Sackler Family Business: Ethical Conduct and Its Impact on Success

This report analyzes the ethical conduct of the Sackler Family Business and its impact on the company's success. It explores the misrepresentation and misconduct in their marketing strategy and provides recommendations for promoting ethical practices.

Sackler Family Business

Contents
EXECUTIVE SUMMARY.............................................................................................................5
INTRODUCTION...........................................................................................................................5
ANALYSIS......................................................................................................................................6
CONCLUSION................................................................................................................................7
RECOMENDATION.......................................................................................................................7
REFERNCE.....................................................................................................................................9

EXECUTIVE SUMMARY
This report is made with a motive whether organisation will be able to survive with conduct
which is not ethical. In the present case it is considered that there has been misrepresentation of
various fats and this has lead to misconducting of overall marketing strategy of company. As a
student who is pursuing law can various aspects such as board members, shareholders, revenue,
public confidence are some aspects which are being studied. There is a individual analysis is
being done, this will help in understanding behaviour of employees which is related to
implementation of a various ethical practises in company. This is very helpful in making the
employees work in a ethical manner. Based on such analysis there are various recommendations
which are being and conclusions drawn which will further lead to promotion of ethical conduct
and ethical practises.
INTRODUCTION
Success of every organisation is having a relation with achievement of their objectives in
the specified time period. This is in terms of growth of organisation and survival of the company
for a long term period. Based on success of organisation it is supported by various factor such as
ethics which is helpful in making an understanding of what is right and what is wrong. Ethical
behaviour in companies help in improvement of their overall brand image and chance of
achievement of success (Ku, 2015). In the present case, the pharmacy company is 'Purdue
Pharma' Sackler family owns this company and this was banned for a period of five years for
various unethical practises and they were also accused of misrepresentation & misconduct with
regards to a medicine which is named 'OxyContin'. This is a medicine which is a strong medicine
has faced many charges. The major unethical conduct was the marketing strategy which was
considered very aggressive and the launch of medicine was done in a very wrong way that is
why this lead to occurrence of a situation where people began to use it as a drug instead of a
pain killer medicine. This lead to people suffering from addiction of this drug and many people
died because of this situation. The major aim of this report is to find out what a organisation can
do to protect themselves from various unethical practises which they are doing' In this report
many ethical ways are analysed which will be helpful for the company in resolving and finding
out solutions to this problem. (Marwaha., Ruhl. and Shorkey,2015).

ANALYSIS
Short paragraph which has a statement related with the aim of report & a mapping sentence.
Major aim of this report is analyse how the Sackler Family is successful or ethical.
Company has been successful because of the quality of their products and services(De La Harpe.
and Radloff, 2000). The major function of this company was to target those locations where
large persons are having a requirement of this type of medication. Unethical behaviour has lead
to a negative impact on performance of customer and negative impact on their mind. In the
market they are possessing a strong position so that they can provide effective services. This case
lead to a negative impact on target market and present customers of company. They felt that they
have been cheated by this brand which they use to trust. Sackler family had skills related to
marketing because of which they were performing in a better way and were able to provide
product at increase quality. This is a important step which is necessary for success and survival
of any organisation.
Success in terms of revenue & how it will affect the unethical behaviour
In present time, it has become vital for every single business organisation to develop strategies
and plans to gain competitive advantages. In the same way, Sackler family has also kept its focus
on offering clients with number of drugs that were unavailable in the whole market which has
helped them in meeting the requirements of customers and this led them to gain number of
competitive advantages. Since the availability of various drugs that were hard for clients to get
due to unique salts and more among different areas it has lead the company to enhance the
customer loyalty towards them which led company to increase in their sales(Standard, 2015).
Considering the scenario, it can easily be said that Sackler family was continuously raising their
revenue through offering customers with number of medications which were unavailable in the
market or among different areas. This has raised the opportunities for sackler family because
through this it was become really very easy for company to sustain within the market but it was
also required by the pharmaceutical degree holding staff members is to look into two different
areas in regards to the chemical and the customers perspective. On the other hand, reason behind
this is that number of customers are becoming health conscious and are aware of the fact that
various drugs could effectively lead them to damage their internal organs like liver and so on.
This has raised questions for number of business organisations that are dealing within the health
and social care sector, where they have been asked that if they are following all the legal

policies, which has been developed by government or not(Steinberg, Horwitz and Zohar, 2015).
Ethical behaviour demands the transparency in the operations of the organisation which
sometimes contradicts the companies behaviour in respect to the customers behaviour. As the
main aim of the company is to earn the profits they undertake some unethical practices which
can directly add on the revenue to the company. If consumer get to know about such unethical
behaviour then it becomes very difficult for a pharma company to gain the trust. The
government also is very concerned about the unethical behaviour of such companies , even they
cancel the license of such companies. To keep the organisation out of such legal actions it is
suggested to comply with all the legal requirements. Along with this, it has also been analysed
that revenue will directly improve, if the sales of products and services will increase. Therefore,
it will be required by sackler family the first focus on delivering the quality to its customers
within their products are the medication that they are offering to them. this will help in
enhancing the customer loyalty which will directly impact upon revenue of the company, if the
same is not followed by the business organisation which is sackler family, then it will directly
impact negatively upon performance level of the company and it will face decline within the
revenue, that company is going to generate in near future (Deangelis, 2016).
Success in terms of shareholders and how it affects the unethical behaviour
For every single business organisation, stakeholders plays a crucial role because they
basically performs task, invests, develop policies, and perform number of roles within the
company so that it could directly reach to new heights and attend number of goals and objectives
and specific time cream. Therefore, it also becomes vital for business organisations to consider
stakeholders within their plans and objective so that they could also get effective returns on the
investments that they have made for the company to sustain in the market for a longer period of
time. Present condition, if any business organisation like sackler family, perform any sort of
unethical behaviours and practice it will shortly put adverse effect on goals that are small in
nature but if it is talked about the long run then the company would required to consider
stakeholders as their primary asset because without them a company cannot sustain within the
market for a longer period of time (Markarian, 2018). Any misconduct done by business
organisation could lead its customers to change the perspective towards the products and services
offered by them because if the company is not working within the ethical manner then it directly
impacts negatively upon the society and the standard that government of United kingdom or of

