An Ethical Examination Abbott And The Pharmaceutical Industry Commerce Essay

Despite the pharmaceutical industry holding noteworthy parts to society, including the research and development of the oxycontin to relief peoples pain, there has been some ethical jobs that arose. The industry has the patent issue and tonss of people abuse the drug. It was thought of as an unethical issue from the Abbott instance and companies bring forthing oxycontin to acquire benefits. Some companies besides pay doctors to order their drugs. Whereas, oxycontin is the best drug to let go of hurting and pharmaceutical industry and it is really good to economic system.

This study will analyze the different facets refering to the subject of “ Ethical motives of the Pharmaceutical Industry ” . On overview of history, development, and value concatenation of the Canadian pharmaceutical industry will be discussed. Then, the PEST analysis of Abbott is being talked. The indispensable stockholder groups of involvement are on treatment in inside informations. The blessing procedure for new drugs, the possible over-medication of societies and the function of pharmaceutical companies are described. Meanwhile, the economic and societal impacts of the production and distribution of Oxycodone from the following positions will be analyzed: 1. Utilitarianism ; 2. Rights ; 3. Justice ; 4. Virtue Ethics. This study concludes with the issue direction attack demonstrated by the Canadian authorities and Carroll ‘s four portion corporate societal duty definitions, and which is from the positions of economic, legal, ethical, and philanthropic. Corporate societal public presentations, such as auditing, coverage, communicating should be recorded in footings of doing the direction know the jobs or updates within the lower degrees of direction to do effectual policies.

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Table of Context

Introductionaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦.aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦.aˆ¦ … aˆ¦aˆ¦.pg.4

Part 1

History & A ; Developmentaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦.aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦.pg.4

Value Chainaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦pg.5

Comprehensive Analysis of the Industryaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦

Part 2

Pest analysis for Abbottaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦..aˆ¦pg.9

Six Main Stakeholders Interestsaˆ¦aˆ¦aˆ¦aˆ¦.aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦.aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦

Part 3

The production and usage of Oxycodoneaˆ¦.aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ … .pg.15

Drug patentsaˆ¦.aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦.aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦pg.16

The blessing procedure for new drugsaˆ¦.aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ … .pg.17

The possible over-medication of societies and the function of pharmaceutical companiesaˆ¦aˆ¦pg.18

Part 4


Rightsaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦.aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ … aˆ¦aˆ¦aˆ¦pg.21

Justice aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦..aˆ¦.pg.22

Virtue Ethicsaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦.aˆ¦aˆ¦aˆ¦pg.24

Part 5

Corporate Social Responsibility, Corporate Social Responsiveness,

Corporte Social Performanceaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ … .pg.25

Conclusionaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ … pg.28

Referencesaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ … … … … … … … … … … … pg.29

Appendix Aaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦..aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦.pg.32

Appendix Baˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦..aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦.pg.33

Appendix Caˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ … pg 35


Canadians on mean spend 31 billion dollars in the pharmaceutical industry, which makes it really powerful and influential. Our end is to analyse the industry in a concern moralss position. To make this we will look at the value concatenation and development of the pharmaceutical industry in Canada, a PEST analysis of Abbott, the ethical issues linked to the usage and overmedication of oxycodone every bit good as the drug patent system, the societal and economic impacts of the production of oxycodone, and turn toing the industries record in corporate societal public presentation, duty, and reactivity.

Part 1: History & A ; Development

Have you of all time wondered how of import pharmaceutical companies are to society? How did the pharmaceutical industry Begin in Canada? These inquiry and more will be answered in this section. The first major pharmaceutical company in Canada started in Toronto in the twelvemonth 1879 and was founded by Edward B. Shuttleworth ( “ Toronto Region Research Alliance ” , 2010 ) . Toronto has developed through the old ages as one of the leaders in this industry in North America. Toronto Region Research Alliance reports that “ Twenty-five of the top 50 planetary pharmaceutical companies have Canadian central office in the Toronto Region. ” ( “ Toronto Region Research Alliance, ” 2010 ) .

It is interesting to cognize that the first foreign-owned pharmaceutical company in Canada started here in Windsor, Walkerville by Parke Davis and Co in 1887 ( Lexchin, 2006 ) . This determination by Mr. Davis helped develop Canada ‘s pharmaceutical industry.

From 1879 to show the pharmaceutical industry has advanced well. Confering to the Canadian Encyclopedia in the 1940s our pharmaceutical industry was bring forthing a big sum of drugs expeditiously ( economic system to graduated tables ) ( Lexchin,2006 ) . This was a immense betterment in the industry because now companies were able to concentrate on mass bring forthing drugs, and able to hold a larger net income border on it. Besides confabulating to the Canadian Encyclopedia in the 1970s and 1980s, Canada started to bring forth their ain “ generic drug companies ” ( Lexchin, 2006 ) .

In 1921, the University of Toronto developed several drugs that transformed the manner diabetes is treated. This drug contains Insulin that has saved an tremendous sum of people and helped cut down the agony for those with diabetes.

Patents came a long manner in this industry. Patents acts like a right of first publication non leting people to copy your thought. Patents life span is presently 17 old ages. In the past companies that had a patent on their merchandise had a monopoly type of power. After Bill C-22 companies do non hold this power on a patent, we will discourse this subject subsequently.

