Running Head: VIOXX SCANDAL CASE STUDY
Diaz 1
Vioxx Vioxx Scandal Cae S!ud" Le#anon Valle" College Hec!o$ Diaz
A#!$ac! T%i cae anal"i &ill dicu a#ou! !%e $ecall o' Vioxx (ill and &%a! i)(o$!an! 'ac!o$ %ould %a*e #een !a+en '$o) !%e execu!i*e o' ,e$c+- T%e $ecall o' Vioxx Vioxx %o&ed !%e
VIOXX SCANDAL CASE STUDY
Diaz .
i)(o$!ance o' ,e$c+/ cu!o)e$ and %o& !%e #uine %ould %a*e )ade #e!!e$ deciionT%i (a(e$ &ill de)on!$a!e di''e$en! anal"!ical !ool !%a! &e$e ued !o de!e$)ine !%e #e! al!e$na!i*e o' !%e execu!i*e o' ,e$c+- T%e $eea$c% (a(e$ alo dec$i#e !%e (o&e$0 in!e$e!0 and coali!ion o' !a+e%olde$ !%a! a$e a''ec!ed- T%e )o$al $e(oni#ili!" )a!$ix )a!$ix ex(lain !%e $e(oni#ili!ie !%a! ,e$c+ %a 'o$ !%ei$ !a+e%olde$- T%e diagno!ic !"(olog" !ool i ued !o dec$i#e !%e !"(e o' !$a!eg" !%a! %ould %a*e #een ue 'o$ ,e$c+/ !a+e%olde$- T%$ee o#ec!i*e a$e !a!ed !o ($o(oe !%e i!ua!ion !%a! occu$$ed in .222 a'!e$ !%e VI3OR $e(o$!T%e cone4uence5deciion )a!$ix &ill %el( de!e$)ine !%e #e! al!e$na!i*e !o ac%ie*e !%e o#ec!i*e o' !%e co)(an"co)(an"- La!l"0 !%e ugge!i*e al!e$na!i*e i gi*en and co)(a$e !o !%e ac!ual al!e$na!i*e Keywords: ,e$c+0 Vioxx0 Vioxx0 e!%ic0 cu!o)e$0 (%a$)aceu!ical0 (%a$)aceu!i cal0 %eal!%0 )edicine
Vioxx Vioxx Scandal Cae S!ud" ,e$c+ &a conide$ed !o #e one o' !%e )o! ucce'ul (%a$)aceu!ical co)(anie o' !%e &o$ld- T%e co)(an" &a alo +no&n +no&n !o #e #e e!%ical and ociall" $e(oni#le- On !%e o!%e$ o!%e$ %and0 !%e Vioxx Vioxx candal %ad da)aged !%e $e(u!a!ion o' !%e co)(an" a! !%e !i)e- Vioxx Vioxx &a a non6!e$oidal an!i6in'la))a!o$" d$ug and a ($ec$i(!ion (ain+ille$ 7Vioxx 7Vioxx Recall In'o$)a!ion8- ,e$c+ %ad )ilead doc!o$ and (a!ien! !o #u"ing Vioxx0 Vioxx0 in o$de$ !o inc$eae !%ei$ $e*enue- Vioxx Vioxx &a conide$ed !o #e !%e #loc+#u!e$ #loc+#u!e$ d$ug0 &%ic% )ean! !%a! ,e$c+ &a gaining la$ge a)oun! o' $e*enue annuall" #" )a$+e!ing i! ucce'ull" !o doc!o$ and conu)e$- Di$ec!6!o6Conu)e$ Ad*e$!iing %ad inc$eaed !%e ale o' Vioxx ince i! allo&ed
VIOXX SCANDAL CASE STUDY
Diaz 9
