De La Salle University - Manila

Term 2​​,​ ​A.Y. ​2018-2019

In partial fulfillment of the course in

Business Ethics and Social Responsibility​​ (​ABM 12-C ​)

United Laboratories Incorporated Ethical Practices

Submitted by:

Bansil, Arvel

Cobankiat, Cleo

Gan, Kyle Justin

Go, Sharlynne Michelle

Medina, Ron Edward

Ng, Claire Danielle

Nicolas, Paolo

See, Andrea Nicole

Tabora, Antoninio

Submitted to:

Mr. Earl T. Escareal

Submitted on:
December 14, 2018
 Table of Contents

Abstract 3
Introduction 4
Problem Statement 5
Hypotheses 5
Objectives 6
Significance of the Study 7

Conclusion 40
Acknowledgements 43
References 45
Appendix 51

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 Abstract

United Laboratories, Incorporated, or more popularly known as Unilab, is one of the most established names in

the Philippines’ pharmaceutical industry. From a small drug retail store to aid the war-torn country, it has grown to

becoming the largest pharmaceutical company in the Philippines with about 6,000 employees, including 3,500 in overseas

operations. Unilab develops, manufactures, and markets prescription, over-the-counter, and personal health care brands

(Abella-Zata, 2016). Although the company is in a very competitive business envirhonment, it has remained strong

throughout the years through the different organizational and management practices observed by the company.

This study aims to discover and investigate the ethical practices observed in the pharmaceutical industry,

specifically those of United Laboratories, Inc. As a key player in the Philippine pharmaceutical industry, it is important to

know about the ethical obligations that Unilab is fulfilling. The purpose of the researchers for conducting a such research

is because they felt that the Filipino citizens, the majority of people who consume the products of United Laboratories,

Inc., deserve to be informed of their practices.

Archival research and an interview were done for data gathering, which are the primary sources of data for this

study. Through the investigation of the company’s practices, the legal, economic, and ethical responsibilities of Unilab as

the leading pharmaceutical company in the Philippines were discussed.

After the gathering, analyzing and summarizing of data, the researchers have found valuable practices that Unilab

infuses in its organizational culture for continuous growth, observed within the company and external environment. As a

leading company in its industry, Unilab has indeed proven itself to be worthy of the public’s trust in providing quality

healthcare without compromising their high regard for ethics in the company’s operations. The study will be beneficial for

students, future incorporators and business leaders, as well as those interested in the pharmaceutical industry.

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 I. Introduction

United Laboratories, Inc. (Unilab) was founded in 1945 by Jose Yao Campos as a small drugstore in a street

corner in the war-torn downtown Manila. The company started by offering quality medicines at affordable prices. Today,

Unilab develops, manufactures, and markets a wide range of prescription and consumer health products covering all major

therapeutic categories. Many of these products are leading brands in the Philippines, Indonesia, Thailand, Malaysia,

Singapore, Hong Kong, Vietnam, and Myanmar. Unilab has facilities throughout Southeast Asia. Its major manufacturing

complex is in Manila, Philippines. Unilab is the biggest pharmaceutical company in the Philippines and is dominating the

market by consistently maintaining a 20% market share.

Numerous agencies and organizations have advocated for improving and implementing ethical practices in the

pharmaceutical industry. For instance, the Pharmaceutical and Healthcare Association of the Philippines (PHAP) ensures

that its member companies conduct and adhere to the highest ethical standards. From their research and development to

marketing of pharmaceutical products, members must adhere to the ethical standards of the said association (PHAP, n.d.).

The PHAP is the first pharmaceutical organization that has adopted the codes of practices aligned with international

codes.

Furthermore, pharmaceutical companies based in the Philippines have been encouraged by numerous health

advocates and professionals to voluntarily partake in an international code of business ethics in the biopharmaceutical

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industry (Mateo, 2014). The international code seeks to ensure the best interest of the patients in the industry. Through

The Medicines Transparency Alliance (MeTA) Philippines, development partners, and drug companies, an increase in the

transparency of the supply chain and improvement in the ethical practices of the pharmaceutical industry of the

Philippines are to be practiced by members of the said alliance. Members must adhere to “​The Mexico City Principles for

Voluntary Code of Business Ethics in the Biopharmaceutical Sector.” Compared to other countries who are members of

MeTA, according to Doctor Tim Reed, executive director of the Health Action International headquarters in The

Netherlands, the uniqueness of MeTA Philippines is that it particularly “includes the civil society in the country in its

discussion and multi-stakeholder collaborations in promoting transparency and ethics in healthcare.”

Unilab, as one of Philippines’ leaders in the pharmaceutical industry, is expected to practice ethical codes of the

highest standards. Unilab, as a company highly trusted by consumers to provide quality healthcare and pharmaceutical

products without the expense of unethical means to attain its relatively affordable price, has the duty of upholding its

promise to its consumers in the essence of doing it ethically.

II. Problem Statement

United Laboratories is one of the leading pharmaceutical companies in the Philippines. Companies within this

industry, the ones concerning the health and welfare of people, are prone to ethical questioning. This paper aims to

address the following questions:

A. How does Unilab prove their ethicality in their beliefs, cultures, and practices?

B. How can these beliefs and practices affect its stakeholders and the general public either negatively or

positively?

III. Hypotheses

With regards to the ethical practices raised and questioned within the company, the researchers expect Unilab to:

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 A. ensure that each of their products are driven from ethically proper experiments and have gone through the

required safety procedures;

B. provide a safe environment, have fair compensation and treatment for their employees;

C. and make sure that they practice proper waste management in their procedures.

IV. Objectives

To determine their responsibilities and corporate social responsibilities to the different shareholders

A. Employees

1. To identify the culture, vision, mission, and values and principles within the company

2. To determine if the working hours of their employees are flexible/environment in the workplace

3. To determine the ethical practices within the organization

4. To determine the model of governance for Unilab

B. Safety and Waste Management Practices

1. To identify hazardous waste management practices

a) To determine the importance of waste segregation

b) To determine the possible effects of hazardous chemicals and waste to people and to the

environment

2. To determine the most common chemical waste of Unilab

a) To determine the effects of the most common chemical wastes they produce to the people

and environment

3. To determine the safety measures of Unilab for their employees

4. To determine how Unilab disposes of their waste, specifically chemical and hazardous wastes

5. To determine the programs and advocacies of Unilab for the environment

C. End Users

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 1. To determine how they conduct tests

a) To identify their practices in terms of experimenting and testing their products and

determine their ethicality

b) To determine whether or not they are in compliance with the policies and the standards

set in the country

2. To find out how they deliver their products to the public

(1) To establish the motivations of the company and their ethicality

(2) To ascertain the safety of their products

(3) To determine the transparency in marketing and advertising of their products

(4) Are they in compliance with the policies and the standards set

3. To identify their programs that are meant for the users and the community of the consumers

(1) Inclusive program through lower end medicines?

(2) Specific programs

(3) Who and what is it for, and why did they create such programs

V. Significance of the Study

Conducting a study on the ethical practices of Unilab would help in identifying the good ethical behavior

as well as the malpractices of the company. From this, the organization will know which practices to continue and

which to stop. Furthermore, the study will also be able of help to present and future pharmaceutical companies in

determining which actions or procedures would be most ethical in the industry they are in.

VI. Scope and Limitations

The research will only cover and be limited to the following topics:

1. The research will only cover the practices of United Laboratories, and no other pharmaceutical

companies present in the Philippines.

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 2. The study will not cover ethical practices of Pharmaceutical companies of countries outside the

Philippines.

3. The study will be limited to the sources available for public use.

4. The study will be limited to the knowledge of an employee of United Laboratories Inc. .

5. The study only limits its inside source to the position and department of Lab Specialist or

Supervisor within the Quality Control Laboratory.

