In Johnson 2019: Read One Of The Following Case Studies Then

In Johnson 2019 Read One Of The Following Case Studies Then Addre

In Johnson (2019), read one of the following Case Studies, then address the prompts below: - Case Study 10.1: "Boosting the Cost of the EpiPen: Price Gouging or Good Business?" - Case Study 11.3: "The Public Benefit Corporation and Profit-With-Purpose Businesses. Address the following: • Identify the ethical issue or issues presented in the case. • Identify the principles or values that support your view. Support your answer.

Paper For Above instruction

The ethical landscape of business decisions is often complex, involving multiple principles and competing values. In Johnson (2019), two notable case studies exemplify different facets of ethical dilemmas faced by modern corporations. Choosing to analyze Case Study 10.1, "Boosting the Cost of the EpiPen: Price Gouging or Good Business?" provides a compelling discussion of pricing strategies and ethical considerations related to accessibility and corporate responsibility.

Introduction

The case of the EpiPen price hike encapsulates a pivotal ethical dilemma: whether raising prices significantly on life-saving medication constitutes justifiable business practice or unethical price gouging. As Mylan increased the price of EpiPens from around $100 to over $600 for a two-pack, this decision raised serious ethical questions about the responsibilities of corporations toward consumers, particularly vulnerable populations relying on essential medicines.

Ethical Issues Presented

The primary ethical issue involves the morality of price gouging on critical healthcare products. Mylan’s substantial price increase, without corresponding improvements in the product or service, suggests a focus on profit maximization at the expense of public health and safety. This raises questions about corporate social responsibility (CSR) and whether profit motives can, or should, be balanced with public interest. The case highlights the tension between capitalism’s free-market principles and ethical obligations to ensure access to essential medicines.

Further, there is an issue of fairness and equity. The high prices disproportionately burden low-income families and individuals with limited healthcare options, exacerbating social inequalities. The ethical implications extend to the role of government and regulation, debating whether market forces should be left unchecked or if interventions are necessary to promote ethical pricing of essential healthcare products.

Supporting Principles and Values

Several ethical principles underpin this discussion. The principle of beneficence underscores the obligation to do good and act in the best interest of the public, especially in healthcare. The steep price hikes conflict with beneficence, as they hinder access to life-saving medication. Conversely, profit maximization aligns with the shareholder primacy model but conflicts with broader social ethics.

The principle of justice is also central. Distributive justice demands fair allocation of healthcare resources and equitable treatment across society. The disproportionate impact on disadvantaged populations demonstrates a breach of this principle. Ethical frameworks such as deontology emphasize duties and rights; withholding affordable medication violates the rights to health and life.

The concept of corporate social responsibility (CSR) encourages companies to consider the societal impact of their actions. Ethically, corporations should balance profit motives with public good, especially when dealing with essential products affecting health and safety.

Supporting the View: Ethical Justification

From a utilitarian perspective, the decision to dramatically increase EpiPen prices results in greater harm than benefit, as it limits access for many and potentially endangers lives. Therefore,pricing practices should align with maximizing overall well-being. This case demonstrates that strict profit motives can conflict with societal health needs, underscoring the ethical obligation for companies to consider the broader consequences of their pricing strategies.

Deontologically, companies have a duty to respect human rights, which includes access to essential medicines. Exploiting monopolistic positions to extract excessive profits violates this duty, especially when the product is critical for survival.

Conclusion

The case of the EpiPen price hike spotlights critical ethical issues surrounding profit-driven strategies in healthcare industries. While corporations have a right to profit, ethical responsibilities necessitate balancing economic interests with societal needs. Ensuring access to essential medicines aligns with principles of beneficence, justice, and corporate responsibility. Ethical business practices must prioritize equitable access and recognize the societal implications of pricing decisions. Policymakers and corporations alike must work towards frameworks where health and profit coexist without compromising moral obligations.

References

  1. Johnson, C. (2019). Ethical issues in business decisions. In Business Ethics: Strategies and Solutions (pp. 210-230). New York, NY: Academic Publishing.
  2. De George, R. T. (2010). Business Ethics. Pearson Education.
  3. Crane, A., Matten, D., & Spence, L. J. (2014). Corporate Social Responsibility: Readings and Cases in a Global Context. Routledge.
  4. Shaw, W. H. (2016). Business Ethics: A Text and Cases Approach. Cengage Learning.
  5. Gostin, L. O., & Hodge, J. G. (2002). The Constitution and the Biosciences. The Journal of Law, Medicine & Ethics, 30(4), 563-573.
  6. Daniels, N. (2001). Justice, health, and healthcare. American Journal of Bioethics, 1(2), 2-16.
  7. Hoffman, W. M., & Moore, G. (2018). Business ethics: Ethical decision making & cases. Cengage Learning.
  8. Friedman, M. (1970). The social responsibility of business is to increase its profits. The New York Times Magazine. April 13, 1970.
  9. World Health Organization. (2013). Ethical considerations in global health research. WHO Press.
  10. Rosenbaum, J. (2018). Price gouging and healthcare: Ethical considerations. Journal of Medical Ethics, 44(3), 195-200.

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