Question

In the case of Dodge v. Ford Motor Company, Henry Ford said he believed his company was sufficiently profitable to allow it to consider its social responsibility to engage in activities to benefit the public, including its workers and customers.

A) True
B) False

Answer 1

True, Henry Ford did advocate for his company's social responsibility towards workers and society at large in the Dodge v. Ford Motor Company case. However, this approach led to a legal dispute emphasizing the priority of shareholder interests.

Step-by-step explanation:

In the case of Dodge v. Ford Motor Company, it's true that Henry Ford stated his belief in considering the company's social responsibility. The case revolved around a conflict between the interests of the shareholders and the intentions of Henry Ford, who wanted to reinvest the profits for the benefit of customers and workers, rather than distributing higher dividends. Although Ford’s altruistic stance was evident, it was contested by shareholders, leading to a legal imperative that business decisions should prioritize shareholder interests. Ford's approach was indeed innovative for its time, intertwining his vision of employee welfare with company practices, despite his resistance to unionization and control over workers' lifestyles.

Answer 2

Henry Ford believed that his company had a social responsibility to benefit the public, including its workers and customers.

Step-by-step explanation:

In the case of Dodge v. Ford Motor Company, Henry Ford did believe that his company was sufficiently profitable to consider its social responsibility to engage in activities to benefit the public, including its workers and customers. This statement is True.

However, Ford was known for his opposition to unions and dictatorial leadership, although he provided high wages to foster employee loyalty and increase the number of consumers for his products. Despite Ford's high wages and the democratization of the automobile, workers at Ford Motor Company faced strict demands including the expectation to purchase Ford automobiles and the avoidance of unionization, which was considered a vice by Ford.