VII. Methodology

Most of the information attained in this research paper came from a connection of one of the researchers

to an insider within the company. The informant’s position within the company is a lab specialist and supervisor

within the Quality Control Laboratory and has been in service for 26 years. Holding the position of supervisor,

she commands over a group of employees. Having experiences from both the main laboratories of Unilab based in

Mandaluyong and later on being transferred to their secondary laboratory in Laguna, she has an extensive

knowledge of the ethical practices of both company plants.

A set of questions were given to the interviewee in a word document file and was later on sent back to us

already containing the answers (Refer to Figure 1 in Appendix). In addition to the questionnaire, follow-up

questions were asked during an interview conducted by one of the researchers with the said employee. Along with

the information obtained from the interview and questionnaire given to the interviewee, the interviewee also

showed some disclosable information from their company books given exclusively to employees which contains

information about their practices and company history. However, for confidential purposes, the company book is

not to be stated within the references.

To add to that, one of the researchers also had a tour within the facility held on the 1st of December 2018.

During the tour, information on how Unilab handles their waste, how they process the medicine, and their safety

practices and precautions were discussed and shown to the researcher. Moreover, we also did our own research on

the proper ethical practices to be followed by pharmaceutical companies in which Unilab is categorized with.

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Online journals, publications, and articles about Unilab and its practices were used as a basis for the determining

the ethical practices of Unilab are being applied.

Timetable

Task Completed Due Date Progress

Topic Approval October 20, 2018 Complete

Initial Planning and Delegation of October 27, 2018 Complete

Tasks

Final Paper Outline November 3, 2018 Complete

Preparation for Interviews and November 17, 2018 Complete

Gathering of Data

Interview November 24, 2018 Complete

Literature Review and Industry December 5, 2018 Complete

Profile

Synthesis and Completion of Paper December 12, 2018 Complete

Submission for the Final Paper December 14, 2018 Complete

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VIII. Literature Review

A. Unilab’s Vision and Mission

○ Vision: Unilab has the vision of “Providing the best healthcare in Asia by: Converting opportunities into

sustainable growth; Nurturing a culture of innovation; Delivering a better value into our partners and

consumers” (Unilab PH, n.d.).

○ Mission: The company has the mission to “... provide quality and affordable healthcare products and

services that promote and enrich life for all communities that we serve by working together as one united

family” (Unilab, n.d.).

○ Creed from Unilab Philippines (n.d.),

“We believe that we are UNITED IN THOUGHT AND ACTION, and from this we derive our strength

and our spirit of Bayanihan.

We believe in the NOBILITY OF OUR PURPOSE— in the service of medicine, for the welfare of our

people.

We believe that INTEGRITY IS LIFE TO US, and to preserve it we must maintain ethical standards of

the highest order.

We believe that TRUTH IS OUR CHALLENGE, and our search for truth is our contribution to the

advancement of medical science.

We believe in EQUALITY AND JUSTICE FOR ALL, that our greatest asset is our human asset, whose

endeavors must be given meaning and dignity.

We believe in the DIVINE PROVIDENCE, whose love has sustained us, whose blessings give fulfillment

to our lives.”

B. Organizational Chart

The organizational chart of Unilab is not complete as the entire organizational structure is beyond the

knowledge of the interviewee. As a result, there are still some divisions that are not stated in the organizational

chart and under each division would contain even more different leadership positions such as directors, managers,

assistant managers. What is found in the organizational chart would only be the highest divisions of Unilab and its

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 current highest leader position in each division. However, names of the leading managers in each division were

not stated by the interviewee as a precaution for the possible risk of data leak.

Based from what was shown from the organizational chart which can be found in the appendix section

(Figure 5), Jocelyn Campos-Hess, the chairman of the board, is positioned at the topmost part. Then respectively

comes John Mariano Tan, the vice chairman of the board, Clinton Campos-Hess, the president and chief executive

officer (CEO) and son of the chairman of the board, and Benjamin Yap, the executive vice president (EVP) and

chief operating office (COO). Under them are the 23 Unilab divisions that were given by the interviewee. Under

these various divisions are respective managers, supervisors, middle and lower level employees.

C. What is done with the medicines in the pharmaceutical industry

1. Process of making the medicine

There are steps involving the manufacturing process of pharmaceutical drugs. The first step is to prepare

the chemical ingredients for the making of the medicine. The next step is to convert the ingredients involved in

making the medicine or also known as the processing of the medicine (Schwitz Biotech, n.d.). The process also

involves the purification of the final product. The last step is to package the pharmaceutical products which

involves processes such as tablet pressing, coating, filling and the likes (World Bank Group, 1998) . This showing

of the medicine making process is for the purpose of the better understanding of how the ethical issue came to be

in connection to the animal testing methods.

2. Animal Testing Methods

There are methods utilized in doing animal testing but only two of these will be mentioned since there are

numerous other methods of animal testing used. The two methods that will be mentioned here are the LD50 test

method and the Draize test method. Both of these methods are chosen not only because of numerous other

methods are involved, but also because those two methods are frequently involved in doing the other test methods.

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 The LD50 test method is one of the methods utilized in animal testing; it involves the ingestion or the

injection of the chemical into the animals without the use of anesthesia or pain reliefs. This process is used to test

how toxic a certain substance is and its reason for not using anesthesia or pain reliefs is because of the fear that

they will alter the results. Another method would be the Draize test wherein a certain chemical substance is

dropped onto the eye of the animal. The animal here also does not use pain relievers for 14 days for the purpose of

studying and evaluating the results. The purpose of this test method is to know how toxic the substance is to the

eyes, which results to some levels of inaccuracy due to certain physiological differences between animals and

humans (Neavs, n.d.). This connects to the medicine-making process since it is previously stated that the

medicines are made out of chemicals used in the first step as to which the animals are subjects to the

experimentation of the chemicals of the first step.

As a result, the industry already came up with an alternative to reduce the amount of animals used for

experimentation. This alternative involves the testing of only the tissue cells of the animals where the animal in

itself does not experience the consequences of the result of the created medicine. This therefore reduces the deaths

of the animals due to the experimentation.

D. Ethical issues encountered by the industry

The ethical issue encountered by the pharmaceutical industry would be the fact that their role to maximize

profit may give them the tendency to abandon their goal of promoting the welfare of their shareholders (Thomas,

2017). This meant the dilemma of either them increasing their profit from increasing the price of the medicines to

fulfill their role as entrepreneurs, or decrease their price to fulfill their other goal of promoting their stakeholders’

welfare. The situation implies the imbalance between the two goals of the pharmaceutical industry to profit and to

care about the people’s welfare. Another study implies almost the same kind of ethical issues with regards to

imbalance of the two goals of the pharmaceutical companies. According to Haque & Freitas et al. (2013),

pharmaceutical industries encounter an ethical issue of using certain advertising techniques to avert people’s

attention to the side effects medicines could take. Although it is stated to be possibly ethical as long as it’s within

the bounds of the law the fact that the techniques are misleading is what makes it unethical. This goes to show that

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 both sources present the common denominator which is the pharmaceutical industry’s two conflicting goals

whereas one would be not ethical or efficient without considering the other.

E. Solutions to the ethical issues done by the industry

The solution was created for the given ethical issue through patent laws. Patent laws and subsidiaries are

made for the purpose of promoting the creation of new medicines. Those mentioned are basically what makes up

for the large amount of money the pharmaceutical industry had to pay for the research operations done for the

creation of the new drug. The patent laws and subsidiaries are what makes up the huge sum of money in a way the

company is free to profit greatly from the drug they created where others are prohibited to copy the invention due

to the mentioned laws, also decreasing competition. It is not only used as means of compensation but also used for

the purpose of reducing competition. With the reduction of competition, one can maximize one’s profit through

the patent laws and subsidiaries (Thomas, 2017). Basically they earn with the patent laws which in a way helped

them with one responsibility of maximizing profits and therefore help them at the same time promote the welfare

of their stakeholders. Another solution of the pharmaceutical industry would be where it employs advertising

techniques where it masks the drugs’ side effects such as a rapid voice over of the side effects and such (Haque &

Freitas et al., 2018).

