AstraZeneca: Business Ethics, Challenges, and Recommendations

This report provides a comprehensive analysis of AstraZeneca's business ethics, examining its role as a moral agent and its commitment to social responsibility. It assesses the company's mechanisms for employee involvement and empowerment, highlighting strategies such as open communication and employee participation in decision-making. The report identifies current ethical issues affecting AstraZeneca, including environmental challenges and global business complexities. It proposes solutions for improving business operations, focusing on ethical codes related to competition, environmental laws, and healthcare compliance. The report also outlines the design of suitable ethical codes for AstraZeneca, addressing issues such as competition, environmental concerns, healthcare regulations, employment laws, and compliance with securities and political activities, with an emphasis on maintaining confidentiality and upholding social, political, and environmental ethics. The report concludes by emphasizing the importance of these ethical codes in overcoming identified drawbacks and ensuring responsible business practices.

Business Ethics

TABLE OF CONTENTS
introduction......................................................................................................................................3
3.1 Assessing the role of AstraZeneca act as a moral agent........................................................3
3.2 Analyse mechanism employed by AstraZeneca for achieving employee involvement and
empowerment...............................................................................................................................4
4.1Researching on current ethical issues affecting AstraZeneca.................................................5
4.2 Report on improving ethics of business operation ................................................................6
4.3 Designing suitable ethical code For AstraZeneca..................................................................6
4.4 Describing ethical codes overcoming the drawbacks identified above.................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................11
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INTRODUCTION
Business Ethics which is also known as corporate ethics is a form of professional and
applied Moral. It also analyses Moral and Ethical problems faced by the organisations.
Astrazeneca is the UK based pharmaceutical and biologic company. It is the world's 7th largest
pharmaceutical company offering services to 100 countries of the world. It includes wide
portfolio of its product in the areas of major diseases such as cancer, gastrointestinal and
cardiovascular. It has been listed on London Stock Exchanges (About AstraZeneca, 2016). This
Report is based on moral obligations as-well-as social responsibilities of AstraZeneca. t The
Company is following various moral and social responsibilities to maintain workplace and
employee relationships. Further, it will discuss on the mechanism followed by the Company for
involvement and empowerment of its employees. It also focus on various ethical issues occurring
in AstraZeneca organisation. Further, the Report will concern on the ways of improving these
ethical issues affection operations of the cited firm (Boda and Zsolnai, 2016).
3.1 Assessing the role of AstraZeneca act as a moral agent
Moral Agent can be a person or anything that i takes responsibility for managing the
decisions and behaviours of the organisation. In other words, he/she is one who is capable of
acting with reference to wrong or right doings. It enables employees of organisation to have
choices and also provide them the power to choose (Ismaeel and Blaim, 2012).
AstraZeneca is one of the most honoured ethical businesses in the UK. It follows various
unique business ethics and integrates in order to develop trust and fulfil its social and ethical
responsibilities towards the society.
Following characteristics have been followed By AstraZeneca to maintain ethics in
business: For Society – It has set following code of conducts for maintaining high ethical standards
and core commitments for its local communities in the world. It is consistent in
delivering high ethical standards of sales and marketing practices to society. Also, it
ensures ethical behaviours of third party while dealing with it (Ghazali, 2015. ). For Suppliers- It deals with around 45,000 suppliers across the world in order to ensure
their business ethics. AstraZeneca has came up with new process that is Third party Risk
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management. where it identifies the improvements required to be made by the suppliers.
In order to meet the standards of the Company. Also, it has been contentiously
performing auditing of the direct material suppliers to ensure their health safety practices
and quality (Zsolnai, 2011). Responsible research for safety of patients – Vision followed by the AstraZeneca
organisation I that want to be recognised for its high quality sciences and cures made for
the various deceases to win the trust of its patients. They believe that they are responsible
for the safety of their patients and want to earn their trust. In this, research has been
conducted with all relevant external laws (Whyatt, Wood and Callaghan, 2012). Its code
of conduct also requires a compliance with its bio ethical policies. It has set various
commitments beyond legal compliances and justifies ethical standards, behaviour and
principles governing all research and development.
 Employees and workplace relationship – It has made the entire process for its employees
as easy as it can make employees to do the right thing. They are provided with high
standards to provide training for maintaining ethical standards in the organisation.
AstraZeneca has ensured that employees should be comfortable in raising their concerns
with HR, Legal compliance as-well-as line managers. It ensures involvement and
empowerment of employees within the organisation (Bradshaw, 2013).
3.2 Analyse mechanism employed by AstraZeneca for achieving employee involvement and
empowerment
Employees empowerment means worker are being recognised by their good work
management. Whereas worker participation means staff is actively being encourage by the
management. Administration of AstraZeneca plays a crucial role in attaining empowerment of its
worker. It should provide training to its employees which leads in increasing knowledge,
expertise of employees working in organisation. It also boosts morale of worker and motivates
them to perform their jobs effectively and efficiently (Whyatt, Wood and Callaghan, 2012).
