Mgt 216

Intro

Ethics are more important in today's society and business environment than ever before. To really understand this case, it is necessary to understand the times and societal norms of when it occurred. In short, did Ford design the Pinto's fuel system in an ethical way, and should they have redesigned it later?

The reason 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)....