Case 18.3 SUMMARY

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Nov 24, 2024

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Case 18.3 1. Which view SCR do you believe managers had when making the Pinto decision? They had the CSR narrow view. This view has it that a business has the accountability of maximizing shareholders wealth only. 2. Suppose that the changes necessary to make the design safer would have cost Ford $ 1000 per car, instead of $15 per car as the plaintiff alleged. Would this fact have changed the outcome of the case? No. Ford knew that the test results revealed design defects that made the fuel tank vulnerable and a danger to the lives of occupants. 3. Given the fact that Ford’s sales plummeted after this lawsuit was filed, could it be argued that the invisible hand actually worked here? No. Ford did not fall the rule of conduct that requires one to produce the greatest amount of good which required them to correct the defect of which they did not therefore sales plummeted.
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