Purdue Pharma Report: Unethical Behavior's Impact on Business Success

This report analyzes the impact of unethical behavior on Purdue Pharma, a pharmaceutical company owned by the Sackler family and known for manufacturing OxyContin. The report examines how unethical practices affected the company's revenue, shareholder perspectives, the board's actions, and public confidence. It highlights the negative consequences of poor marketing, misleading practices, and a lack of transparency. The analysis covers issues such as decreased sales, loss of trust, and the erosion of public image. The report also provides recommendations for improving ethical conduct and business practices, aiming to increase sales and reduce unethical behavior within the company. The report emphasizes the importance of ethics in achieving organizational goals and objectives, especially in maintaining positive relationships with customers and stakeholders.

The Sackler family
business

EXECUTIVE SUMMARY
The report had been based on Sackler family business owned by Pharmaceutical
company, Purdue Pharma, which is responsible for manufacturing the highly addictive
OxyContic. At the various stages of the company's history, family members have sat on the
board. The report has covered by a success in terms of revenue that had affected by unethical
behaviour which has decreased revenue and sales of company. It had been covered by a
perspective of shareholder has affected by unethical behaviour because that had been
demotivated by their perspectives because sales decreased. The unethical behaviour had been
affect to perspective of the board which had taken actions of the board for company success. The
unethical behaviour is affect to perspective of public confidence of public.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Success in terms of revenue and how its is affected by unethical behaviour..............................4
Success from perspective of shareholder and it is affected by unethical behaviour...................5
How unethical behaviour is affected to perspective of board and its success.............................6
Perspective of public confidence and how it is affected by unethical behaviour.......................6
CONCLUSION................................................................................................................................7
RECOMMENDATION...................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Success means that the achievement of the desired profit, vision and goals. Success is
very important for business and organisation which is accomplishment of a purpose and aim of
work in effective manner. This successful means is the achievement of desirable mission and
planned goals or vision of business. Furthermore, it can be a certain social status which
describing proper process to person which could also have gained decided and favourable result
and outcome of the business (Askew, Beisler and Keel, 2015). For achieving increased and
sustainable goals and objective, organisation have needs to address and make new strategy for
business as well as have to engaged with people. Organisation success is measured by evaluating
by profit margin and where organisation is in regards its goals and mission. Ethics is plays an
important role at workplace for ensuring positive ambience at the workplace. It leads to happy
and satisfied employees who are perfectly engaged. The report is based on pharmaceutical
company and its business of Sackler family business. This company is produces OxyContin
painkiller medicine. This report is evaluate the success in terms of revenues is affected by
unethical behaviour as well as perspective of shareholders is also affected by unethical
behaviour. This will also highlighted by the perspectives of the broad is affected by unethical
behaviour as well as public confidence how affected by unethical behaviour. The report will also
include by suggestion for business as per analysis section in proper manner.
MAIN BODY
Success in terms of revenue and how its is affected by unethical behaviour
Success is terms of revenue plays an important role in the Sackler family owned
pharmaceutical company, Purdue Pharma, business which is produce OxyContin medicine which
is pain killer. The company member are not able to done proper marketing and sales of highly
profitable drugs. The increase revenue of company is success but through that unethical
behaviour is affect that by decreasing it (Boes, 2015). The poor marketing and sales management
has impact and damage image of company at marketplace which is not good for company and its
growth factors. Through that, company's revenue is decreased in terms of negative aspects.
Marketing and sales management is affected by unethical behaviours of employees and
customers. Like if company is not provided that proper details to customer about the medicine.
In that case customers are not trusted to them in proper manner by this customer is not purchase

