Cost benefit analsis of ford pinto

cost benefit analsis of ford pinto The $200,000 life-valuation figure used by ford in its cost-benefit analysis was actually provided to ford and other automakers by the national highway traffic safety administration (nhtsa) the pinto memo wasn't used or consulted internally by ford, but rather was attached to a letter written to nhtsa about proposed regulation.

Cost/benefit analsis of ford pinto this essay cost/benefit analsis of ford pinto is available for you on essays24com search term papers, college essay examples and free essays on essays24com - full papers database autor: anton • april 28, 2011 • 285 words (2 pages) • 785 views. A utilitarian argument in the ford pinto case ford realized this but made its decision to not recall the cars based of their own company formulated utilitarian cost benefit analysis and fear of negative company effects ford motor company weighed the risk in terms of how much it would cost the company to pay for damages and loss. More specifically, it was ford’s decision to use the cost/benefit analysis to make production decisions that translated into lost lives during the initial production and testing phase, ford set “limits for 2000” for the pinto that meant the car was not to exceed $2000 in cost or 2000 pounds in weight this set tough limitations on the production. To make matters worse, ford decided-in its infamous cost-benefit analysis of the situation that became known as the ford pinto memo-that paying off the cost of settlements for the victims ($50 million) was more financially beneficial than recalling and reinforcing the car's rear ends ($121 million. 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. • ford waited eight years because its internal cost-benefit analysis, which places a dollar value on such as ford, to perform cost-benefit analyses when lives are involved ) do you think that the public was adequately informed concerning the dangers of the pinto ) ford designed the pinto to satisfy all legal requirements for safety.

Ethical design: the ford pinto april 7, 2013 by stephen koullias 0 in 1969, the ford motor company was in a race with other us automakers to provide sub-compact cars that could directly compete with and challenge foreign automakers specifically the japanese and volkswagen cars were targeted as the main competition ford. Case study: ford pinto case, utilitarianism and cost benefit analysis: this is an extract from a longer article, by annie lundy. Transcript of the ford pinto crisis & csr csr: carroll's csr theory: facts of the case: 'one of the most dangerous car ever produced' the pinto's design flaws consisted of: precarious positioning of the gas tank, protruding bolts on the transfer case, doors that jammed in the case of an accident the ford pinto was responsible for: 500 preventable burn deaths hundreds of serious injuries ford. As a result, ford’s risk-benefit analysis would have indicated that it would be more cost effective for ford to make changes to the pinto’s fuel tank additionally, ford received flak for their low value of the human life the national highway traffic safety administration (nhtsa) suggested that ford use $275,000, a relatively low estimate.

Cost/benefit analsis of ford pinto ethical dimensions of cost/benefit analysis evaluate from a moral perspective the cost/benefit analysis conducted by ford evaluate from a moral perspective the cost/benefit analysis conducted by ford. The financial analysis that ford conducted on the pinto concluded that it was not cost-efficient to add an $11 per car cost in order to correct a flaw benefits derived from spending this amount of money were estimated to be $495 million. 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. Ethical issues • ford made decision not to make improvements to the gas tank after completion of the risk/benefit analysis • ford did not make adjustments to the pinto design because the $11 cost was too high • ford did not consider the lives which would be saved if the adjustment was made 21 22.

Ford pinto full details and analysis report with references 1 case study “ford pinto” 1 2 introduction • demand for sub-compact cars • designed in may of 1968 by the vice-president of ford motor company, lee iacocca • weighed 2000 pounds, cost $2000 and manufactured in 2 years 2. Ford waited eight years because its internal “cost-benefit analysis”, which places a dollar value on human life, said it wasn't profitable to make the changes sooner the ford defense several weeks after dowie's press conference, ford issued a news release, countering points made in the mother jones article. Ford pinto case analysis despite the eminent failures by the concerned parties in the pinto-related accidents to minimize or completely avoid the predicament, ford company’s pursuit of financial gains at the expense of consumer safety is a matter of great concern to the public in general since the introduction of the subcompact car. The value of human life was put a figure on, and people became economic commodities through this cost benefit analysis i came across information that the ford even overestimated the cost of recall and that more accurate number would be about $63 5 million in cost of modification in my opinion ford had to bear $15 million in order to.

Instructor’s guide lesson #1 case study #1: the ford pinto 1) at the end of the previous class briefly describe the pinto cost-benefit analysis performed by ford appendix a-4- teacher’s discussion guide to case study number 1: the ford pinto key points in study: 1) an engineer has a responsibility to employ reasonable. Ford pinto full details and analysis report with references they must therefore be considered a factor in determining the net operating profit on the pinto the punitive damage award in the ford pinto case is, however, much more difficult to justify^ dowie 1977: ford knows the pinto is a firetrap, yet it has paid out millions to settle damage.

Cost benefit analsis of ford pinto

Utilitarian evaluation of the ‘ford pinto case’ the purpose of this paper is to present justifiable arguments supporting ford’s decision to produce the ford pinto model a utilitarian approach will be used to evaluate the case – the cost-benefit analysis is assumed to be of secondary value to the overall utilitarian analysis summary of the case in may 1968, the ford. 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. 4) is cost–benefit analysis a legitimate tool what role, if any, should it play in moral deliberation critically access the example of cost- benefit analysis.

The ford motor company and its engineers faced a number of ethical predicaments during the development and production of the ford pinto most notably, ethical problems arose concerning what the engineers' responsibilities were once it became clear from the crash tests that the pinto. The ford pinto case: the valuation of life as it applies to the negligence-efficiency argument christopher leggett law & valuation professor palmiter spring, 1999 abstract the cases involving the explosion of ford pinto's due to a defective fuel system design led to the debate of many issues, most centering around. As lawrence hinman observes, the aim is to find the greatest overall positive consequences for everyone (ethics, 136) this can be linked to the idea of cost-benefit analysis, so that correct moral conduct is determined solely by a cost-benefit analysis of an action's consequences (fieser, p7.

An examination of the ford pinto case, the cost-benefit analysis, will help raise the awareness and understanding of the diminishing value of ethics in the business world when ford conducted the cost-benefit analysis, it analyzed what the potential benefit would be if they fixed every pinto by installing the baffle piece the result produced from the cost-benefit analysis. The up gradation of the defective fuel system design in ford pinto should depend on cost-benefit analysis and not on ethics integration management integration management is a collection of processes required to ensure that the various elements of the projects are properly coordinated it involves making trade-offs among competing objectives. The cases involving the explosion of ford pinto's due to a defective fuel system design led to the debate of many issues, most centering around the use by ford of a cost-benefit analysis and the ethics surrounding its decision not to upgrade the fuel system based on this analysis a judgment was.

cost benefit analsis of ford pinto The $200,000 life-valuation figure used by ford in its cost-benefit analysis was actually provided to ford and other automakers by the national highway traffic safety administration (nhtsa) the pinto memo wasn't used or consulted internally by ford, but rather was attached to a letter written to nhtsa about proposed regulation.
Cost benefit analsis of ford pinto
Rated 5/5 based on 36 review

2018.