!%e co)(an" !o e''ec!i*el" e''ec!i*el" ad*e$!ie di$ec!l" !o !%e conu)e$conu)e$- T%e g$ea! ad*e$!ie)en! o' Vioxx Vioxx a!!$ac!ed )an" conu)e$ and doc!o$ !o #u" !%e ($oduc!T%e candal !%a! ,e$c+ 'aced &a !%a! Vioxx caued deadl" %ea$! a!!ac+ and !$o+e !o )an" conu)e$- E*en #e'o$e !%e d$ug &a a(($o*ed0 !%e$e &e$e o)e o)e e*idence !%a! ca! dou#! on !%e a'e!" o' VioxxVioxx- T%e VI3OR !ud" ($o*ed !%a! Vioxx Vioxx %ad caued 'i*e !i)e a )an" %ea$! a!!ac+ co)(a$ed !o na($oxen- T%e deciion i no& no& le'! !o !%e execu!i*e o' o' ,e$c+ and !%e ood and D$ug Ad)ini!$a!ion 7DA8- T%i (a(e$ &ill de)on!$a!e !%e o#ec!i*e and al!e$na!i*e !%a! !%e execu!i*e o' ,e$c+ %ould %a*e de*elo(ed a'!e$ !%e $eul! o' !%e VI3OR $e(o$!Problem and Ethical Dilemma T%e e!%ical iue !%a! ,e$c+ 'aced in !%e Vioxx candal &a !%a! !%e" did no! co))unica!e !%e %eal!% $i+ o' !%e (ill ca$e'ull" and e''ec!i*el" !o !%ei$ conu)e$0 #u! !%e" in!ead ad*e$!ied !o gain )o$e $e*enue- T%i caued e*en )o$e conu)e$ !o #e a! $i+ 'o$ dange$ou ca$dio*acula$ iue- ,e$c+ onl" ad*e$!ied !%a! Vioxx did &ell !o !%e !o)ac% co)(a$ed !o na($oxen- ,e$c+ &a 'ocued on !$"ing !o con!inue !%e inc$eae o' !%ei$ $e*enue #ecaue !%e" &e$e doing o &ell- T%e" %ad %ad 'inancial 'ea$ !%a! !%ei$ ale &ould %a*e dec$eaed i' !%e" %ad announced !%a! Vioxx Vioxx caued )ao$ %eal!% iue- T%e" alo 'ea$ed 'o$ !%ei$ i)age $e!o$a!ion and legal 'ea$ 'o$ !%e co)(an" i' !%e" &ould %a*e announced !%e $i+ !o !%e (u#licT%e e!%ical iue o' !%e co)(an" &a !%a! !%e co)(an" &a onl" !%in+ing a#ou! !%e)el*e- T%e co)(an" did no! de)on!$a!e u!ili!a$iani) e!%ic0 &%ic% &a !o 'ocu on ($o*iding !%e g$ea!e! good 'o$ !%e g$ea!e! a)oun! o' (eo(le (eo(le 7S!an&ic+ ; S!an&ic+0 .21<0 (-=8- T%e$e a$e !%$ee 4ue!ion !%a! ,e$c+ %ould %a*e de*elo(ed !o ol*ing ol*ing !%e e!%ical ($o#le)- T%e 'ollo&ing 4ue!ion %ould %a*e #een:
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>%a! can &e do !o ($o!ec! o$ ($e*en! all o' ou$ cu!o)e$ &%o !oo+ Vioxx? Vioxx? Ho& can &e $educe !%e $i+ o' %ea$! a!!ac+ and !$o+e o' all o' ou$ Vioxx (a!ien!? Ho& can &e e''ec!i*el" co))unica!e !o ou$ !a+e%olde$ a#ou! !%e %eal!% $i+ o' Vioxx?