Part 1: Value Chain

Research and Development

In Canada before a drug can be approved for the general populace it has to travel through several trials and surveies. These drugs will be tested on animate beings and finally on worlds. The research worker end is try to detect a merchandise the populace will utilize. Once the research worker had thought of a drug that will assist people ; the research worker and the scientist have to develop the merchandise. They will develop their merchandise by proving it on animate beings and change it till they receive desirable consequences. It takes about eight and a half old ages to prove the drug and acquire it O.K. to sell ( “ Health Canada ” , 2011 ) .

Pre-clinical Research

In order to make this measure a company needs to subject informations that helps them turn out their drug is safe for pre-clinical testing. Pre-clinical testing is when a company tests their drugs in a research lab on animate beings. They are looking at a assortment of factors such as the carnal toxics degree and pharmacologic affects ( “ Health Canada ” , 2011 ) . Harmonizing to Health Canada at this phase “ patrons are asked to find the “ toxicity of the drug in at least two species of animate beings, from 2 hebdomads to 3 months, depending on the proposed continuance of usage of the substance ” ( “ Health Canada ” , 2011 ) .

Clinical Test

At this phase the drug is deemed safe to prove it on worlds. During these tests, a substance is “ administered to worlds and is evaluated for its safety and effectivity in treating, forestalling, or naming a specific disease or status. The consequences of this testing is the individual most of import factor in the blessing or disapproval of a new drug ” ( “ Health Canada ” , 2011 ) . If the consequences of the clinical test bend out to be positive, the drug is ready to hit the markets.

A New Drug Submission ( NDS ) is sent with complete information on the new drug at the terminal of the clinical testing. If the NDS are positive the company is allowed to sell their drug in Canada ( Lexchin, 2006 ) .

Industry, Selling and Gross saless

At this concluding phase the pharmaceutical companies looks for ways to cut down the costs of drug production. Company ‘s demand to do certain they have the right paperwork to get down fabricating the merchandise. Besides the company needs to do certain they market the merchandise good and candidly. The company besides needs to do certain that they are invariably supervising their merchandises ‘ doing certain it ‘s safe and safely distributed.

Part 1: Comprehensive Analysis of the Industry

Research costs the Canadian pharmaceutical industry 1000000s of dollars yearly. The research cost is high because drug companies are seeking to develop interventions for assortment of types of diseases and unwellness. Normally the company ‘s intent on contriving a new intervention is to derive future grosss.

It is presently estimated to be about eight hundred million dollars to research and market a new drug ( “ Canadian Pharmacists Association ” , 2012 ) . Canada develops 80 new drugs a twelvemonth and merely 10 per centum of these new drugs have important betterments over bing drugs ( Lexchin, 2006 )

Unlike other industries the pharmaceutical industry has a high cost on research and development. The industry spends 1000000s of dollars, contriving new drugs, and develops bing drugs. Companies in this industry spend 1000000s of dollars on selling and educating people about their merchandise. With high costs and short patent life ; is it worth it to companies to pass a important sum of money on developing their merchandise merely to be copied by another company in the hereafter?

Thinking that the cost of developing a drug is highly high the authorities should assist the pharmaceutical industry in this facet. Alternatively of assisting in 1987 Brain Mulroney introduced Bill C-22. Through the Bill the Patented Medicine Prices Review Board was created. Their occupation is to watch over and do the monetary value of the patented drugs. At one point this company raised the monetary value of patents that in some state of affairss the company would hold no pick and give up their patent. One thing that was non just for the companies who develop the merchandise was they were forced to licencing their merchandise. Other companies were allowed to bring forth their merchandise and pay a royalty fee to the laminitis company. The job is the royalty fees are really minimum sing how much startup costs the founding company had to travel through.

A immense issue about Bill C-22 coming into consequence is it took off incentive to make research and make new drugs. Companies are disquieted about bring forthing their merchandise as cheaply and expeditiously as possible to increase their net income border. Patented Medicine Prices Review Board requires 10 per centum of a company ‘s grosss. In 2007 merely 8.3 per centum was spent on research in this industry ( “ Canadian Generic Pharmaceutical Association ” , N.D. ) . In Appendix C shows the user where the research money was spent. It interesting to observe ; the bulk of the research money was spent in applied research. Applied Research is used on seeking to better the merchandise and the fabrication procedure.

The authorities has another impact on this industry through their policies. The federal authorities implemented their Food and Drug Act in 1939. This act gave the authorities some power over this industry. The Federal authorities decided they needed the companies in the industry to describe to Food and Drug Directorate ( 1959 ) ( Lexchin, 2006 ) . This organisation monitors the industry to do certain everyone is following the regulations. This Food and Drug Act has been modified throughout the old ages because of past events. An illustration is in 1963, 115 childs were born with deformities of the limbs because their female parents ‘ took thalidomide ( Lexchin, 2006 ) . Standards in this industry after this event and companies must inform their users who can non take the drug. This act prohibits false advertisement, but it can non command how the physicians really use the drugs ( Lexchin, 2006 ) .