F. Present and Future Advancements within the Pharmaceutical Industry

The pharmaceutical sciences represent an evolving and highly dynamic field, and trends show an

increased effort to develop biologic-based drugs and creating more specific or targeted drug delivery techniques.

Although, there is indeed a growing inefficiency and cost of research and development has spawned research in

other predictive sciences, such as quantitative risk analysis and risk management (Wu-Pong S, Gobburu J, O'Barr

S, et al, 2013). This new field has been increasingly used as a statistical tool involving probability theory to model

outcomes, and to estimate risk and benefit for decision making in drug development.

Current trends within the industry as of the present is there is a decline in productivity of research and

development due to clinical breakthroughs are hard to come by. Another trend is that there is decreasing revenue

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 due to generic drugs increasing in popularity and that expiring patents are not being replaced by more recent and

more innovative drugs in the market. The future of the pharmaceutical industry is not looking to see some vast

and drastic improvements within the next couple of years.

G. The Generic Law

The Philippines enacted its first National Drug Policy during the year of 1987, shortly after, the Republic

Act No. 6675, also called the Generics Act of 1988, was then signed on September 18, 1988 by former President

Corazon Aquino. The Generics Act aims to promote, encourage and require the use of generic terminology in the

importation, manufacture, distribution, marketing, advertising and promotion, prescription and dispensing of

drugs, ensure the adequate supply of drugs with generic names at the lowest possible cost and endeavor to make

them available for free to indigent patients.

H. The Pharmaceutical Process

It all starts with the Biopharmaceutical research and development (R&D), where drug discovery,

preclinical, Food and Drug Administration (FDA) review, clinical trials, manufacturing, and post-marketing

monitoring and research takes place. During the drug discovery and preclinical trials part, researchers seek to

narrow the field of compounds to one lead compound which is a promising molecule that could influence the

target and, potentially, become a medicine.

I. Quality Control Procedures

The Bureau of Food and Drugs (BFAD) is responsible for the quality assurance and drug analysis. By

August 18, 2009, the BFAD was renamed into Food and Drug Administration (FDA) under the Republic Act No.

9711, an act to strengthen and rationalize the regulatory capacity of BFAD, which was approved by former

President Gloria Macapagal-Arroyo. The act aims to protect and promote the right to health of the Filipino

people, and help establish and maintain an effective health products regulatory system and undertake appropriate

health manpower development and research, responsive to the country's health needs and problems (WIPO, n.d.).

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J. Waste Management

The following terms and information are based on the policies and guidelines on effective and proper

handling, collection, transport, treatment, storage and disposal of health care wastes of the Department of Health

(DOH) and Department of Environment and Natural Resources (DENR) (2005) of the Philippines.

Health Care Waste

Wastes generated as a result of activities including, research, diagnosis, treatment, management and

immunization of humans and animals, and the production or testing of biological products among others.

Chemical Waste

A type of hazardous waste which include chemical byproducts of large manufacturing facilities and

laboratories. Includes waste from small-scale solvents and other chemical waste of households. It is considered

hazardous if it has at least one of the following properties: toxic, corrosive, flammable, reactive, and genotoxic.

Health Care Waste Generators

Generators include facilities and institutions involved in the healthcare industry. These institutions include

health care facilities, such as hospitals, clinics, laboratories and research centers, manufacturers, drug testing

laboratories, and work process that produce health care waste.

Treatment, Storage, and Disposal (TSD) Facilities

These are facilities where hazardous wastes are stored, treated, recycled, and/or disposed of as prescribed

under DENR AO No. 2004-36, Chapter 6-2 (Categories TSD Facilities).

Healthcare Waste Generators must secure permits from the:

1. DENR-Environmental Management Bureau are the following:

a. Environmental Compliance Certificate,

b. Permit to Operate,

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 c. Hazardous Waste Generator’s Registration

2. From the Department of Health- Bureau of Health Facilities and Services

a. Licenses

b. Certificate of Accreditation (for Overseas Filipino Workers medical facilities, laboratories, and

training centers)

Final Waste Disposal Systems and Facilities

The use of disposal facilities should be limited only to health care wastes which have undergone the

necessary treatment under the prescribed standard in the DOH Health Care Waste Management Manual.

Waste Disposal Methods

There are various methods of disposing health care and medical waste. Listed below are the following

retrieved from the guidelines of the World Health Organization (WHO) (1999).

1. Landfill

To landfill is the oldest and most widely practiced method of solid waste. The practice of

landfilling is to directly place solid wastes into the land disposal site. There are three types of landfill.

First, the open uncontrolled non-engineered dump. A non-engineered dump is the most common in

developing countries , and this method does not protect the environment that surrounds it. Untreated

Wastes are disposed in and uncontrolled open dump, which is why this method should not be practiced.

Second is the engineered landfill. This method has features that protect the environment from

contamination due to the chemical waste. Lastly is the method of highly engineered sanitary landfill. This

method is considered as a safe disposal route for pharmaceutical wastes. The feature of this method is the

protection of the aquifier. The solid wastes are compacted and covered with soil daily to maintain sanitary

conditions. The World Health Organization (WHO) prescribes this particular method of waste disposal.

2. Waste immobilization: encapsulation

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 Encapsulation involves placing pharmaceuticals in solid blocks within plastic or steel drums. The

drums used must have been properly cleaned before the placement of pharmaceutical waste within them.

Drums must only be filled to 75% capacity before it is topped of with a mixture of lime, cement, and

water in definite proportions of 15:15:5 (by weight). Once the drums are properly sealed, they must be

placed at the base of landfills and are covered with fresh solid municipal waste.

3. Waste immobilization: inertization

This method is a subcategory of the encapsulation method. The differences lies with the removal

of packaging materials from the pharmaceuticals before they are disposed. Pills removed from the

containers will then be formed into a paste that is transported in the liquid state to be disposed in a

landfill.

4. Sewer

Pharmaceuticals that come in liquid forms are diluted with water and are flushed into the sewer.

This is done in small quantities that cover a period of time. By doing this method in small quantities and

over a long period of time prevents it from having any public health and environmental concerns.

5. Burning in open containers

The method of burning pharmaceuticals in open container and at low temperatures are

discouraged due to the toxic pollutants that may be release to the air. Nonetheless, the packaging the

pharmaceuticals come in may be disposed in this way. It is highly recommended that only small quantities

of waste pharmaceuticals be disposed in this way.

6. Incineration

This method may be divided into two categories, medium temperature and high temperature

incineration. Medium temperature incineration may be used as emergency method to treat expired solid

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 forms of pharmaceuticals. The method of novel high temperature incineration are expensive which is why

many countries do not have this technology to dispose their pharmaceutical waste.

7. Chemical Decomposition

In the case that appropriate incinerators are not available, this option can be used; however it must

be followed with by the method of landfill. This method is not recommended especially if the company

does not have chemical expertise that are readily available. Furthermore, this method is very tedious and

time consuming.

Exposure to Hazardous Health Care Waste

An individual being exposed to hazardous health care waste is at risk of acquiring diseases or injuries.

The hazardous health care waste maybe caused by one or more of the following characteristics:

- Contains infectious disease;

- Genotoxic;

- Contains toxic or hazardous chemicals or pharmaceuticals;

- and radioactive elements

All individuals exposed to hazardous waste are potentially at risk. With this, the specific groups of people

who are most inclined to be exposed to such wastes are people in healthcare establishments, personnels and

workers who provide the service of handling, collecting, and disposing of hazardous waste.

The exposure to chemical and pharmaceutical waste are hazardous, may it be in small or large quantities.