After the employees become well trained and educated regarding problem solving
strategies, management then empower or transfers some decision making authorities to them.
This also leads to increase the morale of worker as they feel that management has faith in them.
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It makes its employees to perform their task with more enthusiasm and responsibility. It
provides job enlargement that is assigns duties to its employees after providing them training.
Various other contractual responsibilities are provided by the AstraZeneca to its employees in
order to give appreciation or recognition. Employment empowerment leads to boosting up of
organizational employees (Barkemeyer and et.al., 2010).
For involvement or worker participation, AstraZeneca further implemented following
strategies in the organisation. It has maintained open communication environment for its
workers. So that they feel free to communicate with their leaders. As well as encourage various
dialogs at all personal levels in order to develop a wide range of communication tools for their
employees. It carries regular meetings between the employees and management of the
organisation. It helps employees to communicate directly with the management and provide
various suggestions. They feel as an importance part of the firm. It also conduct effective
participation as-well-as open dialogues in decision making process in order to achieve
consultation of employees (Byung Gyoo Kang and et.al., 2014).
It also collects the suggestions of employees for any improvement on yearly basis. It
enables employees to keep their remedies or any issue in front of management. So that they can
take action on it.and make employeeshappy with the working environment then, it will
motivate employees as-well-as their ability to work assigned to them. AstraZeneca management
encourages employee’s participation in Global development plans (Sardy and et.al., 2010).
Following strategies have been followed by AstraZeneca in order to achieve employee’s
empowerment and involvement.
4.1Researching on current ethical issues affecting AstraZeneca
Currently AstraZeneca a pharmaceutical firm is facing various challenges related to
environment, globalisation, child labour, corruption etc. It is facing challenges for prevention and
controlling environmental pollution. It has been found that AstraZeneca is na multinational
pharmaceutical firm these days and is coping up with environmental impacts in order to increase
its production. Which is affecting the ethical issues of the organization (Warren, 2011).
With the increase of business at the global level AstraZeneca is facing ethical issues. As
every country has different ethics and rules and regulations. Which may be against the set
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standards of the Company so it faces issues against changing the standards. Set standards of the
organization is completely against the corruption, child labour etc (Shaw, 2016).
4.2 Report on improving ethics of business operation
In order to ensure good employer and employee relationship. AstraZeneca is required to
improve its operational ethics such as personal attitudes, ethics related to sales and marketing etc.
It is the study of behavior, which involves improvement in employees as well as employer
relationships. Employer should communicate true information to its employees. It should avoid
any kind of conflicts, insider tradings and harassment etc. AstraZeneca should focus on its each
care sector. Employees should provide ethical services to the patients (Brenkert and Beauchamp,
2012).
Legal and regulatory compliance is to be followed by the AstraZeneca. It is required to
follow various Competition, environmental, health care , employment, compliance with
securities etc laws.
 Competition laws - Employees of AstraZeneca should not engage in any kind of anti
competitive competition laws to take any unfair advantage of consumer against the ethics
of organization (Cory, 2012).
 Environmental laws- AstraZeneca is committed to various ethics and is carrying out wide
corporation programs. In which employers are required to be familiar with environmental
laws and regulations related to their roles and responsibilities.
 Health and care – It is related to various operations such as manufacturing, approval,
sales and marketing of medicines. To manage the complexities Company is required to
take care to ensure employees are well aware of there requirements (O'Sullivan, Smith
and Esposito, 2012).
All these helps in improving employee and employer relation ship of organization as well as also
maintains high level of ethical standards.
4.3 Designing suitable ethical code For AstraZeneca
Pharmaceutical organization is one of the largest health care provider of UK. It faces
various ethical issues in terms of health care , relation with patients and other issues related rto
manufacturing, trading etc. In order to practice these vulnerable ethical issues a special code of
conduct is needed. After recognizing the needs conducting a specified cod. This code of conduct
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comprises ethics for pharmacists, ethic guideline for pharmaceutical manufacturers, exports,
importer etc. Code is based on principles of Bioethics and professionalism. Compiling of code
for national pharmaceutical system (Brenkert and Beauchamp, 2012).
Code of conduct involves Science intricacy and development health care services and
management. The Company should involve more pharmacists in patient carer. It should also
focus on special skills and in dispensing medication as well as compounding it. It should set
ethical issues as per the different countries as all countries have different ethics and regulations
in order to match up with those standards It should maintain different standards. As the company
is growing globally and its vision is to maintain trust and commitments towards its employees
and consumers. It should respect for patients dignity and their autonomy. It should provide best
health care services to its patients. In order to maintain trust among its patients (Byung Gyoo
Kang and et.al., 2014).
4.4 Describing ethical codes overcoming the drawbacks identified above
Following issues have been identified by the above regarding the operations of
AstraZeneca. Code is to be conducted for various issues handled by the pharmaceutical firm.
