Business Success, Ethical Behavior, and Organizational Reputation

This report examines the critical relationship between business success and ethical practices, using the Sackler family's pharmaceutical company as a case study. It analyzes how unethical behaviors, such as manufacturing addictive drugs and misleading marketing, can initially boost profits but ultimately damage a company's reputation and financial performance. The report explores the impact of these practices on public perception, the success of organizations receiving donations from such companies, and the long-term consequences on brand image and market share. It emphasizes the importance of ethical conduct, transparency, and the potential for negative repercussions when businesses prioritize profit over public well-being, offering recommendations for maintaining ethical standards and avoiding reputational damage. The report highlights the interconnectedness of business ethics, public trust, and organizational success, providing a comprehensive overview of the issue.

ACADEMY AND
PROFESSIONAL SKILLS

EXECUTIVE SUMMARY
Success refers to the ability of company to achieve the business target of company. It is essential
for the business to follow ethical practices an ensure that company is not following unethical
practice in its processes. Report covers how success of an organisation is essential for its growth.
Unethical practices can affect the reputation of company. Conclusions are drawn that company
should not generate revenues at cost of people.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ANALYSIS......................................................................................................................................1
Success from perspective of services offered to public through museums and galleries and the
effects of unethical behaviour. ....................................................................................................2
Success of organisation receiving donation from perspective of the public and how thay are
effected by unethical behaviour. .................................................................................................3
Success of organisations receiving donations in terms of reputation and how they are affected
by unethical behaviour. ...............................................................................................................4
CONCLUSION................................................................................................................................4
RECOMMENDATIONS.................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Success is defined as achievement of actions within defined period of time. Success is
very important for the organisation to keep it motivated for doing business. Success motivates
employees to perform their task with effectiveness. For success of the organisation it is also
essential that code of ethics are followed in company (Horak, 2017). Unethical practice can
affect the business success.
Summary of the case
Sackler family is in business of pharmaceuticals and manufacturer of highly addictive
opioid OxyContin. Company is using cover that releases he content very slow that is making the
consumers addictive of the drug. The cover of drug was used for making people addictive so that
they can generate more profits. They are making high expenditures on promoting the sales of the
drugs to practitioners who prescribe pain killers. They were given paid resorts and hotels for
attending seminars about the drug. Also after the expiry of patent company admitted that there is
flaw in content of drug for shifting people to new drug produced by them giving modification to
drug.
Report will cover how success of the organisation of the companies receiving donations
and effects of unethical behaviour. It will give understanding about success from services offered
to public by museums and galleries, success from perspective of effective regulation and the
effects of unethical behaviour (Lian and Yew, 2016).
ANALYSIS
Success is defined as per the attainment of core values of business. If the motive of the
business is to earn profit only without considering the people and humans than organisation
cannot be expected to follow ethics. Ethics followed by company builds the image of the brand
in market. Companies cannot for making profits pursues with unethical practices that can harm
society. Different rules, policies and guidelines are laid by organisations for operating the
functions. Code of ethics are expected to be followed by every organisation whether policy
regarding ethics have been laid on paper or not. Ethical policies ensures that processes and
procedures followed in an organisation for manufacturing do not involve unethical practices that
would harm people. Ethics is also referred as confidential matter among person and their
consciences. Ethics is not limited to management but every person working in the organisation
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should understand the responsibility. A company not following ethical practices reflects negative
image in the society.
Businesses are not just for earning but also to earn reputation in society in which they are
operating. A business may attain success by achieving its targeted revenues, gaining high
position in market but it cannot be defined as successful if it does not achieve an ethical image in
society. Company is said to be successful if along with achieving targeted revenue levels it has
built market reputation on the basis of it core values.
Success from perspective of services offered to public through museums and galleries and the
effects of unethical behaviour.
