Managerial Point Of View

• American economist Milton Friedman’s

Shareholder Theory
 satisfaction of the shareholders
 maximize its revenues to increase returns for the
shareholders

Outsider’s Point Of View:

• Newsweek magazine conducted a survey in 1986
• The manufacturers are more concerned with their
cost than their consumers’ safety

1
Ethical issues:
• Automobile manufacturers from the beginning
started opposing the notice.
• The main reason behind their opposition was the
installation cost of airbag technology
• From both Aristotle and Bentham & Mill’s
Utilitarianism perspective, the manufacturer's attempt
would be a wrong decision
Alternative actions:
• accept the legislature
• Investing in re-designing and manufacturing would
give them competitive advantage and lead to long-
term benefit.