Ethical Dilemma Description - Assignment Example

Ethical Dilemma Merck and Co. Inc. is one of the largest multinational pharmaceutical companies in the global market. The company deals with the manufacturing, marketing, discovery and development of drugs that are used for medical puproses (Merck & Co. Inc., 1999). Merck and Co. product portfolio comprises of Vioxx, Zocor and Mevacor, Cozaar, Prinivil, Vasotec; antibiotics such as Primaxin and Noroxin, Pepcid , Crixivan for HIV disease amongst other drugs and also several vaccines; Varivax for chicken pox and Recombivax HB for hepatitis B. These products are sold in the international market through a network of pharmaceutical sales representatives they are ultimately used in hospitals and clinics. Due to the nature of work involved in production process, the company incorporates an elaborate innovative research approaches that ensures identification and satisfaction of consumer needs and desires (McWilliams and Siegel, 2001). At some point, the Food and Drug Administration granted Merck & Company the rights of supplying the international market with Vioxx drug. However, the approval process had to involve several processes that incorporated development, testing and confirmation of the permission granted based on the drug authenticity. The overall clinical trial took several months due to tests on alleged side effects the drug could have on patients such as gastro-intestinal problems as compared to other drugs of the same category such as naproxen (Parker, 1998). Lucky enough, the body endowed with the responsibility of monitoring the trial, Data Safety and Monitoring Board (DSMB), identified some side-effects of the drug within the trial process. The drug was identified by DSMB as highly associated with cardiovascular effects. However, the company ignored the research results and warning from DSMB, and they proceeded with their marketing activities on vioxx drug but eventually withdrew after a period of five years following heightened debate on the media; this presented an ethical dilemma within the drug industry (Presley, 2006). Justify why it is an ethical dilemma in a business situation The company’s persistence on supplying the market with unapproved drug qualifies the situation as an ethical dilemma. Despite warnings from licensed bodies such as DSMB, the company took close to five years before withdrawing the drug from the market. The most fascinating thing is that the withdrawal process came after persistent complains from patients and concerned agencies associated with consumer safety and risks (Peterson and Ferrell, 2005). Majority of consumers reported the side effects associated with the drug included hypertension and stroke. Print media such as New England Journal of Medicine published detailed results from Merck trial processes on Vioxx in the year 2000 whereby consumers were reported as being exposed to higher probability of going down with hypertension or stroke in comparison to those using other painkillers within the market. Further results from Cleveland Clinic department of research raised concerns on risks associated with cardiovascular complications as a result of using Vioxx of which their results were published in Journal of the American Heart Association (Topol, 2004). It is only after such elaborate approval and publicity by concerned that Merk Company responded by withdrawing Vioxx drug from the market. Meanwhile, they continued with their work of selling the drug to the population (Lewis and Stuart, 2005). Further, there was failure on the side of the organization concerning prioritization of information. Some of the information overlooked in manufacture process includes detailed analysis on possibilities of failure as well as other negative experiences. Elimination of such experiences requires elaborate interpretations from licensed organizations within medical field as well as detailed nuanced picture of different events within pharmaceutical industry and global markets (Weick and Sutcliffe, 2001). Major part of the failure occurred when the company made assumptions on communication link between them and frontline segments such as sales and marketing departments. Marketers were not given timely information on withdrawal process, thus making the anomalies difficult to contain since they were isolated on the ground. There were no updated processes that would assist the company compensate for such anomalies within the market due to the fact that vioxx drug was recording high sales within the market (Bazerman and Watkins, 2004). The other ethical dilemma involved the inappropriate information that was released by sales and marketing team representatives concerning side effects of Vioxx drug (Glickman et al., 2009). The information from the company to sales representatives entailed messages regarding ways of defending the negative information already published in the media on cardiovascular effects of the drug. Such move was quickly undertaken by the marketing team for the purposes of equipping sales representatives with unethical information on how to handle field questions from physicians and consumers (McDonnell and Bartlett, 2009). This was a conspiracy in a move towards blackmailing the market on Vioxx qualities; therefore, forcing the company to exclude Vioxx Gastrointestinal Outcomes Research (VIGOR) trial results that were always expected to appear on drug information card. Instead, the company availed inappropriate safety analysis which did not undergo scrutiny by FDA, and which encouraged consumers to prefer the use of Vioxx to other anti-inflammatory drugs within pharmaceutical industry (Pasquerella et al., 1996). The sales representatives were given further training by the company on ways of reframing any negative information from media regarding the use of Vioxx drug. The idea was enriched by further development of response mechanism manual referred to as ‘Obstacle Response Guide’ for sales representatives with perceived information on likely questions and responses from consumers. ‘Obstacle Response Guide’ manual was used as a marketing tool for promotion of Vioxx drug specifically to physicians. The main strategy was focus on strengths and minimization of talks surrounding safety concerns from consumers and research organizations (Bazerman and Watkins, 2004). Ethical solutions proposed by the student to this dilemma Application of the theory of Moral Unity is one of the fundamental rules that instill seemingly tolerant morals within the business environment. However, moral ethics within business environment is based on collective ethical norms identified within target community as opposed to inclusion of accommodative customs