Part 2: Pest analysis for Abbott

Harmonizing to the Cambridge Dictionary ; pest analysis is “ ( political, economic, societal, and technological ) assesses a market including rivals, from the point of view of a peculiar proposition or a concern. A direction method that examines the consequence that events or influences from exterior may hold on the public presentation of a company or organisation ” . ( “ PEST Analysis ” )


Abbott labs and its rivals are all earnestly affected by authorities ordinances. For illustration, they include long term challenges like patent termination and FDA blessing. All these regulations and ordinances are affected by political factors. Under the Medicare Modernization Act, drug monetary values are negotiated between private drug programs and private drug industries which prohibits authorities to put up a monetary value construction or even take part in the dialogues. The Congress and white house are seeking to take down drug monetary values, which could diminish gross for Abbott. If Abbott is forced to take down its drug monetary values, it would be hit hard as half of the gross it generates comes from pharmaceuticals. ( “ Abbott laboratories Stock ” , 2006 )

The development, sale and distribution of Abbott ‘s merchandises are subjected to a wide set of regulations and ordinances. These regulative actions can ensue in hold of the release of the merchandise or ictus or callback of merchandises. Misdemeanors of these regulations may be punishable by civil or condemnable countenances. In some instances there are collectible mulcts, imprisonment or even exclusion from engagement in wellness attention plans. These ordinances are really wide in range and are subjected to many developing readings, which could necessitate Abbott to derive important costs associated with changing one or more of its selling or gross revenues patterns. Furthermore, if these Torahs are violated, Abbott could upset its concern. This would non merely affect Abbott ‘s grosss and profitableness but would besides ensue in a negative image of Abbott. ( “ Abbott laboratories filings ” , 2006 )


Abbott produces a drug called Humira. This is used for arthritic arthritis patients. This is one of the chief gross generator drugs, which makes up more than half of the pharmaceutical divisions gross. Niaspan, another drug produced by Abbott, is the lone drug available in the market to diminish cardiovascular hazard. This drug increases HDL besides known as good cholesterin to minimise the hazard. Another popular drug produced by Abbot was Depakote. Abbott lost much of its gross in 2008 because of generic competition, for the first clip. “ Generic competition in Abbott ‘s pharmaceutical division hurt US gross revenues ; nevertheless this has been partly offset by international growing. ” ( “ Abbott Laboratories Stock ” , 2006 )

Emerging markets represents one of the greatest chances in wellness attention. Emerging markets already make up more than 20 per centum of Abbott ‘s overall concern. Abbott Laboratories Inc will pay $ 3.7 billion to get the branded generics concern of India ‘s Piramal health care. Annual payments of $ 400 million would be made till four old ages for Piramal ‘s healthcare solutions concern. Furthermore, it will besides pay $ 2.12 billion up-front. Harmonizing to Abbott, it will hold the largest market portion in India, at seven per centum. Harmonizing to Mr. White, the president and main executive of Abbott, this trade is one of the several he has taken to reshape the company and turn outside the United States. Abbott predicts the gross revenues in India to be more than $ 2.5 billion by 2020. Abbott is paying 8.7 times one-year gross revenues for the Piamal unit. By contrast, Cipla trades at 4.5 clip ‘s gross revenues.

“ Abbott is quickly set uping a leading place in branded generics and emerging markets ” ( “ Abbott Laboratories to pay $ 1.6 billion ” , 2010 ) said Wells Fargo analyst Larry Biegelsen in a research note.


Abbott is a invariably altering wellness attention industry. So, for a company like this, market portion is a primary focal point. Market portion can be gained by increasing a demand for the medical specialties or off class by presenting new and improved medical specialties. Abbott ‘s toughest competition includes generic drugs and this has put a batch of force per unit area on pharmaceutical industries as a whole. Furthermore patent violation is another challenge. “ Medtronic Inc. said on Monday it would pay $ 400 million to Abbott Laboratories Inc. as portion of an understanding to settle a legal difference over bosom stent engineering. ” ( Kelly, 2009 )

Abbott ‘s green goodss drugs such as Humira, Xience V and Niaspan. These drugs are faced by changeless competition from many other pharmaceutical companies such as Johnson & A ; Johnson ( JNJ ) and Amegen ( AMGN ) . A competition like this makes it really disputing for Abbott to cover with legal jobs

Abbot is a company which fulfills its societal duties. It operates with many applicable Torahs and ordinances refering environmental protection. Abbott believes that it has a societal and environmental duty towards the community where it operates. For illustration, Abbott ‘s capital outgo in 2010 was $ 9 million and runing outgos in 2010 for pollution control was about $ 65 million. Capital and operating outgos in 2011 for pollution control were estimated to be $ 15 million and $ 67 million severally. ( “ Abbott Laboratories Filings ” , 2006 )

Abbott has been identified as a responsible party in probes at many locations in the United States of America by Superfund. Abbott believes that costs related to probes and redress and costs which help the company to follow the societal regulations and ordinances, have no effects on Abbott ‘s fiscal place, consequences of operation or hard currency flows. ( “ Abbott Laboratories Filings ” , 2006 )


Producing new merchandises over clip is how a house progresses. This requires “ technological cognition, the ability to unite cognition elements into valuable new merchandises, and the complementary assets that facilitate the fabrication, gross revenues, and distribution of those merchandises. ” ( Nerkar, 2004 )

“ Abbott is the first pharmaceutical company to hold a particular research lab for radioactive pharmaceuticals or “ radiopharmaceuticals ” . This advancement leads to the creative activity of what will go the universe ‘s prima immunodiagnostics concern. ” ( History Abbott ) After Abbott introduces Selsun Suspension shampoo for dandruff control, the company establishes an employee contributory stock purchase program to profit its employees. Several major merchandises are introduced worldwide, including a trial to screen and proctor therapy for prostate malignant neoplastic disease, self-test kit for HIV and many more.

