...Blindness cases. Merck ultimately decided to distribute the drug themselves instead of making the patent available for generic use (as suggested in the AIDS case). According to UNICEF, they have donated over 2 billion Mectizan pills and over 80 million people are treated annually. Given that Merck is using corporate funds for this program, is Merck's donation of these drugs morally acceptable? Morally required? Explain. Do Merck's stockholders have any cause to complain when Merck spends their money on these ventures which are not aimed at profit? If this action is morally acceptable (or required) for Merck, then would similar charitable actions be acceptable (or required) for other companies that produce products which would benefit impoverished people? (Ex. food companies, clothing companies, water filtration tech companies, etc) Explain. Answer As a pharmaceutical company, Merck saw an opportunity when the River blindness epidemic first arose and focused their attention on countries most affected by the parasite. At the time of the breakout, Merck had become part of the Fortune 500, giving them credibility and an obligation to reach out to people most affected by River Blindness. As many companies focus on profit, Merck saw an opportunity to earn some prestige instead, by treating patients over seas. To morally justify the companies decision, managers looked back on what the founders of the company believed in. Former president of the company, George Merck, said "medicine...
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...Table of Contents page no. 1. EXECUTIVE SUMMARY 1-2 2. INTRODUCTION 3-7 * PHARMACEUTICAL INDUSTRY IN INDIA 4 * FACTS ABOUT INDIAN PHARMACEUTICAL COMPANY 5-6 3. COMPANY PROFILE 7-12 * HISTORY 8-9 * VALUES, VIEW AND POSITION 10 * RESPONSIBILITY 11 * DISCOVERY AND DEVELOPMENT 12 4. COMPENETCY MAP 13-18 5. HUMAN RESOURCE DEPARTEMENT 19 6....
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...The context contemporary global business environment s requires companies to keep up with the pace of rapid changes and to meet financial expectations of numerous stakeholders. However these expectations are not financial only. Growing environmental concerns, depleting natural resources, globalisation issues, political and social instability require companies to reconsider their change management practices to comply with stakeholders expectations Pharmaceutical industry is no exception. The pharmaceutical industry has strategized around market exclusivity for many years. Successful commercialization of pharmaceutical products depends on maximizing the time available for product sales before generic products entered the market. Market protection opportunities that have the greatest impact on the life cycle of the product include patents, data exclusivity, patent term litigation, and extensions associated with pediatric indications for the drug (Goodman, 2008). Drug companies, their competitors which include other pharmaceutical companies, as well as generic companies understand this, thus enabling the drug companies to maximize product sales and royalties for many years (Goodman, 2008). These factors along with a declining economy, new healthcare regulations, political influences, changes in patent law, a change of the mentality from profits first, science secondary has lead to the decline in profits for the pharmaceutical industry. Although late adaptors to the “change”, unlike...
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...by Ralph Potter as an analytical tool assessing the ethics of corporate decision-making, The facts emerging in news accounts regarding lawsuits against the pharmaceutical company Merck and its painkiller Vioxx are analyzed for ethical consideration. Utilizing the Potter Box model, the case against Merck can be interpreted and studied in light of ethical considerations. The results demonstrate not only how a decision is argued, but what is missing in the overall consideration for the decision. Introduction The mythos of freedom and responsibility in the United States is premised on the ethical actions of members of the society, particularly those in positions of power. And ethics in communication takes a place of preeminence since the words spoken by authorities are often all a public relies upon to pass judgment. How is the citizen or the communication analyst to evaluate the ethics of the utterances of others? And how does the communicator determine the ethical appropriateness of a planned message? This paper is an introduction to an accessible method of ethical decision-making in communication. The Potter Box allows both student and scholar to analyze the ethical responsibilities of communicators in terms that are both practical and theoretically grounded. The Potter Box's four primary dimensions--definition, values, principles, and loyalties--aid the communication analyst in locating the places where most misunderstanding occurs. It is along these lines that we construct action...
