College of
Business
Administration
College of
Business
Administration
The following questions relate to the Ford Pinto Case:
1) Don't all automobiles present the potential for injuries? If so, what risks do we assume in driving and buying an automobile? What risks does the manufacturer assume?
2) The Pinto has become a popular stock car on the racing circuit. Recalled Pintos can be purchased for $50 from junkyards. Should Ford be concerned about such use--either legally or ethically? The following questions relate to Case 10.2--Hot Coffee at McDonald's:
3) In serving hot coffee, did McDonald's act in a morally responsible way? What ideals, obligations, and effects should it have taken into consideration?
4) Should a reasonable consumer be expected to know that coffee can burn and to have assumed this risk?
The following question relates to Case 10.3--Sniffing Glue Could Snuff Profits:
5) When, if ever is a company morally responsible for harm done by the blatant misuse of a perfectly legitimate and socially useful product?
Consider the following case related to Pharmaceuticals: Ethical Pricing of Life-Saving Cures:
Senators David Pryor of Arkansas and William Cohen of Maine did not mince words. In a hearing on prescription drugs, the two accused drug manufactures of "price gouging...to pad already skyrocketing profit levels." They cited a 6.4 percent increase for prescription drugs in 1992 when prices in other goods rose only 1.5 percent. Both senators proposed price controls for the industry, but nine major drug companies pledged to Congress to hold their price increases to the overall rate of inflation. With the pledge, the price of the stock of all the drug manufactures fell to a 13-month low.
The executives of the companies argue that drug prices increases are essential to finance the development of important new drugs, which the industry contends may each cost more than $200 million to bring to market. Innovative drugs for cardiovascular and digestive tract disease, for example, have helped millions of Americans to avert expensive surgery and related hospital costs.
Public sentiment is that the increase in prices cannot continue and that the companies take advantage of people who need prescription drugs, particularly the elderly.6) Is there a moral responsibility to keep prescription drug prices as low as possible?
7) What is the responsibility of the drug manufactures to their shareholders? their consumers?
Here are a few additional references for your consideration in resolving the above questions:
www.sfbg.com/nader/
www.sfbg.com/nader/72.html
www.sfbg.com/nader/68.html
www.sfbg.com/focus/
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