1. Case 2.2: The Ford Pinto Bianca Guerrero Kyle Hanlin Ernesto Luna Nathalie Morachimo John St. Onge Foundations of Business Ethics BUS 343 Prof. Frank Fabela 9/21/2011 1

2. Introduction & Case Analysis Kyle Hanlin 9/21/2011 2

3. Introduction & Case Analysis Part 1: Introduction to the Market Introduced in the early 1970s to compete with international companies such as Toyota and Volkswagen. Ford compressed the Pinto’s construction timeline to only two years – instead of the traditional three-and-a-half. National Highway Traffic Safety Administration (NHTSA) standard promoted car companies to check for potential fire hazards within their vehicles and internal components. 9/21/2011 3

4. Introduction & Case Analysis Part 2: Problems Arise in Ford Pinto Early crash tests done by Ford indicated that the Pinto design was horribly flawed; the gas tank was subject to easily rupture. Only Pintos that had a “redesigned” fuel tank managed to pass the crash testing phase. Ford decided that the cost of redesigning the Pinto was far too high – as the following video explains. 9/21/2011 4

5. Video “Runaway Cars” Segment 10 – Sudden Acceleration (Edited Running Time: 2 minutes & 15 seconds)Video provided by YouTube 9/21/2011 5 Click next slide to play video automatically.

6. Video: “Runaway Cars” Segment 10 – Sudden Acceleration (Edited Running Time: 2 minutes & 15 seconds) 9/21/2011 6

7. Discussion Questions Segment Bianca GuerreroJohn St. Onge Nathalie Morachimo Ernesto Luna 9/21/2011 7

8. Discussion Questions – Part One Number 3 Utilitarians would say that jeopardizing motorists does not by itself make Ford’s action morally objectionable. The only morally relevant matter is whether Ford gave equal consideration to the interests of each affected party. Do you think Ford did this? 9/21/2011 8

9. Discussion Questions – Part Two Number 5 Speculate about Kant’s response to the idea of placing a monetary value on a human life. Is doing so ever morally legitimate? 9/21/2011 9

10. The Definition of Kantianism The Formulation Rule of Kantianism: Act only according to that maxim by which you can at the same time will that it would become a universal law. Act so that you always treat others as an end, and never as a means to an end only. 9/21/2011 10

11. Discussion Questions – Part Three Number 7 Would it have made a moral difference if the savings resulting from not improving the Pinto gas tank had been passed on to Ford’s customers? Could a rational customer have chosen to save a few dollars and risk having the more dangerous gas tank? What if Ford had told potential customers about its decision? 9/21/2011 11

12. Discussion Questions – Part Four Number 11 Assess Ford’s and GM’s actions with respect to SUV rollovers. Have the automakers met their moral obligation to consumers, or have they acted wrongly by not doing more to increase SUV safety? Should they be held either morally or legally responsible for deaths from rollovers that would not have occurred in other vehicles? What should automakers do to increase SUV safety? 9/21/2011 12

13. Concluding Comments & Questions Segment 9/21/2011 13

14. Thank You! We hope that you enjoyed our presentation! 9/21/2011 14