Running head: ETHICS AND CORPORATE RESPONSIBILITY

Ethics and Corporate Responsibility in the Workplace and the World

John Simpson
Professor Steve Harris
Law, Ethics and Corporate Governance
November 21, 2014

ETHICS AND CORPORATE RESPONSIBILITY

1. Describe the key characteristics of a stakeholder and determine all the stakeholders
within the PharmaCARE scenario.
Stakeholders are persons or parties that have a vested interest in the business of the
organization. There are three types of stakeholders and they are primary, secondary and key
stakeholders. A primary stakeholder is an individual or party who stands to be directly affected
whether good or bad by the actions of the organization. They have a major interest in the success
of an organization (Bonner, 2010). Secondary stakeholders are folks who may be indirectly
affected by the actions of the group or organization and key stakeholders are individuals who can
have a positive or negative affect while being key decision makers in the organization. One
example of a key stakeholder could be an outreach worker who works directly with individuals
and they typically carry out the work, behavior or effort. PharmaCARE has several stakeholders
which include the CEO of PharmaCare, the several healers, the Colberians, Allen Jones,
Medicare, Medicaid, and VA patients, hospitals, consumers, and employees of PharmaCare and
CompCare.
2. Analyze the human rights issues presented by PharmaCAREs treatment of the
Colberias indigenous population versus that of its executives. Recommend at least three (3)
changes PharmaCARE can make to be more ethical going forward.
PharmaCARE launched the newer initiative, We CARE about YOUR world, pledging their
guarantee towards the environment by packaging changes, recycling and all other green
initiatives. It has been in the complete contrast towards treatment of Colberians and rank & file
workers of the PharmaCARE. Publicly PharmaCARE shows the ethical persona about the green

ETHICS AND CORPORATE RESPONSIBILITY

corporation, which CAREs about YOUR world. Contradictory occurrences have been low wages
given to the population of the underdeveloped nation of the Colberia in the amount of $1.00 a
day, harvesting plants by walking 5 miles in & out of the jungle and carrying the baskets that
weigh up to 50 pounds. Also there have been instances where the deterioration of the Colberian
environment has been nonchalant. Another instance has been the choice of management ignoring
the dilemma of the production technicians unhealthy work culture by having mold in the interior
air vents.
PharmaCAREs executives live within the luxury compound, which includes swimming
pools, tennis courts and golf courses. The internal situation has been immoral, unethical and
socially irresponsible how the Colberians are being treated, along with rank & file workers of
the PharmaCARE in stark comparison to the PharmaCAREs executives. Three changes that
PharmaCARE can incorporate to be more ethical going forward are making benefits that are
income-tested for all age groups and they should be applied equally across all disease
circumstances. Next protecting low-income earners is an essential part, as financial barriers can
actually lead to increased overall costs. There should be no out-of-pocket costs for very low
income individuals. Finally the rules and policies of the PharmaCARE program need to be easy
and the true costs of prescription drugs should be made more apparent to recipients (Oetter,
2003).
3. Assess PharmaCAREs environmental initiative against the backdrop of its antienvironmental lobbying efforts and Colberian activities. Support the position.
Even if PharmaCARE has positive contributions with its charitable discounts along with
free drugs towards lower income clients, and its foundation, which sponsors the healthcare

ETHICS AND CORPORATE RESPONSIBILITY

educational programs and also gives scholarships that has just been for the show. They have
proven that they are being hypocritical by literally stealing Colebrias indigenous cures without
compensating the people for their natural discovery. PharmaCARE has developed a reputation
that they have a positive impact on the society as well as the culture.
They have vowed that they are working to protect the environment by recycling,
packaging changes along with the rest of the green initiatives. However their lobbying efforts
have really been focused on trying to defeat the environmental laws along with regulations. They
have been involved in the some kind of green marketing that has been utilized for promoting
perception, which the companys products along with their policies have been environmentally
friendly, in addition they have been called the green washing. Green washing efforts may begin
from changing the name/label of the product for evoking natural culture on the product, which
encompasses harmful chemicals towards multimillion dollar advertising campaigns thus
portraying very polluting energy organizations like ecofriendly.
They have been exploiting people of Colberia because of the lower standard of living
within Colberia. PharmaCAREs activities within Colberia have been a brilliant light which
shows that they care as long as it does not affect their profit margin. Actual company
responsibility of organizations that claim to be responsible do not just concentrate on its
individual internal policies it also thinks of ways to alter rules of the game along with developing
the more level playing field that makes it feasible for all organizations to behave much more
responsibly (Halbert & Ingulli, Law & Ethics in Business Environment, 2011).
4. Decide whether or not PharmaCAREs actions with respect to the indigenous people of
Colberia would be ethical in accordance with each of the following ethical theories:

