...Ethics Essay By Christopher Matthews Business Law 210 May 14th, 2012 Professor Scott Bergstedt Stance on Merck/ Overview: It is the view of the author to discuss in detail why and how Merck caused gross negligence in its marketing and labeling practices. During this discussion, I will outline several instances where Merck has plead guilty to numerous law suits spanning from the United States to Great Britain (UK). In addition, I will define ethics and based on ethical business practices and attempt to identify what Merck may have done to prevent such unethical and in some cases immoral behavior. Brief History of case: In 2004, Vioxx (Rofecoxib), an anti inflammatory, pain-reliving medication, to treat such conditions as osteoarthritis and acute pain had been recalled by the Food and Drug Administration (FDA). Several reasons include illegal marketing and label practices, concealment of known side effects, intentionally misleading the general public, medical professionals and government officials. “Vioxx was taken by more than 80 million people worldwide before it was recalled in 2004 (Independent 2010). Merck, Sharpe & Dohme (Merck), Vioxx’s manufacturer vigorously denied any wrong doing and from 1994 thru 2011, several multi-national law suits were sought pertaining to the overall liability and health hazards that Merck had placed on the general public. United States v. Merck: In late November of 2011, the US Department of Justice...
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...Vioxx Rod Carveth, Marywood University Claire Ferraris, Western Oregon University Nick Backus, Western Oregon University Abstract In this paper we demonstrate how to focus an empirical application in reaching an ethical decision by working with the Potter Box, a model created by Ralph Potter as an analytical tool assessing the ethics of corporate decision-making, The facts emerging in news accounts regarding lawsuits against the pharmaceutical company Merck and its painkiller Vioxx are analyzed for ethical consideration. Utilizing the Potter Box model, the case against Merck can be interpreted and studied in light of ethical considerations. The results demonstrate not only how a decision is argued, but what is missing in the overall consideration for the decision. Introduction The mythos of freedom and responsibility in the United States is premised on the ethical actions of members of the society, particularly those in positions of power. And ethics in communication takes a place of preeminence since the words spoken by authorities are often all a public relies upon to pass judgment. How is the citizen or the communication analyst to evaluate the ethics of the utterances of others? And how does the communicator determine the ethical appropriateness of a planned message? This paper is an introduction to an accessible method of ethical decision-making in communication. The Potter Box allows both student and scholar to analyze the ethical responsibilities of communicators in terms...
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...Merck and Co. and river blindness MANUEL VELASQUEZ, Business Ethics. Concepts and cases 4th edt., Prentice Hall, Upper Saddle River, New Jersey, 1998 River blindness is an agonizing disease that affects some 18 million impoverished people living in remote villages along the banks of rivers in tropical regions of Africa and Latin America. The disease is caused by a tiny parasitic worm that is passed from person to person by the bite of the black fly which breeds in river waters. The tiny worms burrow under a person's skin where they grow as long as two feet curled up inside ugly round nodules half an inch to an inch in diameter. Inside the nodules the worms reproduce by releasing millions of microscopic offsprings called microfilaria that wriggle their way throughout the body moving beneath the skin, discoloring it as they migrate, and causing lesions and such intense itching that victims sometimes commit suicide. Eventually, the microfilaria invade the eyes and gradually blind the victim. Spraying pesticides to eradicate the black fly faltered when it developed an immunity to the pesticides. Moreover, the only drugs available to treat the parasite in humans have been so expensive, have such severe side effects, and require such lenghty hospital stays that the treatments are impractical for the destitute victims who live in isolated villages. In many countries people have fled the areas along the rivers, abandoning large tracts of rich fertile land. Many of them, however...
