Business Ethics and Organizational Success: A Case Study Analysis

This report examines the ethical failures of Purdue Pharma, owned by the Sackler family, and their impact on organizational success. The case study focuses on Purdue Pharma's marketing and sale of OxyContin, a highly addictive opioid, and the unethical practices employed to maximize profits. The analysis covers the impact of these unethical practices on revenue, shareholders, the board of directors, and public confidence. The report highlights how the company's actions, including misleading marketing strategies and failure to disclose critical information, led to legal issues, reputational damage, and a decline in market value. It concludes by emphasizing the importance of ethical business practices for long-term success and provides recommendations for protecting against unethical behavior. The report underscores the need for transparency, legal compliance, and consideration of stakeholder interests to ensure sustainable business growth and maintain public trust. The study underscores the importance of ethical business practices and provides recommendations for protecting against unethical behavior.

Academical
and
Professional skills

Executive Summary: Ethical values need to achieve in an organisation because it is
recognised as a success factor. Organisational ethics will not only affect organisational decision
making but also business culture and working practices. In this report success of an
organisation is described in ethical values. For this, organisation requires to analyse impact of
unethical practices upon their growth opportunities and success. By conducting business ethics,
firm can easily enhance opportunity to get successful in future as well as can maximise
productivity by developing positive working culture.

Table of Contents
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................................................................................................................................7
RECOMMENDATION...................................................................................................................8
What can the organisation in your case study do to protect itself against unethical behaviour? 8
REFRENCES.................................................................................................................................10

INTRODUCTION
Success is defining as a situation according to which company achieve its desire goal,
vision or target. According to dictionary meaning of success, it refers to attainment of wealth,
prosperity and fame at their potential place. In the perspective of an organisation, success can be
defining as term which help in empowering employees, customers and community in equivalent
measures (Bastalich, Behrend and Bloomfield, 2014). For every company it is necessary to attain
success at their potential as well as targeted market because it will help them in gaining
competitive advancement. In order to this they conduct several practices such as adopting ethical
factors, develop quality products, taking feedback and so on. From all these factors ethics plays a
main role in business succession like through it firm can improve moral of a company and its
staff, enhance ability to attract new customers at marketplace, improve loyalty of customers,
minimise risk, attract new stakeholders and many more. This assignment is based on the case
study of The Sackler family Business. According to this Sackler family is owing pharmaceutical
firm i.e. Purdue Pharma which manufacture high addictive opioid OxyContin. In year 2019, 45
states and 1500 cities at United State sue respective company for marketing as well as selling
highly profitable drugs. The marketing strategy of this firm is also manipulating which help them
in gaining high profitability at marketplace. This show that Sackler family is conducting
unethical practices and through it they are gaining profit but after time they started facing legal
issues which directly impact on their goodwill as well as market value. The respective report
include information related to description of succession of business if it is not conducting its
operations ethically. Along with this it will also include several factors which must be consider
by them for becoming successful at their potential marketplace.
ANALYSIS
Can an organisation be described as successful if it is not ethical? Use your case study to
illustrate your answer.
For the succession of business, it is essential to conduct proper, legal and ethical practices
because through it they can gain proper goodwill at the marketplace. In respect of this, The
Sackler family Business which is owing a pharmaceutical company named with Purdue Pharma.
They are manufacturing as well as selling OxyContin which is a high addictive drug which make
people addictive which lead to death (Bronstein, 2015). Due to this respective company also get

sue by 5 states and 1500 cities at United State. But the marketing and advertising strategy of
Purdue Pharma is very strong as well as manipulating because they spend huge amount of fund
in their promotional activities so that medical professional get attracted and prescribe their
medicines. Along with this respective pharma company do branding of OxyContin by “Hope in a
bottle” that misleading public as well as medical professionals. Moreover, in mid-1990's, Purdue
Pharma conduct expensive paid conference at resort where all the expenses of medical
professionals are bear by The Sackler family Business. They also so those data as well as
statistics show positive effective of OxyContin and influence decision of peoples, media and
medical professionals. Which result as respective medicinal drug become one of the most
prescribed drug or medicine at the United State marketplace (Carrera and et. al., 2015). These all
practices conducted by The Sackler family Business is illegal or unethical because they are not
informing peoples and medical professional about the OxyContin truth. In addition to this, due to
respective drug various people get addicted as well as death but manager of The Sackler family
Business didn't have any contrition which may impact negatively on their business at long time
such as it reduces their goodwill, profitability, customers base and so on. For instance, The
Sackler family Business owner of Purdue Pharma to consider several considerations in order to
operate effectively at marketplace, which are explain below: -
 Success in terms of revenue and how this is affected by unethical behaviour.
Revenue is defining as income earn by a company by conducting its normal business activities,
operations or function. This can be usually done through the selling of goods as well as services
to their potential customers. Therefore, Success in term of revenue is consider as situation in
which an organisation able to generate its desire profit by conduct its business operations and
functions. For instance, The Sackler family Business they are running a pharmaceutical company
with the name of Purdue Pharma and there is manufacturing as well as selling medicines or
drugs. In this case success in term of revenue is that profit which they earn by conducting their
business activities at marketplace (Cottrell, 2017). The success in term of revenue may get
affected in term of positive as well as negative manner, which will totally depend on the
behaviour through which they conducting business. In respect of Purdue Pharma, they are
conducting their business practices or operations in unethical manner or behaviour because they
didn't disclose all information about the drugs in front of peoples, media and medical
professional. But conducting these unethical practices Purdue Pharma which is a part of The

