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Ethic Chapter3

In: Social Issues

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Values are beliefs or convictions that guide behavior and support the overall organization vision. Values help define or describe the desired culture; they communicate what is important to the organization, as well as what key practices and behaviors will be recognized and rewarded. Values define the relationship between an organization and its stakeholders. Values give the means to the end, such as the financial goals of an organization. Values determine what the organization will and will not do to get the numbers. Values along with principles of behavior promote trust, good behavior, fairness and caring.

Shawn O’Brien identified concerns about how Amgen reported complaints and problems with drugs already on the market. Kassie Westmoreland found that Amgen overfilled vials of Aranesp. The overfilling of the drug provided doctors with free amounts of the drug which could be given to patients and charged to Medicare, Medicaid, or private insurers. These two examples seem opposite of Amgen’s stated valuing of people, integrity and results. The company and its top management are not following the stated values, which undermines trust in the company. At least with respect to the actions explained in the case, HP does not seem to be walking the talk of what its values statement seems to say about the ethical culture at the company. Unlike Alcoa, the message form management of Amgen is to manage earnings, do whatever it takes to gain business, protect our product even if patients are hurt.

Amgen fired the two whistleblower, O’Brien and Westmoreland, rather than report problems to the FDA or to lose sales to a rival company. Amgen acted out of egoism. It might rationalize the action using utilitarianism with the greatest good being profit to Amgen and the means to that end are not important. However, this act utilitarianism thinking flies in the face of rule

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