Ethics and Corporate Responsibility in the Workplace and the World
PharmaCARE: Ethics and Corporate Responsibility in the Workplace and the World
PharmaCARE: Ethics and Corporate Responsibility in the Workplace and the World
In any type of business or organization there are ethical issues, conflicts, and successes revolving around relationships. It is those relationships considered one of the key areas of making the business function. The relationships between customers, the employees, managers, supervisors, shareholders, investors and suppliers all shape the course of the business in order for it to be successful. In addition, an organization usually has a governing authority; called a board of directors, which provides oversight and guidance to make sure that the organization keeps focused on objectives in a legal, ethical and socially acceptable manner. Often unethical acts are discovered in organizations; therefore, relationships are not only associated with organizational success but also with organizational misconduct. ("An overview of," 2006) As in the case with PharmaCARE, there were multiple unethical issues due to bad decision making within the company; decisions that affected employees, business partners, and customers. As a result, its stock price plummeted.
Stakeholders are those who may be affected by or have an effect on an effort. Most ethical issues exist because of conflicts in values and belief patterns about right and wrong between and within stakeholder groups. There are three types of stakeholders:
* Primary stakeholders are the people or groups that stand to be directly affected, either positively or negatively, by an effort or the actions of an agency, institution, or organization. In some cases, there are primary stakeholders on both sides of the equation: a regulation that benefits one group may have a negative effect on another.
* Secondary stakeholders are people or groups that are indirectly affected, either positively or negatively, by an effort or the actions of an agency, institution, or organization.
* Key stakeholders are those who can have a positive or negative effect on an effort or who are important within or to an organization, agency, or institution engaged in an effort. Key stakeholders might belong to either or neither of the first two groups. The director of an organization might be an obvious key stakeholder, but so might the line staff; those who work directly with participants, who carry out the work of the effort. (Rabinowitz, 2013)
In this particular scenario with PharmaCARE, one can determine multiple stakeholders. One key stakeholder who would be considered a primary stakeholder too is the CEO of PharmaCare; who is also on the board. The board of directors is also stakeholders since they oversee the choices the company makes and are heavily involved in guiding the company. Shareholders are secondary stakeholders who are indirectly being affected, in this case negatively, by the choices the company has made. Lobbyist are also stakeholders in this case, their negative efforts have successfully defeated environmental laws and regulations. Rather ironic, considering the company launched a new initiative pledging its commitment to the environment. The local healers being use off the manufacturing facility in Africa are also stakeholders. The PharmaCare executives are also stakeholders negatively affecting the effort and giving a bad example as they stay in a luxurious hotel, using countless amenities, while in the mean time the people around them are living in horrible conditions without electricity and running water. Pharmacists are secondary stakeholders who are indirectly affecting the effort by reformulating one of PharmaCARE drugs in order to maximize its effects. Indirectly, the FDA is also considered a stakeholder in this case. PharmaCARE has found a way to go around FDA regulations by establishing a wholly-owned subsidiary to operate the drugs and sell it to
