Merck and Vioxx Analysis
Business and Professional Ethics
MERCK AND THE MARKETING OF VIOXX – CASE ANALYSIS
Questions
1) What are the highlights of the case?
2) What are the ethical issues in the case?
3) What the ethical theories evidenced in the case?
4) How would you resolve the problem?
What are the ethical issues in the case?
In identifying the issue(s) we first have to identify the level in which this business is operating. Merck & Company was a top, well respected pharmaceutical company in America as ranked by Fortune Magazine. We have now therefore eliminated the individual level of ethical thinking for CEO Raymond Gilmartin. Merck is operating on an organizational level and as CEO the issues faced are role oriented, this forces him to consider the implications of actions not to himself but to all parties concerned, that is the customers, investors and any stakeholders whose expectations are to be met. The ethical issues arising from this case are highlighted below:
1) Where should Merck & Company loyalty lie?
Should the company report the effects to the FDA and risk excessive losses for the company and its shareholders to save customers lives and possibly disappoint shareholders or Should they release the drugs and reap the profits?
2) Was Merck really acting in pursuit of their own self interests in aim of excessive profits and majority market share despite the risks?
If they were considering shareholders or customers they would have examined the fact that releasing a defective drug may potentially harm the shareholders.
3) Was Merck and Company as ethical as they marketed the company to be?
When conflicting results and doubts first surfaced, why did they turn a blind eye, the ethical person would have insisted on further research instead of spending so much money on marketing and creating strategies to “DODGE “ obvious harms.
What are the ethical theories evidenced in the case?
There are four theories evidenced. The first is that of the
MERCK AND THE MARKETING OF VIOXX – CASE ANALYSIS
Questions
1) What are the highlights of the case?
2) What are the ethical issues in the case?
3) What the ethical theories evidenced in the case?
4) How would you resolve the problem?
What are the ethical issues in the case?
In identifying the issue(s) we first have to identify the level in which this business is operating. Merck & Company was a top, well respected pharmaceutical company in America as ranked by Fortune Magazine. We have now therefore eliminated the individual level of ethical thinking for CEO Raymond Gilmartin. Merck is operating on an organizational level and as CEO the issues faced are role oriented, this forces him to consider the implications of actions not to himself but to all parties concerned, that is the customers, investors and any stakeholders whose expectations are to be met. The ethical issues arising from this case are highlighted below:
1) Where should Merck & Company loyalty lie?
Should the company report the effects to the FDA and risk excessive losses for the company and its shareholders to save customers lives and possibly disappoint shareholders or Should they release the drugs and reap the profits?
2) Was Merck really acting in pursuit of their own self interests in aim of excessive profits and majority market share despite the risks?
If they were considering shareholders or customers they would have examined the fact that releasing a defective drug may potentially harm the shareholders.
3) Was Merck and Company as ethical as they marketed the company to be?
When conflicting results and doubts first surfaced, why did they turn a blind eye, the ethical person would have insisted on further research instead of spending so much money on marketing and creating strategies to “DODGE “ obvious harms.
What are the ethical theories evidenced in the case?
There are four theories evidenced. The first is that of the
References: Boatright, J. (2012). Ethics and the conduct of business. Pearson: Loyola University Chicago.