In the given case Sackler family is manufacturing drugs following unethical practices
making people addictive. When an organisation gives donation to no for profit organisation it
develops an positive image in the society that company is having good moral values and helping
the society along with its own growth. When a company associates itself in activities for the
welfare of society it attracts the attention of people. Company is following unethical practices for
earning high revenues by making processes that is making people more addictive. Sackler is
manufacturing drugs that can give relief to the patients on consumption for 48 hours but
company slow releasing cover for the drug which raise the pain back within 12 hours. Company
for generating high revenues is compromising the health and safety of people. Company is
making huge expenditure over the promotions of the drug that any other drug (Ismail and
Mustamil, 2019). Promotions at such large scale is attracting consumers and health practitioners
to suggest for the drugs. Sackler family is making large number of donations to museums ,
galleries and even universities across the world. Several reputed institutions have accepted the
donations from the Sackler family. Even libraries and galleries have been named after the family
showing their contribution for the welfare of society. It enables company to create recognition in
society which ultimately generates revenues increasing it profit levels.
After becoming aware of the company that it is making profits on the suffering of the
people. In an article it was suggested that donations from Sackler family should be reflected.
Number of museums and galleries refuse donations from the sackler family. The unethical
practice broke the positive image in society that was built through donations.. the unethical
practice has affected the image that has affected revenues of company. This has significantly
affected market share ultimately affecting the profits of company .
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A company following unethical practices cannot remain unaffected by the negative
effects. Unethical practices breaks the brand image that is built with constant efforts (Jahanfar,
Molainejad and Izzat, 2017). Revenues will go down to significant levels of company following
unethical practices for generating personal profits.
Success of organisation receiving donation from perspective of the public and how thay are
effected by unethical behaviour.
Success from the perspective of people refers to when an organisation has built an image
in the society along with earning revenues that is based on its moral values or core values. When
organisation serves the society giving proper quality of products that are being manufactured by
company. A company can be successful in the market even if it is not able to acquire
considerable market but has gained trust of the society regarding its product. Unethical practices
do not make firm a success. Public support is very important for company to generate revenues
from the society. Making donation to pubic institutes has helped company to divert the attention
of people from the unethical practice to a positive image. Sackler family has gained public trust
by spending large number of expenditures on the promotions of the drug. In promotion health
practitioners where involved in large who were associated with prescribing pain killers.
Therefore the drug was prescribed in almost all the region of the country which made drug very
common among the public. As t drug was prescribed by almost all the health practitioners
therefore public has gained trust in company.
When the unethical practice of the company became public it lost all trust people who
were consuming the drug and helped the company to gain high revenues and reputation. The
unethical practice changed the perspective of public and they lost there trust in company. Many
US states have sued the company for the scandal and for the practices that resulted in death of
many people. People protested against scandal that forced museums and public institutes to
maintain distance from company (Carter, 2016). Protests by public will affect business and also
the reputation of company. Company will not be able to regain trust in the society for its product
due to the unethical practices that were followed by company which resulted in deaths of large
numbers of people. The effect of unethical practice will affect whole organisation other product
that were manufactured by company will also be rejected by company. Unethical practice affect
the revenues of company and it is not possible for company to revive the profits though
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promotions. Once trust of the public is broken it is very difficult for the company to regain it
trust. It is essential for the businesses to ensure that they are not following unethical practice as
they can affect the lives of people.
Success of organisations receiving donations in terms of reputation and how they are affected by
unethical behaviour.
Sackler is donating in number of institute and museums for building image in society.
Also donations has helped the company to create awareness about the brand. The association of
company with institutes and other organisation not only benefited the Sackler family but also
these institutes. When an organisation is attached with big companies that are highly known to
the it promote these institutes along with company (Requena, 2016). Association with family
will also increase the revenues of organisation as people are provided with new facilities that
help these organisations to grow. Association makes these institutes well known that help them
in generating more revenues and increasing their profit.
Success of the company also promotes its associated organisation. Not only the benefits
are derived but also the consequences are to be faced in these associations. Unethical practice of
the Sackler family affected not only affected the company but all other organisation that are
associated with it. The illegal act of company has affected the organisation reputation. They
portray a negative image in minds of people that the organisation were also engaged in scandal.
