Case Study: Ford Pinto - Cost-Benefit Analysis and Ethical Concerns

The Ford Pinto case study examines the ethical and business implications of Ford's decisions regarding the car's design. The assignment discusses how during crash tests, a serious defect in the gas tank was discovered, leading to potential safety hazards. Despite this, the company prioritized design and cost-effectiveness over safety, performing a cost-benefit analysis that weighed the cost of fixing the defect against potential lawsuits and loss of life. The case study reveals that Ford chose not to change the gas tank design, highlighting an unethical decision based on utilitarian principles, where the potential harm to many lives was disregarded for financial gains. The analysis includes references to relevant literature and provides insights into the ethical considerations of business practices and product safety.

Case Study - Ford Pinto

Table of Contents
Case Study - Ford Pinto...............................................................................................................1
MAIN BODY...............................................................................................................................3
REFERANCES............................................................................................................................4

MAIN BODY
This case study included discussion of Ford Motor Co. and presented some facts about
the decision they made about one of their model (Lütge, 2018). This model included in case
study is Ford Pinto. In this case it has been said that during its design and development a crash
test was done and during crash test it was revealed that the gas tank of Ford Pinto has serious
defects. This defects were major and after analysis it was found that they could take many
lives. But main aim of the Ford remained on its design rather than safety and other than two of
its engineers no other person of the Ford was interested and concerned for Safety of the cars.
Later on the basis of cost-benefit analysis of the cars and what it would cost replacing gas tank
it was found that cost that will occur because of 180 burn deaths, 180 serious burn injuries,
and 2100 burn vehicles is $49.5 million and cost of altering fuel tanks is $137 million per year
and on this basis they made decision of not to change the gas tank.
This decision of Ford was totally unethical. This can also be analysed on the basis of
utilitarian theory of ethics as per the theory ethical decision is one which is based on
consequences and brings greatest good for greatest number (Brücker, 2018). This decision of
Ford is only good for them and can harm many lives. This is why this decision is unethical.

REFERANCES
Books and Journals
Brücker, H., 2018. A Utilitarian Approach for the Governance of Humanitarian Migration.
Analyse & Kritik. 40(2), pp.293-320.
Lütge, C., 2018. Ford Pinto: Is Cost-Benefit Analysis Allowed in Ethical Decision Making?.
SAGE Publications: SAGE Business Cases Originals.