Essay on Are Profits the Only Business of Business?

4153 Words Jun 11th, 2013 17 Pages
MGMT 570 ISSUE PAPER
ARE PROFITS THE ONLY BUSINESS OF BUSINESS?
CONSUMER NOTIFICATION AND PRODUCT RECALL
BY
KOLAWOLE OLAYINKA
03/30/2013

ARE PROFITS THE ONLY BUSINESS OF BUSINESS?
Supply and demand is at the root of everything, where exchange of goods and services is involved between producers and consumers for mutual benefits. These mutual benefits involve an exchange that provides value to the consumer and profits to the producer. It is not at all farfetched to think of these as basically human characteristics. At the beginning of a spectrum is the producer and at the end of the same, is the consumer. They interact with each other and with the governmental law regulating their transactions.
In this economic system, what will
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The doubts remain, and the case retains its interest.
Do we know what constitutes sufficient reason to attribute “responsibility to any person, company, or set of conditions? What kinds of risks do we assume when buying a car, or a motorcycle, or a can of tuna fish?
Should a risk or benefit analysis be used in situations where a defect in design or manufacturing could lead to death or seriously bodily harm, such as in the Ford Pinto situation? And was it the proper framework to use in this situation? If so, it seems that the correct decision was made. Examining this question after-the-fact, it certainly seems like a poor decision. There are arguments both for and against such an analysis.

In May of 1968, the Ford Motor Company, based upon a recommendation by then vice-president Lee Iacocca, decided to introduce a subcompact car and produce it domestically. In an effort to gain a large market share, the automobile was designed and developed on an accelerated schedule. During the first few years sales of the Pinto were excellent, but there was trouble on the horizon.
In May 1972, Lily Gray was traveling with thirteen year old Richard Grimshaw in a 1972 Pinto when their car was struck by another car traveling approximately thirty miles per hour. The impact ignited a fire in the Pinto which killed Lily Gray and left Richard Grimshaw with devastating injuries. A judgment…