Question

1. Which view of CSR do you believe Ford’s managers were aligned to when making this decision?
2. Suppose that the changes would cause Ford to expend $1,000 per car rather than $15.80. Would that have changed the outcome of the case? Could it be argued that, given the fact that Ford’s sales plummeted after this lawsuit was filed, Smith’s invisible hand actually worked here?

During the design of the Ford Pinto, engineers became concerned that the placement of the gas tank was unsafe and subject to puncturing and rupturing at low-impact speeds. Engineers recommended halting production until a solution was developed when crash tests confirmed the dangerous design flaw, but Ford’s management overruled the engineers and pushed the Pinto into the manufacturing phase after determining that the proposed fix would have a higher overall cost than the risk of liability from lawsuits as a result of injuries to its customers. Grimshaw purchased a Pinto and was injured as a result of the design flaw and, after bringing suit, was awarded $3.5 million.



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  • CreatedNovember 06, 2014
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