product form company because lack of trust. This gives negative impact which is sales or
revenue of company is decreases.
The unethical behaviour is highly affect to Sackler family business, because through that
company is not able to maintain long term relationships with customers. This create the poor
work environment leads to drop in the productivity or lowered morale and employees attribution
is also affected in term of success (Yam and Reynolds, 2016). The unethical behaviour is often
by those aspects like misusing of company time, lying to employees, unfair-able behaviour
towards employees. In this case, employer is not include charges against any members of the
business they are not false and misleading marketing practice in relation to its prescription
painkiller and the risk of addition and death of people. At the end, result is unethical behaviour is
affect to sales of company in order to decreasing sales and revenue, because unethical behaviour
has lost the trust of customer and create negative environment within the workplace.
Success from perspective of shareholder and it is affected by unethical behaviour.
The perspective of shareholder is emphasis on profitability over the responsibility and
sees organisation primarily as the instrument of it owner (Harrison, Summers and Mennecke,
2018). They are believed that success of company measured by share price, dividends and
economic profit of company. The shareholders are take shares of company through shares of
stock because of other than stock performance and appreciation at workplace in effective
manner. The Sackler family business responsible for manufacture painkiller but through that
people are more attractive, addicted and it has the cause of death. The shareholders are more
important for the business because they put money in the business as well as contribute capital to
the business for increasing sales and profit margin. The unethical behaviour of company is
affected to shareholder perspective by creating conflicts of interest, oversight issues,
accountability issues and transparency. The company have to communicate the proper interest
rate with shareholder because they have right to know about where they invest their money and
that is safe of not.
The unethical behaviour is decrease revenue of company as well as affect to perspectives
of shareholder because if sales is drop that means a dip in profits and a fall in the company share
prices. That is eventually it drive investors and shareholder away and remove their shares form
company. This affected perspective of shareholder because in case of decreasing sales
shareholder think it is hard to earned money in failing company. In that case company have to

make transparency towards shareholder (Hess and Cottrell Jr, 2016). Through that they are able
to known about the proper situation of company and than decide to invest in company or not.
With the help of this, shareholder are happy with this action of company because through that it
for them to take decision for investment.
How unethical behaviour is affected to perspective of board and its success.
The unethical behaviour is affected the perspective of boards and their success. The
Sackler and their family members are sat on the board most of the time. Here, they make
planning, take decision, discuss their problem and find the solution of problem. In the board
meetings they decide to increase revenue and sales of company by making effective marketing
strategy. This medicine to higher as compared with drugs this become a cause of death and
addiction. Board decides the experience working with companies in the multiple industry. The
unethical behaviour is affect to board perspective in negative aspects because revenue of
company is decrease in negative manner. For that, board members are create an ethics committee
of the board they decide to avoid a diffusion of responsibility they design committee of non-
executive. Members are also take feedback from the other directors about work, this will help to
changing marketing condition at marketplace (Kalshoven, van Dijk and Boon, 2016).
Members are take decision to establish and post online ethical compliance standard or
procedures in order to prevent, remedy illegal or unethical conduct. The company have to
conduct simple and easy code of conduct for employee to understand and refers the prop[er
values of it. This is the best decision which is help to company to increase sales and achieve
goals and objectives of company in effective manner. They also take action to promote quality
and safety with the clear escalation policies because it is important to ensuring quality of product
and workplace safety on the production floor because this is the main reason help to attract more
customers and encourage employee for staying in company with their hard contribution of work.
The board should make ensure about the escalation policy with clear guidance on issues ad
producing process of product is in have to be in proper manner.
Perspective of public confidence and how it is affected by unethical behaviour
Perspective of public confidence is affect by unethical behaviour because this could
decrease sales or revenue of company (Lawrence and Kacmar, 2017). The Sackler family
business is owned their business which is produce OxyContic painkiller medicine for people.
The unethical behaviour of company is affect to public confidence because they are not give