Part 2: Six Main Stakeholders Interests

Abbots clients are a stakeholder and their chief involvement is the handiness of merchandises that are safe and effectual. They look for a monetary value that is sensible and low-cost. They need every bit much information about the disease as possible and the ways to forestall it through drugs and available intervention. They besides look for protagonism for patient demands and support for patient organisations. Health attention professionals are besides the stakeholders and their chief concern is quality, safety and efficaciousness of merchandises and most significantly proper merchandise usage. Information and instruction about the latest tools and engineerings is besides an involvement of this stakeholder. Research and development is another cardinal involvement of this group. Interestingly, sensible and ethical behaviour is besides an involvement to the wellness attention professionals which can be achieved through ethical selling patterns.

Government is another stakeholder of Abbot. Low-cost pricing and ethical concern patterns is this groups chief concern. Government makes a partnership to assist turn to wellness attention demands. Government and Abbot together do policies that surrogate entree to medical specialties and vaccinums. Furthermore, Employees are another stakeholder group and its chief involvement is to acquire preparation and development. They besides want to acquire involved in their communities and most significantly they want to better and keep their ain wellness and wellbeing.

Local communities are another of import stakeholder group. Their chief involvement is that Abbot operates in a responsible and safe mode, wherever it operates. Philanthropic committedness to unmet community demands is another concern. Last, providers are another stakeholder group. Ethical motives, labour Torahs and wellness and safety issues are this stakeholder ‘s primary involvement. Support for little and diverse providers is besides a cardinal involvement.

Abbot is committed to developing safe and effectual medical specialties that save and enhance lives. Abbot aims to do its merchandises at low-cost and just monetary values and to offer low cost or even free options for clients, when possible. For illustration Abbot was engaged in treatments with patients group and associations. It was besides involved with client attention lines, patient aid plans and market research. This resulted in deriving of import penetration as to how Abbot could better their merchandises and develop new 1s. They increased consciousness among stakeholder groups of potencies for patient aid for medical specialties and of parts of drugs and other merchandises as portion of calamity alleviation. Abbott is increasing consciousness among the stakeholders and turn outing a batch of its merchandises as portion of catastrophe alleviation.

Abbot seeks new penetration into patient and consumer demands and is committed to leveraging these penetrations into meaningful merchandises. Furthermore, wellness attention professionals play a cardinal function in proper diagnosing intervention and rehabilitation, and work closely to make a greater apprehension of disease provinces and its intervention. Abbott besides helps to keep high criterions of unity in all of its traffics with wellness attention professionals. An illustration of this is Abbott ‘s educational plan for wellness attention professionals. And besides the technological exchanges to bolster cognition of wellness attention professionals. The consequence of these attempts was improved apprehensions of emerging challenges on the front lines of wellness attention. Abbott received “ feedback on the quality, safety and efficaciousness of bing merchandises and spouse with wellness attention professionals carry oning critical research. ” ( “ Abbott Global Citizenship ” )

Government being a cardinal stakeholder wants low-cost monetary values and ethical concern patterns. So, Abbot aims to do merchandises available at low-cost monetary values. They want to further good informed wellness attention professionals, progressive policies and enhanced substructure, which are really of import to wellness attention entree. In add-on to that, Abbott holds all their employees to the maximal ethical criterions. Abbott has worked with the authoritiess to put monetary values at sensible degrees. They have talked with authoritiess about major wellness attention policy developments. “ Abbot has participated in legion U.S. and international trade groups, consistent with the guidelines in Abbott ‘s codification of concern behavior. ” ( Abbott: Global Citizenship ) It has shared larning on demands of assorted communities. Furthermore, it has given updates on major wellness attention policy developments.

Local communities are another of import stakeholder. Their cardinal concerns are safe and responsible operations where Abbott operates. Abbott gives full attending to its local communities. They have to the full engaged in the communities where they operate, and they treaty their local societies with esteem. “ Abbott engages in thoughtful and effectual philanthropic gift. ” ( “ Abbott Global Citizenship ” ) Furthermore, Abbott employs local people and pays revenue enhancements to the local authoritiess. They support educational attempts, cultural and civic plans and community wellness attention organisations. An illustration can be seen when Abbott in 2011, paid 1.8 billion in income revenue enhancements. Abbott maintains strong relationships with the communities where they operate.

