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Bio Hemi

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Submitted By starone24
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Bio Hemi’s dilemma Bio Hemi, Inc. had struggled over their medical supplies issue. It is a large company that sells blood treatment to hemophiliacs. However, the federal Centers for Disease Control claimed that several hemophiliacs got the AIDS, and CDC believed that plasma donors spread the AIDS epidemic. Soon, CDC indicated that most of patients who used unemulsified plasma products were HIV positive, yet emulsified products prevented the AIDS contamination. The company still had excess stock of version of medicine that was no longer marketable in US and Europe. Also, there were some fixed-price contracts that required company either to make old version of product to meet profit margin or to make new version which would not meet profit return. The company looked for Central and South American market to sell old version of medicine where information about hemophiliac was not known yet. They were in the middle of the ethical issue. However, discarding products could bear a large loss for the company. This also could have negative affect on company’s stock and bonuses.
In this case, assuming I am the accountant of the company product team which reviews status of the old version of medicine and a member of Institute of Management Accountants, I will recommend make a new version of the product to the company even if the company does not meet the target return for their investments. Company’s image directly affects company’s sales. Therefore it is very important for companies to behave ethically. Assuming the company keeps producing old version products to complete fixed-price contracts and also exports them to other countries that do not have enough information in hemophiliac treatments yet, more hemophiliacs will be exposed in danger of disease. It may kill many patients. As time goes, people eventually will recognize Bio Hemi produces old products and still sells

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