Purdue Pharma Case Study: Ethics, Revenue, and Shareholder Impact

This report examines the Purdue Pharma case, exploring the interplay between business success, ethical conduct, and revenue generation. It delves into how the company's unethical marketing of OxyContin, a strong painkiller, led to significant financial gains initially, followed by severe repercussions. The analysis covers the impact on revenue, shareholders, and the board of directors, as well as the erosion of public confidence. The report highlights how the pursuit of profit without ethical considerations resulted in lawsuits, reputational damage, and a decline in the company's value. It underscores the importance of ethical business practices and the long-term consequences of prioritizing financial gains over public well-being and ethical standards. The report also includes recommendations for organizations to ensure ethical behavior in the market.

ACADEMIC
ANDPROFESSIONAL
SKILLS

Table of Contents
INTRODUCTION...........................................................................................................................3
Success in reference to revenue also, its affection through unethical behaviour........................3
Success in context of shareholders & affected by unethical behaviour....................................4
Success from the perspective of the board and how this is affected by unethical behaviour.....5
Success from the perspective of public confidence and how this is affected by unethical
behaviour.....................................................................................................................................5
Recommendation.........................................................................................................................6
CONCLUSION................................................................................................................................7
.........................................................................................................................................................7

INTRODUCTION
Success is very essential part of any organisation weather its a trading form or
employment opportunist place. Success decides future of business and according to it only one
can expand the business. In various companies people focus on earning money but do not
provide ethics in regulations due to which there is a huge downfall. Ethics are very important and
surreal factor important for success rate of organisation. In any such structure of business one has
to perform several tasks which shall be done religiously connected to business organisation. The
company 'Purdue Pharma' owned by the Sackler family Brief is banned by more than five states
in united states. They were accused and charged under misconducting plus misrepresentation of
their own medicine 'OxyContin narcotic'. This drug works as a very strong pain killer and with
its launching marketing strategies the company made sure that places where people who
prescribe such painkillers shall be approached. Its launch was a big success cities & states which
have high rates of such subscriptions were targetted. Later they were accused for launching their
product in wrong way and people started using it in doing drugs and caused several deaths from
its overdose. Almost 1500 cities filed a law suit against 'Purdue Pharma' in case of marketing and
selling a very high dosed drug for making monetary benefits. The investigation held discovered
several aspects related to the family background and years of making audience fools by taking
such medicines & making them addicted to it. They were also sued for misusing
&misconducting several ethics & moral values of this profession, since then it created a very
wrong image for pharmaceutical business in which several other companies also faced loss. This
report aims towards describing how success is used in terms of generating revenues,
shareholders, board of directors and revenues by performing unethical behaviour(Banfi, 2003).
Success in reference to revenue also, its affection through unethical behaviour.
The sackler family has always been very integrated for conducting so much influence in
pharmaceutical places that one has to conduct several schemes to compete against it. The
company has experienced peak load through making several levels of integration and perform
several non medical provisions to gain such success. It is very important for any organisation to
conduct and perform several activities to gain success plus to entertain many hurdles which are
created in time being of several marketing strategies(De Burgh, 2003). Companies show that
they are customer focused but in reality they are just conning their target audience which was

faced by this company. It is very competitive and highly challenging field which requires people
to get very innovative in ideas plus become number one in such race to enjoy several monetary
benefits(De La Harpe, and Radloff, 2000).These days consumers are very sharp and only
depend on companies products which are healthy and companies loyalty cannot be trusted. A
research has shown that there are several ethical behaviours onto which one's business needs to
be very transparent which contradicts behaviour of customers, due to this several loyal customers
are lost due to UN-ethical behaviour. Once te market has news about performance of a
companies strategies and behaviours which were unethical in nature they shall be performed for
correct appraisal in the environment. Unethical behaviours in context to generate revenues can
consists of several things. Such as using the company for their personal benefits or gains. The
company has provided several tasks in the past where it has compromised its ethical grounds on
to which they have to face several legal provision and get an idea among wrongly performing the
work.
Success in context of shareholders & affected by unethical behaviour.
The shareholders are very integral part of any organisation and in such cases they have to
perform and guide them as per the laws and changes which are required in the case laws. They
play a very crucial role in the organisation and they have to perform the main guide for correct
representation in the organisation decision making methods. One has to get the correct
presentation of the things and according to the main things one has to give correct display and
presentation in the word count. Shareholders shall and can influence several decision in
workings of the company and performing unethically is not their concern they are solely for the
business unless its not illegal the shareholder s were not giving any effective problems to the
company(Gilbert, and Gilbert, eds., 2006).Then this pharma company performed several
unethical tasks just to get their drug approved in market they performed several tactics onto
which their shall be moderate changes in proves that they have a major requirement which shall
be performed for correct working guidelines in the issue. This issue hardly create an issue for the
organisation as they had to be correctly guided and just the incomes and share rates was getting
higher according to shareholders this is called success. This shall defines the correct workings
according to them. In the ethical code of conduct the shareholders are not involves and they
should not properly guide them for the working methods one shall have. The basic purpose of a
shareholder in this company was when they cannot be concluded the fact that there are several