Part 3: The Production and Use of Oxycodone

At the terminal of February 2012 Purdue Pharma Canada, the company behind oxycontin, stopped production of their popular narcotic and moved to a new analgesic opiate in the oxycodone household called Oxyneo. Oxyneo is an astonishing measure up from oxycontin because it is made in a manner so that it can non be dissolved in H2O to be injected ( it turns into a gel if you try ) , and it is really hard to anchor up and snicker. These alterations do non affected people taking the drug decently for medical utilizations but that ‘s merely four out of every12,000 nuts. These people taking oxycontin for the highs have moved on to harder drugs to make full the hole oxycontin left. A recent statistic from Alex Crees of Fox intelligence states “ the per centum of people who reported utilizing Oxycontin to acquire high ‘in the past 30 yearss at least one time ‘ fell from 47.4 per centum to 30 per centum. During the same clip period, the per centum of people who reported utilizing diacetylmorphine about doubled. ” ( Crees ) This raises a batch of ethical inquiries one of which has to make with utilitarianism, how can this move possible benefit the most people when the bulk is the one being moved onto harder drugs? This of class raises inquiries of its ain such as if it was so unsafe why was it introduced in the first topographic point, and to that I can merely state no other medicine can make what it can make. For a batch of people covering with chronic ague hurting there are really few options available and oxycodone is an attractive option to the besides opiate based morphia which causes sickness and is half every bit strong as oxycodone. In the terminal of the twenty-four hours for the interest of utilitarianism I would state they likely did the right thing by altering the expression but it is all based on positions. Another ethical issue that has to make with the deficiency of corporate societal duty of Purdue, one moral statement for CSR is that “ Corporations cause societal jobs, and therefore hold a duty to work out those they have caused and to forestall farther societal jobs from originating. ” ( Crane p. 51 ) with this statement we can see that Purdue caused a job and did non truly take duty for that job or excessively seek to forestall it every bit good. It was the authorities that forced the cancelation of distribution of oxycontin, non the good will of the corporation, and it was besides authorities ordinance demanding the new expression. Purdue should hold set up public centres to assist cover with the people who were utilizing their merchandise and are now covering with backdowns. They had ethical duty they did non populate up to.

Part 3: Drug Patents

In the kingdom of medical or drug patenting there is besides a batch of ethical jobs that must be dealt with. In our modern patenting system it is excessively easy for processs or medicines to be ‘unavailable ‘ to those who need them because of issues with patents. A batch of processs require the physician or doctor have bought the right to utilize the processs and merely in a certain manner. These are frequently sold merely in smaller measures for higher monetary values restricting the sum of good they can make. The ethical job arises when a individual comes in for intervention and a patented process becomes unavailable to patients who require it, and in worst-case scenarios where no other alternate exists. In a instance like this utilitarianism must be questioned as to why they can warrant aching so many people so a few at the top can do a batch more money. Distributive justness is besides an ethical issue that relates to this. Some people will reason that due to distributive justness patents are ethical because the model of distributive justness wagess the discoverer and people ca n’t coast on his success. However if we look at it by its definition distributive justness is “ concerns the nature of aA socially justA allotment ofA goodsA in a society. ” ( “ Distributive justness – Wikipedia ” ) We can see that by holding these patents that limit the handiness of procedures and medicines people need were are heading in the opposite manner of distributive justness, fewer people are acquiring benefit of a merchandise. In this manner I truly believe that the patent system particularly refering to drugs has a really pre conventional thought procedure of what can assist me I ‘ll make. They have all this cognition that could assist 1000000s but because there is no immediate pecuniary benefit for the corporations to open up the patents to everyone in demand it wo n’t go on and many guiltless people could acquire ill, acquire worse, or even dices.

Part 3: The Approval Process For New Drugs

To understand the ethical issues in betterment procedure for new drugs you must first understand how the procedure plays out. There are 4 chief stairss to the procedure of acquiring a pill tested and okayed for gross revenues, the first measure is to prove on animate beings, so the following is to execute clinical proving on worlds, following up is a reappraisal by the nutrient and drug disposal, and the last measure is post selling surveillance. In this last measure the pill has been “ granted limited application by the FDA and is applied to 1000s of people for proving. At this phase it is non determined if the pill is either safe or efficacious. ” ( Kuncl & A ; Logue, 2005 ) . Patents last 17 old ages and this four-step procedure takes about 11 old ages so you can understand the urgency of their actions. The unethical behaviour comes in on the 4th measure where it is in the custodies of selling surveillance because the importance they determine for the drug is the opportunities of it really coming to hive away shelves. You see a new pill would be about $ 800 million dollars non numbering the 15-year research period so they are really valuable and merely explored if the opportunities are high for payback. Ten to fifteen per centum of all gross net incomes from a pharmaceutical company travel back into research. Because of these high costs of concern a batch of pills that could assist a batch of people but non plenty to turn a net income are frequently declined or have their support stopped which can go forth guiltless people without a remedy. The ethical job here is the industry does n’t pattern stakeholder theory at all, they are moving to merely pacify the stockholders but non the other stakeholders like the consumers that could hold their lives saved, the employees who ‘s households could hold needed those medical specialties, the authorities that may hold rewarded you for coming up with a cheaper more efficient drug and the list of stakeholders goes on.

