The case involve the explosion of the ford pintos due to defective fuel system which led to the issue of the most concerned issue of the cost benefit analysis and the ethic surround its decision not to properly update the fuel system based on the analysis
This case is the one of the example of how business ethics going in the wrong way. Ford was in the rushed in order to produce the pinto in order to compete with the another competitive car selling companies in the market Before production, however, the Ford engineers discovered that there was a major problem with the Pinto: because it car tank would burst in to the flames very easily . The problem was reported, however, the sped-up production on the car meant that if they would correct this problem and they would fix another machinery to prevent the fuel tank it would cost them additional $11 dollar cash. Ford officials calculated that it would not be beneficial to correct the problem and produce the correct pinto, because it increase their expenses and decrease their revenue Ford decided it would be more profitable to produce the Pinto with the defect rather than correct the Problem
Moral theory that applies to the case
Utilitarianism, business ethics and the Ford Pinto case present a dilemma, as the theory appears to be one of moral strength and a good guideline for ethical business choice. The dangers in utilitarianism lie with the potential for abuse, and in abandoning the inherent principles. Ford demonstrated those dangers in action In relating its consequential content to the Ford Pinto case, it would seem that the application of ethics had been dismissed in favour of profits, reputation and unethical practices. The theory cannot possibly be used to put a value on human life, as Ford attempted to do..
The decision not to rectify faults represented a denial of doing no harm, not deceiving others, justice and the rights to life and safety. Nor can the theory measure human suffering or loss,...