These forms of waste may cause intoxication and burns. The effects of being intoxicated of such waste may result

from the absorption of chemical or pharmaceutical substance through the skin or inhalation and ingestion. The

most common injuries are burns, and the biggest contributor to this are the use of large quantities of disinfectants

such as chlorine and sodium hypochloride. Furthermore, reactive chemicals could possibly form highly toxic

secondary compounds.

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Waste Segregation and Storage

Segregation is the process of separating different types of waste and more notably isolating them from

each other. Different and appropriate recycling methods are applied to different types of waste. Various types of

hazardous waste must be properly segregated in containers with proper labels. This efficiently segregates as well

as minimizes the incorrect use of containers.

Color Coding Scheme for Health Care Waste

The table below summarizes the types of waste for each color of a health care waste container.

Color of Container Type of Waste

Black Non-infectious dry waste

Green Non-infectious wet waste

Yellow Infectious and pathological waste

Yellow with black band Chemical waste with heavy metals

Orange Radioactive waste

Red Sharps and pressurized containers

Aside from the color-coding system for the segregation of health care waste other practices must also be

observed. Sharp objects must be collected together, regardless of these being contaminated or not. This avoids the

puncture of containers, thus, such objects must be contained in puncture proof containers.

Large quantities of chemical waste should be packed in chemical resistant containers and sent to special

treatment facilities. The chemicals within containers must be properly marked and labeled. Different types of

hazardous chemical waste must never be mixed.

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K. Marketing in the Pharmaceutical Industry

Companies in the pharmaceutical industry offer products which must meet standards of regulatory bodies.

This is to ensure that the drugs are effective for what it claims to treat, safe for the consumption of its users, and is

profitable to fulfill responsibilities to shareholders. However, the consideration of these factors will come into

play when the promotion and advertising of drugs are discussed. According to the Pan American Health

Organization (n.d.), promoting and advertising of medicinal products must be “based on verifiable scientific

evidence, independent, accurate, reliable and true.”

L. Disclosure of Information to Consumers

Because companies have the economic right to produce profit for its shareholders, there might be cases

when information such as risks and hazards of a certain drug may not be given attention. A case study by Haque

et al. (2013) asserts that companies have an ethical duty to warn customers, including doctors and patients, of

potential risks. Thus, it is clearly unethical to compromise both the health of patients that use the products and the

doctors and sales agents that distribute the products. However, there are instances where this is not the case. In the

advertising of a certain drug, one might argue that as long as a company complies with existing regulations and

requirements, there is nothing wrong with diverting the attention from possible dangers of a certain drug.

According to Haque et al. (2013), the pharmaceutical company as a commercial entity may choose to

minimize the effects of publicized information that might affect its sales because it is in the best economic interest

of the company. This now raises questions of whether it is ethical to downsize the effect of a certain risk

information of a drug. Most companies in the industry tend to strike a balance between “the economic good of the

company and the safety of potential customers” (Haque et al., 2013), given that the company’s production and

management practices are in accordance with the law.

The common practices that are used by pharmaceutical companies to remove a drug warning’s clarity is:

○ Statement of side effects in a rapid voice-over

○ Display of overly optimistic photos while side effects are stated

○ Exaggerated promises of drug’s effectiveness

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M. Distribution Channels

The sales representatives of pharmaceutical companies serve as one of the key distribution channels of

many drug companies. Through these sales representatives, companies are able to sell directly to these physicians

which also serve as marketers of the product. The use of sales representatives of pharmaceutical companies is

widely used because they have direct relationships with physicians. These relationships are not limited to business

related transactions only. In most cases, the sales representatives develop a close relationship with physicians or

clinic staff. According to Tranquilino (n.d.), health professionals and the pharmaceutical industry have been

closely linked together which eventually led to efforts to protect boundaries between the two. It was also seen in a

study conducted by Steinman et al. (2001) that hospital doctors tend to be influenced by sales representatives

when prescribing drugs. When asked how much sales representatives influence their prescriptions, 61% said None

which is contrary to how much other doctors are influenced, 51% of which agreed that other doctors are

influenced “a lot”. Although it is not valid to claim that all doctors are influenced greatly enough to disregard their

duty of providing safe and effective drugs to patients, it is still one of the considerations that the Pharmaceutical

Healthcare Association of the Philippines (PHAP) should consider. This is true for most cases especially since

health professionals are found to be more exposed to talks by sales representatives of their respective brand

generics, associated to a lesser ability to discern inaccurate claims about medicines (Tranquilino, n.d.).

N. Conflict of Interest

As mentioned, commercial enterprises of drugs and physicians vary in their ethical duties. Because of

this, both parties might have competing interests or loyalties which is called conflict of interest (Murray, 2018).

The duties of a healthcare professional is to serve the patient with utmost care while commercial enterprises of

drugs are expected to generate profit. The World Health Organization Europe (1993) also asserts that there is

indeed an inherent conflict of interest in the industry between the business goals of manufacturers and the “social,

medical, and economic needs of providers” for the maximization of the use of drugs.

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O. Drug Research

Similar to the case of conflicts of interest between healthcare professionals and distributors, drug

researchers also face the same ethical responsibilities in regard of keeping the integrity in research. It is important

that the researchers are not influenced by interests such as financial gain. In addition, cognitive dissonance and

self justification must also be avoided as it can hinder accurate self-assessments and promote scientific

misconduct (Thompson, 2009).

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IX. Results and Discussion

Employees

Their values are embedded in their United Creed. This creed states the values and principles of their

beliefs. Their beliefs include United in Thought and Action (Bayanihan), Nobility of Purpose, Integrity is Life,

Truth is their Challenge, Equality and Justice for All, and lastly Divine Providence. As stated in their United

Creed, one of their beliefs is Integrity is Life. This shows that Unilab believes in the importance of preserving

ethical standards of the highest order.

Throughout its history, the company embeds the culture of Bayanihan within their employees. During the

1950s, the Campos family organized a junior board composed of managers and employees called as Unilab

Employees Council. According to Grace Abella-Zata of IRC Institute (2015), It is tasked to ensure the welfare of

the employees as well as their families, which is inspired by the Filipino spirit of Bayanihan, which means

“teamwork with a heart.”

This value has been carried throughout the company’s growth. It is reflected deeply in its vision and

mission. The Campos recalled in an interview by IRC Institute that it was a challenge to instill the values from a

generation to a new generation of employees. With this, Unilab used a system of meritocracy while instilling the

Bayanihan culture. In this way, a meritocratic environment, which promotes a performance-driven environment,

will have a collaborative effect among employees, instead of having an individualistic culture (Abella-Zata,

2015). This culture is reflected in its internal and external tagline, “compassion and competence.”

Unilab also believes in equality and justice for all within their organization. For them, their greatest asset

is their human resource. In line with this, they believe that this valuable resource must be given meaning and

dignity (Unilab, n.d.).

To determine the employee welfare of Unilab, we collected information from three distinguished

recruiting sites - Glassdoor, Payscale, and Indeed. Majority of the reviews stated an atmosphere of high

23
productivity and unity in their workplace. However, most of the cons are about the long working hours and short

office breaks. One even mentioned that, “work-life balance is impossible”. Despite this shortcoming, Unilab is

said to compensate well through their salary and benefits. The benefits that Unilab offers to their employees

exceeds the benefits that the government mandates corporations to offer. According to Payscale.com, Unilab PH’s

popular benefits are life/disability insurance, paid holidays/vacation, paid sick leaves, and fitness memberships.

Aside from using online information, an employee who is currently working for Unilab told the researchers in an

interview that only a portion of employees gets to enjoy the advantage of flexi-time. Both employees who work in

the field and those who do not receive flexi-time except for those under the Research and Development

Department.

The ethical practices centered for Unilab employees mostly revolve around their safety and welfare.

According to an interview with a Unilab employee, the company ensures the health and safety of the employees in

two major ways.

First, the company provides an abundant amount of scrub suits that are strictly for one-time use only. No

one is allowed to go in the manufacturing area without a full scrub suit. Each scrub suit is also disposed

immediately upon exit; it may not be used again for second entry.