VIOXX SCANDAL CASE STUDY
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T%ee 4ue!ion %ould %el( ,e$c+ !o )a+e e!%ical deciion !o ($e*en! an" iue &i!% !%ei$ !a+e%olde$ and an" 'inancial de#! !%a! can occu$ i' !%e execu!i*e )a+e !%e &$ong deciion- T%e lac+ o' !$an(a$enc" and %one!" c$ea!ed une!%ical iue !o !%e !a+e%olde$ o' !%e co)(an"- T%e e!%ical dile))a !%a! ,e$c+ %ad &a !%a! !%e" &e$e g$eed" and did no! e)(%aize !%e digni!" o' !%ei$ !a+e%olde$- T%e" %ould +ee( in )ind !%a! !%ei$ #uine can #e g$ea!l" a''ec!ed in !%e long6$un- I' !%e co)(an" 'ail !o ($o*ide i)(o$!an! in'o$)a!ion o' !%e ac!i*i!ie !%a! a$e %a((ening &i!%in !%e #uine0 !%en i! &ill co! %uge a)oun! o' )one" '$o) la&ui! and )an" o!%e$ ex(eneStakeholder Analysis T%e !a+e%olde$ anal"i di(la" !%e !a+e%olde$ &%o &e$e i)(ac!ed0 &%e!%e$ !%e"
a$e )a$+e! o$ non6)a$+e!0 !%ei$ (o&e$0 ex(ec!a!ion0 ex(ec!a!ion0 and coali!ion- @" loo+ing a! !%ee a(ec! &ill %el( de!e$)ine %o& i)(o$!an! !a+e%olde$ a$e0 &%a! !%ei$ a#ili!ie a$e0 and %o& !%e co)(an" can ac%ie*e o$ o$ exceed !%ei$ !a+e%olde$/ ex(ec!a!ion- T%i anal"i &ill gi*e a good idea o' conce$n '$o) !%e !a+e%olde$ and ga!%e$ in'o$)a!ion a#ou! !%e) !o #e a#le !o ol*e !%e une!%ical iue !%a! a$e a''ec!ing !%e)T%e !a+e%olde$ a''ec!ed #" !%e une!%ical #e%a*io$ )ade #" ,e$c+ a$e !%e %a$e%olde$0 cu!o)e$0 and !%e go*e$n)en!- T%e execu!i*e o' ,e$c+ %ould %a*e !a+en a cloe$ loo+ o' %i o$ %e$ !a+e%olde$ !%a! &e$e i)(ac!ed #" !%e co)(an"/ deciionLoo+ing o*e$ !%e in!e$e! and (o&e$ &ould %el( !%e co)(an" !o $ecognize and ol*e !%e une!%ical ac!ion !%a! &a done- u$!%e$)o$e0 unde$!anding !%e coali!ion o' !%e !a+e%olde$ &ill %el( !o #e )o$e 'a)ilia$ &i!% !%e cone4uence o' deciionStakehold ers
Market or NonMarket
Shareholder s
Market stakeholde rs
Power
Voting power - ability to vote on major decisions for Merck.
Expectati on
Coalition
For Merck to have an increase in ROI and enhance the
If unethical behaviors continue, the shareholders and customers will discontinue their involvement and lose
VIOXX SCANDAL CASE STUDY
!ustomers
Market stakeholde rs
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•
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%overnment
&onMarket stakeholde r
Economic power -they -they rovide the revenues of the comany. Legal power- ability power- ability to brin" suits for harmful rescrition dru"s. Informational powerability to rovide feedback of the comany, which can be threatenin" of they are not satis#ed with the roducts of Merck. Legal power - the ability to enact and enforce laws and re"ulations about the roducts that Merck sells.
Diaz reutation of Merck.
interest with the comany.
