In the business world, it is often easier to make a decision that results in profit rather than respect. Although profit is important, an ethical reputation largely benefits to the success of a company. Whenever people are presented with a dilemma, they often “look for relevant cues in their environment” and review “prior experiences of similar situations” to process the information and develop a response (Hiekkataipale & Lämsä, 2017, p. 459). Sometimes a the reasons and consequences of a decision can be evaluated quickly, but often it involves more thought and careful consideration. In the case study presented Business Ethics: A Managerical Approach, Vagelos is presented with a difficult decision regarding funding research for an unprofitable
…show more content…
Since businesses are centered around relationships, the manager must “respond to the needs of those to whom one is concretely and closely connected” (Hiekkataipale & Lämsä, 2017, p.462). Clients, employees, researchers, the board, and other stakeholders want the company to make decisions that benefit them, but it is impossible to please everyone. Since a decision may be controversial between groups, Vagelos must make a decision that aligns with the company’s most important goals: to create medication that benefits both humans and the firm. Although some board member may worry about the financial aspect, Merck is also responsible to their clients, researchers, and the community. Stakeholders may feel financial pressure and wish to deny the research project, but the relationship Merck maintains with clients, researchers, and the public may be negatively affected. In this situation, the interests of the researchers, the public, and the clients are more important than the financial return that board members …show more content…
There is also the possibility that research may uncover other uses for ivermectin or other compounds that could be profitable. Research shows that “people do their best, most creative work in an environment of trust, responsibility, and high aspirations” so encouraging research despite the cost creates a culture of motivated and ethical employees (Wicks, Freeman, Werhane, Martin, 2010, p.9). Companies known for their ethics attract not only business, but partnerships as well. By developing the drug within partnerships, Merck can still claim responsibility for the discovery, but they also receive help with funding, exposure, and distribution. There are multiple avenues for Merck to consider that involves further developing the drug without risking the future of the company. Generally speaking, “profitable firms have a purpose and values beyond profit maximization” (Wicks, Freeman, Werhane, Martin, 2010, p.76). Therefore Vagelos would be wise to consider actions that appeal to the other purposes of the company rather than just
Since businesses are centered around relationships, the manager must “respond to the needs of those to whom one is concretely and closely connected” (Hiekkataipale & Lämsä, 2017, p.462). Clients, employees, researchers, the board, and other stakeholders want the company to make decisions that benefit them, but it is impossible to please everyone. Since a decision may be controversial between groups, Vagelos must make a decision that aligns with the company’s most important goals: to create medication that benefits both humans and the firm. Although some board member may worry about the financial aspect, Merck is also responsible to their clients, researchers, and the community. Stakeholders may feel financial pressure and wish to deny the research project, but the relationship Merck maintains with clients, researchers, and the public may be negatively affected. In this situation, the interests of the researchers, the public, and the clients are more important than the financial return that board members …show more content…
There is also the possibility that research may uncover other uses for ivermectin or other compounds that could be profitable. Research shows that “people do their best, most creative work in an environment of trust, responsibility, and high aspirations” so encouraging research despite the cost creates a culture of motivated and ethical employees (Wicks, Freeman, Werhane, Martin, 2010, p.9). Companies known for their ethics attract not only business, but partnerships as well. By developing the drug within partnerships, Merck can still claim responsibility for the discovery, but they also receive help with funding, exposure, and distribution. There are multiple avenues for Merck to consider that involves further developing the drug without risking the future of the company. Generally speaking, “profitable firms have a purpose and values beyond profit maximization” (Wicks, Freeman, Werhane, Martin, 2010, p.76). Therefore Vagelos would be wise to consider actions that appeal to the other purposes of the company rather than just