Questions
In the land of free trade, the public does not view all industries as equal. Do you believe that is ethical? Do you believe that some industries are unfairly targeted? Should it be consumers’ choice to partake in products that are not healthy for them, or do those companies have an ethical obligation to protect people? In this assignment, you will choose from one (1) of the following industries to write about:
The pharmaceutical industry
The payday loan industry
Cloning for medical purposes
Write a paper in which you:
Become an advocate for either the consumer or the industry. Prepare an argument explaining the major reasons why you support either the consumer or the industry.
Discuss if you believe it is possible for a company to cater to both its best interest and that of the consumer conjointly or if one always has to prevail. Justify your response.
Use at least two (2) quality references. Note: Wikipedia and similar Websites do not qualify as academic resources.
The specific course learning outcomes associated with this assignment are:
Determine the considerations for and process of ethical business decision making to balance corporate and social responsibilities, and address moral, economic, and legal concerns.
Analyze selected business situations using the predominant ethical theories, such as utilitarian, Kantian, and virtue ethics to guide ethical business decision making.
Use technology and information resources to research issues in business ethics.
Write clearly and concisely about business ethics using proper writing mechanics.
Solution
Not All Companies Are Viewed as Equal
In the capitalist world, businesses in all sectors operate to make profits and maintain a competitive edge over rivals in the same market, or substitute products and services. Therefore, profit maximization is their primary goal as long as they operate within legal guidelines. The motive is acceptable as a typical characteristic of the capitalist free market. Although the profit maximization objective does not raise ethical questions in the free market, some industries, such as the pharmaceutical companies, should focus on social good over profit, which is not always the case.
The pharmaceutical plays a vital role in ensuring the health and wellbeing of people around the world. Although companies operating in the industry expect to generate returns on investment and profits from their operations, they should focus on social good. For example, they should not sell critical drugs at a high cost to generate massive revenue and profits, which affects their affordability. Warchol suggests that many firms within the industry are controlled by a few influential players who manage the demand and supply of essential drugs and other medical equipment (662). As a result, although the demand for some critical drugs is high, they control the supply by ensuring that only a few people can afford them by selling them at a high price. Several companies within the industry are more profit-oriented and ignore people’s needs who are unable to afford much-needed medicine or other medical supplies to sustain life.
Utilitarianism is one of the ethical theories that should guide decision-making in pharmaceutical companies due to the social good ideal. The principle suggests that ethical actions are those which generate the greatest pleasure for a majority; in this case, consumers. The companies should price and supply their products, focusing on social good instead of making excessive profits at the expense of the people’s health. According to Shaw and Whitney, the main ethical issue for the companies is that society holds them to a higher standard compared to firms in other industries due to the social good principle (200). It is utterly unethical for the companies to allow people to die since they cannot afford life-sustaining drugs or medical supplies. Thus, earning profits for the companies should never be the single most concern, especially if the objective prevents a person from buying a life-saving drug. The companies have a moral or ethical duty to invest more in treatment research to develop effective therapies at an affordable cost to the majority.
Patient protection is an essential consideration for pharmaceutical companies in the capitalist free market. However, they should work with governments to implement suitable patent laws and consumer protection laws, such as those that relieve the taxation of life-saving drugs. The problem is that some companies take advantage of such laws as incentives to make more profits from consumers. Pharmaceutical companies should also avoid competition from the perspective of other profit-making firms since it causes them to invest more in production and transfer the cost to the consumer. Their focus should, instead, be on research, and development of essential drugs and develop new treatments for humanitarian purpose. Dominant players in the industry should realize that human lives are on the line when making manufacturing and marketing decisions. Besides, society should hold them at a higher standard than firms in other sectors.
Works cited.
Shaw, Brendan, and Paige Whitney. “Ethics and compliance in global pharmaceutical industry marketing and promotion: The role of the IFPMA and self-regulation.” Pharmaceuticals Policy and Law vol. 18, no.1, 2016, pp. 199-206.
Warchol, Jordan M. “Should a Law Governing the Pharmaceutical Market Be Ethically Examined Based on Its Intent or Its Practical Applications?.” AMA Journal of Ethics vol. 21, no.8, 2019, pp. 661-667.
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