For Merck to rovide rescrition dru"s that will hel customer$s certain health issues.
If unethical behaviors continue, the shareholders and customers will discontinue their involvement and lose interest with the comany.
For Merck 'he customers and to follow shareholders can and comly form a coalition with with the the "overnment, laws and which can cause the re"ulations. "overnment to enact or re"ulate new laws and re"ulations.
igu$e 1-16 ,e$c+/ S!a+e%olde$ Anal"i
T%e %a$e%olde$ a$e conide$ed !o #e one o' !%e )o! i)(o$!an! !a+e%olde$ o' an" (u#lic co)(an"co)(an"- T%e in!e$e! o' !%e %a$e%olde$ i !o $ecei*e di*idend and ca(i!al a(($ecia!ion- @" inc$eaing !%e $e!u$n o' in*e!)en!0 !%i &ill )a+e %a$e%olde$ a!i'" and con!inue !o #u" %a$e o' !%e co)(an"- T%e T%e %a$e%olde$ %a*e *o!ing (o&e$ !%a! in'luence !%e (%a$)aceu!ical co)(an" o' ,e$c+- T%e *o!ing (o&e$ o' !%e %a$e%olde$ i !%a! !%e" %a*e !%e a#ili!" !o *o!e on )ao$ deciion uc% a ac4uii!ion o$ ($o#le) !%a! )a" occu$ &i!%in !%e co)(an"co)(an"T%e cu!o)e$ %a*e econo)ic0 legal0 and in'o$)a!ional (o&e$- Econo)ic (o&e$ o' !%e cu!o)e$ a$e !%a! !%e" ($o*ide !%e $e*enue !o !%e co)(an"- T%e legal (o&e$ o' cu!o)e$ i !%e $ig%! !o #$ing ui! again! ,e$c+ i' !%e co)(an" con!inue !o ($o*ide )edicine !%a! caue %eal!% iue- In'o$)a!ional (o&e$ o' cu!o)e$ a$e !%e a#ili!" !o ($o*ide 'eed#ac+ o' !%e co)(an"0 co)(an"0 &%ic% can #e !%$ea!ening i' !%e" a$e no! a!i'ied &i!% !%e )edicine o' ,e$c+- ,e$c+ can (o!en!iall" loe )o$e cu!o)e$0 and ale &ill decline- T%e co)(an"/ co$e *alue &a !o $e)e)#e$ !%a! )edicine &e$e 'o$ !%e (eo(le and no! 'o$ !%e
VIOXX SCANDAL CASE STUDY
Diaz B
($o'i! 7La&$ence0 .21B0 (-<=8- T%ei$ *alue de)on!$a!ed !%a! cu!o)e$ &e$e *e$" i)(o$!an! !a+e%olde$- I! i igni'ican! !o no!e !%a! cu!o)e$ &e$e u((oed !o #e !%ei$ 'i$! ($io$i!"- Ho&e*e$0 !%e co)(an" co)(an" did no! %a*e in!eg$i!" a !o (u! ac!ion !o &%a! !%e" &e$e a"ingT%e go*e$n)en! i a non6)a$+e! !a+e%olde$ !%a! %a legal (o&e$- T%e" %a*e !%e a#ili!" !o enac! and en'o$ce la& and $egula!ion !o (%a$)aceu!ical co)(anie- T%e ood and D$ug Ad)ini!$a!ion Ad)ini!$a!ion 7DA8 en'o$ced !%a! d$ug co)(anie %ould ge! !%ei$ ($oduc! a(($o*ed #e'o$e going ou! !o !%e )a$+e!- T%e d$ug )u! #e exa)ined and $eea$c%ed !o #e a#le !o ($o*ide e''icien! in'o$)a!ion and &a$ning a#ou! a#ou! !%e)- T%e go*e$n)en! i a #ig (la"e$ (la"e$ 'o$ ,e$c+ ince !%e" %a*e !%e a#ili!" !o con!$ol and )ain!ain ce$!ain ac!ion a#ou! (%a$)aceu!ical ($oduc!- I' !%e ,e$c+ Co)(an" doe no! co)(l" &i!% !%e DA0 !%ei$ #uine can colla(e '$o) unla&'ul and une!%ical ac!i*i!ieCe$!ain deciion !%a! i )ade '$o) ,e$c+ can 'o$) coali!ion #e!&een all !%e !a+e%olde$- o$ exa)(le0 i' !%e co)(an" con!inue !o igno$e !