The Impact of Ethics on Organizational Success: A Detailed Report

This report delves into the critical role of ethics in organizational success, particularly within the pharmaceutical industry, using the Purdue Pharma case as a focal point. The report highlights the ethical dilemmas that arise from practices that prioritize profit over public health, such as aggressive marketing of addictive drugs and misleading medical professionals. It argues that while unethical behavior may yield short-term gains, it ultimately undermines brand image, consumer trust, and long-term sustainability. The report analyzes strategies organizations can employ to avoid unethical behavior, including creating a code of ethics, showing employee appreciation, promoting ethical drug use, and developing transparent pricing. The conclusion emphasizes the importance of ethical practices for legal compliance, brand reputation, and the well-being of the public, recommending adherence to ethical theories and principles to guide decision-making and ensure responsible business conduct. The report also stresses the importance of transparency and accountability in drug manufacturing to build customer confidence and loyalty, offering insights into how ethical frameworks can guide the ethical promotion of drugs and build a strong foundation for success.

Can an organisation be
described as successful if
it is not ethical?

Executive Summary
The present report has drawn an attention of pharmaceutical companies on such practices
in business, that may create ethical dilemma. As these firms mainly deal with procurement of
public, for their safety and well-being, by prescribing drugs. Therefore, any unethical practices in
such process, may cause serious issues for health of people. This would highly affects brand
image and in such case, people will also avoid to use medicinal products of such companies in
future. Therefore, to overcome such threats, it becomes essential for organisations to develop
ethical practices in business, so that successful growth can be achieved.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1 ...........................................................................................................................................5
Can organisation be successful if is not ethical..........................................................................5
What organisation can do to avoid the unethical behaviour in the organisation.........................6
CONCLUSION................................................................................................................................7
RECOMMENDATION...................................................................................................................8
REFERENCES................................................................................................................................9
INTRODUCTION
Success can be known as the action which are achieved when you try your best in all
aspect of doing everything effectively (Andriof and Waddock 2017). In other words it is known
as the completion of work in such a manner so that desired aim and objective are achieved. Ethic
are moral philosophy which involves different elements such as systematizing, defending as well
as recommending the things whether they are right or wrong. So ethical practises are important
in making healthy relationship with the customers. This report is done on the The Sacker Family

which runs pharmaceutical company which is known as Purdue Pharma. This case study report
that in May 2019, 45 US and 1500 cities were suing the Purdue Pharma for unethical practises
done for marketing and sales. Firm has done unethical practises and regularly have been accused
of misleading public along with medical professionals. They have been also criticised for using
aggressive promotional as well as marketing strategies for the expanding their business and sales.
In the mid year of 1900 Oxytocin was launched which become the most prescribed drugs in the
U.S. Market as it was highly addictive. The attorney general find that despite having ever
mounting evidence it was unclear the death of the people. . The Sackler family are also famous
for their philanthropy and generous donations to museums, galleries and universities across the
world. Along with this the company also do donations to museums, galleries and universities
across the world.
TASK 1
Can organisation be successful if is not ethical
Ethical practises are important factor which help in generating goodwill and brand image
in the minds of the customers. This practises are essential as consumer have become more health
conscious. This report is done on the Pharmaceutical company known as Purdue Pharma which
was under the news that they produce highly addictive pain killer which is known as QxyContin.
This major cause of death in US as this was one of the most popular brand in pharmaceutical
company. The organisation can not be successful if they are avoiding the ethical practises it
become difficult for the firm to create positive impact on the minds of customers. If there will be
be negligence in the ethical practises there will be high malpractices and unfair trade practises
will be increased such as black marketing and artificial high pricing of the product.
As nowadays people are attracting towards those company which have positive image in
the marketplace. For the company like Purdue Pharma they were using the aggressive marketing
method for increasing their sales and by providing inappropriate drugs to the end users. As they
were using unethical practises which help the firm to increase their sales but hamper the brand
image in the minds of the customers. So it is essential and prime duty to maintain dignity and
trust in the organisation for providing better services to the consumers. For the organisation like
Purdue Pharma the management is responsible for the implementing the work ethics in the
organisation for the smooth functioning.

The pharmaceutical is one of the largest company in the world which have billion dollars
of revenue in a year. Along with this they have to deal with the various ethical issues and they
have to follow all the rules and regulation for maintain the quality of the product. As this is
essential for the Purdue Pharma to invest highly in research as well as development programmes
for providing better services to the consumers. Purdue Pharma, OxyContin brand have become
one of the most popular pain killer in the unites states by doing unethical practises. The business
entity can not survive for the long run if they are offering unethical services to the consumers.
For the survival of the business the ethics are important and mandatory as it provide long
term success. By using unethical practises the company can make fool of customers one time but
and profit is limited. So it is important to always follow appropriate code of conduct in order to
survive in the market. Purdue Pharma management should make sure that, all the employees
work as per the guidelines given by the company. Hence to avoid unethical practises in the
company the firm must provide training services to the consumers.
What organisation can do to avoid the unethical behaviour in the organisation
Fore the company like Purdue Pharma the company it is essential for the company like
Purdue Pharma to avoid unethical services to the consumers which include they should provide
premium quality drugs with the proper prescription (Barrett 2013). As it has been analysed that
pharmaceutical company is contributing in improving the economic contribution to the company.
In the case of Purdue Pharma the company there must be proper implement ion of rules and
polices so that employees do not indulge in unethical practises. This kind of environment can
damage the company credibility which hamper the image as well in the loose the market in the
limited time period. This is the major responsibility of the management of the Purdue Pharma to
have develop effective strategies which can be useful to minimize the unethical practises present
in the market. As there are many as it has been analyse in the case study so it is the prime
responsibility of the company to provide better services under the guideline of the chemists. The
Pharma companies can have transparency and accountability in making of the drugs and make
sure that all the rules and regulation are been followed while making the drugs.
To expanding the business as well as gaining the success in the market the Purdue
Pharma manager can implement new rules which help in avoiding the unethuical practises done
in the organisation . The firm can improve the quality,utility as well reliability for which help in
improving the customer's confidence. Along with this, firm will develop the loyal customer's and