ETHICS AND CORPORATE RESPONSIBILITY

a. Utilitarianism
PharmaCARE is not employing the utilitarianism approach. This approach towards ethics
describes that ethically accurate behavior has not been associated to any absolute ethical/moral
value however to the evaluation of consequences of the provided action to those who would be
affected through that.
b. Deontology
PharmaCAREs actions do not correspond with the deontology as this theory states that
we have the duty to be dependent on the rules. Such ethical theory describes that each & every
human being possesses some moral rights along with duties as well as ethical choices derive
from the universal principles depending on such rights along with duties.
c. Virtue ethics
Implementing virtue ethics theory towards PharmaCARE Company is not correct either.
This theory describes that our virtues have remained a matter of the best habits, established
training along with recurrence with the individual communities.
d. Ethics of care
Ethics of care has been the theory that revolves around interdependence of all parties
involved. This bears assumption, which society along with the public have been separate along
with vulnerability which differs with separate people. Its practice supports those ethics about

ETHICS AND CORPORATE RESPONSIBILITY

care even though its services have higher impacts on lives of the patients and this cant be
majorly positive as the scenario depicts.
e. Your own moral / ethical compass
PharmaCARE utilizes Colberias intellectual property without appropriate payment or
acknowledgement and I do not agree with the individual personal ethics/moral compass. It is not
right to deplete resources of the field and not aiding the area to help rebuild. Executives have
been living quite well by destroying the natural culture of these African nations and
unfortunately the inhabitants have not been that fortunate. With PharmaCARE utilizing the
Colberia intellectual property falls in line to the ethical theory ethics of care.
5. Compare PharmaCAREs actions with those of at least one (1) real-world company,
whose corporate activities led to ethical, environmental, or workplace safety issues and
financial loss. Analyze the similarities and differences between PharmaCARE and the
company that you chose.
The company Pfizer has faced a similar scenario with the drug Torcetrapid. They had
been in the lead of mass marketing drugs along with getting their sales force in front of the
doctors for persuading them to utilize Pfizer's products rather than that of any of its rivals. When
their research labs were not productive, Pfizer had to come up with something else to help since
they had not developed anything since Viagra. Pfizer had been banking on a new drug it had
produced named Torcetrapib, which was concentrated on treating hypercholesterolemia and
prevent cardiovascular disease. However in 2006, they stopped producing when the early data
showed that there was an increase in cardiovascular events when it was shown that it increased

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systolic blood pressure. The early reports revealed that blood pressure had increased by 2 to 3
mm Hg. With such an increase it could translate into a 20% higher stroke mortality and 12%
from ischemic heart disease (O'Riordan, 2006).
In conclusion it is the responsibility of these organizations to promote good business
practices at each level of the business. This business should be done honestly and ethically right
to prevent further problems that could possibly cause harm to the public. They should foster a
healthy environment and comply with all the rules that apply to them.

ETHICS AND CORPORATE RESPONSIBILITY

REFERENCES
Bonner,T.(2010,October28).StakeholdersinProjectManagement.RetrievedfromBrightHub
PM:http://www.brighthubpm.com/projectplanning/93262stakeholdersinproject
management/
Halbert,T.,&Ingulli,E.(2011).Law&EthicsinBusinessEnvironment.Mason:Cengage
Learning.
Oetter,H.M.(2003,April).PharmaCareChangesareFair.RetrievedfromBCMedical
Journal:http://www.bcmj.org/editorials/pharmacarechangesarefair
O'Riordan,M.(2006,December4).TorcetrapidTorpedoed:IncreasedRiskofMortality,
CardiovascularEventsEndsDevelopment.RetrievedfromMedscape:
http://www.medscape.com/viewarticle/788917