Due to the recent findings in regards to the unemulsified plasma product, BioHemi has been faced with a difficult decision. Both options will affect large numbers of people. On one hand, BioHemi can continue to sell the unemulsified product and save millions of dollars. However, this would be harmful and potentially even fatal for thousands of hemophiliacs. On the other hand, BioHemi could stop selling the unemulsified product and not endanger hemophiliacs that would be unknowingly taking a potentially deadly product. However, this would inhibit research and development and ultimately take money away from shareholders and employees. After weighing the options, we have come to the consensus that BioHemi cannot continue to sell the unemulsified product. Furthermore, BioHemi needs to stop production of the unemulsified product and only sell the emulsified product to the customers that we have fixed contracts with. The most important reason we cannot in good faith sell the unemulsified product is because we are infecting humans with a life threatening disease. This is especially true when the consumer is under the impression that the product is going to improve their condition.
Seventy-four percent of the consumers contracted HIV from our unemulsified product. In addition, we are indirectly responsible for taking even more lives than just the hemophiliacs that contract HIV. The hemophiliacs will likely pass the disease on to others, who in turn can pass it on to others. Without proper testing and education, one does not know if they are infected with the disease and can therefore continue the spread of the disease. Keeping our profit margins high is not a justification for killing innocent people. Every human life is equal and should be treated as such. Ethically one cannot put a price on a human life. We have reviewed the option of continuing to sell the product in third world markets. However, the competence standard of the IMA code of ethics conflicts with this. The code states that, “Each practitioner has a responsibility to perform professional duties in accordance with relevant laws, regulations, and technical standards.” Under United States law it is illegal to intentionally transmit HIV. We believe that selling the old product without first informing the customer of the dangers of the pooled plasma is equivalent to intentionally transmitting HIV. Thus continuing to sell the unemulsified product is a violation of United States law, and therefore a violation of the IMA code of ethics. While we understand that in the short run this can help us meet our target returns we have to take into account the potential losses our company can incur. If HIV transmissions, and ultimately death, start getting linked to our product we could have a class action lawsuit on our hands. The lawsuits alone could be exponentially larger than the loss of unused inventory, and could potentially set our company into bankruptcy. We understand that no longer selling the unemulsified product will cause decreases in bonuses, stock price, and research and development funds. Employees will not be happy with losing a bonus; however, because our company has the potential to go bankrupt, they would unanimously take a pay cut rather than lose their job. Also if there is no company then there is no need for research and development. If we are able to survive these lawsuits, then the reputation of our company would be severly tainted. The medical industry is built on trust. If we cannot be trusted then we are discrediting the healthcare profession. The integrity section of the IMA code of ethics states that one should, “abstain from engaging in or supporting any activity that might discredit the profession.” When someone gets sick they go see a doctor and get a diagnosis. The doctor then prescribes the patient with some kind of treatment and the patient takes the treatment fully trusting that doctor has given them something to improve their condition. By selling a product that the company knows is linked to HIV, BioHemi could potentially discredit the entire industry.
Another segment of the IMA code of ethics that we would be violating is the credibility clause. This clause states that, “each practitioner has a responsibility to communicate information fairly and objectively [and] disclose all relevant information that could reasonably be expected to influence an intended users understanding of the reports, analysis, and recommendations.” Full disclosure is a critical part of ethical accounting. The reading states that, “Fearing a loss of customers, BioHemi Products conceived a marketing plan that stopped well short of full disclosure.” We have considered the idea of continuing to sell the unemulsified product with a warning label. However, we have found this solution to be problematic. For one, a patient on a hospital bed would not be guaranteed the option to read the warning label, therefore making the label irrelevant. Furthermore, selling this product in third world countries we cannot guarantee that every potential consumer has the ability to read and comprehend the precautions on the warning label. We have also considered that if a person is in danger of bleeding out that they would like to have the choice of whether or not to take the plasma. They would rather live a few more years with an infectious disease than die immediately. However, when push comes to shove we are still selling a potentially deadly product. Additionally, there is a possibility that the hemophiliac would have survived the bleed out without the plasma. Now they will more than likely contract HIV and die from our product. Furthermore, this heightens the risk of unknowingly passing the disease on to innocent people. We realize that BioHemi is taking a big risk by stopping the production and sales of the unemulsified plasma product. However, both ethically and fiscally we think that this is the best option for the company moving forward. We considered all the options but because of the ethics of infecting innocent humans, the possibility of lawsuits, and the damage to our reputation we have a firm stance on this issue. Our company will incur losses but we need to consider the bigger picture. In the long run, this decision can have drastic effects on our company’s future. We hope you will take our recommendation into consideration while making this difficult decision.