Second, the office cafeteria has a divider in the middle. It serves as the boundary to cut the area into two

halves. One half is for those who do office work, while the other is for those who work in manufacturing. This is

to contain possible contamination in a limited space as to avoid mass epidemics and the like.

On the other hand, Unilab promotes the welfare of its employees and their families by supporting them in

times of disasters and retirement. During the big typhoon Yolanda, its employees are said to have the initiative to

chip in and support their colleagues. Unilab is also known for being the company that sends its workers abroad for

medical treatment. It also hosts parenting workshops and summer camps for its employees’ families. Lastly,

24
Unilab supports its retired employees through Unilab’s Retirement Foundation to provide hospitalization and

scholarship needs for retirees and their families (Abella-Zata, 2015).

The main difference between a known brand prescription drug and a generic drug is its cost (Klinger,

n.d.). In this case, Unilab, which is known for its top-quality prescription drugs, had a difficult time in the

pharmaceutical market, since many other generic drugs have already penetrated the market. This led to Unilab

having numerous additional competitors in their market. As a result, Unilab built a new manufacturing subsidiary

known as Amherst Laboratories, Inc. (ALI); which has a Solids and Liquids Plant and started its operations on

March 2007. According to the Company Overview of Amherst Laboratories written by EMIS, this newly

established pharmaceutical plant has a state-of-the-art facility, and it is designed to produce a variety of

prescription medicines in major therapeutic categories. ALI is said to be Unilab’s response to a rapidly changing

landscape due to globalization and harmonization of regulatory standards in pharmaceuticals. Moreover, this

expansion is aimed to further strengthen both the leadership and Unilab’s presence in the Philippine

pharmaceutical industry and in Southeast Asia (​Dela Peña, 2007)​

.

Amherst came to be as a means of help for them to remain in par with the competition of medicine despite

the rise of generic medicine in the market. Amherst was first created because of how Unilab was placed in a very

commercial area which made them later on move to the provincial areas where it is more industrious. Along with

that, with Amherst being placed in the provincial areas, there is much lower costs of employment and supplies.

With this, it helped them cut costs lower, thus, the lower need for profit maintenance in order to maintain the

quality of their medicine. Another factor that Unilab has successfully helped with starting Amherst is the fact that

this created many more job opportunities which somehow helped the problem of unemployment within the

Philippines. In clarification from the interviewee, Amherst still creates the same quality and products as of Unilab

and the only difference is the costs of the said difference in price of employment and supplies in rural and urban

areas.

25
 Generic drugs have been a problem for Unilab and other pharmaceutical companies that produces

patented drugs. According to the Food and Drug Administration (FDA), generic drugs are cheaper than patented

drugs because these generic drugs will not have to repeat all the testings being done to patented drugs.

Furthermore, generic drugs have the same active ingredients with known brand prescription drugs. Once the

patent for a known brand prescription drug expires, generic drugs could then be available in the pharmaceutical

market (DBSA., 2007). In addition, the patent period may last up to twenty (20) years depending on the drug.

However, due to expiring patents not being replaced by a more recent and more innovative products, this caused

the entire pharmaceutical market to be affected as generic drugs are penetrating the market; hence, this led to

more competitors not just for Unilab, but also, for other pharmaceutical companies.

The Views of the Researchers

The researchers believe that Unilab stays true to their United Creed. Although there has been an issue

with regards to the situation that employees working under Amherst Laboratories, Inc. are receiving lesser

benefits, the researchers still think that Unilab still stays true to their creed. This is because Unilab offers their

employees benefits that exceeds what the government mandates the company to offer. The government mandated

benefits are mostly centered on financial benefits, namely, wages and compensation benefits, leave benefits, and

Pag-IBIG, SSS, and PhilHealth benefits. Aside from those mandated benefits, Unilab has been able to offer a lot

more than that - benefits like ensuring the welfare of both the employees and their families, being able to join

parenting workshops hosted by Unilab, and supporting retired employees through Unilab’s Retirement

Foundation. Even though employees working under Amherst Laboratories Inc. are receiving lesser than the usual

benefits received by those who work under Unilab, these employees would still receive benefits that adheres to

the government mandated benefits.

26
Safety and Waste Management Practices

Hazardous Waste Management

Waste management is an integral process, especially in pharmaceutical industries. They are handling

compounds reactive and hazardous to the public and environment health. If not segregated with care, these

chemicals may become a threat to the humans exposed to it and the environmental sustainability.

Unilab segregates their waste in accordance to the most abundant compound in the waste. For example,

Biogesic is mainly made up of paracetamol, thus the wastes in manufacturing this compound will be separated

into the paracetamol waste compartment. They do not exactly follow the methods used in other health care

establishments, such as hospitals, because they handle different types of substances and chemicals. Still, it is

critical to properly segregate different types of compounds.

Since Unilab is a manufacturer of pharmaceuticals, the wastes that are present in their system are not just

wastes from final products, but also raw materials. These wastes may be found in both solid and liquid form.

People involved in drug preparation, waste transport, and waste disposal are in danger of health hazards. The

primary risk of hazardous waste, specifically poisonous waste, if they are swallowed, inhaled, or have come in

contact with skin is death or serious injury to human health. The risk of toxic hazardous waste on the other hand

may involve delayed or chronic effects, including carcinogenicity (Latimer, 2015).

Processes undergoing in pharmaceutical industries until after their products have been distributed

continue to affect the environment negatively. Chemicals are released into surface waters, sewage systems, soils,

and air. These chemicals found in pharmaceutical compounds are intended to be highly reactive to receptors in

humans and animals, however this makes them toxic to other organisms, many of which are important in the cycle

of the ecosystem. These organisms are constantly exposed to the chemical hazards released by medicines and

there have been observed impacts thus far. Some of these include behavioral changes in insects, abnormal growth

in different aquatic plant species, influences on the fertility and development of fish, reptile, and aquatic

invertebrates, and development of antibacterial resistance in soil microbes (Boxall, 2004). These hazards are most

27
commonly ecotoxic, carcinogenic, persistent, and bio-accumulative in the way that they are harmful to the

environment, can induce cancer, remain dangerous for long periods of time, and can infiltrate the food chain,

respectively.

Most Common Chemicals Used in Unilab Laboratories and Facilities

According to the employee we interviewed from Unilab, the most common chemical waste that Unilab

produce are alcohol and hydrochloric acid. They often use it for chemical analyses and as a disinfectant.

Hydrochloric acids are used in pharmaceutical companies as catalysts for chemical synthesis, for control of

acidity levels, for the deionization of water, and as a reduction agent (ERCO Worldwide, n.d.). While alcohol is

used as a disinfectant during operations in the company and as a solvent and preservative during preparations of

drugs (Drugs.com, n.d.).

We further researched the dangers of hydrochloric acid to the human health and in an article of an

interview with Doctor Dianne McCallister, a Chief Medical Officer at Porter Adventist Hospital in Denver,

United States; according to he the most often health concerns with hydrochloric acid is that it is highly corrosive

on contact. Furthermore, if the skin is exposed to such acid it can cause severe burns to the skin, or digestive

system or blindness if it comes in direct contact. If hydrochloric acid is vaporized it can cause spasm of the

larynx, and sores in the respiratory tract. A more severe effect of inhaling a concentrated amount of it may lead to

fluid build-up in the lungs.

Precautionary Measures

Proper precautionary measures must be practiced to avoid injuries caused by the different chemicals

present in the laboratories and manufacturing plant of Unilab. In the plant tour of one of our members, he found

that the whole facility practiced necessary precautionary measures. Every individual must have proper protective

clothing upon entering the facility. Hair cap, face mask, lab gown, laboratory gloves, and shoe covers is

mandatory for everyone within the facilities. Upon exiting the facility, the lab gowns must be placed in the

laundry bins present in the exit area. The other protective clothing are then disposed.