Competition laws- providing code of conduct regarding competition issues faced by the
organization. In order to sustain competitive advantage over the other pharmaceutical firms. The
organization is required to maintain its set standards and should not take any unfair advantage of
its supplier and employees (Byung Gyoo Kang and et.al., 2014).
Environmental laws – designing code of conduct in respect of environment. In order to
maintain environmental standards of organization it should make employees familiar about
various environmental laws and regulations. And also ensure employees about their duties and
responsibilities (Warren, 2011).
Health care Compliance- It should take take of government regulations regarding
development, approval, manufacturing of heath care products. It should make employees aware
about the particular care products.
Employment and labor law- Company is preparing a code conduct for its employees. In
this it should take care of compensations, employment opportunities, human rights, working
environment of the company in order to motivate its employees. It should strictly prohibit
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employee harassment, Discrimination on the basis of nations, origin, disabilities etc. It should
also ensure safe and clean working environment for its employees (Sardy and et.al., 2010).
Compliance with securities- Another code of conduct to be kept in mind by the
organization is to disclose security laws. Also disclose public communication it should be full
fair and timely understandable (Barkemeyer and et.al., 2010).
Political Activity- AstraZeneca should encourage employees personally to be involved in
political activities. It should not use funds of company to any political party campaign or
candidates.
Confidentiality- In this code the AstraZeneca is required to secure its confidential
information regarding products from its competitors in the market (Reamer, 2013). To secure its
secret of product manufacturing from its rival otherwise the competitors may misuse the
information.
Ethics- The respect business organization is required to maintain social, political,
environmental as well as employment ethics within the business functions. This will help the
AstraZeneca in attaining social responsibilities, and help in adopting various changes happening
in the market to sustain advantage over its competitors (Barnett, Zimmerman and Walfish, 2014).
Duty of care- This code states that taking care of employees, members, environment,
society etc is a prime responsibility of the AstraZeneca in order to increase its productivity and
turnover (Payne and Pressley, 2013).
Conflict of interest- This code of ethics ensure that the business enterprise should not
involve in multiple interests, as well as financial interest etc which further leads the function of
organization against the public interest. That is the AstraZeneca is required to produce medicines
in interest of public and should not sacrifice it with other financial interests as that may lead to
conflict of interest (Zakaria, Haron and Ismail, 2010).
Contracts- In this code an organization is required to do pure contract with other party.
Their should be no lack of information between both parties as it can result in conflicts and even
contract may get rejected by any of the parties and will become void (Katamba, Nkiko and
Ademson, 2016). To avoid this AstraZeneca is required to keep this in mind while contracting
with other party.
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Fees- The organization should charge reasonable fee in return of their work. This code
makes sure that AstraZeneca is charging fair and reasonable fee for its product (Zsolnai, 2011).
Intellectual property and moral rights- This code of ethic states that the AstraZeneca a
pharmaceutical firm should focus on new ideas, inventions and innovations in producing drugs
having licenses, patent for developing medicines. It should produce new medicines by keeping
health of public in mind (Ismaeel and Blaim, 2012). This means the organization should innovate
its production and while keeping in mind the moral rights of the public.
Quality assurance- while producing medicines and drugs AstraZeneca should assure about its
quality (Warren, 2011). That is it should not be injurious to the health of public.
Professional conduct- This code of conduct ensure that the company should respect the dignity
and autonomy of its patients. AstraZeneca is required to produce drugs and medicines while
keeping in mid the beneficence, non- maleficence,justice as well as empathy and excellence of
product in regard of its patients (Whyatt, Wood and Callaghan, 2012).
Equality and discrimination- AstraZeneca is required to treat its patients equally and do not
discriminate its patients on the basis of race, caste, religion etc. It should produce effective
medicines for every region and should not discriminate in that (Shaw, 2016).
CONCLUSION
This report was about AstraZeneca a pharmaceutical organization's. Considered various
Moral and ethical values of the organization. It is seventh largets pharmaceutical firm in UK. As
per this report AstraZeneca has been identified as a most ethical business organization in UK. It
also has been assessed by depicting vagarious ethical characteristics set by the organization.
Such as moral ethics towards the society, employees etc. Also discussed on achieving
employment and empowerment by using various mechanisms. Further in the report assessed
various ethical issues that are currently faced by the organization. Those were environmental,
employment laws etc. Presented report on improvement of business ethics to improve employee
and employer relationships. After that designed suited ethical code for AstraZeneca. In order to
light the issues which have been discussed above. At last also designed various ethical codes to
overcome the drawbacks. Provided solution's to improve the drawbacks.
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Online
About AstraZeneca. 2016. [Online]. Available through:
<https://www.astrazeneca.com/sustainability/ethical-business> [Accessed on 1st April 2016].
What Is Employee Participation & Empowerment? 2016. [Online]. Available through:
<http://smallbusiness.chron.com/employee-participation-empowerment-42037.html>
[Accessed on 1st April 2016].
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