Impact of Unethical Practices on Organizational Success: A Case Study of Sackler Family

Business and Tourism
Management

EXECUTIVE SUMMARY
The ethical considerations have significant impact upon the operations and success of
organisation. The unethical practices can have adverse impact upon success.
Case study overview:
The report has discussed the case study of Sackler family which has been highly
criticised for its unethical approaches. The organisation continued to promote and sale its highly
addictive drug for making product. Despite its unethical practices donation of organisation were
appreciated and encouraged by museums and galleries.
Findings:
From the study it has been found that for assuring long term success and good brand
value in market organisations cannot deny the integration of ethics in their practices.
The first analysis it can be concluded that success attributes such as public perspective,
reputation are influenced by ethics as well. The acceptance or accomplishment of unethical
practices can deteriorate the reputation of organisation.
The second analysis theme demonstrates that for long term success organisation must
also take perspective of public into account which is highly affected by ethical nature of
organisation.
Third analysis theme illustrate that if organisation neglect the ethics then it fail to deliver
good service quality and to meet the regulations perspective which can influence its
sustainability in terms of success.
Recommendations:
From the case study it can be recommended that without ethical practices organisations
may no longer sustain their good reputation and brand will in the market. For the success they
must emphasis on linking their ethics and operational practices.

TABLE OF CONTENT
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................1
ANALYSIS .....................................................................................................................................1
Impact of unethical behaviour on reputation and success of organisation .................................1
Role of public perspective in organisational success and effect of unethical behaviour ............2
Success in terms of regulatory perspective and services offered by galleries and museums .....3
CONCLUSION ...............................................................................................................................4
RECOMMENDATIONS ................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
From the business perspective success is defined as the achievement of desired or marked
goals in terms of brand value, business objective, customer satisfaction and financial gains. The
business and operational activities of the organisation depends upon goal of achieving success so
that purpose of starting business can be fulfil. Success is also mandatory for achieving feasible
outcomes against financial investments (Tissot and et.al., 2015). However it depends upon the
service providers to choose either ethical or unethical perspective for achieving their success
targets. Unethical practices in business not only influences brand value, customer trust and safety
but also relate with the legislative, service quality and reputation of the business. Thus for long
term it becomes mandatory for the organisation to consider the ethics in its various business
operations.
The given case study analyses the Sackler family which is pharmaceutical company
dealing in OxyContin drug which is highly addictive and can even cause death. The operations
of firm are legal as it is pharmaceutical company but no ethical actions are taken by the
organisation to manage and control the addictiveness of the drug which is making it threat for
the young people. The organisation provides huge donations to national and well known
museums, galleries and universities. It has created a debate that success of well known and
public organisations such as gallerias or museums as well as well as Sackler family is greatly
influenced by such kind of donations. On one hand it make donations as easy means of
reputation laundering by donations while on the other hand the success of public services is also
affected negatively by collaboration with such unethical donations. The report will discuss the
various elements which can affect success of organisation and impact of unethical practices on
them.
ANALYSIS
Impact of unethical behaviour on reputation and success of organisation
The national and public organisations like museums or universities are famous and
considered to be operated for public instead of profitability. Thus association with such public
organisations can be beneficial for service providers. It gives immense popularity for business if
it has links or connections with national museums or galleries (Tissot and Garraud, 2016). The
support from national organisations is considered to be a matter of prestige and people used to
consider it as great matter of honour. Thus if Sackler family donates huge funds to museum then
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