proper and correct answer to public and most of the people is abdicate with this medicine. This
affect the confidence which is reduce because more people are addicted toward this. The public
see company as a unethical because of unethical behaviour of company. Like customers face
problem with this medicine in that case they go through the company for discuss their problem
and responsible manager is not address this or not listen properly. Through that trust of customer
is break down and see the company as unethical. That is not good for company and its growth
factors.
In the lawsuit it is called harassment of customer and mental dissatisfaction. It is worst
affects of ethical behaviour on the business because company is enable to to forgo or maintain
any long term relationship with customers. This created by shun the company product and have
to start campaign indicating others to follow (Reffett and et.al., 2019). A decreasing sales means
a dip in the profit and a fail in the company share price. Such as the poor work environment and
culture lead to drop in the productivity, lowered morale and employee attrition which is lead
downfall of the company and break the trust of public on company perspective. The effect to
unethical behaviour on the business or on the customer. This pressure on the customers services
staff is extremely high. The customers wants the best and effective services from the company
side or against of their payment. Customers are want proper services both post and pre sale
services of company. This must be effective for company to provide proper services to customers
for proper growth of company.
CONCLUSION
From the above study it had been concluded that the ethics played an important role in
organisation in order to achieve goals and objective of company in effective manner. The
unethical behaviour of employees because this has decreased a sales or revenue of company in
inappropriate manner. The unethical behaviour of employee had affect to business and its growth
factors it had been generated by the misleading and not good planning of proper marketing and
sales. This had decrease revenue of company. On the others side, it had been concluded that the
unethical behaviour has also affect to shareholder perspective because of continue decrease in
sales. This could be the reason of sale decreases and lack of transparency. Perspective of board
had been also affected by the unethical behaviour of company whether it had take actions for
growth. This had been covered by a perspective of public confidence has affected by unethical
behaviour of company because they had not satisfied with post and pre sales services.

RECOMMENDATION
The Sackler family owned their own business, Purdue Pharma which is responsible for
misconduct in the marketing and sales of higher profitable drugs. This company have also been
accused by the misleading both public and medical professional because drug is effectiveness
downplaying the addictive nature of the drug. The unethical behaviour of employee and staff is
affected to revenue, perspective of shareholder, board and public confidence. For that here, is
include some suggestions for company in order to increase sales and reduce unethical behaviour.
In context of company revenue, unethical behaviour is reduce sales because of misleading
marketing. For that company should train to their employees and use online platform for promote
products and services at marketplace for increase sales of company (Sezer, Gino and Bazerman,
2015). In context of perspective of shareholder, unethical behaviour is affect shareholder because
of lower sales of company.
In that case, company have to create transparency towards shareholder because they have
right to know about their investment and rate of interest charges. Also, recommended for
company to behave ethically which cam help to improve health, image and value of company in
proper manner. On the other side, for the board perspective because it has also affected by
unethical behaviour of people and employees. Here they should make actions for reduce
unethical behaviour from company by applying proper discipline and rules which has to be
follow by all staff members. Also, recommended for company to make proper planning of
campaign marketing through sales is generated in positive manner as well as increase it. In the
context, perspective of public confident because unethical behaviour is affect to confidence of
people is n the negative manner (Strobel, Tumasjan and Welpe, 2015). For that here is
recommended for company to use build trust of customers by providing best and effective
customers services in both way whether it is pre sales or post sales as well as build strong
customer relation by treating with ethical behaviour.

REFERENCES
Books and Journals
Askew, O. A., Beisler, J. M. and Keel, J., 2015. Current trends of unethical behavior within
organizations. International Journal of Management & Information Systems (Online).
19(3). p.107.
Boes, A., 2015. Factors Influencing the Unethical Behavior of Business People.
Harrison, A., Summers, J. and Mennecke, B., 2018. The effects of the dark triad on unethical
behavior. Journal of Business Ethics. 153(1). pp.53-77.
Hess, M. F. and Cottrell Jr, J. H., 2016. Fraud risk management: A small business perspective.
Business Horizons. 59(1). pp.13-18.
Kalshoven, K., van Dijk, H. and Boon, C., 2016. Why and when does ethical leadership evoke
unethical follower behavior?. Journal of Managerial Psychology. 31(2). pp.500-515.
Lawrence, E. R. and Kacmar, K. M., 2017. Exploring the impact of job insecurity on employees’
unethical behavior. Business Ethics Quarterly. 27(1). pp.39-70.
Reffett, A., Grenier, J., Eaton, T. and Brink, W., 2019. Deterring Unethical Behavior in Online
Labor Markets.
Sezer, O., Gino, F. and Bazerman, M. H., 2015. Ethical blind spots: Explaining unintentional
unethical behavior. Current Opinion in Psychology. 6. pp.77-81.
Strobel, M., Tumasjan, A. and Welpe, I., 2015. Do business ethics pay off?. Zeitschrift für
Psychologie/Journal of Psychology.
Yam, K. C. and Reynolds, S. J., 2016. The effects of victim anonymity on unethical behavior.
Journal of business ethics. 136(1). pp.13-22.