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– Nelson Mandela

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Unit II-Assignment

Unit II-Assignment

Q 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, 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.

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The W-H Framework of business ethics inquires about “Who” are the stakeholders involved into the business and “How” soon decisions needs to be taken, (if any). It is within this framework, that the decision taken are being investigated from various perspective while taking into account, various queries. While discussing about this framework, two question do come up but is rarely being asked while evaluating any kind of commercial decisions under the W-H Model.