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The importance of ethics in a business
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Business performance of organizations are primarily steered through good ethics and corporate social responsibility, and such business practices have become an integral part in order to conduct successful business operations in today’s highly competitive and dynamic environment (Joyner & Payne, 2012). Ethical business practices are widely implemented in small or large enterprise as the growing need of social responsibility and environmentally proactive practices are recognized by these businesses. Hence businesses should be conducted in a way that it not only benefits the owners, employees or customers but the society and community at large (Smith, 2008). This report analyzes the ethical business practices and corporate social responsibility …show more content…
The company strives to save millions of lives, while increasing the quality of level of millions of its customers, and offers a range of free or discounted pricing on its products. In addition to its healthcare programs and scholarships, the company has taken several green initiatives. However, with respect to its operation in Colberia, PharmaCare has hired workers from remote locations to commute to its fields at very low wages. In addition to this, an element of insensitivity towards its workers as well as the community is evident from the act of PharmaCare where it has built a super luxury compound while the lifestyle of the natives is very deprived of the basic necessities of life. Such business practice will propagate negativity and increase the feeling of deprivation of the natives, further contributing to despair of the indigenous population. This will not impact the lives of the workers of PharmaCare, but the community at large, consequently impacting the business environment for the company to operate …show more content…
PharmaCare, while making its corporate decision should take into account not only its primary stakeholder, but secondary as well as tertiary stakeholders in order to be more productive for the business as well as the society and community. The company must assess the pay scale of the workers and revise it on the basis of labor and commute involved. 2. The company should consider the environment and community while expanding its complex. The people in the nearby area are financially deprived as well maintain a below average lifestyle. Hence while expanding the complex, its negative impact on the community should be kept in mind and the company should stick to a simpler approach. 3. Ethical business practice refer to not only curbing the negative impacts on the stakeholders, but bring positivity to the stakeholder through organizations actions and behavior. Company, in addition to its health care initiatives, should also work for the prosperity of the indigenous population of Colberia, and contribute to the society by introducing health care initiatives for the secondary stakeholders, law and environmental regulation acceptance for the tertiary stakeholders and bonuses, incentives and transport facilities for its workers in
Working in the pharmaceutical industry, there are different types of environments you could possibly work in. There are chain pharmacies, like any kind of grocery store or CVS. There are franchise pharmacies, which are also known as apothecaries. Also, there are community pharmacies, which are also known as retail pharmacies. Some of them are independent pharmacies, which is usually owned by a pharmacist or a group of pharmacists.. There are hospital pharmacies, in which are in the hospital. There are many more different types, these are only a few.
Med-Pharmex Incorporated is known nationally and abroad as a pharmaceutical manufacturer of animal-related products. Before gaining fame worldwide, the business began its journey to success as a small lab in 1983, which slowly grew over time. Since then, the company maintains its main goal, and that is to produce drugs that promote the health of companion animals, such as dogs, cats, and horses, as well as food-producing animals, such as pork and chickens. To ensure legal responsibility, the company’s manufacturing process is examined by the United States Food and Drug Administration (FDA). Med-Pharmex works closely with veterinary clinics who purchase their life-saving drugs and represent them in the market. Despite manufacturing drugs, the
The drug manufacturing industry is concerned with the development, production and marketing of drugs which are to be used as medication. This is one of the oldest industries in the world. The first drug stores date back to the middle Ages. Some of today’s pharmaceutical companies have been founded in the beginning of the previous century. Important discoveries have been made in the early 20th century such as insulin and penicillin who became mass produced. More drugs were developed during the 1950s-1960s such as contraceptives and heart drugs. During that time numerous organizations and declarations were established in order to regulate the industry. Until the 1970s the drug manufacturing industry remained relatively small, and then it began expanding quickly. With the development of technologies and the internet research, manufacturing, marketing and sales of drugs became a lot easier.
Business ethics simply can be defined as the application of business values in the business practice of a company (Seawell 2010, p. 2). For a multinational company, business ethics is one of the critical aspects need to be taken into account in business decision-making processes. Failure to give attention on ethics may bring consequences on company’s reputation (Meyer & Jebe 2010, p. 159). The company is expected not only to pursue its own profits but also contributing to the environmental and social welfare of the community where it operates (Svensson & Wood 2008, p. 308).
In 2015, when Martin Shkreli outraged lawmakers and the general public, as CEO of Turing Pharmaceuticals, he raised the price of Daraprim, it is the drugs used by AIDS and cancer patients, by 5000% overnight. Medicine prices are a big issue, although the country has price control, it does not solve the problem. Therefore, the policy may provide some short-term benefit, but it would impose substantial future costs. The purpose of this research paper is to understand why the pharmaceutical industry makes their drug prices so expensive. I will also find the appropriate information and laws to prove the reasons and solutions for the higher prices of drugs.
