business ethics and social responsibility

Chapter 2: Being Ethical and

Socially

Responsible

cc licensed ( BY NC ND ) flickr photo by Stephen Wu: http://flic.kr/p/tZ1LP

Team Quiz

• Closed book/closed notes

• You may collaborate with your team

• You are responsible for the answers on

your quiz

• You do not have to choose the same

answers as your team

cc licensed ( BY NC SA ) flickr photo by Mark H. Anbinder: http://flic.kr/p/8n19hr

cc licensed ( BY SA ) flickr photo by 401(K) 2012: http://flic.kr/p/aFAEHR

On October 28th, 1987 at 9:30 a.m., the doors to a Metropolitan Armored Car Co. vehicle accidentally popped open, and over $1 million in cash landed in the middle of the busiest freeway in Columbus, I-71 just north of downtown.

Pandemonium ensued. An estimated 100-200 people stopped their cars on the spot, blocking all lanes of the freeway, and began fighting and clawing for bags of cash. An FBI agent who would not give his name happened to be passing at the time of the incident. He told the Columbus Dispatch, "There were people carrying sacks of money. They looked like Santa Claus." He said people were screaming "Praise the Lord!" as they scooped up handfuls of cash. Less than $70,000 was returned.

cc licensed ( BY NC ND ) flickr photo by MA1216: http://flic.kr/p/5j5jz3

cc licensed ( BY ) flickr photo by Robert Couse-Baker: http://flic.kr/p/dBYAqq

Ford Pinto

• Developed by Ford in response to

popularity of small imports

• Developed in 25 months (usually 43)

• Limits of 2,000

– <2,000 lbs

– <$2,000.00

VW Beetle, ©carblueprints.info

Ford Pinto

• 40 crash tests >25mph: all ruptured fuel tank without modification

• Ford owned a patent on a safer fuel tank design

• Cost-benefit analysis:

– Life = $200,000

– Cost of modification = $11

– 180 deaths/180 burn injuries: $49.5M

– 11M cars, 1.5M trucks: $137M

cc licensed ( BY NC SA ) flickr photo by Matthew T Rader:

http://flic.kr/p/PZmCd

Types of ethical problems

• Ethical lapse

– Personal interest over stakeholders

• Ethical dilemma

–Conflict among stakeholders

• Conflict of interest

• Conflict of loyalty