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...Ethics and the Conduct of Business, 7/e Boatright ©2012 / ISBN: 9780205053131 Chapter begins on next page > PLEASE NOTE: This sample chapter was prepared in advance of book publication. Additional changes may appear in the published book. To request an examination copy or for additional information, please visit us at www.pearsonhighered.com or contact your Pearson representative at www.pearsonhighered.com/replocator. C H A P T E R 1 Ethics in the World of Business Listen to the Chapter Audio on mythinkinglab.com CASE 1.1 Explore the Concept on mythinkinglab.com Merck and the Marketing of Vioxx On September 30, 2004, Merck & Co. announced the withdrawal of Vioxx, its highly profitable pain reliever for arthritis sufferers, from the market.1 This announcement came only seven days after company researchers found in a clinical trial that subjects who used Vioxx more than 18 months had a substantially higher incidence of heart attacks. Merck chairman and CEO Raymond V. Gilmartin described the action as “the responsible thing to do.” He explained, “It’s built into the principles of the company to think in this fashion. That’s why the management team came to such an easy conclusion.”2 In the lawsuits that followed, however, damaging documents emerged casting doubt on Merck’s claim that it had acted responsibly by taking appropriate precautions in the development and marketing of the drug. For decades, Merck’s stellar reputation rested on the company’s...
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...Walk the Ethical Talk Case Analysis Introduction and situational analysis: In the late 1970’s a disease known as onchocerciasis was running rampant throughout much of Africa and parts of Latin and South America. Onchocerciasis which is also known as “river blindness”, an insect-borne disease, caused by a nematode worm , Onchocerca volvulus affecting both a person’s skin and eyes and is transmitted to humans by the bite of blackflies. Symptoms of this disease range from irritating and intense itching, to disfiguring dermatitis and skin and eye lesions, and ultimately can lead to sight impairment and blindness. Onchocerciasis has been classified as the “second leading cause of infectious blindness” (Water Related Diseases, 2011). During the development of the veterinary drug ivermectin, research scientist William C. Campbell, speculated on the potential the drug would have for human application; ivermectin was being developed to combat parasitic worms in livestock which are very similar to the worms that caused onchocerciasis. Campbell wrote a letter to the head of Merck’s research laboratories, who at the time was P. Roy Vagelos, requesting development of ivermectin for human use. Campbell's request causes a dilemma, the only viable uses for the drug would be for people who living in some of the poorest countries in the world; how could Merck underwrite the development of such a product for which there would most likely be of no economic value? On average...
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...CONSENSUAL RELATIOSHIP AGREEMENTS CASE STUDY Ethic is a one of important competency in the relationship between the basic organizational behavior models of individual, group, and organizational processes. Ethic competency is a wide section, which include vary sub topic related with organizational behavior. This paper discuss one section of Ethic Competency is diversity and specifically Consensual Relationship Agreements into diversity section. The paper clarifies to followings. • Consensual Relationship Agreements (CRAs) in my future workplace. • A counter argument against the use of CRAs in my future workplace • The ethical principles involve in the use of CRAs • One other option besides CRAs that would address workplace romances. Consensual Relationship Agreements ( CRAs ) are becoming more important everyday into business environment. Several research show, whoever share same work place in average 40 hours per week, some of workers discover their common interest and enjoy sharing time together. Different companies have different policies and procedures and the company would like to sign contract before hiring someone and they will show companies vision about consensual relationship into work place. In the future I would like to choose my career path in the health care industry and I would like to work at a pharmaceutical company due to my previous experience and my background of education. Merck is a one of the company into global...
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...Ethical? In the late 1990s, a pharmaceutical company called Merck was a leader in this industry. The pharmaceutical industry required millions of dollars and great amounts of time to be invested in research and development. From 1995 to 2001, Merck was successful in releasing 13 major drugs into the market. One of these drugs was one that would treat rheumatoid arthritis. The drug, Vioxx, acquired the approval of the Food and Drug Administration (FDA) in May 2009 (Cavusgil, 2007). Vioxx became one of the top five selling drugs in the market in the next five years. However, Merck pulled the drug from the market on September 30, 2004 due to increased observations of cardiac arrest and stroke in many consumers. Merck faced an ethical dilemma when it found increased observations of cardiovascular problems in patients. However, it took many years for the company to pull its top selling drugs from the market. The ethical issue, the interested parties and solutions will be addressed in the following paragraphs (Brooks & Dunn, 2012). Ethical Dilemma As in many industries, the pharmaceutical industry has great competition. Vioxx was competing successfully with Pfizer’s products, Celebrex and Bextra. However, Merck’s product was especially thriving because, unlike Celebrex and Bextra, Vioxx did not contain naproxen. This ingredient is harmful to the gastrointestinal system (Cavusgil, 2007). By 2003, Vioxx gained revenue for Merck that reached $2.5 billion per year and was available in 80...
