When analyzing the case of Steve Brenda, the CEO of Bendova Pharmaceuticals Ltd., in administering Ouchie drug, there is a misconduct that has both legal and ethical implications. Steve was involved in the tort of deceit. Deception occurs if the defendant makes a false statement, which they know to be untrue, with which they intend to mislead the plaintiff, and which causes the plaintiff to suffer a loss (McInnes et al. 2014, 112). Legal issues involve intentional, untrue statements, while ethical issues involve the consequences of deception which is the harm done to the individuals affected Professionals, such as Steve Brenda, are held responsible if they make false statements. Under Steve’s authority, the expiry date of the shelf life of Ouchie was reduced to 6 months from 12 months. There was no experimental evidence to support …show more content…
Steve Brenda knew that there was no evidence to change the expiry date but ordered to reduce the expiry date. This is also an illegal act. Despite the fact that he made a false statement, he was also well aware of the fact that he was making a change regarding the product without any experimental evidence. He can be held responsible legally for making up untrue information about the drug. Steve Brenda, was assigned to do all that he can to increase the profit of the company. Steve was also promised that for every percentage gain in sales his salary was going to increase substantially, such as hundred thousand dollars for every percentage of increase in sales. This explains why Steve would shorten the expiry date and increase the price of the drug per dose which would bring a huge increase in sales. Steve was deliberately intending to mislead the plaintiff to gain financial advantages from his company. This is also a legal issue which can also be a reason for holding Steve liable for
Even though the contract was properly formed, there was a misrepresentation in Perez’s offer when he said that plaintiff “would be managing the sizeable workload of the company rather than bringing in business.” Judge Scarpulla, ruling for the lower court, said that to claim for fraudulent inducement, a plaintiff must show
Bristol-Myers Squibb is a worldwide health and personal care company with major businesses in medicines, beauty care, nutritionals, and medical devices. BMS is a leader in innovative therapies for cardiovascular, metabolic and infectious diseases, central nervous system and dermatalogical disorders, and cncer. They are also leaders in consumer medicine, orthopaedic devices, ostomy care, wound management, nutritional supplements, infant formulas, and hair and skin care products.Some of the very well known products manufactured by Bristol-Myers Sqibb are Bufferin, Excederin, Enfamil, Clairol, and Sea Breeze. Another large part of BMS is their research and development of new pharmecutical products. Their annual budget for research and development is in excess of one billion dollars.
Today, there are so many legal dilemmas dominating trial for the courts to make a sound legal decision on whose right in a complicated situation. Despite the outcome of the case, the disagreement usually has a profound effect on the healthcare organization, and the industry as a whole. Many cases are arguments centered around if the issue is a legal or moral principle. Regardless what the situation maybe, the final decision is left to the courts to differentiate between the legality issues at hand opposed to justifying a case based on moral rules. According to Pozgar (2012), an ethical dilemma arises in situations where a choice must be made between unpleasant alternative. It can occur whenever a choice involves giving up something good and suffering something bad, no matter what course of action is taken (p. 367). In this paper, I will discuss cases that arose in the healthcare industry that have been tried and brought to justice by the United States court system.
Deontology theory defines an ethical action as one that adheres to a set of rules and duties. PharmaCARE’s actions are unethical by way of this moral compass because the firm has failed to perform in accordance with one very important duty, the duty to safeguard human dignity and basic human rights. Paying $1 a day to its workers and not providing them with even the most basic of amenities is a gross violation of the firm’s obligation to safeguard human rights, which in itself is a morally required behavior and applicable almost universally. PharmaCARE is not treating the Colberians like the treat their executives, nor are they treating the community there as they treat the communities in the
Ethics are the basic concepts and principles of human conduct that relate to morals. Ethical decisions, or unethical decisions, play a highly influence the culture of a society or organisation. In a business environment, ethical behaviour is highly important because not following ethics can lead to negative effects on businesses overall and its stakeholders. The importance of ethics can be observed through an incident that occurred regarding HealthSouth, a healthcare provider in the United States. From 1992-2003, HealthSouth was involved in the embezzlement of financial reports to portray their financial position as better than it was. The founder, Richard M. Scrushy, the executive team, and many employees were involved in this process, all
Silence or Omission: Not coming forward or withholding important information can be highly unethical if it leads to harm or damages
“Most people in the U.S. want to do the right thing, and they want others to do the right thing. Thus, reputation and trust are important to pretty much everyone individuals and organizations. However, individuals do have different values, attributes, and priorities that guide their decisions and behavior. Taken to an extreme, almost any personal value, attribute, or priority can “cause” an ethical breach (e.g. risk taking, love of money or sta...
