Business Ethics
Bob’s Prescription for Success
B. A. (Bob) Loney is the new Vice President of Marketing for a large online search engine company, Pottstown Innovative Enterprises (AKA, PIE). Bob has been doing some research into how he can increase the company’s revenues and thereby really impress the company brass. During his research he came across an article about Brazilian pharmacies looking for an advertising vehicle to tap into the U.S. consumer market. Further research reveals that this could be a billion dollar venture and if PIE plays its cards right, it could make a substantial amount of money given its extensive advertising network. Bob is ecstatic about the possibilities and is excited over what this could mean for his career with PIE.
Before Bob pulls the trigger on this, he decides to consult with his legal department. The legal department tells Bob the following:
1. The shipment of prescription drugs from pharmacies outside the United States to customers in the United States may violate the Federal Food, Drug and Cosmetic Act and in the case of controlled prescription drugs, the Controlled Substances Act.
2. The FDA cannot ensure the safety and effectiveness of foreign prescription drugs that are not FDA-approved.
3. Imported drugs typically do not meet FDA’s labeling requirements and may not have been manufactured, stored and distributed under proper conditions; and may not have been dispensed in accordance with a valid prescription.
4. The government has historically been very lax in enforcing the laws in this area and legally there are a few gray areas. Therefore, the risk of any prosecution may not be significant.
After the consultation with Legal, Bob is unsure about what his decision should be. If you were advising Bob on the ethical implications presented by this case, what would you say to him? Specifically, what ethical problems and issues do you see and how would you tell Bob to resolve them? Use ethical theories to support your advice to Bob.
Please rate the answer,Thank you.
If I were to advise Bob on the ethical implications of this case, I would have advised him not to partner with Brazilian pharmacies to allow their products to enter the U.S. market. This is because this partnership would go against the ethical standards that, for various reasons, companies are supposed to uphold.
In this situation, one of the ethical implications is that if Bob's business deals with Brazilian retailers, the relationship will encourage pharmaceutical penetration into the US market and this activity may breach the Federal Pharmaceutical and Cosmetic Act. Therefore, it means that Bob will perform an illegal act, and this conduct runs counter to the ethical standards which companies are required to follow. Partnership with these firms will circumvent the democracy and regulation act and encourage the introduction of goods that are not approved by the U.S. government. Governments often take steps to regulate ethical standards, and the government regulates the type of products entering the market by doing so.
The other immoral issue in this case is that the FDA can not guarantee the safety or efficacy of non-FDA-approved overseas prescription drugs. Therefore, if Bob's company partnered with the Brazilian Pharmacies to allow foreign drug entry into the country, there is a high risk that these drugs could harm consumers because they were not FDA approved. Bob's action to endanger consumers ' lives so that his business can make financial gains is highly unethical and this shows that he is self-centered and does not care about the community's welfare.
In the event Bob wants to collaborate with these foreign companies, there are also various negative implications. The arrangement will allow the entrance into the United States of America of goods that are opposed to the government's policy or, in the case that the government does this, Bob risks losing his company and he could face serious legal consequences as well.
All these issues suggest that partnership with Brazilian pharmacies would be an ethical behavior, and Bob should not risk the lives of consumers and the company for financial gain alone.
Business Ethics Bob’s Prescription for Success B. A. (Bob) Loney is the new Vice President of...
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