Part 3: The Potential Over-Medication of Societies and the Role of Pharmaceutical Companies

Seven million people say they use prescription drugs for non-medial grounds and 39 % of drug user usage prescriptions over street drugs like cocaine and diacetylmorphine so why are we seeing this tendency? I believe it is due to aggressive selling by pharmaceutical industries, for grounds antecedently discussed there is a batch of money spent in the industry merely to acquire new drugs approved, and that ‘s sensible that they want to market it and spread the word to do back their loss. However the manner they go about making it is unethical and incorrect, you see when these new drugs are released they are frequently released under a wider umbrella of utilizations than first clinically intended. The unfortunate “ world is that for most new drugs, safety and efficaciousness are scientifically proven for merely a little subset of patients. ” ( Blanchard, 2011 ) The selling is by and large aimed at doctors, to excessively recommend their drugs over other companies, every bit good as misdirecting them about what certain pills are genuinely intended to make. This is non the lone advertisement they do nevertheless they besides advertise to clients, which can be a bad thing. You see they maintain pumping out information for new pills whose utilizations are non to the full covered or explained and so they ask the doctor for the 1s seen alternatively of the doctor ‘s personal advice. This is described as the opposite benefit jurisprudence. The pharmaceutical companies act plain unethically in the chase of net income and the reverberations risk 1000000s of lives every twelvemonth. A However the over prescription of drugs is non entirely on the shoulder of the pharmaceutical industry but besides on the custodies of the doctors. Recently doctors are practising the reverse benefit jurisprudence marketed to them by the pharmaceutical companies. Research workers claim that the doctors who are now more than of all time ready to order a medicine even when there is deficiency of grounds it will work out the job. A Kathleen Blanchard said it best when she said “ It ‘s clip for doctors to take a base and non order them so readily. ” ( Blanchard, 2011 )

Part 4

As discussed earlier in Part 3, Oxycodone is a powerful drug that allows users entree to critical benefits ; nevertheless, it does hold its just portion of dismaying side effects. In this subdivision we will analyze the economic sciences and societal impact that Oxycodone has on our society from different positions.

Part 4: Utilitarianism

Harmonizing to the text, utilitarianism is “ aˆ¦an action is morally right if it consequences in the greatest sum of good for the greatest sum of people affected by the action ” ( Crane Matten, 2010, p.101 ) . Looking from the useful position ; it is good for society, that oxycodone is produced and distribution. Its presence allows those who are enduring barbarous diseases and hurting to accomplish a better enjoyment of life. Oxycodone besides benefits the manufacturers of merchandises such as OxyNeo because they use Oxycodone in order to do a net income. Purdue Pharma the manufacturer of OxyNeo is engaging employees, purchasing supplies and paying revenue enhancements ‘ which is assisting the economic system.

Harmonizing to a Harvard survey, Oxycodone is one of the best drugs for hurting. Oxycontin 40 ( contains oxycodone ) ranks in the top five on their list of most powerful drugs for hurting alleviation ( “ Pain Killers Comparison Chart ” , ( 2003 ) ) . The manufacturer of Oxycontin can presently do higher doses of Oxycontin and this would travel them further up on the list. This drug can be used in a pill signifier that easy releases to supply alleviation for a long period of clip. Why should we deny those who are ill a drug this powerful merely because some people abuse it.

Think about it this manner ; if you take all Oxycodone merchandises off the streets, what will go on? Those who are sick will happen another manner to cover with the hurting and those on the street will get down utilizing diacetylmorphines. Does this supply a net benefit for society? Removing Oxycodone from the market is non wise for the economic system, as some people will make up one’s mind to pass their money on the black market were really few people will profit. From a societal position there will be more offense and more people deceasing as a consequence of misapplying drugs that are no longer regulated. CBC intelligence reported “ As of Feb. 28, 2013, a period of one twelvemonth, physicians will hold to do a particular application for patients to acquire OxyNeo. Merely patients being treated for malignant neoplastic disease hurting or alleviative attention will be eligible without a particular application ” ( “ Oxycontin officially replaced by new drug ” , 2012 ) . This will be better for society than merely discontinuing distribution of Oxycodone because merely those who really need the drug will have it. The job with this new act is that there will be more robberies at drug shops and some people will still, once more, bend to heroin. Patients who are in hurting will non hold to happen alternate agencies to command their medical state of affairs.

To sum everything up, from the useful position Oxycodone is more good society than it is harmful.

Part 4: Rights

“ Natural rights are certain basic, of import, inalienable entitlement that should be respected and protected in every individual action ” ( Crane and Matten, 2010, p.108 ) . Does a individual have the right to populate their life how they chose? Do they have the right to take a drug that will assist them in their life if it does non ache others? The fact is, “ aˆ¦ [ R ] ights and responsibilities are hence often seen as two sides of the same coin ” ( Crane and Matten, 2010, p.108 ) . Our responsibility is to “ aˆ¦respect, protect, or facilitate ” the rights of other people ( Crane and Matten, 2010, p.108 ) .

The inquiry at manus now changes to why people should non hold the right to take Oxycodone? Should we non hold the right to take whatever we feel will assist us outdo? If we know all the side effects and if the physician believes that this medical specialty will be the best option for us, why can we non take it? The reply is that we have the right to Oxycodone if we truly necessitate it. The authorities should non be able to revoke this basic right merely because others may mistreat this right. The authorities should merely inform people refering the possible side effects and protect those who are unable to safely utilize the drug.

