the public due to a defective fuel system design. Although Ford had access to a new design which would decrease the possibility of the Ford Pinto from exploring, the company chose not to redesign the system, which would have cost $11 per car, even though the analysis showed that the new system would result in 180 less deaths (1999, The Valuation of Life As It Applies To the Negligence-Efficiency Argument). The company defended
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