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...for guiding the conduct of stakeholders is perceived as being socially responsible. Time Warner Inc.’s ethical policy is quite elaborate. Firstly, the company has a code of ethics that is meant to guide the conduct of workers. Secondly, the firm has ethical standards meant to guide directors’ conduct. As well, the company has a code of ethics that guides the way internal stakeholders undertake transactions (Time Warner Inc, 2014). Similarly, Mattel has an elaborate ethical policy that defines ethical responsibilities of all internal stakeholders (Mattel, 2011). However, the ethical policies of General Electric and Merck are not comprehensive. The two organizations have brief codes of conduct that do not offer direct definitions of ethical responsibilities of the internal stakeholders (General Electric, 2015; Merck, 2015). A sales representative working for Time Warner Inc or Mattel is likely to behave in the same way since his or her ethical conduct is guided by the firms’ comprehensive and effective ethical policies. However, a sales representative working for Time Warner Inc or Mattel is likely to behave differently from a sales representative working for General Electric or Merck. This is due to the fact that there are no comprehensive and effective ethical policies to guide workers for General Electric and Merck. Although the ethical policies for Time Warner Inc and Mattel effective, the ethical policy for Time Warner Inc is more admirable since it is more comprehensive...
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...Problem Definition Should Rich Kender recommend licensing Davanrik, making Merck & Company responsible for its manufacture and its marketing? In order to provide Rich Kender with a good and thorough analysis and recommendation on the Davanrik licensing project, we need to answer the following guidance questions: I. How has Merck been able to achieve substantial returns to capital given the large costs and lengthy time to develop drugs? II. How much should they pay? III. What is the expected value of the licensing arrangement to LAB? IV. How would our analysis change if the costs of launching Davanrik for weight loss were $225 million instead of $100 million? In our analysis we will build a decision tree that shows the cash flows and probabilities at all stages of the FDA approval process. We will assume a royalty fee of 5% on the cash flows that Merck receives from Davanrik after successful launch. Analysis Merck is in the business of developing compounds for pharmaceutical compounds. The required research and development efforts preceding the launch of a successful blockbuster drug is extensive and lengthy process and is therefore a very expensive one. Nevertheless, Merck has proven perfectly capable to achieve high returns on capital. This is a result of numerous factors. First of all, Merck has been able to generate tremendous amounts of sales. Since 1995, Merck has launched 15 new products, resulting in 1999 sales of $32.7 billion, which...
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...for guiding the conduct of stakeholders is perceived as being socially responsible. Time Warner Inc.’s ethical policy is quite elaborate. Firstly, the company has a code of ethics that is meant to guide the conduct of workers. Secondly, the firm has ethical standards meant to guide directors’ conduct. As well, the company has a code of ethics that guides the way internal stakeholders undertake transactions (Time Warner Inc, 2014). Similarly, Mattel has an elaborate ethical policy that defines ethical responsibilities of all internal stakeholders (Mattel, 2011). However, the ethical policies of General Electric and Merck are not comprehensive. The two organizations have brief codes of conduct that do not offer direct definitions of ethical responsibilities of the internal stakeholders (General Electric, 2015; Merck, 2015). A sales representative working for Time Warner Inc or Mattel is likely to behave in the same way since his or her ethical conduct is guided by the firms’ comprehensive and effective ethical policies. However, a sales representative working for Time Warner Inc or Mattel is likely to behave differently from a sales representative working for General Electric or Merck. This is due to the fact that there are no comprehensive and effective ethical policies to guide workers for General Electric and Merck. Although the ethical policies for Time Warner Inc and Mattel effective, the ethical policy for Time Warner Inc is more admirable since it is more comprehensive...
