One of the best-known and infamous cases in corporate ethics and social responsibility involves the Ford [Page 924]Pinto. The case involved the decision by the Ford Motor Company during the 1970s not to recall its Pinto model, despite knowledge of a dangerous fuel tank design flaw and the potential loss of life that would result. It also involved, for the first time, charges that were brought against a corporation not just for negligence but for murder.

In 1976, Ford was the second largest manufacturer of automobiles, with revenues of $30 billion a year and net income of almost $1 billion. Due to concern over competition over subcompact vehicles from Germany and Japan, Ford President Lee Iacocca was determined to manufacture a car at or below £2,000 ...