Ethics and Corporate Responsibility

Custom Student Mr. Teacher ENG 1001-04 21 August 2016

Ethics and Corporate Responsibility


PharmaCARE is on of the world’s most successful pharmaceutical companies. This paper will take a look at Ethics and Corporate Responsibility in the work place and the world and how PharmaCare provided insight to their stakeholders CompCare and who takes on the overall ethical and social responsibilities of the organization. The importances of the decisions made by management are discussed as well as the ability to make changes to support a more ethical work environment. The ability to improve operations and turn a profit are explained by discussing management’s requirements to abide by regulations governed by the Occupational Safety and Health Administration, Federal Drug Administration, Environmental Protection Agency, Equal Employment Opportunity , Comprehensive Environmental Response Compensation and Liability Act and other regulatory policies

Ethics and Corporate Responsibility in the Workplace and the World Introduction


This paper will examine PharmaCare’s ethical and social responsibility around its operations, products, and obligation to stakeholders. PharmaCare, a renowned fortune 500 pharmaceutical company listed on the NASDAQ is one of the companies that have all these initiatives in place. It is considered one of the most ethical and social responsible companies in the world due to many initiatives it takes to commit to its responsibility to protect the environment and enhance the quality of life for millions around the world. In recent years, many companies have managed to become a benefit corporation (B-corporation).

This legal form of corporation is to provide legal protection to management that want to both maximize shareholder income and pursue a social or environmental agenda (Andre, 2012). This paradigm shift is due to consumer’s awareness, global warming and globalization in the business world. All global companies have developed ethical, environmental and sustainability policies for their employees, suppliers, contractors and other stakeholders to follow.

Key characteristics of Stakeholders within the PharmaCARE scenario

PharmaCare has a legal obligation to all of these stakeholders. The Company needs the employees to carry out its day-to-day operation in so doing; they may offer many incentives to keep the best employees. The suppliers are one of the main factors to this chain because they have to provide the machinery or raw material because employees can produce a product. The shareholders, investors and creditors are the parties providing funding for PharmaCare to operate.

Human rights issues of the Colberia’s population versus that of its Executives

Several firms have faced legal suits due to the manner in which they have treated the public, workers, consumers, and the environment during their business activities. For instance, the competition bureau of Canada found Azko Nobel Chemicals BV guilty and they were charged in the federal court of Canada on August 18, 2003. The company had taken part in a conspiracy to fix market prices for a crucial food additive that was an essential ingredient for an important animal feed and a chemical use that was in several commercial and consumer products. The company was fined $2.9 million by the court (American Bar Association, 2002).

Many consumers as well as social interest groups believe that firms should not only aim at maximizing their profits but they also put into focus the social implications of their business activities. Social responsibility has been defined as acting with concern and sensitivity and the awareness of the impact of your actions on others, particularly the disadvantaged (Entrepreneur, 2014). Some of the very basic ethical and social responsibility issues have been put within the contact of laws and regulations that will encourage business organizations to be in conformity to societal standards, values, and attitudes. The minimum expectation for business managers is that they should abide to and uphold these rules and regulations (Griseri & Seppala, 2010). The majority of the legal and ethical issues that arise are as a result of choices that are deemed unethical, irresponsible, or otherwise acceptable by the society. It is however worth noting that not all actions that the society deems unethical may not necessarily be illegal since both legal and ethical issues are dynamic (Hines, 2000).

In this case, the manner in which PharmaCARE has treated Colberia’s indigenous population falls within the definition of unethical practices as well as unacceptable corporate behavior. To start with the company has unfair compensation policies that pay huge salaries to executives and exploit the rank-to-file workers. These workers receive poor salaries and are exposed to harsh and unsafe working conditions. In addition, the company subjects the workers to unsafe working conditions. Recommend at least three (3) changes PharmaCARE can make to be more ethical going forward. Make stronger the connection among the rank-and-file personnel and management. This will allow the corporation to come up with good tactical plan which will boost the company in realizing its missions and goals. Contribute in various corporate social activities. This is though hiring Colberians and compensating them well.

They should also work hard to improve Colberians’ standards of living. Follow the laid US laws to the letter, for instance, environmental laws as well as intellectual property la Assessing PharmaCARE’s environmental initiative against the backdrop of its anti-environmental lobbying efforts and Colberian activities. PharmaCARE exposes its workers to unhealthy working conditions. Many of the employees have been falling sick as a result of inhaling toxic substances arising from the company’s laboratories. Even with full knowledge of the situation, the management has refused to take any remedial action and the workers continue to suffer. Further, the company has been accused of supplying an unsafe drug to the market that has been associated with many cardiac deaths. As a result of these happenings, the company’s purported environmental stewardship initiative will be rendered ineffective especially in the wake of the lobbying efforts against the company’s operations in Colberia. The company has engaged in acts that may be considered unethical and socially unacceptable.

PharmaCARE therefore lacks the moral authority to spearhead environmental matters since its reputation in the public has been seriously damaged. In addition, the company’s alleged mistreatment of its workers subjects it to sabotage of its environmental efforts especially when the workers’ health continue to deteriorate because of the company’s negligence. Would PharmaCARE’s actions be ethical with respect to the indigenous people of Colberia in accordance with the following ethical theories. Utilitarianism- PharmaCare’s uses Colberian intellectual property because it does maximize resources, but does not promote happiness. People in Colberian work so hard but still live in harsh conditions. They have no pleasure and endure pain, which is a clear depiction of unhappiness. In addition, the workers who are members of the Colberian population suffer due to poor working conditions. PharmaCare’s actions were unethical. Deontology – the company has an “obligation” to be morally responsible as well as provide healthy working conditions to the employees.

The company had been informed of the dangers surrounding the drug production but failed to act accordingly to assist in reducing the risk. PharmaCare’s actions were unethical. Virtue ethics- Virtue ethics is person, rather than action based: it looks at the virtue or moral character of the person carrying out an action, rather than at ethical duties and rules, or the consequences of particular actions (BBC, 2009). Though PharmaCare was justified by intellectual property right to go ahead and carry out its duties, the activities were wrong and unethical since the character of company officials was negative. PharmaCare’s actions were unethical. Ethics of care- by analyzing the company’s actions based on ethics of care, the company’s activities emerge as unethical. As an ethic grounded in voice and relationships, in the importance of everyone having a voice, being listened to carefully and heard with respect.

An ethics of care directs our attention to the need for responsiveness in relationships and to the costs of losing connection with oneself or with others (Gilligan, 2011). Since the Colberian people’s response was negative by their complaining, the entire company’s project was unethical. Your own moral / ethical compass- from a personal point of view, PhamaCare activities were unethical because it had the responsibility of carrying out thorough research before administering any drugs, providing decent working conditions to its employees and educating patients about the negative effects of the drug. Therefore, the fact that the company neglected its duties and received negative responses to activities carried out shows that it was unethical. PharmaCARE’s actions with those of at least one (1) real-world company, whose corporate activities led to ethical, environmental, or workplace safety issues and financial loss.

There are many examples of corporations that have been call out by the public on questions of ethics, environmental responsibility, workplace safety an d financial loss. There are six areas in particular where ethical issues arise in the organizations: compensation; conflicts of interest; publications and solicitation; financial integrity; investment policies; and accountability and strategic management (Rhode & Packet, 2009). Some examples of outrageous unethical behavior by corporation the compare to PharmaCare’s actions:

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  • University/College: University of California

  • Type of paper: Thesis/Dissertation Chapter

  • Date: 21 August 2016

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