Cost–benefit analysis (cba), sometimes called benefit costs analysis (bca), is a systematic approach to estimating the strengths and weaknesses of alternatives (for example in transactions, activities, functional business requirements) it is used to determine options that provide the best approach to achieve benefits while preserving savings. Ford pinto case analysis 2 case: the ford pinto case 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. Ford applied a generic cost/benefit analysis to accidents based on national highway traffic safety administration000 so every people would obey chain of command to sign off lives ford discovered that rear end collisions propelled the gas tank onto the real axle.
Discussion questions: 1 the cost benefit analysis, by itself, is not unethical the timing of the pinto analysis at ford is unethical because it was used to justify not taking action on a repeatable problem that would eventually cost lives if not corrected. The five parts of this book cover the case, cost-benefit analysis, whistle blowing, product liability, and government regulations keywords pinto automobile business ethics social responsibility of business. Ford pinto case: business ethics what level of safety does an auto consumer expect from the manufacturer is it the manufacturer’s responsibility to ensure a vehicle that protects the occupant in all conditions, to what degree should the occupant be protected.
A cost-benefit analysis prepared by ford concluded that it was not cost-effecient to add an $11 per car cost in order to correct the flaws benefits derived from spending this amount of money were esteimated to be $495 million. A script analysis of missed opportunities dennis a ~jlola ~' ' abstract this article details the personal involvement of the author in the early stages of the infamous pinto fire case the paper first presents an insider account of the context was ford's use of cost-benefit analysis to justify the decision the national highway traffic. Ford’s decision was based on a cost-benefit analysis which balanced human lives against corporate profits in this course, the factual basis of the conventional account is examined and misconceptions held by the public are identified.
Case analysis case analysis the ford pinto case 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. Cost/benefit analysis determined it would cost less to ignore it than kant and business ethics risk assessment ford pinto: fuel tank fault leading to fires if rear-ended fords cost/benefit analysis determined it would cost less to ignore it than recall all pintos. Search results for 'what faults can you identify in ford's cost benefit analysis' corporate ethical chapter 5 ford pinto case question 1 the decision not to install the rubber bladder was not appropriate for ford ethical or profitable. This volume discusses the case of the explosion of ford pintos due to a defective fuel system design bringing together the basic documents needed for researching an informed judgement on ford's behavior in the case, it discusses the use by ford of a cost-benefit analysis and the ethics surrounding its decision not to upgrade the fuel system.
Its internal ‘cost-benefit analysis,’ which places a dollar value on human life, said it wasn’t profitable to make the changes sooner” (dowie, 1977, p 20) in the court of public opinion, it is widely agreed ford made the incorrect decision to not. Ford motor company manages ethics and social responsibility introduction and the case was settled in ford’s favor in 1911 during this lengthy process, ford was to make the best products, even though it cost extra money though this was risky for a company struggling financially, ford was able to successfully reinvent itself. Many businesses manage their cost-benefit analysis, in the case of the pinto's the design was rushed and to put it right would recall all pinto's, 11 million cars costing between $10-$20 per car, the overall bill was $137 million ford then calculated the likely number of accidents resulting from this fault. Using a cost/benefit analysis it was determined that it would cost ford $1375 million to improve the gas tanks on 11 million cars and 15 million light trucks this would reap the benefits of the prevention of 180 deaths, 180 serious injuries and 2,100 burned vehicles, valued at a total of $495 million. Ford pinto fires case study and executive summary john bonner, scotti greenleaf, rose scarbrough mgt216 university of phoenix october 18, 2010 sarah nelson ford pinto fires case study and executive summary introduction during the late 1960’s the ford motor company was one of the leading auto manufactures in the united states.
Read carefully the case study, the ford pinto case in de george, pp 298-99 the action that ford had taken was that it did a cost benefit analysis by way of comparing the cost of baffles with the cost of lawsuits that would result from collisions. Ford pinto case and unethical decision making according to the article, tioga is inclined to make unethical decisions due to the nature of his work. Read carefully the case study, the ford pinto case in de george, pp 298-99 you are to write a paper in which you decide, on the basis of the best utilitarian analysis you can construct, whether ford motor's decision to produce as it did was ethically justifiable.
1 put yourself in the role of the recall coordinator for ford motor company in the pinto case study (a) what is cost-benefit analysis and is it appropriate where human life is part of the cost calculation. The ford pinto case: a study in applied ethics, business , “the ford pinto case is mentioned in most business ethics texts as an example of cost benefit analysis, yet in those formats any appreciation of the complexity surrounding the issues of such decisions is overly simplified free case. Ford pinto case dilemma business is business always aiming to maintain competitiveness and profitability as indicators of success however business people should never forget their social responsibilities which are significantly important in maintaining the business ethics. The public understanding of the cost-benefit analysis has contributed to the mythology of the ford pinto case time magazine said the memo was one of the automotive industry's most notorious paper trails.