Ethics and Corporate Responsibility in the Workplace and the World
PharmaCARE (We CARE about YOUR health®) is one of the world’s most successful pharmaceutical companies, enjoying a reputation as a caring, ethical and well-run company that produces high-quality products that save millions of lives and enhance the quality of life for millions of others (Note: PharmaCARE is a hypothetical company that you will to compare to a real company as noted in the assignment criteria below). The company offers free and discounted drugs to low-income consumers, has a foundation that sponsors healthcare educational programs and scholarships, and its CEO serves on the PhRMA board. PharmaCARE recently launched a new initiative, We CARE about YOUR world®, pledging its commitment to the environment through recycling, packaging changes and other green initiatives, despite the fact that the company’s lobbying efforts and PAC have successfully defeated environmental laws and regulations, including extension of the Superfund tax, which was created by Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
Based in New Jersey, PharmaCARE maintains a large manufacturing facility in the African nation of Colberia, where the company has found several “healers” eager to freely share information about indigenous cures and an abundance of Colberians willing to work for $1.00 a day, harvesting plants by walking five (5) miles into and out of the jungle carrying baskets that, when full, weigh up to fifty (50) pounds. Due to the low standard of living in Colberia, much of the population lives in primitive huts with no electricity or running water. PharmaCARE’s executives, however, live in a luxury compound, complete with a swimming pool, tennis courts, and a golf course. PharmaCARE’s extensive activities in Colberia have destroyed habitat and endangered native species.
In preparation for this assignment, use the Internet or Strayer Library to research companies that have recently experienced negative consequences as a result of the company’s corporate activities. Compare the facts and consequences surrounding the companies you have researched to PharmaCare to support your response(s) to the criteria below.
Write a six to eight (6-8) page paper in which you:
1.Describe the key characteristics of a stakeholder and determine all the stakeholders within the PharmaCARE scenario.
2.Analyze the human rights issues presented by PharmaCARE’s treatment of the Colberia’s indigenous population versus that of its executives. Recommend at least three (3) changes PharmaCARE can make to be more ethical going forward.
3.Assess PharmaCARE’s environmental initiative against the backdrop of its anti-environmental lobbying efforts and Colberian activities. Support the position.
4.Decide whether or not PharmaCARE’s actions with respect to the indigenous people of Colberia would be ethical in accordance with each of the following ethical theories:
d.Ethics of care
e.Your own moral / ethical compass
5.Compare PharmaCARE’s actions with those of at least one (1) real-world company, whose corporate activities led to ethical, environmental, or workplace safety issues and financial loss. Analyze the similarities and differences between PharmaCARE and the company that you chose.
6.Use at least three (3) quality resources in this assignment. Note: Wikipedia is not an acceptable reference and proprietary Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
•Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
•Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
•Analyze and evaluate laws that protect against discrimination in the workplace.
•Examine and assess employee rights to health and safety in the workplace.
•Analyze environmental protection laws and assess their impact on organizations.
•Use technology and information resources to research issues in law, ethics, and corporate governance.
•Write clearly and concisely about law, ethics, and corporate governance using proper writing mechanics
Ethics and Corporate Responsibility in the Workplace and the World
Most of the indigenous people across the globe possess significant territorial lands that are rich in natural resources, cultural property and intellectual assets (Geismar, 2013). Nevertheless, this category of individuals tends to be voiceless and most marginalized in the world as they have been denied the rights to govern themselves individually and have control over assets. The dynamics of globalization has escalated the exploitation of indigenous dominions and resources to the extent that it jeopardizes their very existential nature. This transcends an evaluation of PharmaCare, a fictional pharmaceutical firm, exploitation of native populace. The paper will address some issues beginning with a description of the essential characteristics of a stakeholder and determinations of stakeholders within the fictional firm, then, an analysis of the human rights issues that the company reveals on the treatment of the Colberia population visa vise its top executives. Additionally, the paper will entail an evaluation of the ethical consideration of the firm’s actions towards the Coliberians with respect to a number of ethical theories. Finally, the paper will compare the company’s actions with those of at least one actual business that exists in the world, whose collective activities led to environmental, workplace safety or ethical issues and financial degradation.