28
 Precautionary measures are not only practiced through the clothing required of the employees and

visitors. Throughout the whole facility, emergency chemical spill kits are designated in each station every few

meters; also all the doors are color coded. By placing the kits throughout the facility, the people at Unilab are able

to immediately respond to the unlikely events of accidents or emergencies. The accident can be cleaned up and

contained to prevent further damage and injuries to the people present.

The doors at the facility are color coded as this indicates different the access and purpose of different

rooms. The table below summarizes the colors of each door.

Door Color Definition

Red Restricted area and for authorized personnel only

Yellow Quarantine Zone

Green No restrictions

Neutral color Access is granted for everyone

The use of color coded doors are very helpful to the employees of Unilab as this helps them maintain

safety. By using color coded doors, the employees can easily identify the purpose of each room. Furthermore, this

method prevents harm or injuries especially because certain areas have different purposes and may be more

dangerous than other rooms.

Unilab Waste Disposal

Unilab has a third party that collects their segregated waste; however due to the limited knowledge of our

insider, he or she is not informed of the company or companies that collect their waste and disposes of it. As

mentioned earlier, chemical compounds used will be disposed according to their most prevalent element. The

29
compounds will be thrown into the waste container of the most dominant element, or the element with the most

amount in the compound.

The third party in charge of handing these wastes may be specialized to handle waste segregation. If this

party is not present to collect the wastes of Unilab, then the company may risk mishandling their waste. Since the

company itself is not specialized for this task, they may be lacking proper equipment or knowledge on the said

task. Not having the proper safety measures and equipment for employees and irresponsibly throwing away

reactive chemicals in open environments are only some examples of the improper disposal of these wastes. This,

in turn, may cause health problems for the people handling these wastes or may risk environment degradation.

Following the emergence of these issues could be a violation of environmental laws and social reprimandations.

Policies and guidelines prescribed by the Department of Environment and Natural Resources and the

Department of Health must be followed by the third party waste collector. Furthermore, guidelines set by the

World Health Organization (WHO) must be adhered to. We are assuming that Unilab, as one of the biggest and

leading pharmaceutical company in the Philippines, has taken into consideration that their third party collector is

legally registered and is dutifully practicing the regulations on proper waste disposal.

From the further research we conducted, there are three possible methods of the disposal method

practiced by the third party collector. First, and the most common method of pharmaceutical waste disposal, is the

landfill. Specifically, the method of highly engineered sanitary landfill. This method is prescribed by the World

Health Organization (WHO) considered as a safe disposal method. Solid wastes are compacted and covered with

soil daily to maintain sanitary conditions. This method has the feature of not contaminating the environment,

importantly the aquifier, with chemicals present in the pharmaceutical wastes. We feel that this is the most

possible method because it is not only prescribed by the World Health Organization, but it is also the most

common. Furthermore, as leading company, Unilab is expected to not have intentional actions of harming the

environment. Through this method they can assure their stakeholders and consumers that they are ethically in

compliance with the prescribed methods of the World Health Organization.

30
 Second is the encapsulation method. The encapsulation method is done by placing pharmaceutical solid

waste into drums that are filled and sealed with a mixture of lime, cement, and water. The drums are placed at the

base of landfills which are then covered with fresh solid municipal waste. This method contains the waste and

prevents any hazardous leaks that may affect the environment.

It is a known fact that Unilab manufactures pharmaceuticals that are both in solid and liquid forms. The

first two methods are more for the solid waste. On the contrary, liquid wastes from producing liquid

pharmaceuticals are disposed of through flushing them into sewers. The liquid wastes must be diluted with water

and it must be disposed in small quantities over a long period of time.

Unilab is a company making an effort to reduce the waste that they produce; specifically, water waste.

Technotest, Incorporated is an engineering company specializing on projects for water treatment and wastewater

recycling. They innovate systems that treat wastewater so that they can be efficiently reused. One of their projects

include Unilab. Unilab makes use of these technologies that allow water to be filtered out and reused. As soon as

the water is found to be safe and not contaminated, they reuse wastewater for their other operations. This process

is similar to biomimicry where the company wants to eliminate waste. Just like in biomimicry, they use the

product of one process as a resource for another.

Environmental Programs

Unilab supports and has partnered with two companies, Tahanang Walang Hagdan Inc. (TWHI) and

Gawad Kalinga in various programs geared towards the preservation of the environment and the cultivation of the

community. Unilab works together with Tahanang Walang Hagdan Inc. (TWHI) to repackage medicines sent to

the said company (ISL SMU, 2016).

Gawad Kalinga and Unilab have partnered to create the Unilab Positive Ideas. The program takes place in

the Gawad Kalinga farms. Unilab Positive Ideas enables Filipinos to improve their own communities’ health and

wellness where the winning team will have their ideas of health improvement be implemented to the selected

31
 community in the next six months. The said project addresses the problem of malnutrition, saving of the river

systems and water systems (PHILSTAR, 2012). Unilab also does the project inclusion that involves recruiting

people to train the PWDs (People with Disability) in a certain job for them to be able to find employment (Unilab

Foundation, n.d.). This would give the sense of saying that people like them can be useful to society given the

right tools and training, improving the PWDs reputation. The PWD’s gained abilities through training could allow

them to contribute to the environment further improving their reputation.

There are various laws in the country that focus on environmental sustainability. Such would be the

Philippine Environmental Policy; this policy aims to improve and maintain environmental conditions while at the

same time allowing Filipinos to perform their social and economic duties. Through their partnerships with TWHI

and Gawad Kalinga, and in line with their underlying mission, they are able to support these national policies and

promote environmentalism in the workplace.

The Views of the Researchers

For its environmentalism and United Laboratories Inc. (Unilab) regard for public health, the researchers

believe that the company has prepared and implemented enough procedures to ensure the safety of the public.

They follow through standard protocols in handling hazardous wastes to keep them from contaminating the

environment and provide the proper equipment to keep their employees away from harm. United Laboratories Inc.

has certifications from different departments and agencies of the government that warrants the safety of their

procedures and products. It delved into projects for sustainability and the benefit of the general public. Moreover,

with more than 70 years in the industry, Unilab has more knowledge and experience in their field; its reputation as

the leading company precedes itself. With this, the researchers trust that the company has plenty of positive

insights regarding ethicality in their operations.

End Users: Doctors and Patients

Unilab, being the leading pharmaceutical company in the Philippines, assures that their big prescription

and over-the-counter brands are produced with the highest quality. With their tagline, “Trusted Quality

32
Healthcare”, it is important to note that the ethical responsibilities of Unilab does not stop within the boundaries

of its management, production, and environmental efforts. It reaches out to the essence of what the organization

aims to do which is to provide quality healthcare that promote and enrich life.

Compliance

According to Mateo (2014), Philippine pharmaceutical companies have been “urged by health

professionals to follow a voluntary international code of business ethics in the biopharmaceutical industry.” The

Pharmaceutical and Healthcare Association of the Philippines or PHAP was also established in 1946 whose

mission is to ensure that its members “conduct themselves according to the highest ethical standards” in its

operations, from research and development up to the marketing of pharmaceutical products. The organization was

first named as Drug Association of the Philippines (DAP) consisting of drug manufacturers only but was later

changed to the present name for a wider representation since healthcare professionals are one of the channels of

the drug products. PHAP is the main pharmaceutical association in the nation that has received the Code of

Practice that is compliant on worldwide codes like the Geneva-based International Federation of Pharmaceutical

Manufacturers and Associations (IFPMA) Pharmaceutical Marketing Practices and the Mexico City Principles for

Voluntary Codes of Ethics in the Biopharmaceutical Sector (PHAP, n.d.).

In line with the guiding principles the PHAP has set for ethical conduct, specifically that pharmaceutical

companies are responsible for providing accurate, balanced, and scientifically valid data on products; Unilab as

expected of a leading pharmaceutical industry practices proper ethics as well as the capacity to meet the standards

needed to be observed.

