Case study Essay Example | Topics and Well Written Essays - 2000 words - 17

Case study - Essay Example The major problem that arises from implementing rulings that enforce business ethics is that laws are always retrospective in nature. This means that no law will solve a problem that is not someway provided for in that law, and correspondingly, most business problems are not crimes till they have been recognized and a rule has been applied against them (Collins 2010, p. 15). Another problem seen in laws applying to business scenarios is that such laws tend to create a negative portrayal of the relationship between ethics and law. Common law can decree some key precedents at the time when dealing with business problems that are ethical, but then again if business ethics depend only in the compliance of legal statutes that is combined with common law, then ethics will be weakened in force (Collins 2010, p. 18). Due to the fact that the rulings in common laws are centered in precedent, It is quite possible that a certain company can figure out how to execute an unprincipled action that is flawlessly legal within the defined scopes of the law up to that particular point. Additionally, if it appears that there is no law which bans that act, then it is still legal (Collins 2010, p. 23). When the corporate laws focus on ethics as identical with conforming to the law, then the companies will not be barred from executing any act until the act is forbidden in either common law or official statute. An example that entails the relationship between law and business problems is the Ford Pinto case. The case involved a Ford pinto car model. The chief designer, Ford, in making the car, created a model that would statistically cause 180 fewer accidents per year (Collins 2010, p. 25). However, this alternative model would cost an extra $11 per model. Ford then used a cost benefit analysis in compliance with the common law and previous business ethics cases to decide whether or not to implement the