Ethical Obligations and Decision-Making in Accounting 2nd Edition by Steven Mintz, Roselyn Morris

Exercise 19

Companies are sometimes faced with crisis management decisions. A good example is that of Ford with its Pinto brand that was discussed in the chapter. Compare Ford’s reaction, from an ethical perspective, to the Pinto problem with gas tanks to that of Toyota in January 2010, when the company admitted that faulty gas pedals in its cars and trucks may cause unexpected acceleration. What factors may be responsible for whether Toyota's image endures long-term versus short-term negative effects?

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Ethics:

Ethics is the set of some moral values and principal that differentiate right and wrong morally.