any other country is asking to follow so that health can easily be improvised of the
public(Champagne, Hung and Leclerc, 2015). If it is talked about the success that is in regards
to stakeholders then the profit can be considered as the ultimate outcome for them all for the
company. it has been found that, in order to sustain within the market ample number of business
organisations like sackler family, would perform ethical practices in the organisation. It has been
found that, pharma company perform various unethical tasks just to get approval from the
market. Due to such unethical conduct the profits of the company are compromised and this
affects the success of the shareholders as their capital does not increases.
Success in terms of board and how it affects the unethical behaviour
At present, it is said that every single business organisation is looking forward to earn
good profit and even if it performs in the same level it directly answer good profit but this is not
only enough for a company to grab a good market share at international or domestic level
because if it is not having ethical behaviour towards the customers and the society then it will
lead the company to face ample number of consequences which can be negative for or the
business and its presence in the market. It has been analysed that board of directors of a business
organisation are the people who basically performs the decision taking process where they have
to make decisions and regards to the business organisation, so that it could sustain for a longer
period of time in the market. Basically, these are the individuals who stays responsible in
performing a detailed analysis and delivers information to financial department in order to how
much the plan of the project is going to cost the company(Mercanoglu and Ozer., 2015). This
could be understood with the good example of Sackler family where the board of directors were
involved with internal auditors so that they could see e what the actual position is and if any
misconduct takes place, it is their responsibility to resolve the issue so that it will not impact
negatively upon company's performance level and on goodwill as well. Company has also
followed and effective structure which basically consist with a penalty where the person who has
done any sort of misconduct will be first answering to the shareholders that why he or she has
done or performed the act and then it will be the responsibility of peers to take decisions on the
basis of the situation. But, this will also impact negatively upon the performance level of the
organisation because number of shareholders will not consider to do business or invest in the
company in near future (Gautam and Pan, 2016).

Success in terms of public confidence how it affects the unethical behaviour
At present, it has been analysed that companies are required to make themselves
understand that it is mandatory for them to perform their work with the concerns of all members
specifically the targeted segment and market (Jain, 2015). If it is talked about The Sackler
Family Business, then the company is offering customers with number of products and services
and regards to medication and just when it finishes an objective, it becomes vital for them to
deliver the information to investors, management and other personnel, so that no conflicts take
place. This is usually being done by company through its marketing department where a number
of strategies are being built in an ethical way, so that no problem could take place. On the other
hand, in context of Sackler Family Business the product is of good quality but the large target
market assumed that they are cheated. Therefore, the management need to improve the skills of
marketing which results in increasing the market area of product by improving the image of the
products.

CONCLUSION
It is concluded from above report that organisation have to adopt various ethical practises
which helps organisation in achievement of success and also in improvement of image of
company in the market. Ethical conduct is a tool which is helpful in saving a company from
various legal formalities and penalties which they have to pay otherwise if such practise not
followed. The management of the company has to make various practises so that all the staff
members are committed towards ethical conduct & behaviour. It helps in focussing on having
core competencies and various set goals of their company. This will help in motivating
employees for ethical practises to be implemented in the company and at same time is also
necessary for having trust of various related stakeholders that company is having fairness in their
operations.
RECOMENDATION
From above report it has been identified that every company must protect themselves by
using clear procedures in their overall working. The facts must be represented with adequate
honesty and various factors should be consider while making disclosures regarding
organisational policies. This company went through a situation in which they were blamed for
having unethical practises and misrepresentations in their overall marketing strategy. This lead to
loosing of many customers and a huge negative impact on goodwill of company. To enhance the
loyalty of customers they have to promote ethical conduct, various recommendation which
company has to adopt are mentioned below:
 The company must make attempts that they are sticking to their major objectives and
their operations are carried on which can help them in having authenticity and
transparency in their functions. This will help in ethical conduct in the company which
will lead to maintenance of positive brand image by the company.
 Adequate standards of quality should also be maintained by the company. Such quality
control is very necessary for having such conditions which are necessary for efficiency in
operations taking place in the company. Also, this is a brand which is having a deep
relation with health of their customers (Champagne, Hung and Leclerc, 20150

 Overall conduct of organisation should be monitored on a timely basis so that they are
able to control any problem at the initial stages this will help in surviving of the company
with goodwill for a longer duration of time in the external environment.
 There must adequate disclosures made by the company on a timely basis to all the related
stakeholders of company, which will help in increasing their satisfaction level.

REFERNCE
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