Description of Key Characteristics of Stakeholders and Determining Stakeholders within PharmaCare
Conventionally, a stakeholder is an individual, an organization or a group that has put interest or business concern in a corporation. The most common characteristics that at least all stakeholders possess is that they are entitled to any gain or loss through the accomplishment and malfunction of the company. Typically each and every stakeholder is predominantly affected by the firm’s output. Otherwise, the corporation may be accountable to any stakeholder. Therefore, PharmaCare as a pharmaceutical firm has some stakeholders who keep an eye on the firm’s progression in the African nation of Colberia.
The primary stakeholders at PharmaCare are the corporation’s shareholders who will typically focus on the firm’s return on investment. Evidently, the decisions made by PharmaCare will directly affect the bottom-line of the company that contributes to the return on investment. Additionally, the company will focus on the requirements of the Environmental Protection Agency as they are advocators of environmental sustainability and safety, and public health. Also, they would be interested in the practices and progress that PharmaCare engages in regarding the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
Another category of stakeholders at PharmaCare are the indigenous works and communities within Colberia. The company’s failure or success will determine the successfulness or poverty for the inhabitants of Colberia. Also, its management and employees are stakeholders as the company’s output will determine their bonuses and wage losses.
Analysis of Human Rights and Three Recommendations
First of all, PharmaCARE must address the human rights matters colligated with the employees and other staff in Colberia. Evidently, there is a scrutiny in the handling of workers starting from minute compensation and inhumane living conditions circumstances. Also, executives at PharmaCare are treated luxuriously with better housing and recreational facilities such as swimming pools, a golf course, and tennis courts. These issues must be addressed promptly or else it will tarnish the firm’s reputation worldwide and will expose them to stiff completion that will focus on its failures in regards to treatment of workers and the Coliberian populace. Such issues can accelerate lawsuits from violation of human rights eventually, will affect corporate profits.
First, addressing the payment divergence, PharmaCARE has paid indigenous employees’ wages as indicated by the edges of their general public and way of life. In such a manner, PharmaCARE repayment these workers $1.00 every day; which is horrifying subsequent to considering the income that PharmaCARE makes in its work. It is proposed that the firm should increase its payment rates to a daily rate of $4 versus the $1 day by day rate that they are presently accepting. This expands the daily rate by $2.00. Despite the fact that, this rate is peripheral in contrast with wages in the United States, it makes an open door for the organization to expand compensation without putting the present economy out of kilter. As per Brash, any expansion superior to that amount of pay rate would initiate extreme coupled with the unexpected outcomes, such as expanded unlawful activity rate as well as caricature inside the indigenous populace (Barsh, 2001, p. 13).
Second, PharmaCARE ought to look for a few activities to actualize transportation for the employees. As insinuated before, PharmaCARE constructs a considerable lot of their choices in the small way of life in Colberia This thought should be reexamined and seen from a vantage point that encourages work environment security and wellbeing. Besides, this would convey the necessity of some transportation for the workers to transport the materials gathered from the forests to the industrial plant where they are processed. Presently, the workers are moving 50-pound wicker bin in a distance of five miles. This ought to raise significant security and safety worries, for the personal satisfaction of these workers are in peril. PharmaCARE cannot anticipate that these workers will play out this kind of challenging work and accomplish lifespan inside the organization. Since the bushel measures 50 pounds, little off-road vehicles would be perfect for PharmaCARE. This would be value-added because it would expand profitability cosmically. Additionally, this move will eliminate the arduous five-mile walks where an employee has to lift and carry 50-pound basket. The automobile will initiate opportunities to maximize each travel by transporting more baskets. The benefit that PharmaCARE will derive from this recommendation will increase its global positions. Hence, if the firm continues to treat its people through such strenuous work, it will be exposed to the eyes of human rights activists. Consequently, it will stain the company’s reputation and raise further questions concerning its corporate practices.
Third, PharmaCARE must address its indigenous workers’ quality of life. To begin with, the top executives at PharmaCare have a luxurious lifestyle and better houses compared to its workforce who live in primordial huts lacking water and electricity. This practice is inconsiderate in regards to the Coliberian populace; utterly it is morally wrong. In accordance with the previous recommendations, it is proposed that PharmaCARE should reinvest savings in Coliberia’s electric infrastructure and water. This strategy would foster a construction of a developed facility or compound containing electricity and running water. As such, the proposal would create a friendly work environment for its employees as well as serve the community as a long-term benefit.