Receiving of donations from company that is following unethical practices will lead to image
that organisation have covered the negative image of company and supported in the unethical
practice. This can affect the success of other organisations also the public will not prefer
organisations that are involve in unethical practices (Morehouse, 2017). Unethical practice of the
Sackler family can drive the growth and revenues of other organisations also.
CONCLUSION
Carrying out the above analysis conclusions can be drawn that unethical practices can
affect business. Success of the company is not only defined by it revenues figures but also the
values of company. Company is manufacturing product that has caused deaths of many people
and also made people addictive of the drug. An organisation receiving the donation from big
reputed companies help them to gain market attention. They do not have to pay attention towards
the promotions association with these companies drives people without any promotions. Where
that sandal by company also negatively impact the business of these organisation. Perspective of
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the public is changed on becoming aware of the unethical practice followed by company. The
practice of company has affected the lives of many people (Reardon, 2016). Drug was rejected
by many states also people have protested against the unethical practices. These practices have
affected the success of company as it will not be able to regain its trust of society. Exhibitions in
public institutes have helped the company to build a positive image in the society at large and
this has increased the revenue of company.
RECOMMENDATIONS
It is recommended that institute receiving donation must ensure that amount donated by the firm
have near and clean record. For example, Sackler family is engaged in unethical practices and if
donation receiver organization know about that then in that case it must not take donation from
it. This is because donated amount is illegal in nature and it may affect organization reputation in
eye of general public (Morehouse, 2017). Hence, before taking donation organization must
gather information from the firm to ensure that received amount is not legal.
If organization take donation amount from any firm that is involved in any illegal activity
then in that case its image may tarnish among general public. In order to avoid such kind of
situation organization need to increase transparency. Hence, it must set up a committee which
must contain members that have reputation among people. Moreover, report must also be
prepared which contain name of entities that give donation with amount and area where received
amount utilized. By doing so transparency can be increased and in case any donator found to be
involved in any illegal activity then in that case organization image will not fade among people
because of transparency in the firm business operations.
If company found to be involved in any unethical practice then donation funding will be
stopped and museum may face problem in providing services to the visitors (Bhasin, 2016). It is
recommended that museum administration must keep aside separate fund so that if problem of
scarcity of fund faced in the business operations will remain unaffected.
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REFERENCES
Books and Journals
Ismail, M.R. and Mustamil, N., 2019. Linking High-Commitment Human Resource Practices
and Cultural Practices to Employee Engagement. Religación. Revista de Ciencias Sociales
y Humanidades. 4(17). pp.208-216.
Lian, L.H. and Yew, W.T., 2016. A framework for examining assessment literacy of preservice
teachers. US-China Education Review. 6(5). pp.294-300.
Horak, S., 2017. The informal dimension of human resource management in Korea: Yongo,
recruiting practices and career progression. The International Journal of Human Resource
Management. 28(10). pp.1409-1432.
Jahanfar, S., Molainejad, M. and Izzat, D., 2017. Knowledge and Perception of Students towards
Publication Ethics: A Comparative Study in Two Academic Settings. J Clin Res Bioeth.
8(306). p.2.
Carter, M., 2016. Deceit and dishonesty as practice: the comfort of lying. Nursing Philosophy.
17(3). pp.202-210.
Requena, P., 2016. Why should the World Medical Association not change its policy towards
euthanasia. World Med J [Internet]. 62(3). pp.99-103.
Morehouse, R.E., 2017. 15 Caring thinking, education of the emotions and the community of
inquiry. In Community of Inquiry with Ann Margaret Sharp: Childhood, Philosophy and
Education. p.197.
Reardon, J.R., 2016. Alternative Business Structures: Good for the Public, Good for the
Lawyers. . Mary's J. on Legal Malpractice & Ethics. 7. p.304.
Bhasin, M.L., 2016. Fraudulent Financial Reporting Practices: Case Study of Satyam Computer
Limited. The Journal of Economics, Marketing and Management. 4(3). pp.12-24.
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