they will have more trust on the company. Ethics bind the customers as well organisation
effectively by offering the high quality medicines and services to the consumers. Proper ethics
and business provide better protection to the employees and to the shareholders .
Beside the Purdue Pharma, firm can use develop the strong foundation which by the help
of making standards of ethical workplace (Bryson 2018). The manager can take extra session on
ethics which help in company as well as employees to understand the importance of the work
ethics in the employees. This is essential for the company to have performance evaluation on the
ethical code of conduct which keep the track of the employees regarding the activity. There must
be proper system to discipline the violators as they can bring the goodwill of the company. Here
are some steps through which company can avoid unethical behaviour in the organisation.
Create code of ethics: A code of ethics provide employees and managers with an
overview of the type of culture and behaviour present in the organisation. In the context of the
Purdue Pharma company draw an outline of the behaviour and personality which can be
acceptable in the organisation. If in any case the employees violates the code of ethics the serious
action should be taken to future theft.
Show employees appreciation: Loyal employees feel that a company values and have
importance to work hard for the company. In the case of Purdue Pharma management have the
prime responsibility to motivate and increase the moral of the staff on their hard work. As this
help employees to avoid unethical practises. A loyal employees are likely to be unethical so
organisation must show appreciation on the regular basis which help in encouraging the
customers loyalty.
Ethical use of making drugs: The company must use proper way for providing the
medicines to the customers. As per the Purdue Pharma the company is known as for selling false
medicine by the use of aggressive marketing strategies. So to avoid unethical use Purdue Pharma
must provide proper information and to their respective customers which help in generating
profit as well as brand image.
Developing proper pricing for the company: It is essential for the company to have
maintain the price for the company which help customers for availing the product. For the
company like Purdue Pharma the company should use ethical practises and try not to increase the
price which leads towards making brand image in the market.

CONCLUSION
It has been summarised from the entire report that making ethical practices is essential for
all organisations, to protect business from legal penalties. Hereby, as main focus is given to
pharmaceutical firms, that mainly works for producing drugs, for well-being of people from
diseases. Therefore, in such a process, they must ensure that whatever drug are providing, should
be manufactured under ethical way, otherwise any interruption is same, will lead to create threat
for life of people and sometime causes death too. As major problems can be arisen if a
pharmaceutical firm uses manipulative and unethical strategies, to sell drugs or medicines, which
misleads both medical professionals and public too. Therefore, under such case, it is necessary
for such firms to ensure that there should be trustworthy workers, in association on which they
can relay on. Through adherence of state-government or centre-government regulated policies,
pharmaceutical companies are needed to develop ethical policies, while dealing with
procurement of public. This would help in prescribing or selling only those drugs that causes less
side-effects and manufacture only for well-being of people.
RECOMMENDATION
Since due to unethical practices in manufacturing and dealing process of painkiller drug,
Purdue Pharma has been criticised, that highly affects its brand reputation. Therefore, to rebuild
its brand image and regain the success, it is essential for respective pharmaceutical firm to
develop ethical practices. Through observance of ethical theories, medical staff can contribute
more rational prescription of painkiller drugs, for medicinal drug promotion. Along with this,
taking physicians' opinion about ethicality, can reduce chances of selling drugs in illegal manner.
Through adoption of fundamental ethical theories, like deontology, utilitarianism, egoism and
social justice, will help in avoiding ethical practices. These theories aid authorities and doctors of
respective firm, in acquiring the insights into own beliefs, regarding criticism which were
previously made against marketing and actions that has been taken from the same. Using
utilitarian ethics, managers of Purdue Pharma can justify the consequences to achieve desired
objective. While deontological ethics help in emphasising duties that consider as significantly
importance, to response on different situations.
As pharmaceutical marketing can personalized physicians like provision of samples and
gifts, also raise ethical issues. Therefore, to make effective decisions, management of given firm
also needs to think about other choices, respecting with ability for accomplishment of physicians

goal, i.e. ethical prescribing of painkiller and other drugs. For this purpose, five main ethical
principles can be applied that are Beneficence; Fidelity; Respect for Autonomy; Justice; and last
one is non-maleficence. Moreover, concerning with the procurement of prescriptions of drugs
adoption, management of Purdue Pharma also need to take some reasons into account. It includes
acceptance of specific medication drug by some physicians and rejection of same drug by others.
This would help in identifying variables such as proximity to peers, degree of socialisation,
product message and more. Along with this, to reduce chance of ethical dilemma in future,
managers of Purdue Pharma also need to uphold ethical responsibilities for its customers also,
because lack of foresight and any concern for their safety may lead to cause a serious issues for
well-being of them.
REFERENCES
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strengthening and sustaining organizational achievement. John Wiley & Sons.

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