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Individual Assignment
Case of
The Contractual Quandary of Ethimo
By
[1700230]
What do you understand by the relationship between ethics and the law?
Answer:
Generally, ethics is moral philosophy to determine and examine good and bad things. It is
a concept of moral principles that deals with what people think is good for individuals and
communities. Definition of law is a regulation or rules and guidelines which are enforced through
There are relationship between ethics and law because laws are made based on ethics and
values in the communities. It can be different from places base on particular society. It is because
the basic behaviour of human beings also different. This means laws represent the standards of
human behaviours called ethical behaviour. Law and ethics provide individuals guidelines of what
may do or what may not do in certain condition. It is clear the relationship between ethics and law
exists. Ethics have an impact on what legal guidelines are set and this have an impact on is extra in
However, there are many different between ethics and laws but still have relationship for
each other. Firstly, ethics comes from people’s recognition of what is right and what is wrong even
as laws are written and permitted by means of governments. It way that ethics may additionally vary
from people to human beings due to the fact specific people may have exclusive critiques on a
certain problem, however laws describe genuinely what's unlawful regardless of how humans
arguing. Furthermore, sometime ethics is not well defined but laws are defined and specific. It can
also be distinguished by looking at whether people are being punished after they broke the rules.
Whoever violates laws is going to receive punishment carried out by relevant authorities but not for
ethics. Besides, a situation can be illegal, but morally not illegal. For example, rob properties belongs
Ethics and Governance Jan 2018
ABD JABBAR MUKHLIS
1700230
to rich people and give it to poor people. It is considered to be morally right but be illegal. Similarly,
a situation that is legal can be morally wrong. For instance, spend thousands of dollars for luxury
foods while poor people have enough food. Lastly ethics emphasizes more on nice aspects whilst
Question 2
Answer:
There are a few issues surrounding this case that need attention based on ethical and the
law. The public ought to know about the probable side effects of the drug and that patients ought to
be informed so that they can make informed consent before taking the drugs to avoid litigation
against the company and the university which signed the contract to develop the drug under the
leadership of Dr Ethimo.
Other issue is using law against the unethical behaviour. This situation when the legal officer
and the CEO of XYZ have reminded Dr Ethimo of his as well as the university’s obligation to stick to
the details of the contract especially the duty not to disclose any other information beyond what is
Besides, the ethical issues when the legal officer and the CEO of XYZ become greedy for
company survival and revenue more than risks and side effects people that can make life threating
Identify the stakeholders and describe their expectations in this case. (5 marks)?
Answer:
Stakeholders may be external or internal. Internal stakeholders are individual whose interest in a
company. They have direct relationship through ownership, funding or investment and also the
employee itself. People who do not directly work with a company is external stakeholders but they
are affected in the business. Suppliers, creditors, public agencies and clients are all considered
external stakeholders.
In this issue, internal stakeholder represents the CEO of XYZ and all management and
employee. They have expectation to fulfil shareholder goals. Shareholders expect the business in
good condition with highly profit and offer good returns. Shareholders expect to be keep nicely
For external stakeholder, the most important in this issue are Dr Ethimo and the customers.
Dr Ethimo and the university have expectation to maintain their values of integrity and truthfulness
in the cause of protecting life, avoiding harm and serving a good cause to humanity. He indicated to
the CEO of XYZ that the public ought to know about the probable side effects of the drug. For
customer expectation as a consumer important to know any consequent of the products. They
always expect all the products is safe without any harm to them.
Ethics and Governance Jan 2018
ABD JABBAR MUKHLIS
1700230
Question 4
Elaborate on the dilemmas faced by Dr Ethimo and the CEO of XYZ. (5 marks)?
Answer:
As a researcher in a local university, Dr Ethimo and his team from the university have
responsibility to protect university reputation to ensure his values of integrity and truthfulness in the
cause of protecting life, avoiding harm and serving a good cause to humanity. The dilemmas in Dr
Ethima when he indicated to the CEO of XYZ that the public ought to know about the probable side
effects of the drug and that patients ought to be informed. However the legal officer and the CEO of
XYZ have reminded Dr Ethimo of his as well as the university’s obligation to stick to the details of the
contract. The CEO and the legal officer of XYZ will not hesitate to sue the university for breach of
On the other hand, the CEO of XYZ represent the management in pharmaceutical company.
His responsibility to shareholder and employee in the company to sustain the company. Any
research about the products need fund from the shareholder that expect good return to them. The
dilemmas faced by CEO of XYZ regarding the issues s may lead to cause unnecessary alarm and panic
reactions, leading to large reduction in demand of the drug and prevent recoupment of the initial
investment in the drug. This would definitely affect the financial bottom line of the company.
Additionally, there may be negative reputational consequences against the company and the
university should such information become public. As a CEO of the company need to protect the
company against any factors even his action towards unethical behaviours.
Ethics and Governance Jan 2018
ABD JABBAR MUKHLIS
1700230
Question 5
What solutions can you suggest that can satisfy the expectations of various parties including the
Answer:
Two main problems in this issues where the integrity and truthfulness and also for sake of
company to protect from any causes that can makes deduction on the revenue. I suggest a fast
mechanism need to implement to overcome this issues before the situation become worst. The
company and university can have litigation from the victims if anything happen that can threatening
life of consumer.
The company need stop the production of the drug is called Retro and replace it with new
formula without side effect where Dr Ethime and his team have fully responsibility to find the
solution about the new drug. The revenue of XYZ maybe leading to reduction in demand of the drug.
However there are a few method can be used to increase the sale through new campaign and
rebranding the products with a few attractions. This proper action needed to prevent the unethical
Question 6
What actions can be taken by the University to prevent a recurrence of this problem? (5 marks)
Answer:
A lot of problems can actually be avoided easily by ensuring that contract is transparent
To prevent a recurrence of this problem, the university need to do a few steps. Firstly before
sign any contract they need investigate any consequent of it. If needed they have to refer expertise
to make sure the contract in proper manner. Discussing the requirements in the contract clauses
allows the university to quote including the specific requirements. In this issue Dr Ethimo need add
disclaimer so that if happen the situations involving the value of integrity and truthfulness that need
Other than that, during the testing of the drug on animals and human being. The university
ought to study new method of testing rather than old standard procedure. It’s recommended to use
verity of sample and method so that the result more accurate and prevent a recurrence of this
problem.