aspects onto which the company performed such acts. This activity was huge success and the
company almost generated the revenue amount of 3 billion dollar's and more. Purdue Pharma
has created several highlights in this field and made many people aware of this fact due to which
later on the prices of the company dropped and the shareholders where not happy with the results
and it took the company in a really good hook(Moffett, and Mill, 2014).
Success from the perspective of the board and how this is affected by unethical behaviour.
Just being able to get good results in sales and marketing does not mean that a company
or organisation is success full in nature. One has to give several guidelines under which their
shall be unlimited stages. Their are several guidelines in which there are greater provision for
which one has to perform and guide them as per the correct path to follow. The board of
directors are the main authentic regulators in every company and they should perform the
important meaningfulness and performance analysis of the organisation is judged by them. After
every performance of any organisation the board of directors sit and analyse several things which
are to be observed and administered. Here one has to conclude proper addressed meeting with
literal meanings of giving correct guides and perform the methods with proper procedures. Here
one has to get a instructions or rules or performance anxiety which shall be giving things of
threatening in the work. In this case study it was given that the company has produced billions of
dollars after such sales but almost 1500 cities have had banned this company and its all
medication. This has happened due to wrong performance and integral performance in the
industries. All most all these cities filled lawsuit against them and claimed to receive claiming
from them. The were not happy and decision of company several investment was lost in lawsuits
within which one has to guide in perspective of giving proper guide. The company had
disobeyed several ethical grounds and had performed them so that they can just earn in revenues.
They had compromised ethics and to correct them the board of directors which are mostly the
family members of this company have to take serious discussion over this topics and give
specific solutions for addressing each such issue.
Success from the perspective of public confidence and how this is affected by unethical
behaviour.
In any organisation it is very crucial to keep all the audience happy and especially the
target market people. After several scams which were over the product of the company Purdue
Pharma. There were several guidelines which were not performed and according to which had to

face several issues. When this marketing stargates were happening their were several critical
analysis according to which one had to guide and provide several direction of correct path but
since the company was working apart from following ethical issues and they had to guide them.
Performing any tasks which are UN-ethical in nature have to face issues either in present 0or
future. Their are many instances which were recorded Purdue Pharma had to face provide
guidance in the workloads and give proper solution in time of crises. The target market or loyal
customers of this company had a huge effect in their brain and they felt cheated. Since the
company had a good skills of marketing and performed several aspects in which they had to
guide them to give good products. The product had no defect it was full filling its whole work by
their pills. The main disappointment was that they had to target exact places where people are in
greater needs 0f such medication. Later on several cases were recoded of drug overdose as
people started to use this medication the wrong ways and through different methods. Audience
and consumers have always been directly connected to the people who have been directly
connected to the cause and harm of this product. The people who had to be performed and given
status of providing correct matters and fact that their has to be an integral part of understanding
in the society and later on it affects normal innocent people. The drug caused so much stipulation
that it dint allow any other person to give guidance and scope of work to any other person(Raju,
2014) .
Recommendation
Every organisation should protect itself by making it very clear of having correct and proper
statements of defining its working methods. one shall perform the correct representation of the
fact that their are multiple factors which influence the success and growth rate of any
organisation. In the case of the company had to pay a lot of fine and at the same time loose
respect in the eyes of the loyal customers. this is wrong in the eyes of all the members of
company and it goes into the loop of workings.
Recommendation which company shall perform are as following:
 they shall never defy the main core of business which is to help the people.
 One shall not compromise in qualitative standards of their products.
 one organisation should carry out functions to help them survive ethically in market.

CONCLUSION
Their are several things which are to be performed correctly in the case of giving correct
guidance and lecture for proper performance in the organisation. One shall guide and regulate
function which are essential for development of organisation and the main aspects of the
company is to be ethical in nature and perform according tot hem only. They shall not forget the
core purpose of this company is to help and give correct products to public. Their has to be
correct influence behind generating money in the company and one shall not inform about any
irregular activities.
REFERENCES
Books and Journals

Banfi, C.S., 2003. Portfolios: Integrating advanced language, academic, and professional
skills. ELT Journal, 57(1), pp.34-42.
De Burgh, H., 2003. Skills are not enough: The case for journalism as an academic
discipline. Journalism, 4(1), pp.95-112.
De La Harpe, B. and Radloff, A., 2000. Helping academic staff to integrate professional
skills. Integrating key skills in higher education. London: Kogan Page, pp.165-179.
Gilbert, N. and Gilbert, G.N. eds., 2006. From postgraduate to social scientist: a guide to key
skills. Sage.
Moffett, J. and Mill, A.C., 2014. Evaluation of the flipped classroom approach in a veterinary
professional skills course. Advances in medical education and practice, 5, p.415.
Raju, J., 2014. Knowledge and skills for the digital era academic library. The Journal of
academic librarianship, 40(2), pp.163-170.