Question

1.) Which view of CSR do you believe Ford's managers had when making the Pinto decision?

2.) Suppose that the changes necessary to make the design safer would have cost Ford $1,000 per car, instead of $15 per care as the plaintiff alleged. Would this fact have changed the outcome of the case?

3.) Focus on Critical Thinking: Given the fact that Ford's sales plummeted after this lawsuit was filed, could it ve argued that the invisible hand actually worked here?

Answer 1

1. In my view the major view of CSR of FORD's managers is to make and add most fuel efficient car to their portfolio increasing their market share in passenger cars segment and also present it to public to satisfy their need of having a four wheeler with Fuel Efficiency.

2. This Cost of Ford per car incurred wouldn't have much effect on the outcome of case. The main Risk/Benefit Analysis is done under BPL formula and it clearly indicates that the change in design would have taken away the economic efficiency from Ford and the same was vouched by the Judge at the time of delivering the verdict.

3. YES, because the decision of the law suit and feeling of the people are in two different ways and the concern increased in the people with the entire scenario of Risk/Benefit analysis produced portrayed a unkown fear among the people to place trust in FORD.