From the point of view of the manufacturer, is there an built-in right to bring forth a possible deadly drug if there is the possible that it will be used wrongly? Let ‘s take a expression at this illustration ; does Purdue Pharma have the right to bring forth Oxycontin? Yes, Purdue Pharma has the right to bring forth Oxycontin. However, they besides have the responsibility to educate its users and to protect them by curtailing who can really utilize the drug. Oxycontin can be deadly if the user abuses it by “ shooting Oxycontin, smoking Oxycontin, snorting Oxycontin, taking Oxycontin in higher doses than prescribed, or taking Oxycontin more often than prescribe ” ( “ Blog A ” , 2012 ) . If Purdue Pharma fulfilled their responsibility and educated people about all the possible side effects and besides educated physicians in proper ways, they have fulfilled their responsibility. As mentioned before, Purdue Pharma now makes a new merchandise known as OxyNeo, which will be highly hard to fiddle with. Harmonizing to this article on Fox News, “ aˆ¦survey consequences [ show that ] the figure of people who report Oxycontin as their primary drug of maltreatment has dropped from 35.6 per centum of respondents before the new expression was released, to 12.8 per centum after ” ( Crees, 2012 ) . This article proves that Purdue Pharma is carry throughing their responsibility by upgrading the merchandise so that it is safer for society.

Part 4: Justice

Harmonizing to the text, “ aˆ¦ [ J ] ustice can be define as the at the same time just intervention of persons in a given state of affairs with the consequence that everybody gets what they deserve ” ( Crane and Matten, 2010, p.111 ) . Looking from this position the inquiry now becomes this: is justness being served from the current manner of upseting Oxycontin? Is it just that in 2013 a individual who needs OxyNeo will necessitate to hold malignant neoplastic disease, a alleviative job, or obtain particular permission in order to utilize it? In order to obtain this particular permission the physician must try several different drugs until they are permitted to see OxyNeo. Is this carnival for the individual who may be unable to travel from their bed waiting for hurting medicine to work? Justice is non being served when we could be forestalling this hurting. Pain is a really malicious facet of life and justness would be served if we found a manner to forestall it. The good thing is most people who truly need the Oxycontin still can entree it.

Is it just to put a limitation on the distribution of Oxycodone? Let ‘s reflect on the illustration of OxyNeo. Get downing in 2013 OxyNeo will merely be available to a little part of people even though others would profit from this drug. Revenues lessening well one time the industry adds this limitation. Purdue Pharma is in this state of affairs because they were “ misbranding ” ( Meier, 2007 ) their merchandise. Harmonizing to the New York Times “ Purdue Pharma, has agreed to pay $ 600 million in mulcts and other payments to decide the condemnable charge of ‘misbranding ‘ its merchandise ( Meier, 2007 ) Purdue Pharma engaged in an unfair action by misdirecting the physicians and the users refering their merchandise. This deceit caused many people to go addicted and besides caused some to decease. This company had bad ethical patterns that lead to this state of affairs. Justice had been severed in the instance of Purdue Pharma.

What consequence does the Purdue Pharma incident have on the full Oxycodone industry? The fact is that Oxycodone is now frowned upon in the industry. Most physicians will try options, which decreases net income for other companies that produce. This may besides do manufacturers to be wary about the hereafter usage of Oxycodone ; this is non just for the industry. Justice is non being severed to the consumers either because they may ne’er see a better signifier of the drugs. They will besides be having weaker doses of the drug, which may impede some of their state of affairss.

To sum things up, the lone participant having justness in this state of affairs is Purdue Pharma. They deserved the penalty they have received and will go on to have. The consumers and other stakeholders are non having justness.

Part 4: Virtue Ethical motives

A simple manner to see virtue moralss is “ aˆ¦good actions come from good individual ” ( Crane and Matten, 2010, p.118 ) . Virtue moralss comes into drama when person with good traits and with the right ethical motives Acts of the Apostless ethically by larning from past experiences.

From this position, is it morally right to bring forth Oxycodone and administer it to other people? If the manufacturer ‘s purpose is to assist people and to supply them with every resource they need, the company is following virtue moralss. If the manufacturer decides to make what Purdue Pharma did and mislead the market into purchasing their merchandise without informing them of the true side effects, this runs counter to the rules of virtuousness moralss. Of class, this company is presently traveling through their just portion of enduring because of their actions.

This same position can be analyzed from the consumer ‘s position ; if consumers are informed about the drug they are taking and they take all the precautious the physician laid out for them, they are adhering to virtue moralss. The consumer will non mistreat the drug and the opportunity of acquiring off of it would be a batch greater. If the consumer received a drug that contains Oxycodone merely to mistreat it, harmonizing to virtuousness moralss bad things will go on to them.

In decision, things are rather simple for Purdue Pharma. Had they operated with good virtuousness moralss they would still be gaining tonss of money and assisting many people with the Oxycontin merchandises.

Part 5

Harmonizing to Carroll, Corporate societal duty includes “ the economic, legal, ethical, and beneficent outlooks placed on organisations by society at a given point in clip ” ( Carroll and Buchholtz, 2009, pg.44 ) Economic and legal duties are required by society whereas ethical duties are expected by society. Philanthropic duties are merely desired by society if the house is a profitable one.