%e ($o#le) o' no! e''ec!i*el" co))unica!ing !%e $i+ o' Vioxx0 !%en i! can la!e$ a!!$ac! !%e )edia and in'luence !%e #e%a*io$ o' !%e !a+e%olde$- S%a$e%olde$ and !%e cu!o)e$ &ill 'o$) coali!ion and can dicon!inue !%ei$ in*ol*e)en! &i!%in !%e co)(an"- T%e" can alo c$ea!e coali!ion &i!% !%e go*e$n)en!0 &%ic% !%en can en'o$ce o$ enac! la& and $egula!ion !%a! &ill i)(ac! !%e #uine- T%ee deciion i)(ac! all !%e !a+e%olde$ ince %a$e%olde$ &ill !o( #u"ing !oc+0 cu!o)e$ &ill no longe$ #u" '$o) ,e$c+0 and !%e go*e$n)en! can c%ange !%e &a" !%e co)(an" o(e$a!eMoral Responsibility Matrix
VIOXX SCANDAL CASE STUDY
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igu$e 1-.6 ,o$al Re(oni#ili!" ,a!$ix
T%e )o$al $e(oni#ili!" ,a!$ix de)on!$a!e !%e econo)ic0 legal0 e!%ical0 and *olun!a$"5dic$e!iona$" $e(oni#ili!ie !%a! ,e$c+ %a 'o$ !%ei$ !a+e%olde$- T%e !a+e%olde$ 'ocued &e$e on !%e %a$e%olde$0 cu!o)e$0 and !%e go*e$n)en!- T%e o#ec!i*e !%a! co)e '$o) !%e )o$al $e(oni#ili!" )a!$ix a$e !o inc$eae ($o'i!0 !o dec$eae !%e $i+ o' %eal!% iue '$o) !%ei$ ($oduc!0 and a!!$ac! )o$e cu!o)e$- T%ee o#ec!i*e &e$e de*elo(ed #aed on !%e )o$al $e(oni#ili!ie !%a! ,e$c+ %a 'o$ !%ei$ %a$e%olde$0 cu!o)e$0 and go*e$n)en!- T%ee o#ec!i*e %ould #e #e ac%ie*ed !o a!i'" all !%e !a+e%olde$ !%a! a$e exa)ined '$o) !%e )o$al $e(oni#ili!" )a!$ixDiagnostic Diagnosti c Typology Tool Tool
VIOXX SCANDAL CASE STUDY
Diaz
igu$e 1-96 Diagno!ic T"(olog" Tool o' ,e$c+/ S!a+e%olde$
Acco$ding !o !%e Diagno!ic !"(olog" !ool0 ,e$c+/ cu!o)e$ and !%e go*e$n)en! a$e a )ixed #leing 7!"(e <8- T%e execu!i*e )u! ue a colla#o$a!ing !$a!eg" !o ol*e iue !%a! $ela!e !o !%ee !a+e%olde$- T%e cu!o)e$ and go*e$n)en! a$e a %ig% !%$ea! and %a*e a %ig% coo(e$a!ion &i!% !%e o$ganiza!ion- o$ !%e %a$e%olde$ o' ,e$c+0 !%e" $e($een! a #eing u((o$!i*e !a+e%olde$ 7!"(e 18- An in*ol*ing !$a!eg" %ould #e ued !o ol*e an" ($o#le) !%a! $ela!e !o !%e %a$e%olde$- T%e %a$e%olde$ a$e a lo& !%$ea! !o !%e co)(an"0 #u! %a*e a %ig% coo(e$a!ion &i!% !%e o$ganiza!ion- T%e execu!i*e %ould de*elo( #o!% a colla#o$a!e !"(e ! "(e and in*ol*e !"(e o' al!e$na!i*e- T%i !ool ($o*e !%a! &i!% !%oe !"(e o' al!e$na!i*e can a*e !%e co)(an" '$o) #eco)ing une!%ical o$ i))o$ali))o$al- T%e al!e$na!i*e de*elo(ed &e$e !o $e)o*e Vioxx Vioxx '$o) !%e )a$+e!0 $e'o$)ula!e Vioxx0 Vioxx0 and $e(lace Vioxx Vioxx &i!% a ne& d$ugRecommended Objectives T%e !%$ee o#ec!i*e !%a! !%e execu!i*e o' ,e$c+ %ould ue a$e !o inc$eae !%e co)(an"/ ($o'i!0 $educe !%e $i+ o' ca$dio*acula$ ($o#le)0 and a!!$ac! )o$e cu!o)e$T%ee o#ec!i*e %ould #e ac%ie*ed #" en%ancing !%e in!eg$i!" and !$an(a$enc" o' !%e
VIOXX SCANDAL CASE STUDY
Diaz