According to the Revised Rules and Regulations on Registration of Pharmaceutical Products (A.O. no.67

s. 1989), establishments which are planning to release drug products must first register with the Bureau of Food

and Drugs. There must be a full disclosure of the drug components before it can be examined and approved or

unapproved by BFAD. The establishments must also have a valid license to operate. Aligned with this, Unilab

33
cannot release products which are not BFAD-approved. The drugs have already been reviewed and tested to be

safe.

Unilab is also compliant with the Generic Law which is the first National Drug Policy during the year of

1987. The Generics Act aims to promote, encourage and require the use of generic terminology in the importation,

manufacture, distribution, marketing, advertising and promotion, prescription and dispensing of drugs. This

ensures the adequate supply of drugs with generic names at the lowest possible cost to make them available for

free to indigent patients, encourage the extensive use of drugs with generic names through a rational system of

procurement and distribution, and emphasize the scientific basis for the use of drugs.

Pharmaceutical Marketing

In the advertising and promotion of both their prescription and over-the-counter drugs, Unilab continues

to observe it's ethical practices even until their products are at the hands of their consumers. In terms of their

advertisements, the risk information is properly indicated and mentioned. One pressing issue that the healthcare

industry faces is the prevalence of self diagnosis. Unilab campaigns against this by including a note that it is best

to consult a doctor before the consumption of any drug especially if symptoms persist. In 2011, Unilab together

with Watsons Pharmacy spearheaded a campaign that teaches consumers about the proper use of antibiotics

through special compliance packs. The company is the first to take this initiative in the country, educating against

and avoiding the serious threats of antibiotic misuse.

According to Solante (n.d.), 66% of antibiotics sold in Manila were given without a prescription. This

further proves that this alarming situation in the Philippines promotes the emergence of antibiotic-resistant

bacteria which overall worsens that situation of ill patients. Through the compliance packs given by Unilab,

consumers are educated and encouraged to use antibiotics the right way.

In their packaging, standards set by the Pharmaceutical Healthcare Association of the Philippines are met.

Mateo (2014) asserts that Philippine pharmaceutical companies are compliant with international codes on business

34
ethics making sure that the best interest of patients are served. ​A small paper is also included inside the boxes

which is the medicine instruction. This includes information about the formulation, use, and side effects of the

medicine.

Through the advertisements done by Unilab, one notable factor present within all the consumer goods are

the guaranteed quality and results proven through testing. Unilab on it's own is trusted by many, though they are

aware of this power Unilab does not take advantage of it. Instead they allow the public to test the products

themselves in order to prove them more correct than they already are. Through the use of this honest

advertisement, Unilab creates a type of buzz through the most traditional type of media which is word of mouth.

With the use of referrals, Unilab transforms its own market into their marketers and increasing the image and

effectivity of the newly released products.

Drug Research and Innovation

For the doctors and researchers, Unilab has provided multiple opportunities for them to operate for the

massive pharmaceutical company. Through this company continues to innovate as well as providing multiple

opportunities for the newly appointed doctors.Though given the potential risk of a monopolistic industry with all

the advancements in research done by Unilab, this issue is acknowledged by the company. According to Thomas

(2017), a potential action that Unilab is in the process of taking is slashing their research. This way they give more

space for the smaller companies to profit and with the use of the patent laws, gain priority with their

breakthroughs. Though the power to do so is completely attainable by the company, Unilab continues to work for

the common good by giving more chances for other companies and doctors. Given that they achieve a

breakthrough, prices to purchase the new products are often at a bearable price where they do not take advantage

of their reliant market.

In the context of releasing products towards the public, each product produced by all companies face a

type of regulating body, a final test in a sense, that would determine the effectivity each drug has. Provided these

drugs achieve the expected criteria, companies may begin mass production and distribution to the majority.

35
Though this process is towards the end, companies tend to find themselves at a form of conflict in interest with

these drug administrators. To properly face these conflicts, Unilab submits to the comments and judgements

made. If the product is turned down, it'll be returned and continued to be worked on. If the product is accepted,

mass production begins and the drug is distributed nationwide. It is visible with their actions for those around

them, Unilab practices ethical traits within their operations of all sizes.

Experimentation and Testing

Unilab, as a leading company in its industry must take into consideration more than just its competitors

when dealing with the production of its goods. Given that it has a large loyal market, the process of production

must also be properly established. Included in the process would be both the creation of new products and testing

of its effects. Unilab, being aware of the risks at hand if they were to choose humans as test subjects decided not

to take the chances but rather have animals as their replacements. Through this, they are still capable of

maintaining a sense of ethics in such a practice. Given that harm is kept at its minimum or even no harm at all, it

would be safe to assume that these practices are ethical.

Lower End Medicine

Maximizing profit is the main objective of every business, however with the social responsibility of

pharmaceutical companies to provide health and welfare for the public, the question of whether they should

prioritize profit over service emerges.

Unilab realized that although they are the leading in the industry, comprising of almost 20% of the market

share (See Figure 3), there is still a large portion of the Filipino population who are not included in the market

because they belong to low socio-economic classes. With the commercial interest aside, Unilab saw the duty that

they have towards Filipinos who cannot afford the medicine. Thus, the brand ​RiteMed was created, which caters

to the lower classes by promising quality medicine for a cheaper price than that of the industry.

36
 Figure 1​​: Market Segmentation of the Pharmaceutical Market (Ganchero & Pavia, 2008)

Studies have shown that forty percent of Filipinos suffer from diseases which are preventable by

medication. The only problem was that they could not afford the high-priced medicines to treat themselves. In

response to this, last 2001, Unilab constructed the Afford-a-Med programme, where several other companies

joined in to reduce drug prices. In 2002, Unilab released RiteMed, a subdivision focusing on generic and

affordable drugs, in order to cater to the less fortunate. It reduced its prices by 20 to 75 percent, yet it was still

able to reach a revenue worth US$20 million within 5 years.

The inclusive program through lower end medicines utilized by Unilab is their subsidiary, RiteMed,

which originally was response to the Philippine health situation back when the government needed assistance

from private companies to reduce the prices of essential drugs under GMA50 program. In 2002, Unilab set up

RiteMed, in order to seize an opportunity to expand into the low-cost medicine market. RiteMed products offered

the same efficacy and safety of leading brands at a 20 to 75 percent lower price, resulting to more drugs priced

affordably for the poor and made accessible through Government hospitals and/or clinics and through commercial

distribution channels.

37
 One might argue that this tapping of a different market belonging to the socio-economic classes is

unethical as the healthcare needs of the poor are used as a means to an end which is to profit. However, it is more

likely that Unilab is actually doing this for a more meaningful societal impact. Most of the articles gathered about

this inclusive market discusses how RiteMed is aligned with the corporate social responsibility (CSR)

commitment of its parent company, Unilab. Below is an excerpt from RiteMed’s corporate strategy, stating its

mission to align programs to Unilab’s commitment to providing healthcare.

Figure 2: RiteMed’s Corporate Strategy

According to Ganchero and Pavia (2008), these efforts of Unilab to reach the unmet needs of those who

cannot afford medicine would not only bring commercial success to Unilab but would also lead to the improved

health of the community. It would also bring about increased health awareness, access to affordable and quality

medicine, and public trust to generic brands. It would also lessen cost for the healthcare providers and drug

manufacturers.

Because of the decreased cost in the production, Unilab is able to offer medicine that caters to those who

cannot afford branded medicine. RiteMed achieved this by promoting directly to the drug specialists and used

compliance to the Generics Act for these pharmacists to advocate and present the option of generic brands to

patients. With the provisions of the Generics Act, pharmacists are expected to educate patients (at the counter) and

provide the choice of branded or generic drugs available. Thus, pharmacists are “ethically and professionally

bound to consider RiteMed’s products” as an option to the customer (Ganchero & Pavia, 2008).