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...have ethics to be effective for the long term in the corporate world. These leaders generally implement ethical programs in order to influence an organizations climate (Yukl, 2010). I will evaluate the importance of ethical leadership and the role it plays into today’s organizations. In addition, I will discuss the repercussions a company may have when its leadership allows and even rewards unethical business practices. Lastly, I will apply my personal leadership perspective. My perspective will include the path-goal theory and ethical practices that I find important to leadership in an organization. Ethical Leadership In the midst of making money in a business, when do ethics come into play? In any organization an effective leader must have people that will follow him or her. Generally speaking people will follow someone that is ethical and moral over a leader that is dishonest and immoral. This is just my observation through years of working. I know for me and many others the leaders I have followed, they were highly ethical in their business practices. The most effective leaders were those who empowered their employees to follow the same model of integrity. Velasquez (2006) states “when employees believe an organization is just, they are more willing to follow the organization’s managers, do what managers say, and see managers’ leadership as legitimate. In short, ethics is a key component of effective management” (p. 41). With this in mind, who decides what ethics really...
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...in more distant areas. In 1978 Dr. Campbell made the discovery of ivermectin, a new ant parasitic compound under investigation for use in animals. Campbell felt that ivermectin was the answer to the disease river blindness that plagued millions in the Third World. In order to find out if Campbell's hypothesis held true, Merck would have to spend millions of dollars to develop the right strain for human use, conduct the field trials in the most remote parts of the world. Even if these efforts produced an effective and safe drug, virtually none of those afflicted with river blindness could afford to buy it. Dr. Ray Vagelos, originally a university researcher but by then a Merck executive, was faced with decision of investing in research for a drug that, even it was successful, it might never pay for itself. Many potential drugs offered little chance of financial gain. Argument I believe that Merck and Dr. Vagelos have the moral obligation to proceed with the development of Ivermectin, because it would save millions of people. Adam Locke states that most decisions are made out of self- interest, which is very true. In this case a decision...
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...Do you believe that Merck acted in a socially responsible and ethical manner with regard to Vioxx? Why or why not? In your answer, please address the company’s drug development and testing, marketing and advertising, relationships with government regulators and policymakers, and handling of the recall. No, Merck didn’t act in a corporate social responsibility in regards to Vioxx. Corporate social responsibility means that a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment. Over a five year period from 1999 to 2004 over 139,000 people in the United States has had a heart attack or stroke as a result of taking Vioxx about 55,000 of them died. When a business is ranked on being highly successful they are mostly being ranked on profit not the amount of people they helped or cured. The pharmaceutical giant Merck that manufactured Vioxx was ranked number three of the world’s top pharmaceutical companies with sales of $30.78 billion dollars and profits of $7.8 billion. In the eight-page letter, the FDA says Merck engaged "in a promotional campaign for Vioxx that minimizes the potentially serious cardiovascular findings that were observed" in a clinical trial comparing Vioxx to naproxen, a less-expensive painkiller. "Your promotional campaign discounts the fact" that in the trial, "patients on Vioxx were observed to have a four to five-fold increase"...
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...Case Study: Merck and the Vioxx Recall Kelvin Gabel Benedictine University Case Study: Merck and the Vioxx Recall According to Lawrence and Weber (2014), former Merck CEO George W. Merck implied a corporate vision of social responsibility for Merck & Co., Inc. (Merck) when he stated in 1950 that medicine was for the people and that loyalty to that concept would lead to greater profits. On the surface, it appears Merck has historically lived its declared mission of putting people first. This is demonstrated by the company forfeiting patent and profits from the antibiotic streptomycin and the drug Mectizan (Lawrence, 2014). Merck was well rewarded for its people first philosophy. Though it was ranked fifth in asset and market value, it ranked first in profits. Additionally the company had a stellar reputation of being perceived as the most ethical and socially responsible of the major drug companies (Lawrence, 2014). Today Merck Pharmaceutical’s mission statement is “to discover, develop and provide innovative products and services that save and improve lives around the world (Merck, 2015).” Reading Merck’s current mission statement lacks both the compassion of placing people first and the implied social responsibility of Mr. Merck’s statement in 1950. To be contextually correct historically in forming a view of Merck and the Vioxx recall issue, I sought to find a corporate mission statement from the period of the recall which was in 2006. According to Culp...
