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Aliun [14]
3 years ago
8

In the 1970’s the Ford Motor Company sold its subcompact Pinto model with known design defects. In particular, the gas tank’s de

sign and location led to rupture, leaks and explosion in low-speed, rear-impact collisions. Fifty-nine people burned to death in Pinto accidents. Ford had conducted a cost-benefit analysis weighing the cost of fixing the defects ($11 per vehicle) versus their potential liability for law- suits on behalf of accident victims, where Ford placed the value of a human life at $200,000. Ford eventually recalled 1.4 million Pintos to fix the gas tank problem at a total cost of $30 to $40 million. In addition the company ultimately paid out millions more in liability settlements and incurred substantial damage to its reputation.
A) Critique Ford’s actions from the perspective of the NSPE Code of Ethics.
B) One well-known ethical theory, utilitarianism, suggests that an act is ethically justified if it results in the "greatest good for the greatest number" when all relevant stakeholders are considered. Did Ford’s cost-benefit analysis validly apply this theory?
C) What should engineers do when the product they are designing has a known safety defect with an inexpensive remedy?
Business
1 answer:
Elan Coil [88]3 years ago
3 0

Answer and Explanation:

1. The national society of professional engineers code of ethics was violated by Ford motors by selling the pinto model which they already knew had manufacturing defects. The cars had issues that were mostly due to fuel tank fires. The pinto was recalled and the cars were being modified to reduce fire hazards.

As part of the nhse code of conduct, engineers must give impartial, honest and equitable service to the public while also ensuring their safety.

2. When we relate Ford's action with the act of utilitarianism, then the cost benefits analysis of Ford did not take cognizance of the effects that their decisions would have. The utilitarian approach would evaluate each action differently and whatever decisions that might follow from it. Ford did not take account of many factors in their cost benefits analysis. The loss from not replacing the fuel tank was more than the benefits as lots of more would have also been spent settling people out of court.

3. Engineers should take decisions that involves the safety of the public for whom they are designing the product. They should try to correct the design defects first without considering how expensive or inexpensive it is based on ethics.

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An example of a cost that is likely to have a direct relationship with products being manufactured is
scoundrel [369]

Answer:

An example of a cost that is likely to have a direct relationship with products being manufactured is:

direct cost of raw materials.

Explanation:

Other direct costs that affect the cost of the products directly are direct labor costs and direct overhead costs.  They are traceable to the products being manufactured.  This is why they are called direct costs.  They can be attributed to the unit of production.  The opposite is the indirect  costs of raw materials, labor, and overheads.  These costs cannot be traced to units of the product being produced.

7 0
3 years ago
Which workers are required to handle money as part of their job qualifications?
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Assume that you are a high-level manager for a shoe manufacturer. You know that your firm could increase its profit margin by pr
Vesnalui [34]

Answer:

The issue here is that you need to balance your company's profits and possible negative due to bad press.

On one side (the good and righteous side), if you do not produce shoes in Asia, your long term survival economic is doubtful, but people view your company as a company that does the right thing no matter what. Will it increase sales? Theoretically it should, but in practice it doesn't. Are Nike sales hurt because each shoe is produced in an Asian country that pays $0.25 per day? No, they aren't. The same applies to Reebok, Adidas, Puma, New Balance and every single major shoe manufacturer in the world. Bad press hurt tuna back in the 80's, but some companies are not affected by it.

The alternative (the evil, dark side of the force side) results in your company being able to survive on the long term. It will not necessarily mean that your company will grow and become the world's largest shoe manufacturer, but you will be able to survive and continue to operate.

There is also a trick that you can use to avoid reputational damage and bad press, and that is to establish a foreign subsidiary in Indonesia using a different name. Then your foreign subsidiary sells you the manufactured goods, and the blame fall son the subsidiary. Believe it or not, that simple solution is used by most corporations including clothing manufacturers, electronics, toys, etc.

If you analyze this from an ethical point of view, the alternative is much simpler. Producing in Indonesia (or India, or Burma, or Pakistan, or Vietnam, etc.) and paying a $100 salary will allow a family to live a very decent life and probably even prosper. They will have a much better lifestyle than the rest of their neighborhood. Each Indonesian worker represents one less poor family in Indonesia. On the other hand, American families will probably get hurt, but it is also much easier for an American worker to get another job that pays a normal wage (in US standards) and allows them to live well.

6 0
3 years ago
Suppose foreigners spend $7 billion on american exports in a given year and americans spend $5 billion on imports from abroad in
Rina8888 [55]
Around <span>+$2 billion. would be the answer!</span>
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3 years ago
Pina Colada Furniture factors $670000 of receivables to Sheffield Factors, Inc. Sheffield Factors assesses a 2% service charge o
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Answer and Explanation:

The journal entry is shown below;

Cash $656,600

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Here cash and factory charges is debited as it increased the assets and expense while the trade receivable is credited as decreased the assets

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