co)(an"co)(an"- T%i &a c$ea!ed '$o) !%e )o$al $e(oni#ili!" )a!$ix- Unde$!anding !%e $e(oni#ili!ie &ill %el( !%e 'i$) )a+e #e!!e$ deciion in o$de$ !o ac%ie*e !%ei$ o#ec!i*eT%e 'i$! o#ec!i*e i !o inc$eae !%e ($o'i! ($o'i! o' !%e 'i$) !o a! lea! !en (e$cen!- T%e goal o' !%e co)(an" i !o #eco)e ($o'i!a#le0 %o&e*e$ i! %ould %ould #e done !%e $ig%! &a"&a"- ,e$c+ &a o d$i*en in!o )a+ing o )uc% ale o' Vioxx !%a! !%e" did no! e*en &an! !o exclui*el" deli*e$ !%e #ad ne& a#ou! !%e d$ug- T%e co)(an" con!inued con!inued !o ell and )a$+e! !%e ($oduc! +no&ing !%a! $eea$c% ($o*ed i! &a cauing ca$dio*acula$ ($o#le)- ,e$c+ co)(a$ed i! !o nax($oxen0 #u! )ade i! ee)ed ee )ed a i' Vioxx %ould #e concen!$a!ed on onl" !%e #ene' i! o' a$!%$i!i u''e$e$ &%o &e$e a! $i+ 'o$ ulce$- T%e DA a(($o*ed !%e d$ug 'o$ $%eu)a!oid a$!%$i!i- A a $eul!0 !%e co)(an" &a a#le !o gene$a!e #illion in ale- In con!$a!0 ,e$c+ %ould )a+e u$e !%a! !%e" a$e gaining i! !%e e!%ical &a" #" elling a'e$ d$ug and #eing )o$al 7!%$oug% in!eg$i!" and %one!"8 !o !%e !a+e%olde$T%e econd o#ec!i*e &a !o $educe !%e ca$dio*acula$ $i+ !%a! Vioxx caued- T%i i een!ial a i! ($e*en! !o 'u$!%e$ !%e %eal!% ($o#le) o' !%e (a!ien! &%o !a+e VioxxVioxx- All o' !%e !a+e%olde$ a$e i)(ac!ed #" !%e ($o#le) o' gi*ing (a!ien! ca$dio*acula$ iue- o$ exa)(le0 i' !%e 'i$) 'ind a &a" !o $educe !%e $i+ !%en !%e co)(an" &ill #e in good %and and !%e %a$e%olde$ &ill #e a!i'ied- In addi!ion0 !%e go*e$n)en! &ould no! %a*e !o !a+e an" legal ac!ion !o !%e 'i$) ei!%e$- T%i i a *e$" i)(o$!an! o#ec!i*e ince !%i &a !%e iue !%a! led !o !%e e!%ical dile))a o' !%e 'i$)T%e !%i$d o#ec!i*e &a !o a!!$ac! )o$e cu!o)e$- ,e$c+/ (u$(oe o' !%e #uine i !o ($o*ide )edicine !o !%e (eo(le- @" a!!$ac!ing )o$e cu!o)e$0 !%e o$ganiza!ion %a !%e o((o$!uni!" !o )axi)ize ($o'i!0 )ain!ain a good i)age0 and de*elo( inno*a!i*e ($oduc!@$inging in )o$e conu)e$ !o !%e #uine )ean )o$e $e(oni#ili!ie !o #e ca$e'ul 'o$ !%e %eal!% $i+ caued #" !%e )edicine- >%en !%e 'i$) a!!$ac! )o$e cu!o)e$0 cu!o)e$0 !%e" %ould al&a" !$" !o +ee( a (oi!i*e i)age- ,a+ing !%e $ig%! deciion and 'ollo&ing u( &i!% 'eed#ac+ %ould al&a" #e i)(le)en!ed !o gain co)(e!i!i*e ad*an!age and deli*e$ !%e #e! ($oduc! 'o$ !%e cu!o)e$-
VIOXX SCANDAL CASE STUDY
Diaz 12
Appropriate Alternative Soltions T%e execu!i*e )u! anal"ze !%e o#ec!i*e and al!e$na!i*e !o #e a#le !o de!e$)ine
