Ethics and Corporate Responsibility in the
Workplace and worth 250 points
PharmaCARE (We CARE about YOUR health®) is one of the world’s
most successful pharmaceutical companies, enjoying a reputation as
a caring, ethical and well-run company that produced high-quality
products that saved millions of lives and enhanced the quality of
life for millions of others. The company offers free and discounted
drugs to low-income consumers, has a foundation that sponsors
healthcare educational programs and scholarships, and its CEO
serves on the PhRMA board. PharmaCARE recently launched a new
initiative, We CARE about YOUR world®, pledging its commitment to
the environment through recycling, packaging changes and other
green initiatives, despite the fact that the company’s lobbying
efforts and PAC have successfully defeated environmental laws and
regulations, including extension of the Superfund tax, which was
created by Comprehensive Environmental Response, Compensation, and
Liability Act (CERCLA).
Based in New Jersey, PharmaCARE maintains a large manufacturing
facility in the African nation of Colberia, where the company has
found several “healers” eager to freely share information about
indigenous cures and an abundance of Colberians willing to work for
$1.00 a day, harvesting plants by walking five (5) miles into and
out of the jungle carrying baskets that, when full, weigh up to
fifty (50) pounds. Due to the low standard of living in Colberia,
much of the population lives in primitive huts with no electricity
or running water. PharmaCARE’s executives, however, live in a
luxury compound, complete with a swimming pool, tennis courts, and
a golf course. PharmaCARE’s extensive activities in Colberia have
destroyed habitat and endangered native species.
Two (2) years ago, after PharmaCARE’s research indicated that
one of its top-selling diabetes drugs might slow the progression of
Alzheimer’s disease, its pharmacists began reformulating that drug
to maximize the effect. In order to avoid FDA scrutiny, PharmaCARE
established a wholly-owned subsidiary, CompCARE, to operate as a
compounding pharmacy to sell the new formulation to individuals on
a prescription basis. CompCARE set up shop in a suburban office
park near its parent’s headquarters, and to conserve money and
time, did a quick, low-cost renovation and designated Allen Jones
to run the operation’s “clean room.” CompCARE benefited from
PharmaCARE’s reputation, databases, networks, and sales and
marketing expertise, and within six (6) months had the medical
community buzzing about AD23. Demand soared, particularly among
Medicare, Medicaid, and VA patients. Seeing the opportunity to
realize even more profit, CompCARE began advertising its services
and the availability of AD23 to consumers and marketing the drug
directly to hospitals, clinics, and physician offices, even though
compounding pharmacies are not supposed to sell drugs in bulk for
general use. To get around this technicality, CompCARE encouraged
doctors to fax in lists of bogus patient names.
As production increased and hours were extended, one of Allen’s
techs pointed out what appeared to be mold around the air vents.
Allen immediately contacted the facilities’ supervisor, who came
over to inspect the lab. As time went on, workers began coughing,
sneezing, and getting headaches at work, and one employee, Donna,
who had a perfect attendance record, got so sick she could no
longer come to work due to chronic bronchial problems. Eventually,
she filed for worker’s compensation. Allen’s best supervisor, Tom,
threatened to complain to OSHA about the air quality in the lab,
and one of the techs, Ayesha, filed an EEOC complaint alleging she
had not been promoted to supervisor because she was a Muslim; in
fact, although Ayesha was a very good worker, Allen did not believe
she had the management or people skills necessary to be a good
supervisor. Allen discussed these issues with his boss, the
Director of Operations, who told Allen that if he wants to keep his
job and receive his promised bonus, he needs to fire Donna, Tom,
and Ayesha, and keep his own mouth shut about the mold and the
bogus prescriptions.
As CompCARE and its parent company enjoyed record profits and
PharmaCARE’s stock price approached $300 per share, reports started
filtering in that people who received AD23 seemed to be suffering
heart attacks at an alarming rate. The company ignored this data
and continued filling large orders and paid huge bonuses to all the
executives and managers, including Allen, who, after being named
“Employee of the Year,” was beginning to miss production schedules
due not only to his staff’s increasing use of sick leave, but also
his own health issues.
PharmaCARE sold CompCARE to WellCo, a large drugstore chain,
just weeks before AD23 was publicly linked to over 200 cardiac
deaths. Both PharmaCARE and WellCo saw their stock price
plummet.
Write a six to eight (6-8) page paper in which you:
• Determine all the stakeholders in this scenario. • Analyze the
ethics of PharmaCARE’s treatment of the Colberia’s indigenous
population and its rank-and-file workers versus that of its
executives. • Determine whether Allen could legally fire each of
the three (3) workers—Donna, Tom, and Ayesha. Suggest steps he
should take to minimize the risks to his department and the
company. • Determine the whistleblowing opportunities, obligations,
and protections that could benefit Allen. Explain why and how Allen
would benefit. • Assess PharmaCARE’s environmental initiative
against the backdrop of its anti-environmental lobbying efforts and
Colberian activities. Examine if this renders the company’s
purported environmental stewardship better or worse and if the
company’s public stance should carry an obligation to be a leader
in environmental matters. Support the position. • Analyze the
original purposes of and the changes to Comprehensive Environmental
Response, Compensation, and Liability Act (CERCLA). Determine which
provision(s) of CERCLA apply to PharmaCARE in the scenario
provided. Support the response. • Use at least three (3) quality
resources in this assignment. Note: Wikipedia is not an acceptable
reference and proprietary Websites do not qualify as academic
resources. Your assignment must follow these formatting
requirements: • Be typed, double spaced, using Times New Roman font
(size 12), with one-inch margins on all sides; citations and
references must follow APA or school-specific format. Check with
your professor for any additional instructions. • Include a cover
page containing the title of the assignment, the student’s name,
the professor’s name, the course title, and the date. The cover
page and the reference page are not included in the required
assignment page length.
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