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...Problem Definition Should Rich Kender recommend licensing Davanrik, making Merck & Company responsible for its manufacture and its marketing? In order to provide Rich Kender with a good and thorough analysis and recommendation on the Davanrik licensing project, we need to answer the following guidance questions: I. How has Merck been able to achieve substantial returns to capital given the large costs and lengthy time to develop drugs? II. How much should they pay? III. What is the expected value of the licensing arrangement to LAB? IV. How would our analysis change if the costs of launching Davanrik for weight loss were $225 million instead of $100 million? In our analysis we will build a decision tree that shows the cash flows and probabilities at all stages of the FDA approval process. We will assume a royalty fee of 5% on the cash flows that Merck receives from Davanrik after successful launch. Analysis Merck is in the business of developing compounds for pharmaceutical compounds. The required research and development efforts preceding the launch of a successful blockbuster drug is extensive and lengthy process and is therefore a very expensive one. Nevertheless, Merck has proven perfectly capable to achieve high returns on capital. This is a result of numerous factors. First of all, Merck has been able to generate tremendous amounts of sales. Since 1995, Merck has launched 15 new products, resulting in 1999 sales of $32.7 billion, which includes $15.2 billion...
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...Stance on Merck/ Overview: It is the view of the author to discuss in detail why and how Merck caused gross negligence in its marketing and labeling practices. During this discussion, I will outline several instances where Merck has plead guilty to numerous law suits spanning from the United States to Great Britain (UK). In addition, I will define ethics and based on ethical business practices and attempt to identify what Merck may have done to prevent such unethical and in some cases immoral behavior. Brief History of case: In 2004, Vioxx (Rofecoxib), an anti inflammatory, pain-reliving medication, to treat such conditions as osteoarthritis and acute pain had been recalled by the Food and Drug Administration (FDA). Several reasons include illegal marketing and label practices, concealment of known side effects, intentionally misleading the general public, medical professionals and government officials. “Vioxx was taken by more than 80 million people worldwide before it was recalled in 2004 (Independent 2010). Merck, Sharpe & Dohme (Merck), Vioxx’s manufacturer vigorously denied any wrong doing and from 1994 thru 2011, several multi-national law suits were sought pertaining to the overall liability and health hazards that Merck had placed on the general public. United States v. Merck: In late November of 2011, the US Department of Justice won a near $1 Billion lawsuit against Merck for illegal marketing practices.” Under the terms of the agreement, Merck will pay...
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...1. Think about the definition of stakeholders — any parties with a stake in the organization’s actions or performance. Who are the stakeholders in this situation? How many can you list? On what basis would you rank them in importance? People suffering from the disease or those who potentially may be infected – would directly benefit from the cure Merck employees at all levels – profitability and the economic health of the company affects current employees Merck shareholders – inability to profit from the drug might have a negative effect on shareholder’s value, but taking the stand on “doing the right thing” might have a favorable effect on company’s reputation and increase the value of the stock Various healthcare organizations – Merck is one of the leaders in the industry whose actions or inactions may affect the state of the industry as a whole One way to rank stakeholders in importance is by their level of benefit from the drug putting people suffering from the disease in the first place as they would benefit the most from the invent of the cure. Then, employees and shareholders would share the second place, provided that the company would most likely not be able to recover funds invested in the long and expensive process of developing the drug which in turn would affect company’s profitability. Finally, various healthcare organizations would rank third; the effect on them would depend on the level of their involvement in the process. 2. What are the potential...
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...Case report Merck&Co: Evaluating a drug licensing opportunity Background The case is set in the year 2000. Merck&Co. is a global, research-driven pharmaceutical company that discovers, develops, manufactures and markets a broad range of human as well as animal health products. It operates directly or through established joint ventures and provides pharmaceutical management services (PBM). During the last 5 years the company has launched 15 new successful products; the most popular drugs generated the amount of $5.7 billion in worldwide sales. Between 1998 and 1999 a 20% increase in sales was observed. Merck owns patents on their most popular drugs, however they will expire by 2002. Once the patents are expired, sales will decline when generic cheap substitutes enter the market. The company aims at maintaining a healthy pipeline in the drug development, by constantly refreshing their portfolio, thus preventing the loss of sales from drugs going off patent. New drugs are either developed by internal research (the majority) or through collaboration with biotech companies. The product: Davanrik Davarnik was developed by LAB Pharmaceuticals, a small and relatively young pharmaceutical concern specialized in compounds for the treatment of neurological disorders. Originally it was meat for the treatment of depression. Apart from acting on receptors involved in causing depression it also seemed to block the receptor in CNS responsible for appetite. It is currently in pre-clinical...
