Success and Ethics: A Report on The Sackler Family Business

This report provides an in-depth analysis of the Sackler family business, specifically focusing on their pharmaceutical company, Purdue Pharma, and its unethical practices. The report examines the company's manufacturing and marketing of the highly addictive opioid OxyContin, and its impact on revenue, shareholders, board members, and public confidence. It discusses the company's manipulative marketing strategies, including the use of paid conferences and misleading branding, which led to increased profits but also caused widespread addiction and legal issues. The analysis explores the ethical considerations crucial for business success, contrasting the short-term gains from unethical behavior with its long-term negative consequences, such as declining goodwill and legal challenges. The report concludes by emphasizing the importance of ethical and legal business practices for achieving sustainable success and offers recommendations for protecting against unethical behavior.

Academical and Professional
skills

EXECUTIVE SUMMARY
Success is the concept that identify about achievement and attainment of goal and
objectives of business in an effective and efficient manner. The given report is based on Sackler
Family business which manufactures painkiller drugs for people. In order to earn maximum
profits, it has started focusing on illegal practices that leads other business to file case against it.
This has declined its brand value and goodwill from market. If it conducts business in ethical
manner then it can get more success. This report has discussed several components that lead to
success of business at marketplace.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
ANALYSIS......................................................................................................................................4
Can an organisation be described as successful if it is not ethical? Use your case study to
illustrate your answer..................................................................................................................4
CONCLUSION................................................................................................................................8
RECOMMENDATION...................................................................................................................8
What can the organisation in your case study do to protect itself against unethical behaviour? 8
REFERENCES..............................................................................................................................10

INTRODUCTION
Success is referred as situation in which organisation attain their set goal and objectives
in appropriate manner (Aydoğdu, 2015). As per meaning of dictionary, success is defined as
accomplishment of prosperity, fame, wealth, name at particular place and time. In context of
organisation, success is the term that assists in empowering customers, community and
employees in measurable forms. It is very important for company to achieve success within
given target market by gaining competitive advancement. In order to get success, it is essential
for organisation to adopt ethical practices, provide high quality product, services, taking
customer feedback, time delivery, maintaining relationship and so on. Out of these factors, ethics
plays effective role in rising morale of business as well as customers, minimizing risk, attracting
stakeholders, enhance and attract large consumers. The given assignment is based upon case
study of The Sackler Family Business. As per study, it has found that Sackler family is running
Pharmaceutical business i.e. Purdue Pharma that focus on manufacturing addictive opioid
OxyContin. It is painkiller drug which is selling all over the world. In 2019 year, 1500 cities of
United State and 45 states have sued respective organisation for selling and marketing high profit
drugs. This company has followed manipulating marketing strategy that leads them to earn high
profit margins at marketplace. It reflects that Sackler family is performing unethical practices in
order to make more profits which is impacting their market value and goodwill along with facing
of legal issues. The report consist information about success of business if it does not conduct
unethical and illegal operations. It has also discussed about various factors that are required to be
considered to become successful at market.
ANALYSIS
Can an organisation be described as successful if it is not ethical? Use your case study to
illustrate your answer
In order to get success in business, it is important for them to conduct all ethical and legal
practices so that they can enhance their brand value and goodwill at marketplace (Feijen-de Jong
and et. al., 2017). In context of given case study of The Sackler family business that deals in
pharmaceutical company named as Purdue Pharma. Respective business deals in manufacturing
and selling of OxyContin that is high addictive drugs which made people addicted to consume
such drugs and leads towards death. Respective activities create kinds of issues or concerns for