Ethical Analysis of PharmaCARE With Respect To Ethical Theories
Even though PharmaCARE has an enthroned interest returning a higher rate of performance to the firm’s shareholders, moral issues present itself that is incomparable with any amount of money. Life is precious and cannot equate to a monetary value when this concept is considered it will engulf the firm’s ability to serve a higher objective. From a Utilitarian view, the firm focuses on the maximization of benefit worldwide. The ethical theory of utilitarianism is located on the ability to predict the consequences of one’s action (Svara, 2014). Evidently, PharmaCARE manufactures products that of high-quality in which they foresee will save millions of lives and heighten the quality of life for others. Alternatively, this is not satisfying for the Coliberian residents because they tolerate less than poverty working conditions.
On the other hand, deontological view entails a primary concern of fulfilling the moral duty irrespective of making an individual happy or not. As per the theory of deontology, PharmaCARE can be conceived to be ethical. The firm’s mission is to provide an improved quality of life through the provision of free and discounted drugs to low-income users, and sponsoring health care training and educational programs and scholarships. PharmaCARE actions reveal that they are fulfilling their mission; therefore, it is difficult to judge the firm from a Virtue Ethics view as their actions are not judged, merely their character. Their moral character can only be decided by an individual who has experienced the effects of the company’s actions; in the case, the judgment is biased.
In consideration of the Ethics of Care Perspective, it is cumbersome to view PharmaCARE as unethical. In this theory, it stipulates how people and communities are more vulnerable than others. It suggests that the population that is not vulnerable should meet the expense of extra consideration to the vulnerable communities when making decisions that might influence them (Nortvedt & Vosman, 2014). For this scenario, the vulnerable category is the community of Coliberia who are directly affected by the firm’s decisions. Presently, there are no considerations given to Coliberians, as the company considers only the community of its executives and their living serenities.
I believe that PharmaCARE is obligated to the Coliberian population as this perceived obligation is not contract-based. The workers are paid low wage: nevertheless, a corporate model considers its impacts on the community as well as its laborers. As PharmaCARE regard themselves as a “green’ company with a slogan “We CARE about YOUR world,” it is expected that they treat each party considerably; which is not the case.
PharmaCARE and Central Coast Company
An agricultural company, Central Coast Company, based in California, is related to the fictional company PharmaCARE. They do employ indigenous population who harvest main crops such as grapes and vegetables. Contrastingly, the company does not provide transportation for its worker, in the case; the workers have to pay for transportation about PharmaCARE scenario. Additionally, they charge the workers for using farm equipment. Comparatively, both companies have ethical issues. At Central Coast, the health care concerns at the company are not met. According to a farm worker at Central Coast, Solano Donato, he stipulates the medical costs are high and distrust to the American Healthcare system (Servan-Mori, Torres-Pereda, Orozco, & Sosa-Rubí, 2014). At the farm, farmers undergo strenuous work that leads to health defects such as stroke, injuries, and skin diseases. Central Coast compensation system is better than PharmaCARE’s. According to Servan-Mori, Torres-Pereda, Orozco, and Sosa-Rubí (2014), workers at Central Coast are paid $8-$8.50 every hour for ten hours a day. Additionally, they are also compensated for overtime. However, new employees are not entitled to overtime and are time not paid for their work.
consideration, at Central Coast, workers have to pay for using the farm
equipment coupled with transportations cost; it
relates to the $1 daily pay rate at
PharmaCARE. Both companies are supposed to exercise certain entities
encompassed in the Fair Labor Act. It is utterly inhumane to expect workers to
toil for 60-70 hours a week without offering employees
with breaks and health care incentives. Undoubtedly,
such actions violate a person’s human rights. Furthermore, when executives are
to be put in the same shoes, they would not allow such treatment under such circumstances.
Barsh, R. L. (2001). Is the Expropriation of Indigenous Peoples’ Land GATT-able. Review Of European Community & International Environmental Law, 10(1), 13.
Nortvedt, P., & Vosman, F. .. (2014). An ethics of care: New perspectives, both theoretically. Ethics, 21(7), 753-754. doi:10.1177/0969733014546961
Servan-Mori, E., Torres-Pereda, P., Orozco, E., & Sosa-Rubí, S. G. (2014). An explanatory analysis of economic and health inequality changes among Mexican indigenous people, 2000-2010. International Journal For Equity In Health, 13(1), 1-17. doi:10.1186/14759276-13-21
Svara, J. H. (2014). The ethics primer for public administrators in government and nonprofit organizations. Jones & Bartlett Publishers,.