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Value Destruction: The Cost to Companies That Engage in Deceptive Marketing

October 8, 2009 Comments off

http://knowledge.wharton.upenn.edu/article.cfm?articleid=2350

This article is about a pharmaceutical manufacturer who illegally promoted its pain-killer Bextry as well as three other medications.  This was done by offering doctors speaking fees and subsidized trips to resorts, as well as other benefits. The manufacturer had to pay a settlement of $2.3 billion which was the largest ever levied against a U.S. company.  The outcome of this settlement is hoped to increase the credibility of pharmaceutical firms by making them aware of the penalties, which would in turn increase sales as well as long-term value.

This issue is directly related to what we have recently learned in class because it portrays an overaggressive marketing technique and the potential risk of becoming involved with it.  Deceptive marketing (in this case the advertising segment of marketing) is an ethical issue in which advertisers are tempted to deceive people because frank information is not always the most effective way to sell something.

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Bad Business Ethics or Acceptable Promotional Perks?

September 30, 2009 Comments off

http://www.scu.edu/ethics/dialogue/candc/cases/emotional-perks.html

This article is about a girl who just graduated with a communication major, and took a job in the publicity department of a radio station.  After she started working there she found out that the station would request products from local companies in which they would give away in exchange for good publicity from the station. However, the problem was that the station officials would overestimate the amount of products that would be given out and employees would keep the surplus. This went unnoticed by the companies because they could not monitor the stations full airtime.

This situation is obviously unethical due the fact that the radio station was not upholding to their end of the bargain. They were only worried about their own happiness and took no consideration of the loss incurred by the small businesses.

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Unethical Business in Healthcare

September 27, 2009 Comments off

http://www.medicalnewstoday.com/articles/20968.php

This article explains the growing concern by physician leaders over unethical business practices within the U.S. healthcare industry. Within the article it list the following six issues that physician leaders are concerned with: physicians refusing to accept calls on patients who don’t have insurance, influence exerted by medical device manufacturers, over-treating patients to boost income, influence by pharmaceutical companies, board members with conflicts of interest, and non-physician executive leaders with conflicts of interest.

A comment in this article that I find to be related to our class was made by one of the survey respondents, “The secondhand smoke-like effects of unethical business practices can cause ethical cancers to develop throughout health care.” I believe this statement is related to what we learned with the Milgram experiments that it is easier for people to engage in destructive obedience if they only participate in a fragment of an organizations wrong doing.

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Corruption in Guyana

September 16, 2009 Comments off

http://www.stabroeknews.com/2008/stories/03/08/four-cops-on-bribery-charge/

This article is about four police officers in Guyana, South America whom accepted a bribe of $180,000 from a man named Michael Richard. Richard paid the cops this some on behalf of another man named Singh who was caught by the officers with an unlicensed gun.

After looking through a few articles on police corruption in Guyana it is very clear to me how unethical this situation truly is.  The reason I say this is because these are people whom are supposed to be protecting the innocent and bringing justice (not just a sum of money) to the guilty.  This article also mentions that the police officers were placed on self-bail and were expected to report to duty as usual.  This to me is another unsettling issue, and clearly portrays an unethical system of justice.

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