Purdue Pharma’s as they sued by 1500 cities and 5 states at United States. The organisation
has strong advertising as well as marketing strategy to manipulate people for buying of products.
As they have spend huge money for creating promotional activities in order to attract medical
professional to buy their medicines. The respective organisation also focus on doing branding of
OxyContin through “Hope in a Bottle” which confuse and mislead all medical professional and
public at a time. Similarly, in 1990's mid, Purdue Pharma has focused and conducted highly
expensive paid conference at resort in which expensed made by medical expertise and
professional are beared by Sackle family business to increase their goodwill and brand value at
marketplace. Therefore, these reflect positive outcomes for OxyContin drugs and influence
consumers, people, medical professionals and media to buy it whenever required to them. Due to
this conference, made respective drug more prescribed medicine at U.S. Marketplace. Therefore,
these shows that Sackler family Business has conducted unethical and illegal practices for
increasing their profit margin of OxyContin as they have hide truth behind medicine. In regard to
this, huge number of people were addicted to respective drugs that leads to death but manager of
respective business has no regret that has impacted their business in negative manner in terms of
declining goodwill, customer base and profitability ratio (Purdue Pharma Tentatively Settles
Thousands of Opioid Cases, 2019). Therefore, it is important for The Sackler family business to
apply and use ethical consideration for running and operating business at market. Some of the
consideration are described below:
Success in terms of revenue and how this is affected by unethical behaviour
Revenue is referred as income which is earned by organisation through conducting their
business operations, activities and functions at marketplace (MARGOLIS and DONCEL 2015).
It is done with help of selling products and services to required consumers in appropriate
manner. Here, success is defined in revenue term which means situation where organisation
focus on generating profits through conducting their business functions and operation in effective
way. The example is taken from case study where The Sackler family businesses are operating
pharmaceutical business having named as Purdue Pharma along with they sell and manufacture
drugs. Here, success in revenue term for respective organisation is profit which is earned through
activities and operation of business at marketplace. The way of conducting business leads to
positive and negative impact to organisation that leads to success in revenue terms. In context of
Purdue Pharma, business activities and operations are conducted through unethical manner and

illegal practices as they have not disclose their information about manufacturing and use of
ingredients in front of medical professional, people, media and others. Though conducting
unethical activities helped The Sackler family business to earn large amount of revenue.
Therefore, this reflect that conducting business through unethical way leads positive impact to
organisation for earning high amount of profits and revenue. In context of Purdue Pharma and its
owners of Sackler family they are offering to settle more than 2000 lawsuits against company for
10 billion dollar to 12 billion dollar. As it create so much hazardous effects on the goodwill of
company (Purdue Pharma offers $10-12 billion to settle opioid claims, 2019).
Success from the perspective of shareholders and how this is affected by unethical
behaviour
Shareholder is also called stockholder who is an institution or individual which is legally
owning one or more than that stock or shares in public or private organisation. They are regarded
as members of corporation. The person is not regarded as shareholder unless their details and
names are recorded in register of corporation of shareholders or members. Influence of
shareholder on business is determined through percentage of shareholding they owned in
organisation. They are also defined as an individual, person and institution who own more than
one share legally in public or private organisation and includes themselves during incorporation
of business in an effective and efficient manner (Muswandar and Junadi, 2018). The success is
described in perspective of Shareholders which means to gain profits as per interest in activities
and operations of company. In context of The Sackler family Business and their corporation i.e.
Purdue Pharma, the different types of Shareholders who are working includes media, patients,
customers, professionals, investors, employees, medical professional, government and others.
Here, it is the responsibility of pharmaceutical business to formulate proper plans, policies and
strategies for their Shareholders as they are the real person who helps in gaining high profit
margins for business. The provided organisation is running their business by following unethical
practices where they have manufactured medicine that contains highly ingredients of drugs and
make addict to people and sometimes leads to death of individuals. Here, unethical practices in
context of Shareholders have performed by organisation where they have not inform about
medicines which are hampering people rights and trust. As this has impacted business in
negative way where 15000 cities and 45 states has sued against respective pharmaceutical
company in United States that decline their brand value, goodwill and image from the market.