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...MERCK AND RIVER BLINDNESS 1. Think about the definition of stakeholders — any parties with a stake in the organization’s actions or performance. Who are the stakeholders in this situation? How many can you list? On what basis would you rank them in importance? People suffering from the disease or those who potentially may be infected – would directly benefit from the cure Merck employees at all levels – profitability and the economic health of the company affects current employees Merck shareholders – inability to profit from the drug might have a negative effect on shareholder’s value, but taking the stand on “doing the right thing” might have a favorable effect on company’s reputation and increase the value of the stock Various healthcare organizations – Merck is one of the leaders in the industry whose actions or inactions may affect the state of the industry as a whole One way to rank stakeholders in importance is by their level of benefit from the drug putting people suffering from the disease in the first place as they would benefit the most from the invent of the cure. Then, employees and shareholders would share the second place, provided that the company would most likely not be able to recover funds invested in the long and expensive process of developing the drug which in turn would affect company’s profitability. Finally, various healthcare organizations would rank third; the effect on them would depend on the level of their involvement in the process...
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...We as Merck Co-operation are a reputable and world renowned research company. The research on Ivermectin should be carried out in a safe and secure environment for the best results to be achieved. Merck co-operation has the facilities that are required for this kind of work and it would be an honor for us to carry out such research. Ivermectin has been used widely in the last decade to cure parasitic infections in both humans and animals. It is majorly used in humans to cure worm infestations and river blindness. Its broad usage to cure these diseases has led to some unforeseen side effects that have been severe to some...
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...Strategic Reason III. Types of Corporate Responsibility A. Economic Responsibilities B. Legal Responsibilities C. Ethical Responsibilities D. Philanthropic Responsibilities IV. Triple Bottom Line and Environmental Sustainability V. Is Socially Responsible Business Good Business? A. The Benefit of a Good Reputation B. Socially Responsible Investors Reward Social Responsibility C. The Cost of Illegal Conduct D. The Cost of Government Regulations E. What the Research Says about Social Responsibility and Firm Performance F. Being Socially Responsible Because It is the Right Thing to Do VI. Conclusion VII. Discussion Questions VIII. Case: Merck and River Blindness IX. Short Case Teaching Notes - Discussion Questions 1. Do you think corporate social responsibility (CSR) is important? Why or why not? Depending upon the audience, many students will see the importance of social responsibility. Generally, they are conscious of some kinds of environmental concerns and have some understanding of the relationship between business and the community. But with some business school audiences, you may find resistance to the idea that corporations owe anything to society, beyond making a profit and obeying the law. So, be prepared for a debate on this one. The chapter is designed to provide students with lots of reasons to think that CSR is...
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...Ethical Leadership in Organizations Lisa Hunsucker MGT 380 April 19,2010 Leadership is by all means a special talent that not all people possess. A leader must also have ethics to be effective for the long term in the corporate world. These leaders generally implement ethical programs in order to influence an organizations climate (Yukl, 2010). I will evaluate the importance of ethical leadership and the role it plays into today’s organizations. In addition, I will discuss the repercussions a company may have when its leadership allows and even rewards unethical business practices. Lastly, I will apply my personal leadership perspective. My perspective will include the path-goal theory and ethical practices that I find important to leadership in an organization. Ethical Leadership In the midst of making money in a business, when do ethics come into play? In any organization an effective leader must have people that will follow him or her. Generally speaking people will follow someone that is ethical and moral over a leader that is dishonest and immoral. This is just my observation through years of working. I know for me and many others the leaders I have followed, they were highly ethical in their business practices. The most effective leaders were those who empowered their employees to follow the same model of integrity. Velasquez (2006) states “when employees believe an organization is just, they are more willing to follow the organization’s managers, do what managers...
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