&%a! i #e! 'o$ !%e co)(an" in !%e long $un- T%e 'ollo&ing al!e$na!i*e ($o(oed in !%i cae &a !%a! !%e co)(an" %ould $e)o*e Vioxx Vioxx en!i$el" '$o) !%e )a$+e!0 $e'o$)ula!e Vioxx #" adding an agen! !o ($e*en! #lood clo!0 and $e(lace Vioxx &i!% a ne& d$ug 7a'!e$ ex!eni*e $eea$c% and a(($o*al8- In !%e 'ollo&ing cone4uence5deciion )a!$ix0 igu$e 1-< %o& !%e o#ec!i*e and al!e$na!i*e along &i!% !%e i)(ac! co$e and ex(ec!ed cone4uenceTa+ing Ta+ing $e(oni#ili!"0 #eing !$u!%'ul0 and 'ul'illing co))i!)en! a$e exa)(le o' $eac%ing a %ig% !$an(a$enc" !$an(a$enc " and in!eg$i!" 'o$ !%e co)(an"- T$an(a$enc" enu$e !%a! all accu$a!e and !$u!%'ul in'o$)a!ion o' !%e &a$ning 'o$ an" %eal!% and a'e!" iue o' !%e ($oduc! %ould #e !old !o all !a+e%olde$ o' !%e 'i$) 7S!an&ic+ ; S!an&ic+0 .21<0 (-18T%e !$an(a$enc" and digni!" ($inci(le %ould #e 'ollo&ed !o #eco)e )o$e e!%ical in !%ei$ deciion )a+ing ($oce- T%i %ould #e done #" e''ec!i*el" co))unica!ing &i!% !%e !a+e%olde$ and le!!ing !%e) !%e ) +no& a#ou! &%a! !%e $eul! $e ul! o' VI3OR $e(o$! &a- Vioxx &a !oo dange$ou0 and ,e$c+ %ould %a*e $ealized !%e %a$) !%a! i! &a cauing !o !%e (a!ien! and %o& )uc% i! &ill nega!i*el" i)(ac! !%e $e(u!a!ion and o(e$a!ion o' !%e co)(an"- T%e execu!i*e %ould %a*e an e!%ical $e(oni#ili!" !o ac! in an %one! )anne$ !o #e !$u!%'ul and 'o$!%$ig%! &i!% !%ei$ deciion- T%e co)(an" %ould alo !a+e !%e ini!ia!i*e !o #e lo"al !o !%ei$ !a+e%olde$ and a*oid !%e #ene'i! o' el'6in!e$e!- >i!% in!eg$i!"0 !%e ac!ion o' !%e #uine &ill (ea+ loude$ !%an &o$d- ,e$c+ i $e(oni#le 'o$ !%e %eal!% o' all !%e (a!ien! &%o !oo+ Vioxx Vioxx and no& !%e 'i$) )u! )a+e igni'ican! deciion on %o& !o i)($o*e!onse"ence Matrix and Decision Matrix
VIOXX SCANDAL CASE STUDY
igu$e 1-<6 T%e cone4uence5 deciion )a!$ix de)on!$a!ing !%e al!e$na!i*e and o#ec!i*e-
Diaz 11
VIOXX SCANDAL CASE STUDY
Diaz 1.
igu$e 1-6 Ac!ual al!e$na!i*e !%a! ,e$c+-
T%e cone4uence deciion )a!$ix de)on!$a!e !%e &eig%!ed o#ec!i*e and al!e$na!i*e !%a! &e$e ugge!ed- T%e al!e$na!i*e &i!% !%e %ig%e! &eig%!ed co$e &a !o $e(lace Vioxx &i!% a ne& d$ug 7a'!e$ ex!eni*e e x!eni*e $eea$c% and a(($o*al8- T%e co)(an" %ould %a*e $e)o*ed Vioxx '$o) !%e )a$+e! and $e(laced i! &i!% a #e!!e$ (ill- T%e ($o#le) !%a! ,e$c+ did &a !%a! !%e" &e$e $eea$c%ing and !ud"ing Vioxx &%ile i! &a !ill in !%e )a$+e!I' !%e co)(an" )a+e ano!%e$ d$ug !%a! %a #een $eea$c%ed and ucce'ull" (aed &i!% (oi!i*e $eul!0 !%en !%e" can %a*e a %ig%e$ c%ance o' ac%ie*ing !%e !%$ee o#ec!i*e- In o$de$ !o do !%i al!e$na!i*e0 al!e$ na!i*e0 !%e co)(an" %ould 'i$! e''ec!i*el" announce !%e $i+ o' Vioxx Vioxx in co)(le!e de!ail and $e)o*e i! '$o) !%e )a$+e!- T%en0 (lan 'o$ a ne& d$ug and can )a+e i! !%e ne& #loc+#u!e$ d$ug-
VIOXX SCANDAL CASE STUDY
Diaz 19