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...Merck and River Blindness Felicia Wiggins and Julie Helling PHL 323 July 16, 2012 Dr. John Rhome Merck and River Blindness Merck Company researches and develops medications for human and animal use, to improve health and well-being. Merck is a business, driven by fundamental values motivated by a desire to improve human life, accomplish scientific quality, operate with the highest standards of integrity, expand access to Merck products and employ a varied staff that values teamwork (Merck, 2009-2012). The Problem The problem is not the production of a medication that will help thousands of people in the Middle East, Africa, and Latin America from a parasite produced by a small black fly when the person is bit referred to as River Blindness. The problem is whether to produce this medication, ivermectin, which costs several millions dollars for Merck to produce. Merck would never be able to recoup its money because the people who need this drug are small and these people would not be able to purchase the medication. Company scientists encouraged Merck to invest in further research to determine if the medicine ivermectin could be altered to be safe for human consumption when Merck could not realize a profit. Because resources limited, money and time have to go into the research and development of medications that will produce a profit for Merck. This allows Merck to further relieve human suffering and gain a profit to keep continuing to produce medicines. Rare diseases...
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...Merck & Costa Rica Case Study Rory S Smith Ethics in Global Environment State University of New York Empire State College Introduction Companies globally are often times scrutinize for their business practices. They face strong opposition and public humiliation when they conduct their business in an unethical way. When companies operate globally, they must ensure they are operating in a socially responsible manner. Being socially responsible is not just giving back to the local community but to be aware of any unforeseen threats that may affect the business. Many countries around the world do not have strict laws governing the preservation of their natural resources. Global companies see this to their advantage to reap the natural resources and leaving back not an ounce of guilt, for a country’s social and economic instability caused by their actions. Industries like manufacturing, pharmaceutical and oil refinery, many corporations contribute to the injustice of violating human rights and the environment. As the business world and economy evolves into a free market enterprise, many corporations continue to demonstrate poor business practices and it is becoming difficult to hold them liable for their actions. Many corporations are also being very silent about their unjust business practices and have many ways to cover up any reported abuse. Countries that experience environmental violations, should impose strict regulatory policies so that...
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...patients and health care professionals to help patients achieve better health.” (Stange, K.C., 2007). However, manipulating the public by distributing placebos to one group of people and the actual drug to another group of people is a bad way of communication. People who are on the state boards regulate compounding but the federal also has a part in it. According to Roth, “The FDA’s Office of Criminal Investigations (OCI) is working to monitor the schemes that have been going on with the compounding pharmacies.” Even though the FDA is aware of how law resources are needed, and how to direct the compounding pharmacy industries, I believe that they should be more involved when it comes to compounding medication due all of the meningitis cases that are arising. Companies are still challenging the FDA right to conduct an inspection of their facilities and also full access to their records. When states and some consumers reach out to the FDA for assistance, I believe that they should be able to work...
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...What are the basic facts – event, history, stories? * Merck & Co. Inc. which is a the largest producers of prescription drugs has created a medicine called Ivermectin for treating animals for such as horses, sheep’s, pigs and others against many intestinal worms, mites, ticks and insects. While they were doing clinical testing Dr. William Campbell who is a researcher found out that it was effective against a parasite in horses that was similar to the parasite that causes river blindness. * River blindness is cause by a tiny black fly near river banks in third world countries that could bit humans with a parasitic worm (Onhocerca Volvulus) that could grow to two feet inside which releases a microscopic offspring’s (microfilariae) which swarm thru the body tissue that cases a very irritating itch that led to some people committing subside. Some 85 million people are infected by this. After many year in the system the microscopic offspring cause skin depigmentation of skin eventually invading the eye causing blindness. What are the ethical issues, concerns, problems? * The ethical issue with this is that the Merck & Co Inc. Dr. P. Roy Vagelos has to decide to either fund the Iermectin drug to be made for humans that have been brought up by Dr. Campbell to cure river blindness. The drug could cure the river blindness but it would not make enough profit to even pay off for the fund invested for research, it is because most of the people who need the drug are...
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