Reflecting on the Ford Pinto case study, explain why the use of cost-benefit analysis can create problems in management decision-making. Discuss the tension between Corporate Social Responsibility and the management's fiduciary duty to maximize shareholder returns. The Sarbanes-Oxley Act and the Corporate Governance Handbook require that the Board of Directors have an audit committee of external directors, one of whom is a financial expert. Discuss the importance of these requirements. Discuss the notion of the "social contract" and how that might be considered in management's decision to pay higher taxes to the company's home country or to shop for a country that imposes lower taxes, then relocate the company's headquarters there. Considering the "Dirty Money: Drug Short" case, discuss the point at which ethical concerns begin to outweigh the profit motive.