Rhodes, R. and Strain, J.J. (2004) Whistleblowing in academic Medicine. Journal of Medical Ethics. 30 (1)
Main Issue In 2000, Rich Kender, Vice President of Financial Evaluation and Analysis at Merck & Company was discussing the opportunity of investing in licensing, manufacturing and marketing of Davanrik, a drug originally developed to treat depression by LAB Pharmaceuticals. LAB proposed to sell the rights of all the future profits made from the successful launch of Davanrik at the cost of an initial fee, royalty payments and additional payments as the drug completed each stage of the approval process. Merck & Company's organizational goal is to constantly refresh its drug development portfolio and reach as many customers as possible during the patented period. So there was not only the potential of financial gain or quantitative aspect of the offer, but also the qualitative value which will be added by getting better positioning in the risky pharmaceutical industry.
Threat of new entrants is relatively high. Companies forming alliances are potential rivals. Even if earlier such company was not considered to be a threat, after merging with some research and development company or forming alliance with another pharmaceutical company it would become a rival to Eli Lilly. The threat is however weakened by significant research and development costs necessary to successfully enter the business. Eli Lilly’s focus on a relatively narrow market of sedatives and antidepressants weakens the threat of new entrants, but other products that form lesser part of company’s sales such as insulin and others are exposed to high threat of new entrants. The need of obtaining certificates and licenses also weakens the threat of new entrants. Discussed above leads to the conclusion that threat of new entrants is medium.
One day while doing his job, a physician used a used swab that was possibly infected with HIV on another patient. When looked at by certain people, the doctor did the correct thing by telling his patient that he roused a swab on him/her. However, the chances of this patient getting HIV was substantially low, and he should have waited for the patient to develop symptoms, which would have been rare, before telling the truth. As stated by Michael Greenberg, “he might have done better by keeping his mouth shut.” If the doctor did lie, he could have lied to protect himself, the quality of life of the patient, and his ability to help others with their lives. If he had not told the patient that he used the swab on him/her, he/she would not have had to live in fear of getting HIV. Because of this decision of truth telling, the doctor lost his job, money, confidence, and also affected someone’s quality of life.
Review the scenario below. Consider the legal principles influencing the likelihood of any successful action against Steve in negligence.
I read the next line, “And the ship sailed onward, gliding serenely down the moonlit river toward the dark lands beyond.”
Albert Carr argues that business is a game and that business ethics differs from private life ethics that individuals practice. Carr explains that practices such as bluffing and not telling the whole truth are morally acceptable in business context. Carr claims that one cannot apply a single standard of ethics universally as situations differ from one to another. My response to such claim is that I refuse to accept that businesses cannot be strictly ethical.
Tyco provides products and services across the world. The company is global and diversified providing a variety of products including electronics, healthcare, fire and security services and engineered products and services. While employing over 250,000 people worldwide they grossed approximately $40 billion in revenue in the year 2005. In 2002 Tyco was involved with the corporate scandal where the management mis-appropriated corporation funds. The previous CEO Dennis Kozlowski was convicted in 2005 on 22 counts of the 23 that he was charged with. This is an example of not only a legal issue of responsibility but also one of an ethical issue that the Tyco Corporation has had to face. In the face of the legal and ethical issues that this mishap had placed the corporation in, Tyco placed Ed Breen in as chairman and CEO. Mr. Breen joined the company in 2002 after the scandal and immediately began the rebuild of the company’s name. With the appointment of Ed Breen and his changing of the company’s ethical standards (to be discussed in the next portion of the paper) he promotes the legal responsibilities of not only the company’s employees but the responsibilities of the suppliers and buyers to report any wrong doing. This reporting also speaks to the ethics of the Tyco corporation employees as well as those of the companies th...