Memorandum To Dr On Camscanner Link

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Memorandum TO: Dr. Melendez Department of Management and Organizations FROM: Marcela Fuerte Velasco [MFV] MGMT 202 RE: A Postmortem: Theranos, Inc./The Inventor: Out for Blood in Silicon Valley DATE: October 29, ) Was there a certain type of Theranos board member Holmes recruited? Explain. Holmes recruited people that were in top leadership positions in a few different fields who she considered to be “strategically brilliantâ€. She hired General Mattis, who was a former US Central Commander, Dick Kovacevich, the former CEO of Wells Fargo, Sam Nunn, who did work relating to nuclear and biothreats, as well as a few former Secretary of States. Since she knew that what Theranos was working towards would ultimately be serving people, she wanted to hire like-minded individuals as board members that had experience in looking out for the well-being of their people.

(2) What was the connection between Theranos and Arizona? Theranos partnered with Walgreens in 2013 and tested real patients in Arizona. However, the Edison machines had problems and were not approved for in-store testing yet. Despite the restriction, Theranos was willing to proceed without the approval because the company was running out of money, and the partnership with Walgreens was their way to secure more funds from new investors. Elizabeth decided to launch the Wellness Centers without the Edisons and instead have the blood samples transferred to Palo Alto where inexperienced lab technicians produced the test results. Elizabeth also lobbied the state of Arizona to pass a law that allowed patients to order lab tests without the need to ask doctors, claiming that this would give patients the opportunity to finally be involved in their own health.

(3) In your opinion, what was the most unethical aspect of the Theranos scandal? The most unethical aspect of the Theranos scandal was the misrepresentation of lab results and confirmation that their machines produced accurate results when that was not true. Elizabeth and leadership tried forcing the image of a multibillion-dollar company successfully carrying out their action plans to instill trust and convince more people to buy into their idea. The company used their faulty technology and lied to patients about their test results by diluting the blood samples to make them work. It is the worst thing out of all they did because it put people’s lives in danger. As one of the former employees explained, one of the tests Theranos had begun to perform was for syphilis. In his example, he said only 65 out of 100 patients would be told they had syphilis while the other 35 would be lied to and told they were healthy. Such actions certainly would not benefit society because more disease would be prevalent.

Paper For Above instruction

The Theranos scandal stands as a profound example of ethical failure in innovation and healthcare technology. At its core, the scandal reveals critical lessons about the importance of integrity, transparency, and regulatory compliance in the pursuit of technological advances. This paper explores the recruitment strategies of Elizabeth Holmes, the connection of Theranos with Arizona, and the most significant ethical violations that transpired, offering insights into how ethical lapses can compromise public health and erode trust in scientific endeavors.

Elizabeth Holmes strategically recruited board members who were highly respected experts in diverse fields, epitomizing what can be termed a ‘strategically brilliant’ leadership model. Her selections ranged from military generals to corporate CEOs and former government officials, such as General James Mattis, Dick Kovacevich, and Sam Nunn. These individuals, with their extensive leadership experience and societal influence, lent credibility to Theranos’ ambitious claims. Holmes’s intent was to associate the company with individuals who could vouch for its technological promise, thereby creating a perception of legitimacy and reliability among investors, regulators, and the public. However, this recruitment strategy, while effective in garnering support, ultimately masked underlying technological deficiencies and ethical lapses. The choice to assemble a board with impressive credentials exemplifies how strategic positioning can sometimes overshadow the importance of scientific validation, raising ethical questions about the prioritization of reputation over truth.

The connection between Theranos and Arizona exemplifies a strategic effort to expand the company's operational footprint and influence regulatory landscapes. Theranos formed a partnership with Walgreens in 2013, aiming to establish wellness centers that would facilitate in-store blood testing. Despite the Edison machines not being approved for in-store use, Theranos proceeded, driven by financial distress and the need to sustain investor confidence. The company bypassed regulatory hurdles by transferring blood samples collected in Arizona to their Palo Alto lab, where inexperienced technicians processed the tests, often with questionable accuracy. Additionally, Elizabeth Holmes actively lobbied Arizona lawmakers to enact legislation permitting patients to order lab tests without physician oversight, ostensibly empowering consumers but also bypassing rigorous medical and regulatory oversight. This strategy reflected a calculated attempt to integrate deregulation with expanding test access, though it raised significant ethical concerns about patient safety, informed consent, and transparency. The Arizona case underscores how regulatory and legislative manipulation can be employed unethically to sustain a company’s growth at the expense of public health safeguards.

The most unethical aspect of the Theranos scandal was unquestionably the misrepresentation of the technology’s capabilities and the falsification of test results. Elizabeth Holmes and her leadership team deliberately misled regulators, investors, and patients by asserting that their blood-testing devices were accurate when, in fact, they were unreliable. The company diluted blood samples, manipulated data, and concealed technological failures to project an image of success. This deception was not merely corporate misconduct but posed serious health risks to patients, exemplified by the faulty syphilis tests that falsely diagnosed individuals, potentially leading to unnecessary or missed treatments. The willingness to subordinate ethical standards to achieve market credibility reveals a profound breach of public trust and professional integrity. Such behavior, rooted in greed and the desire for status, overrides the fundamental medical principle of ‘do no harm,’ illustrating a catastrophic failure of business ethics and corporate responsibility.

In conclusion, the Theranos case highlights the critical importance of ethical vigilance in the development and deployment of healthcare technologies. The recruitment of influential figures to bolster credibility can be double-edged, risking reputational damage if the underlying technology is flawed. Regulatory and legislative manipulation to circumvent oversight jeopardizes patient safety and undermines societal trust in medical innovation. The most egregious violation was the deliberate falsification of results, endangering lives and betraying the ethical duties owed to patients and society. This scandal serves as a cautionary tale emphasizing that technological innovation must be grounded in honesty, rigorous testing, and transparency to serve the public good genuinely.

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