← Chapter 10
Applied Ethics · Chapter 10

The Bad-Apple Autopsy

When a company does something terrible, the first official explanation is almost always a few bad apples. Set the four dials that actually produce corporate wrongdoing — an aggressive target, an impossibility, a hierarchy that punishes honesty, a metric that rewards appearances — and watch which real scandal your configuration reproduces. Then try firing people and see whether the risk moves.

Who is the company for?

The rig
Target aggressiveness
 
Can the target be met honestly?
 
Is it safe to say “we can’t”?
 
What does the metric reward?
 
The Ford Pinto story you were told is mostly wrong
The famous memo valuing a life at about two hundred thousand dollars was a 1973 submission to a federal rulemaking on rollover fuel leakage, using the government’s own figures — not an internal decision to let the Pinto burn for eleven dollars a car. Gary Schwartz’s 1991 review in the Rutgers Law Review showed the death toll and the timeline had both been inflated, and Ford was acquitted in the 1980 Indiana criminal trial. The real lesson survives: cost-benefit analysis is unavoidable in engineering, and the wrong is not doing the arithmetic but doing it secretly, with self-serving numbers, and never telling the people who bear the risk.