Ethical Dilemma
Paper instructions:
You mention corporate culture in your post. How can corporate culture be shaped by the ethical considerations the company wants employees to implement on-the-job?
Give an example.
Repy from using the following
Ethical Dilemma Chosen
In the first week I chose to examine the dilemma faced by the Danish-based pharmaceutical company Lundbeck Inc. In 2011, the company found itself facing the
possibility of withdrawing a drug used in the treatment of epilepsy from the US market (Dimitrov, 2013). The drug was being used in US prisons in the execution of
inmates handed the death penalty. Withdrawing the drug would be detrimental to the many patients who relied on the drug. The company decided to keep the drug in the
market but introduced measures to ensure that the drug did not get into the hands of US prisons. Among the measures the company instituted was altering its supply
procedures by examining orders for the drug and requiring its buyers not to redistribute the drug without permission from the company.
Possible Solutions
The company could have decided to keep the drug in circulation and make it available to US prisons. However, this would be in violation of the company’s policy of
not supporting the death penalty. The company would also be going against the stand among countries in the European Union to oppose the death penalty. This situation
could have deteriorated further with the host country taking actions such as imposing sanctions and trade bans against the company. The price of these actions would be
borne by the shareholders and the investors. The company would also have to deal with the backlash from human rights activist who are against the death penalty. This
would serve to taint the company’s reputation and could lead to decline in sales. Determining the effectiveness of a decision is based on its outcomes (Badaracco,
2009).
The company could have considered withdrawing the drug entirely from the US market. With this action, the company would avoid the qualms that result from the use
of tits drug in executions. However, this move would prove expensive due to the loss of revenue from sales of the drug in the US market. Epilepsy patients using the
drug would suffer as the drug would now be unavailable. Responsible decisions that deliver the outcomes with least harm are encouraged (Wicks, 2000).
What criteria were used in making the decision?
The company clearly evaluated the impacts that their decision would have on its clients. Though US prisons were also part of the company’s client base, the
restriction of access to these drugs was what the company was working towards. The decision kept the drug available to patients and hospitals. This shifted consumer
sentiment in favor of the company. Approaches that account for the impact of decisions on stakeholders are encouraged (Wicks, 2000).
The need to maintain a positive reputation and image with the public was a criterion when making the decision. The company is based in a region with countries and
public opinion opposed to the death penalty. By restricting access by prisons to the drug, the company was living up to the public expectation and complying with its
own policies about the capital punishment. The company upholds the value of respect for human rights and this was a consideration for the decision. Value based
strategies are recommended for ethical considerations (Trevion, et al, 1999).
The company also considered the financial impacts that its decision would have. Even though the company lost part of the revenue it derived from sale of the drug
to US prisons, the loss was insignificant relative to the gains that the decision presented. The company continued to enjoy revenue from sales to hospitals and
patients. This revenue would be lost had the company opted to exit the US market entirely. The company also needed to respond to pressure from human rights crusaders.
Pressure groups influence the moral decisions that companies make (Badaracco, 2009).
Would you use different criteria now?
I would apply the same criteria as the end result satisfies the wishes of all parties and stakeholders. The patients continued enjoying the drug while the company
and its shareholders continued receiving revenue from the US market. The company also stuck to its resolve to oppose the death penalty. The company acted responsibly
in relation to its duties towards the different stakeholders. Responsible decisions that consider the impacts of decisions on stakeholders drive successful management
(Badaracco, 2009).
How would you evaluate the decision now?
The decision was wise and in the best interest of concerned parties. As it is recommended for management, the company has constructed a strong ethics culture that
forbids the support of capital punishment (Trevino et al, 1999). The company also translated its moral stand into sound business practice which yielded the desired
outcome (Badaracco, 2009).