Success from the perspective of the board and how this is affected by unethical behaviour
Board is defined as director of organisation which consists of group of individuals who
assist, direct, supervise activities and operation of business in an effective and efficient manner
(O’Donnell, 2016). It can be used by all kinds of business like non profitability, profitability and
government agency. They are highly recognized service provider in market place as they give
one of best services to consumers. The respective company Purdue Pharma has board of
director as their own family members who look after each and every activities and operations in
appropriate manner. The decisions are made by them for their members and staff to accomplish
set objectives. They have achieve success by attaining high profits margins and enhance market
share in proper manner. As they focus on earning high profits and followed unethical practices
where they have not disclose information to public regarding use of substance or ingredient
while manufacturing medicines. They provided them more profits along with it they also faced
legal issues from different companies and states.
Success from the perspective of public confidence and how this is affected by unethical
behaviour
Public confidence is referred as force of policy that is used by business in order to
safeguard right of public and retain their confidence for longer time period in effective and
efficient manner (Santateresa, 2016). This approach is adopted by business because public
consider one of best source to gather important knowledge and information and to remain
competitive in marketplace for long time. In order to provide satisfaction to society, patient and
public should be take care in proper manner so that they can create loyalty towards organisation,
it is essential for business to adopt and conduct business practices in effectual manner to gain
potential outcomes. The respective organisation is conducting activities and operations of
business of manufacturing and selling drugs to medical practitioners and people. It is very
important for business to analyse need and demand of people and public and accordingly conduct
their activities and operations. Here, respective business is conducting unethical practices where
they have not inform about use of ingredients in manufacturing of medicine for people that is
harmful for health and sometime causes death. Therefore, such unethical practice can impact
business and their activities and operations in negative way that leads to decline in goodwill,
market value and profitability.

CONCLUSION
From the above report it has been concluded that success of business depends on various
factors such as consumers needs and wants, ethical and legal considerations and many more. It
is very important for all companies to perform business activities in legal and ethical manner
which helps them to enhance market value and goodwill effectively and efficiently. Similarly, on
other hand, if organisation focus on adopting unethical practices and conduct business activities
and operations unethically then they can earn high profits margins for short period time but has
to face several issues in terms of brand value, goodwill and other which impacts them in long
term period. Moreover, it is important for business to develop proper strategies and plan by
considering ethical and legal factors to conduct activities and operations at marketplace.
Therefore, for achievement of goals , strategies should be followed in proper manner which leads
to rise in gross profits, competitive advantages, customer base and attracting towards
stakeholders in appropriate manner.
RECOMMENDATION
What can the organisation in your case study do to protect itself against unethical behaviour?
Purdue Pharma that focus on manufacturing of highly addictive drugs named as opioid
OxyContin which is harmful for people of society. This practice leads them to earn high profit
margins for shorter time period. After sometimes, The Sackler family business was sued in court
by 1500 cities at 45 states in United States. The unethical behaviour, practice and regulations
lead business to face various issues such as decline in profit margins, customer base,
stakeholders and brand value. It is important for business to conduct their activities and
operations in an effective and efficient manner so that they can survive and sustain at
marketplace. In order to improve such situation, there are some recommendations which are
provided to The Sackler family business to gain back their position at marketplace. They are
described below:
Conduct ethical sales practice
It is very important for pharmaceutical business to sell their medicine through providing
adequate information to the users or medical professionals. The respective organisation has to
conduct marketing as well as sales functions in legal and ethical manner through which they can
inform about their drugs to medical professionals

Consider Non malfeasance
It is recommended to pharmaceutical companies not to harm and creates problems to
patients. Here, it is the responsibility of respective organisation to consider accountability of
individuals who are suffering and getting ill after consuming OxyContin. They have to stop
manufacturing and trading of such medicine from market which they are selling in name of pain
killer.
Respect patients
It is the primary responsibility of pharmaceuticals business to respect their patients and
provide them with good medicine which could not impact their health and cause problems. The
respective organisation has sold highly addictive pain killer medicine to patient and medical
professionals which lead them to death so they should consider their people and manufacture
accordingly.
With the adoption of provided recommendation, respective organisation i.e. Purdue
Pharmaceutical can increase their brand value and goodwill at marketplace where they have
harmed because of following unethical practices in selling OxyContin pain killer to their patients
and medical professionals that leads to death.

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Online:
Purdue Pharma Tentatively Settles Thousands of Opioid Cases. 2019. [Online]. Available
through. <https://www.nytimes.com/2019/09/11/health/purdue-pharma-opioids-
settlement.html>.
Purdue Pharma offers $10-12 billion to settle opioid claims. 2019. [Online]. Available through.
<https://www.nbcnews.com/news/us-news/purdue-pharma-offers-10-12-billion-settle-
opioid-claims-n1046526>.