Economic: For a house to be considered within Carrolls four portion corporate societal duty definition, it is indispensable for a house to be profitable. Abbott laboratories is a pharmaceutical company that is deserving 6.528 billion dollars ( “ Button, c. t. ” , & A ; Conditions ” ) and has been increasing their net income by about 9 % over the last 12 months along with 26 % return on equity during the past 5 old ages ( “ How Much Is Abbott Labs Worth ” ) ? . Abbott has increased their dividends for 39 old ages directly ( “ Corporate Overview Fact Sheet ” ) . The company went from 1.18 of net incomes per portion to 1.28 per portion, which is an 8.5 % addition ( “ Forbes Earnings Preview ” ) . It is apparent that Abbott is a financially stable company that is invariably turning. If the stakeholders considered the economic position of the company, they must be really satisfied with the economic growing of the company. The demand for pharmaceuticals is lifting so this besides gives Canadian pharmaceutical houses a opportunity to spread out their concern. In Canada, it is expected that Canadians will pass 31 billion dollars on pharmaceuticals so it is apparent that pharmaceuticals are a large portion of the economic system ( “ Health Canada ” , 2011 ) .

Legal: The 2nd portion of Carroll ‘s four portion corporate societal duty is the legal duty. This portion merely states that companies should make concern harmonizing to the jurisprudence, which is the society ‘s codification of right and incorrect ( Purval ) . Similar to other pharmaceutical companies, Abbott Laboratories is besides regulated by the authorities. In Canada, drugs are regulated under the Foods and Drugs act, where Health Canada proctors it ( “ Health Canada ” , 2011 ) . Pharmaceutical companies hold great duty to supply wellness and safety to citizens. The public expects drug companies to follow legal entities as it is important for pharmaceutical companies to follow the jurisprudence because their actions can greatly impact the wellness of society.

Companies that are non careful and do non follow the jurisprudence may stop up paying big sums of mulcts like Abbott Laboratories. After a 4 twelvemonth probe, the house had to pay mulcts numbering 1.6 billion dollars for misbranding the drug called Depakote, which was the 2nd largest payment by a pharmaceutical company. Abbott paid druggists and physicians 1000000s of dollars to urge the drug to dementia and schizophrenia patients ( “ Abbott Laboratories to pay $ 1.6 billion over misbranding drug ” ) .

Ethical: Following an ethical doctrine is really of import for concerns because it gives the populace an thought on whether the company is following a socially acceptable behavior or non. Companies can lose many clients if they act unethically. Looking at Abbott Laboratories, they lose 1.6 billion dollars for unethical behavior. It is apparent that unethical behavior merely hurts companies in the long tally. It is important for pharmaceutical companies to move ethical because it may do the life of citizens that are utilizing the companies ‘ drugs.

Philanthropy: Pharmaceutical companies are a large portion of the economic system so society expects pharmaceutical houses to lend by assisting the community. Philanthropic actions by houses can besides be used to convert society that the company has good purposes and attentions about the community. Philanthropic actions may increase grosss as it can be a good manner to look charitable and may convert citizens to devour a company ‘s merchandises because of their philanthropic work. Many pharmaceutical companies contribute a great sum of free drugs to people in demand. Pharmaceutical companies contributed a whole batch of drugs to the Haiti temblor. Like many other pharmaceuticals Abbott research labs besides contributes a great trade to carry through their philanthropic responsibilities. Abbott Laboratories is presently working to better adult females ‘s wellness in Afghanistan. ( “ How Much Is Abbott Labs Worth ” )

Auditing: Auditing is a really of import portion of concerns and it is particularly of import for the pharmaceutical industry. Companies must execute internal audits so directors have an thought of the house ‘s concern inside informations. The audits will inform the direction on countries needed to better and give them better control of the company. The Government must besides execute external audits on houses to do certain that companies are following the jurisprudence. The audits performed by the authorities will assist them do certain there is no corruptness and to do them run at a safe degree where houses can non damage the citizens ‘ wellness. Auditor-General John Wiersema, stated that “ Health Canada is slow to move on possible safety issues related to drugs already on the market, ” so Canada needs to better the auditing ordinances for pharmaceutical companies. ( “ Auditor-General calls on Health Canada ” )

Reporting: Like many other companies, Abbott laboratories besides use the planetary coverage enterprise to find a planetary criterion for sustainability. Global coverage enterprise is the model that provides companies a method for finding economic, environmental, and societal and governance sustainability. ( “ GMP Auditing for the Pharmaceutical Industry ” )

Communication: Effective communicating can be important for the success of companies. Management must cognize the jobs or updates within the lower degrees of direction to do effectual policies. Communication in pharmaceuticals is particularly of import because the industry can ever be faced with new Torahs so it is of import direction hears about the Torahs and makes the right determination.


As a decision, we think that making no injury and making positive in the community is a concern chief nonsubjective apart from net incomes. The pharmaceutical industry ‘s noteworthy parts to human growing and development are singular. But, authorities functionaries and societal critics have questioned whether the multibillion-dollar industry is carry throughing its societal duties and whether it ‘s ethical? If we consider the plague analysis of Abbott Inc. it seems reasonably ethical, as discussed in the text. Even from a stockholders point of position, pharmaceutical industries are ethical because it does back up a batch of other people along with the societies in which these industries operate. But, from an ethical analysis of the oxycodone industry it is truly unethical. Pharmaceutical companies would sometime bring forth unsafe and habit-forming pills merely to bring forth net incomes. They would sometime even produce drugs whose benefits and drawbacks are non even explained or even researched, known as reverse benefit jurisprudence.


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