With the increased cost of manufacturing, pharmaceutical companies have been divesting in their smaller or less profit making operations and focus on large segments. Many Pharmaceutical companies sold their manufacturing sites to contract manufacturing organizations. The dynamics of interfacing with contract manufacturing organization added intricacy in pharmaceutical supply chain network of pharmaceutical companies.
However, if they trust their company’s products and the company has enough successful cases to prove the function of their products, employees like Jennifer and Tony have the right to promote their own products? Based on the balanced stocking, the manager can choose to consider his own salary or bonus ahead of anything else. There is no ethical error here if the manager promotes their own products that are proven functional, based on the balanced stocking. In conclusion, the manager’s idea about promoting own-label medicines by keeping the “stocking error” creates the ethical dilemma. For Jennifer, it is hard to make a decision. to consider major stakeholders, different decisions may cause a different result. Some are good for the company. The others are good for customers. Also, there is a way to balance the situation. Therefore, to choose the balanced option seems to be a better way to solve the dilemma. In my opinion, when encountered with such kind of ethical dilemma, the priority should always be the weak grow P. In comparison with patients’ physical condition, ordinary employees’ salaries should be put in as IBGGGlue. However, if the own-label product has decent function and a lower price. There is no
An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.
The company shows a flat organization in which there are few layers of management but has broad span of control. According to the chart, the company develops a decentralized authority in the level of their management due to which they focus more on adapting to what customer wants based on decision making from the lower level managers who are more familiar in the local conditions. This type of authority allows them to understand customers such as patients’ needs in order to develop strategies to fulfill this requirement According to Figure 1, they primarily focus more on the health care system and invested in about $7.5 billion dollars in research and development to create a strong product portfolio. The culture of this organization demonstrates a formal organization in order to guide the lines of authority as well as the responsibility for the company. According to Johnson and Johnson Credo statement, their main focus is towards the responsibilities of the doctors, nurses, and patients as well as their employees. They also state their growing responsibilities toward the shareholders and to the communities in order to research and develop new innovations in towards civic improvement to the communities. This entails that they fully care for their customers and employees in which its shows in
As a survival mechanism adapted since evolutionary times, humans have been accustomed to act in the best interest of one’s self. Although this concept of self-protection is innate in individuals, this self-interest mentality should not be practiced in pharmaceutical industries as workers should be obligated to care more for the common
The problem that was investigated consisted of a question that Milton Friedman posed in one of his articles, which was featured in The New York Times Magazine in 1970. The question was, “What does it mean to say that “business” has responsibilities” (Friedman, 2007, p. 173)? Friedman (1970) elaborated on how businesses cannot have assigned responsibilities. Furthermore, he described how groups or individuals should be the only ones that can hold responsibilities, not businesses. He stated that associating responsibilities with the word business is too ambiguous. I will examine three discussion questions and three compare and contrast questions which Jennings (2009) posed in a case study that is related to Friedman’s (1970) article “The Social Responsibility of Business is to Increase its Profits”.
Ethical business practices include assuring that the highest legal and moral standards are observed in your relationships with the people in your business community. This includes the most important person in your business, your customer. Short term profit at the cost of losing a customer is long term death for your business.
The notion of ethics deals with people’s behaviors within a company. Social responsibility involves a company’s moral obligations and the manner in which the organization makes its decisions. Although ethics and social responsibility are similar on a conceptual basis, each has its own unique characteristics that express their differences and its independence of the other. Ethics and social responsibility have to be present and coincide with one another for a business to be ethically sound.
Business Ethics are much more than the buzz word stories on late night news. The Corporate Social Responsibility of a company goes well beyond that. “Business Ethics are moral guidelines for the conduct of business based on notions of what is right, wrong and fair.” (Bellow, 2012). Individual backgrounds play a huge role in person by person code of conduct can vary from employee to employer. To help solve some grey areas in what is ethically correct, companies now make a code of conduct that is over everyone in the company. This code of responsibility helps employees have better understanding of what is required of each and every one of them. “Corporate Social Responsibility is a business philosophy which stresses the need for
Now-a-days it is considered that CSR is one of the major concerns of organization’s business ethics. Companies increasingly increase their corporate social responsibility (CSR) and ethical management accepting the positive impact on the bottom line. The vast bulk of Standard & Poor’s 500 companies publish sustainability reports unfolding their program challenges and achievements. These pre-emptive efforts can pr...