Ethical Considerations in Merck's Pharmaceutical Production

This essay delves into the ethical considerations faced by Merck, a pharmaceutical company, when confronted with a production dilemma. It examines the roles and responsibilities of key stakeholders, including Merck's management, the World Health Organization, and consumers. The essay analyzes the economic and legal aspects influencing Merck's decisions, particularly the challenges of producing drugs for a small, potentially unprofitable market. It also explores the ethical obligations of the company, including its duty to develop drugs and its commitment to employee loyalty. The essay highlights the importance of ethical decision-making in the pharmaceutical industry, emphasizing the need to balance financial considerations with the company's social and ethical responsibilities to its consumers and the broader community.

Running Head: PROFESSIONAL ETHICS
Professional Ethics
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PROFESSIONAL ETHICS
Professional Ethics
Business is operated following the concepts of its formation as well as the laws
set aside by the respective government of the country. Every member of a company
should ensure that the firm performs its activities under the directives of the rules, ethics,
and demands of its consumers. Among the responsibilities of business include social,
legal, economic, and philanthropic factors (Volkov, 2015). Each of them has a unique
role to play in ensuring that the rights of every stakeholder have been observed and
maintained. This essay concerns the duty of Merck, a pharmaceutical company which is
faced by a production situation which requires ethical decision-making.
Situation Stakeholders
The first member of this situation is Merck $ Company’s management. The
management is responsible for various decisions such as determining what drug to
produce, the pricing in the market, the areas to distribute and the volume of production
among other factors. The team is also involved in the research on the most effective
components of a particular drug as well as its side effects to the users and the
environment.
The second stakeholder is the World Health Organization. As much as this group
is world oriented, it is a primary determiner of the nature of production that the
pharmaceutical companies should engage. The organization plays a role in evaluating the
market and determining the affected regions. Also, they establish real data on the nature
of diseases, the percentages of infection, the demographics of the prone areas, and such

PROFESSIONAL ETHICS
related factors. Such details help in guiding the research and production teams in
performing effectively.
Finally, there is a group of consumers who are also the target of every business.
The infected people, as well as those prone to the identified infection, are essential in the
development of this situation. The consumer is a determinant of the volume of production
for any particular product. The pharmaceutical uses this data to estimate the value and
outcome of its activities before the onset of production. Therefore, this stakeholder is
essential to the process.
Economic Responsibility
One of the identified roles of every business or organization is on economic
development. A firm needs to be economically stable to deliver to its potential consumers
correctly (Pineda, 2015). Merck needs to observe the economic impacts of its research
and production as a way of maintaining the production pattern and supplying to the
market. The challenge present in this situation is that the target market at this point is
small and potentially unprofitable. Any form of investment into research and production
will yield to zero returns.
The ability to develop a safe and effective drug in response to the onchocerciasis
disease solely depends on the financial strength of the company in conducting research
and engaging in the production process. The requirement by the government for every
company to participate in tax paying limits the firm’s activities towards unprofitable
ventures (Vitez, 2018). If a safe or effective drug is developed, a zero return would be

PROFESSIONAL ETHICS
observed. Merck would be obligated to either justify or abandon the production process.
The first thing to consider is that the company has the legal and ethical responsibility for
producing drugs. Therefore, it would justify the investment to the shareholders and use
the ethics role as a reason for the decision in a bid to maintain consumer loyalty.
Legal Responsibility
Every law put in place concerning a business should help in the overall decision-
making on matters affecting the operations of that firm. The duty of Merck is outlined in
its legal system as a component of its formation. Similarly, the government establishes
various laws that govern the different forms of businesses in the country (Kalia, 2014).
Such rules determine the nature of operations designated for a particular company and the
steps that should be followed when deciding on a specific venture. Going against such
laws would lead to heavy penalties including the firm paying the affected sectors and
even closure of the company.
Failure for Merck to invest in R $ D has the possibility of attracting some
penalties. On the other hand, there is a consideration of the fact that the investment will
cost the company thus affect its ability to take care of its financial obligations. Therefore,
the most probable scenario is that the penalty would be overlooked and the company
allowed to carry on with other duties without investing in the situation. Similarly, the
company would need to justify its decision for not carrying out further research as the
process would lead to a loss.

PROFESSIONAL ETHICS
The scientists in Merck Company have to research on the types of drugs needed
for a particular epidemic. If the management decided on not carrying on with the
research, they should use the economic and logistics reasons to justify their decision to
the scientists. Employee loyalty depends on the company’s ability to supply their needs
efficiently. Therefore, the failure to research on the matter may be treated as neglect of
duty thus affecting this loyalty (Ethics, 2010). Merck has an ethical obligation to develop
drugs for various conditions. The margin of operation for any drug acts as the
determining factor for its production. Therefore, achieving a cure is the primary target.
The value system would be the determinant in either carrying on with the production or
venturing into other areas. The decision to operate is based on the code of operation that
is contained in the company’s system which requires the company to deliver without
considering the profit margins.

PROFESSIONAL ETHICS
References
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Kalia, C. (2014). Legal Responsibilities of Business Owners. Kalia Law P.C. Retrieved
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Pineda, M. E. (2015). The four social responsibilities of a business. Version Daily.
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https://smallbusiness.chron.com/decision-making-business-ethics-446.html
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