38
 According to Castillo (2016), the following are the differences between generic and branded medicine:

Table 1: ​Prices of Generic and Branded Medicine

Drug Generic Branded

Paracetamol (500 mg tablet) P 1.50 P 4.50

Ascorbic Acid (Vitamin C) P 1.50 P 5.50

Mefenamic Acid P 4.50 P 24.50

Salbutamol P 2.50 P 8.75

Rosuvastin Calcium P 25.00 P 85.00

Because of RiteMed’s successful launch, the societal goals that it aims to achieve can be realizable and

attained. By designing a business around the unmet needs of the poor, RiteMed will also be able to reap economic

benefits which are increased sales and market share, strengthened brand positioning, enhanced corporate image,

and increased ability to attract and motivate employees because of the company’s social mission (Ganchero &

Pavia, 2008).

Corporate Social Responsibility (CSR) Programs

Unilab has nine different programs with their own unique purposes and rationales that are still in

operation up to now displayed in their official website. Noteworthy programs that Unilab has set up in the past

few decades were the Lingap Diwa Advocacy Program, AgeWell Club, and UMED Online. Unilab’s launched

programs all serve a different purpose and are in essence serving a true greater purpose and are handled and

utilized extremely well.

Lingap Diwa Advocacy Program is spearheaded by Medichem, the mental health division of Unilab, and

its aims to reduce stigma, prejudice, and discrimination to patients with mental disorders and empower the

community to be more aware of mental health. It is in line with their vision of being compassionate and enabling

those who are in need. The AgeWell Club is community program launched by Unilab for anyone above the age of

50 to engage themselves to be more active and to embrace aging by incorporating a holistic approach to aging

39
well. UMED Online is Unilab’s way to raise awareness on relevant health and medical issues by providing short

courses about them. These programs are some of Unilab’s numerous launched programs with each and every one

targeting a different set of audience also serving a different agenda and purpose.

Views of the Researchers

Overall, Unilab’s practices are aligned to their mission in providing quality healthcare to the Filipinos. In

their practices, ethical codes of practice are observed as they also have an obligation to follow and comply with

the organizations that they are part of. This includes their membership to the Pharmaceutical and Healthcare

Association of the Philippines where all its members are expected to conduct themselves in the highest ethical

behavior. Although it can easily be concluded that Unilab is geared towards the generation of profit, it will be a

hasty conclusion to assume such, given that the company has a commitment in fulfilling their ethical obligations

and corporate social responsibility. Thus, Unilab’s ethical practices can be considered as its advantages that guide

the organization to flourish and become leading in the pharmaceutical industry.

40
X. Conclusion
United Laboratories Inc., the Philippines leading pharmaceutical company and considered as one of

Asia’s most reliable and trusted healthcare provider, is expected to fully operating with actions that affirm with

proper business ethics and social responsibility. Data collected, synthesized, and presented in this study on the

ethical practices of Unilab are from reliable online sources and an interview of a person who is currently working

for Unilab for more than two decades. It is seen that with everything the company does, it is all align and

embedded deep within their vision-mission statement and their culture of “Bayanihan” or “teamwork with a

heart”. Throughout its existence the company has yet to deal with legal and ethical issues proving that they are an

exemplary company in producing top-notch quality affordable medicines without resorting to unethical means.

Unilab is also considered as one of the best, if not the best, employer in all of Asia. They treat their

employees as an asset to the company and it is seen with the compensation and benefits they are providing their

employees. By incorporating the culture of “Bayanihan” within their employees they are creating and promoting

a performance-driven environment where there is collaborative and holistic approach to sustainable growth.

Unilab’s value for their human resources are one the main driving factors for their growth to the top of the

pharmaceutical industry with the highest market share in Philippines pharmaceutical industry. Employees

consistently noted that there truly is a positive work environment promoting high levels of productivity and unity

among everyone. Unilab has been consistently known for its top-quality prescription drugs and to continue

staying on the top they resorted to setting up a new manufacturing subsidiary known as Amherst Laboratories,

Inc. (ALI). ALI is said to be to have state-of-the-art and modern facilities and equipment to truly provide

top-notch quality and effective products for consumer consumption.

In terms of safety and waste management, Unilab is strictly adhering to waste management protocols and

has a specific segregation strategy. Safety of their employees is Unilab’s utmost priority and precautionary

measures are taken seriously since the company uses various types of chemicals that can be harmful to humans if

handled incorrectly. Protective clothing is required upon entry of their facilities and everyone must strictly adhere

to this rule and regulation stipulated by Unilab’s top management. Unilab utilizes a third-party in order to manage

41
their waste disposal procedures and this is to ensure that their would be no risk of mishandling toxic chemicals.

They also make it a priority to reduce wastes produced especially wastage of water. Unilab is also seen to be

engaged in partnerships with companies in order to jumpstart various programs geared towards the preservation of

the environment and the cultivation of the community.

In conclusion, United Laboratories Inc. is clearly and ultimately geared towards providing quality

healthcare by all means ethical as they are the leading pharmaceutical company in the Philippines and consumers

have already set a reputation that they are to be trusted. Unilab practices ethical means in everything that they do

from all operations and relationships with various stakeholders. The researchers’ personal view on Unilab has

remained to be extremely positive and has set a trusted reputation in their eyes. The researchers also conclude that

Unilab is operating under an economic-regulatory model of corporate social responsibility basing it all on the

findings and results obtained from the study. This is due to Unilab not entirely focusing on only making profit but

also decided to give back to the community with various programs and with their RiteMed initiative they tried to

appeal and cater to poorer families by introducing a lower price medicines without compromising quality. Unilab

is indeed a leader in pharmaceutical industry and operates ethically and responsibly in their ways of creating profit

and value for their stakeholders. Unilab can truly be an ideal company to follow its footsteps in regard with

business ethics and this is particularly important to the researchers, as future aspiring business leaders.

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XI. Acknowledgements

To begin, the researchers would like to express their gratitude towards their professor for this course,

Business Ethics and Social Responsibility, Sir Earl Escareal. The gratitude mainly focuses on the opportunity to

work on this paper, as well as the support he provided throughout consultations. Through this course, we have

managed to gain a better understanding of the importance of work ethics and a business’ corporate social

responsibility for its environment. Through the opportunity to work on this paper, we as Lasallian business

students have managed to apply the lessons learned in the course and properly evaluate the ethical practices done

within the company United Laboratories.

Second, the researchers would also like to thank the representative of Unilab for being the bridge to

information that was needed for this paper. Their identity is to remain confidential for certain work reasons, and

we as researchers are to respect their decision. Because of his/her contribution, we have managed to go more

in-depth with the various practices within Unilab and overall gained a better understanding of the day-to-day

operations done within their facilities. In addition, we would like to thank Unilab themselves for allowing a “drug

tour” around their facilities in order for us to gain a deeper immersion on the types of work and setting of the

facilities, through this a clearer understanding is formed and the capacity for the researchers to evaluate on

Unilab’s work ethics grows.

Third would be the researchers themselves. The time and effort given to produce this output will remain

as a form of inspiration to constantly improve on all forms of work that we are to take on. Through this project, as

a team member, individually we have learned the value in a team and the value of divisions in labour. To our

group leader, we would like to thank you for your unending passion and commitment to the completion of this

project.

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 Lastly, the researchers would like to thank the readers themselves for their interest and time in going

through this paper. We hope that through this they may gain more knowledge and a better understanding of the

ethical practices done within Unilab and would reference this paper for their future studies.

44
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XIII. Appendix

Figure 3:​​ Questionnaire & Answers

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Figure 4: ​Market Share of Top 10 Pharmaceutical Companies (Ganchero & Pavia, 2008)

Figure 5: ​Promotional Material of Unilab

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Figure 5: ​Organizational Chart

53