Business Ethics – Essay Example

Unlike any other companies, pharmaceutical firms are for the most part, charitable s for they are confronted with a great deal of ethical issues specifically in researching and developing a new drug or vaccine (Article13, 2007). As forms of corporate social responsibility (CSR), they are initially obliged to search for and produce new medications; introduce them to the public and ensure that they are provided easy access to such medications; and/or offer them at much lower prices in developing countries (Bale, n.d.). Furthermore, pharmaceutical firms launch donation programs from which marginal sectors of the community could greatly benefit (Bale, n.d.). Before that though, they also discover and study diseases which may be common in such areas (Bale, n.d.). At a larger scope, it is their main responsibility to promote an optimal well-being in the global community.
Stakeholders in the pharmaceutical industry include consumers, physicians and all other company personnel, health insurance companies, investors, suppliers (Weber, 2006). Stakeholders inherently have different needs and concerns in their participation in an industry which is why there is a need to prioritize among them (Chandler & Werther, 2010). This could be achieved by first identifying their various interests and evaluate all together the impacts of these interests upon the certain CSR program (Social Development Dept, 1995). Through this stakeholder’s analysis, the firm can be able to establish a plan on how to satisfy the demands of its stakeholders.
If research and development had constituted much of the market value of the certain medications, then prices of already introduced drugs shouldn’t have risen dramatically. The level of competition is increasing in the drug industry perhaps for the fact that the global economy is still recovering from recession. R&D does not justify the unaffordable market price of some drugs; rather, it is the rigorous promotion of these medications. As can be seen and heard, tri-media advertisements are multiplying even in developing countries (Alina, 2007).
References
Alina, A. (2007, July/August). The high costs of drug costs. Women Health Activist Newsletter. Retrieved from http://nwhn.org/high-costs-drug-costs
Article 13. (2007, March). CSR and the pharmaceutical industry supply chain: Bitter pill or miracle cure? Retrieved from http://www.article13.com/
A13_ContentList.asp?strAction=GetPublication&PNID=1257
Bale, H. (n.d.). The pharmaceutical industry and the corporate social responsibility. Retrieved from http://www.responsiblepractice.com/english/insight/ifpma/
Chandler, D., & Werther, W. (2010). Strategic corporate social responsibility: Stakeholders in a global environment. Retrieved from http://books.google.com.ph/books?id=
4si6VV5RGNcC&printsec=frontcover&hl=en&source=gbs_ge_summary_r&cad=0#v=on epage&q&f=false
Social Development Department. (1995, July). Guidance note on how to do stakeholders analysis of aid projects and programmes. Retrieved from http://www.euforic.org/gb/stake1.htm#box5
Weber, L. (2006). Profits before people?: Ethical standards and the marketing of prescription drugs. Retrieved from http://books.google.com.ph/books?id=WijY8_miohQC&printsec=
frontcover&hl=en&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false