and practices. In this case, practices that involve international trade are undertaken based on internationally acceptable ethical benchmark (Traaen, 2000). In such cases as described above, ethical solutions demands development of appropriate information culture, safety and risk management. The current market environment tends to make organizations incline more towards economic benefits and less towards corporate social responsibilities (Bazerman and Watkins, 2004). The senior management should be charged with the responsibility of ensuring that proper vigilance on safety of consumers is granted priority. Culture on information alerts is fundamental for the purposes of giving thorough scrutiny on alleged assumptions on safety and failures (Bazerman and Watkins, 2004). The response mechanism towards clinical trial results could have been made faster by the executive management team from Merck Company. Decisions on safety risks posed by VIGOR (Vioxx Gastrointestinal Outcomes Research) on the company’s top selling drug should have taken immediate effects despite losses perceived by marketing team (Berenson et. al., 2004). However, institutions responsible for checking safety standards within the medical field such as Human Health Product Approval Committee (HHPAC) should be more imposing since corporate mission of stakeholder largely depends on institution’s final decisions. This is because HHPAC is expected to closely follow procedures and process of development of any drug within the industry. The body should act as an important link between Research & development, production and marketing department within Merck Company (Lovallo and Kahneman, 2003). Full interpretation of test results from VIGOR by HHPAC was necessary alongside clinical trial data from DSMB (Data Safety and Monitoring Board). Detailed development of appropriate coordinated health models necessary for learning within health industry is an important element. The models required in this case should incorporate collective strategies alongside activities with the ability of promoting health prospects of drugs industry’s research and development departments (Paine, 2003). Appropriate health models should guarantee contributions from different stakeholders, institutions and bodies concerned with health programs. Such cases ensures existence of an element of focus in commitment and support from international organizations considered valuable input towards maintenance of ethical standards within pharmaceutical industry (Boin and Lagadec, 2000). Any form of modification on processes and products should serve both consumer and environmental expectations without any form of compromise. The case can be associated with instances on “Bureaucratic ethic” in management. Such perspective should be anchored by moral rules that safeguards relationships between organizations and all stakeholders (Martinson, 2000). The culture of teamwork is an important element within organizations since it ensures successful monitoring and coordination between departments. Successful, management originates from stakeholders’ ability to adapt to team philosophy as well as dominant ideologies within organizations. However, adequate solution can also be generated from adoption of legislative laws ratified for the purposes of curbing unlawful practices, instilling discipline and regenerating malpractices within business environments (Utting, 2005). Application of the seven steps ethics program as shown below is essential for provision of lasting solution (Institute for Local Self Government, 2005). i. Establishment of internationally acceptable standards and procedures ii. Company’s ability to create high-level oversight iii. International bodies involvement in screening out of criminal activities iv. Establishment of effective communication standards amongst all stakeholders v. Adequate monitoring and setting up a hotline for consumer feedback vi. Enforcement of standards dealing with any form of violations vii. Capability of Assessing areas of risk and applying appropriate modification programs References Bazerman, H., & Watkins, M. (2004). Predictable Surprises: The Disasters You Should Have Seen Coming, and How to Prevent Them. Harvard Business School Press, Boston Berenson, A., Gardiner, H., & Andrew Pollack, A. (2004). Despite Warnings, Drug Giant Took Long Path to Vioxx Recall. The New York Times, Viewed Boin, A., & Lagadec, P.(2000). Preparing for the Future: Critical Challenges in Crisis Management. Journal of Contingencies & Crisis Management, 8 (4), 185-191 Glickman, C., Gordon, S., & Ross-Gordon, J. (2009). Supervision and instruction leadership: A Developmental approach. Boston: Allyn & Bacon Institute for Local Self Government. (2005). Everyday Ethics for Local Finding Your Way. Sacramento, CA: Institute for Self Government. Viewed http://www.ilsg.org/ Lewis, C. W., & Stuart C. G. (2005). The Ethics Challenge in Public Service: A Problem Solving Guide. San Francisco, CA: Jossey-Bass Lovallo, D., & Kahneman, D. (2003). Delusions of Success: How Optimism Undermines Executives’ Decisions. Harvard Business Review, 81(7), 56-63 Martinson, D. L. (2000). Ethical Decision Making in Public Relations: What would Aristotle say? Public Relations Quarterly, 3(45), 18–21 McWilliams, A. & Siegel, D.(2001). Corporate Social Responsibility: A theory of the firm Perspective. Academy of Management Review, 1(26):117-127. McDonnell, J., & Bartlett, J. (2009). Marketing to Change Public Opinion on Climate Change: A Case Study. International Journal of Climate change, 1(3), 63-70 Merck & Co. Inc .(1999). The History of Merck. Viewed Paine, L. S. (2003). Value shift: Why companies must merge social and financial imperatives to achieve superior performance. New York: McGraw-Hill Parker, M. (Ed.). (1998). Ethics and Organization. London: Sage Pasquerella, L., Killilea, A., & Vocino, M.(1996). Ethical Dilemmas in Public Administration. Connecticut, Westport : Praeger Peterson, R. A., & Ferrell, O. C. (Eds.). (2005). Business ethics: New challenges for business schools and corporate leaders. Armonk, NY: M.E. Sharpe Presley, H.(2006). Vioxx and the Merck Team Effort, Case Studies in Ethics. PDF file. Viewed Traaen, T.J. (2000). A Matter of Ethics: Facing the Fear of Doing the Right Thing. Stamford CONN: Jai Press Inc. Topol, J. (2004). Failing the Public Health: Rofecoxib, Merck, and the FDA, New England Journal of Medicine, 17 (351), 1707-1709 Utting, P. (2005). Corporate Responsibility and the Movement of Business. Development in Practice, 3(14), 375–388. Weick, K., & Sutcliffe, K. (2001). Managing the Unexpected: Assuring High Performance in an Age of Complexity. Jossey-Bass San Francisco Read More