Concept of Ethics Is Business Place & Sustainability-Free-Samples

Question: Discuss about the Concept of ethics is business place and sustainability. Answer: Introduction The application of ethics in the domain of business can be referred as to business ethics or corporate ethics (Cavanagh, 2012). Business ethics generally refers to the contemporary organizational principle, sets of values, standards and norms which tend to rule the behavior and actions of an individual in a corporate world (Noddings, 2013). The corporate ethics has two dimensions namely normative or descriptive. In the corporate career, the field is mainly normative. With the help of this report, I plan to understand the concept of Business ethics and how being ethical reflects in the long-term sustainability of the business. As per my understanding of various texts and journals, Business ethics refers to `taking the correct course`. It includes all the dimensions of the business from production to company`s behaviour with the end users. Sustainability refers to a balanced approach to the economic activity and societal benefit. It simply means meeting the needs of the future generation in the same way the needs of the present generation are met (Carroll Buchholtz, 2014). A committed business often integrates its ethical behaviour with corporate social responsibility. Through this report, I will be reflecting on the example of a certain business organization, which was faced by an ethical dilemma and narrate its course of action thereby making a critical analysis of their decision. A successful business is one, which not only makes sufficient profits to satisfy its stakeholders but also shows ethicality in its business practices by taking care of the society. The chosen company is Merck and Co., Inc, which is a pharmaceutical giant based in America. I shall be analyzing their ethical practice with reference to the river blindness case and how it affected its stakeholders and future operations. I will be describing the background of the company and the scenario of the disease prevailing at that time. About the company Merck and Co. is a pharmaceutical company based in America. The company was formed in 1891 as an American subsidiary of the German company named Merck found in 1668.It is one of the leading pharmaceutical brands in the world. The case regarding River Blindness-The ethical dilemma The case developed in 1978 when Merck was about to lose its patent protection on its two main best selling drugs. These drugs were a significant source of income for Merck and due to this, the company decided to invest a significant amount in the research and development of new products (Crane Matten, 2016). The company spent approximately $1 billion in the research, which was paid off when they discovered four new medicines. One notable thing I have observed about the company is that Merck never bothered about profits. Their motto has always been that Medicine is for people and not for profits. In my view, the core value of the company has been very clear; they have wanted the welfare of the people rather than large revenue. The river blindness, which is caused by parasitic worms that live in small flies, which breed in the rivers of the developing countries like Africa and Latin America. These countries are home to the third world paper that greatly depends on these rivers as a source of livelihood. Whenever a person is bitten by a fly, the larvae of the worm tend to enter the body and reproduce within. This sensation is very intense and causes immense itching, which has leaded to a certain group of people attempting suicides (Dewey, 2016). It was estimated in 1978, by the world Health organization that more than 300000 were the victims of blindness due to this disease and around 18 million were infected. There was no cure to heal this disease. This is where the role of Merck emerged. The scientists at Merck had found a cure for the disease. It is my opinion that the disease was mainly present in the third world countries and that they would not have been able to afford the medicine, which would have been extremely costly due to the years of research, which Merck undertook to find a suitable cure. In my opinion, had it been any other company it would have been easy for it to keep the ideas aside and concentrate on profit making (Bowie, 2017). However, the company did not do so. The executives were worried about the welfare of the company as the beneficiaries of the medicine would not be able to afford the medicine even if it was sold at cost (Durkheim, 2013). It was stated that a single dose of Mectizan-the name given to the drug, could kill both the parasite as well as the fly. Merck decided to explore third party payment options with organizations like World Health Organization and the United States Agency for International Success but this resulted in a failure. According to me, had it been any other company, it would have aborted the idea and carry on with their regular course of business. In today`s competitive environment, any business firm is only considered about profits and I think if such a situation would have arrived today another company would not have bothered about the scenario. Finally, for the welfare of the society and the fact that the benefits of the medicine are greater than its costs, Merck decided to distribute the medicine free. Since that time, the company has sold more than 700 million tablets. This decision of the company was based on its core values, which are based on perseverance and improvement of human life, maintaining high standards of ethics and integrity, improving the quality of life and not being profit oriented (Carroll, 2013). Impact on stakeholders As per my research, the stakeholders theory states that the actions of the firm need to be beneficial and create maximum value for the various stakeholders like the customers, suppliers, public and government. The Merck case is justifiable as their main motive was to improve the healthcare of the people in general. In my opinion, this move made by the company raised the position of the company in the eyes of its stakeholders. This move by Merck was highly praised by its stakeholders, which portrayed the company as a company, which would go to any extent in order to help the society Impact on the reputation The reputation of the organization improved greatly as the people began to view the organization as a people oriented organization who worked for the welfare of the people rather than concentrating on earning profits (Weiss, 2014). I believe, though the firm lost out its profits and financials in the process it won people`s trust as I feel that a company who would go to any extent to do good for the citizens and not let anything come in its way of social responsibility benefits greatly in the eyes of the stakeholders. Recommendations Thus, in my opinion I can state that the Mectizan experience by Merck had showed us a new path towards the achievement of corporate social responsibility and caring about the society. After analyzing the given case that the companies, I would suggest that whenever a company is in an ethical dilemma, like that of Merck, the company should stress upon the welfare of people. I have learnt from this case that, high profits and a good financial position is a short-term benefit however, the image of the company in the eyes of the public goes a long way. According to me, the same approach should be adopted by other companies when they are planning to improve their image in the eyes of public. It is stated that whenever a company is stuck in an ethical dilemma it is always suggested to follow the ethical way. Conclusion Therefore, from the discussion I would like to conclude that ethics and business go hand in hand. The business though is considered, as a profit making organization should engage in ethical activities that benefits the society. When the company does so, it builds up its brand image, which goes a long way in creating a sustainable future for the company. As per my observation in the case of Merck, the directors and the company heads had formed the core value as working for the betterment of the people. This is why when the river blindness medicine was discovered the company decided to give it out free because they believed that no one should be denied from the freedom to live a peaceful life and that since the companies operate in the environment, it is their duty to contribute back to the society. This move by the company, as per my opinion, has made it one of the best companies from the ethical point of view References Bowie, N. E. (2017).Business ethics: A Kantian perspective. Cambridge University Press. Carroll, A. B. (2013).Business ethics: Brief readings on vital topics. Routledge. Carroll, A., Buchholtz, A. (2014).Business and society: Ethics, sustainability, and stakeholder management. Nelson Education. Cavanagh, G. F. (2012).American business values. Pearson Higher Ed Crane, A., Matten, D. (2016).Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press. Dewey, J. (2016).Ethics. Read Books Ltd. Durkheim, E. (2013).Professional ethics and civic morals. Routledge. Noddings, N. (2013).Caring: A relational approach to ethics and moral education. Univ of California Press. Weiss, J. W. (2014).Business ethics: A stakeholder and issues management approach. Berrett-Koehler Publishers.