Co)(a$ed !o !%e ac!ual al!e$na!i*e !%a! ,e$c+ !oo+0 i! &ould %a*e #een #e!!e$ 'o$ !%e) !o )a+e a ne& d$ug- ,e$c+ did no! &an! !o announce announce a#ou! !%e %eal!% iue o' !%ei$ ($oduc! ince !%e" !%oug%! i! &ould %a*e %a*e caue a nega!i*e e''ec! !o !%e co)(an"/ ($o'i!Ho&e*e$0 ,e$c+ %ould %ould %a*e $ealized !%a! in !%e long $un !%e" &ould #e &o$! o''- T%e &eig%!ed a*e$age o' !%e ac!ual al!e$na!i*e &a -B0 &%ic% %o& %o& inade4ua!e !%ei$ deciion &aT%e e!%ical $a!ionale o' de*elo(ing a ne& d$ug and elling i! a'!e$ ex!eni*e $eea$c% i !%a! !%e co)(an" &ill de)on!$a!e u!ili!a$iani)- U!ili!a$iani) &ill %o& !%a! !%e co)(an" &ill ($o*ide a )edicine 'o$ !%e #ene'i! o' !%e g$ea!e! nu)#e$ o' (eo(le- ,e$c+ ac!ed )o$e on (u$e el'6in!e$e! !o gain ($o'i! 'o$ !%e co)(an"co)(an"- @" elling a d$ug !%a! %a #een ex!eni*el" $eea$c%ed and a(($o*e &ill le! !a+e%olde$ +no& !%a! ,e$c+ i 'ocued on ($o*iding !%e good 'o$ !%ei$ cu!o)e$- T%i &ill alo ac! in acco$dance !o *i$!ue #" #eing )o$al and %o&ing in!eg$i!"in!eg$i!"- T%i al!e$na!i*e &ill allo& !%e co)(an" !o $educe !%e $i+ o' %ea$! iue !%a! Vioxx caued and inc$eae !%ei$ ($o'i!!onclsion O*e$all0 !%e )o! ugge!i*e al!e$na!i*e 'o$ !%e execu!i*e o' ,e$c+ !o ue i !o )a+e a ne& d$ug and ell i! in !%e )a$+e! a'!e$ i! %a #een ex!eni*el" $eea$c%ed and a(($o*ed '$o) cien!i!- T%e co)(an" )u! !a+e i))edia!e ac!ion #e'o$e !%e i!ua!ion ge! &o$e- Du$ing .2220 !%e co)(an" !ill %ad !%e o((o$!uni!" !o i)(le)en! an al!e$na!i*e #u! !%e" did no!%ing a#ou! !%e i!ua!ion- T%e co)(an" onl" &an!ed !o con!inue !%ei$ ($o'i!a#ili!"- A ne& d$ug could %a*e i)($o*ed !%e co)(an" in !%e long6$un- T%e )o$al $e(oni#ili!" )a!$ix de)on!$a!ed !%a! !%e o#ec!i*e o' !%e co)(an" %ould #e 'ocued on &%a! !%e econo)ic0 legal0 e!%ical0 and *olun!a$"5dic$e!iona$" $e(oni#ili!ie o' !%e !a+e%olde$ &e$e- T%e Diagno!ic !"(olog" %el(ed de*elo( !%e !$a!egie !o de!e$)ine %o& !o ac%ie*e !%e o#ec!i*e,e$c+ olel" oug%! !o 'ocu on !%ei$ (a!ien! and no! !%e !%e ($o'i!- Con*e$el"0 !%e" ended u( u! 'ul'illing !%ei$ el'6 in!e$e! o' )ain!aining a )axi)u) ($o'i! in !%e (%a$)aceu!ical indu!$"- ,e$c+ de)on!$a!ed !o %a*e one o' !%e &o$! $ecall in !%e (%a$)aceu!ical indu!$"indu!$"-
VIOXX SCANDAL CASE STUDY
Diaz 1<
Re'e$ence Hol)e0 - 7n-d-8- ,e$c+F Vioxx Scandal Hig%lig%! %a$)a E!%ic Iue- Re!$ie*ed No*e)#e$ 0 .210 '$o) %!!(:55&&&-%ol)e$e(o$!-co)5la!e!5a$!icle5)e$c+F6*ioxx6 %!!(:55&&&-%ol)e$e(o$!-co)5la!e!5a$!icle5)e$c+F6*ioxx6 candal6%ig%lig%!6(%a$)a6e!%ic6iue La&$ence0 A- 7.22B8- @uine and Socie!"0 S!a+e%olde$0 E!%ic0 u#lic olic"- 71< Ed-8,c3$a&6Hill I$&inSaul0 S- 7.220 A($il 18- ,e$c+ >$o!e D$ug S!udie 'o$ Doc!o$- Re!$ie*ed No*e)#e$ B0 .210 '$o) %!!(:55&&&-n"!i)e-co)5.2252<51B5#u %!!(:55&&&-n"!i)e-co)5.2252<51B5#uine51B*ioxx-%!)l?G$2 ine51B*ioxx-%!)l?G$2 S!an&ic+0 -0 -0 ; S!an&ic+0 S- 7.21<8- Understanding business ethics 7.nd ethics 7.nd Ed-8- Sage-
VIOXX SCANDAL CASE STUDY Vioxx Vioxx Recall In'o$)a!ion- 7n-d-8- Re!$ie*ed Re!$ie *ed No*e)#e$ 0 .210 '$o) %!!(:55&&&-d$ug&a!c%-co)5*ioxx5$ecall5
Diaz 1