Sackler family Business are earning huge revenue. This will show that unethical practice seems
as positive for the respective company business. But it is considered as unethical in respect of
law as well as policies so it is essential for The Sackler Family Business need to improve their
operations. Along with this they also need to conduct their business functions and operations
according to legislation developed by government for the medical industry. This will directly
help them in attaining their goal by improving their goodwill at the marketplace and among
potential audiences.
 Success from the perspective of shareholders and how this is affected by unethical
behaviour.
Shareholders is considering as a person or an institution which legally own one or more than one
share in a private or public company as well as they can also be consider as the members fo
corporation. An organisation has various type of stakeholders such as director, manager, staff,
individuals, customers, institutional investors and many more. Success from the perspective of
shareholders is that they gain huge profit according to their interest in company's operations and
functions (Cumming, 2013). In respect of The Sackler family Business and their company i.e.
Purdue Pharma, stakeholders are medical professionals, investors, media, customers or patients,
employees, government and many more. Therefore, it is responsibility of respective pharma
company to develop strategies as well as plans by considering these stakeholders because they
help them in gaining high profitability. But respective company is conducting unethical practices
in which they produce those medicines which contain highly drugs substance which make addict
to a person as well as sometime it will also lead to death. But the unethical practise in the
perspective of stakeholders is that respective company didn't inform them about the medicine
drug substance which seems as hampering the right of stakeholders. This will impact negatively
to respective company because at United State 45 states and 1500 cities sue them which impact
negatively on their goodwill and market value.
 Success from the perspective of the board and how this is affected by unethical
behaviour.
Board is considering as board of directors that is a group of individuals who will supervise or
direct the business operations and function of a company in jointly manner. This can be for any
type of business such as profitability, non-probability or any government agency. They are
highly powered in a company (Drew, 2018). In respect of Purdue Pharma their board of director

is The Sackler family who take each and every business decision and then accordingly other
members or staff conduct their activities so that they can attain their objective or target. Success
from the perspective of board is that they attain high profitability and market value by
conducting their set or decided business functions or operations. In respect of The Sackler family
they only focus on the gaining high profit and for which they are conducting unethical business
practices in various ways like they are not disclosing the main substances of their medicines in
front of patients, medical professional and others. Furthermore, The Sackler family business
conducting unethical practices or behaviour is profitable at some level but along with this they
also going through some legal issues.
 Success from the perspective of public confidence and how this is affected by
unethical behaviour.
Public confidence is defining as policy force which is used for safeguarding public right and
retaining their confidence for a long time basis. This is adopted by a company because public is
consider as key sources of information as well as of generating profitability ratio (Fallows and
Steven, 2013). However, it is necessary for a firm to conduct effective and essential practices so
that they can satisfy public, society or patient in successful way. In respect of The Sackler family
business they are conducting business operations in pharmaceutical industry by the name of
Purdue Pharma, they generally manufacture and sale medical drugs. It is responsibility of
respective pharma company to conduct their practices by considering public need and
requirement. But the they are conducting unethical practices, according to which management of
Purdue Pharma didn't inform public that their medicines are containing high drugs substances
which is harmful for their health as well as it may also lead to death. So this unethical practice
may affect their business operations and function negatively which lead to decrease in
profitability, goodwill and market value.
CONCLUSION
By analysing above mentioned point it can be determine and summarise that for a
company succession means a lot and for that they conduct various activities, that can be in
ethical or unethical. It is essential for a firm to conduct their business operations as well as
functions in ethical manner because it will help them in conducting things legal ways which help
them in gaining goodwill as well as market value effectively. On the other hand, if an
organisation adopts unethical practices and conduct function and operation accordingly then they

may earn high profitability but it will for a time being because after sometime they go through
several legal issues which badly impact on their goodwill, market value, profit and customers
base. However, it is essential for a firm to conduct or develop their strategies by considering
ethical as well as legal factors because it help in conducting business operations and function in
proper way. Through this they also able to gain profit, customer base, competitive advancement
and attract stakeholders.
RECOMMENDATION
What can the organisation in your case study do to protect itself against unethical behaviour?
The Sackler family Business is operating company with the name of Purdue Pharma that
developing or manufacture high addictive opioid OxyContin which is not effective for society.
But through this unethical practice they are gaining huge profitability, then after sometime
duration company get sue by 45 states and 1500 cities at United State because it impacts on
health of peoples negatively. Along with this due to this unethical behaviour respective company
may face various legal issues as well as they their profitability ratio get decrease, customers base
and stakeholders also get drop-off. So on the basis of respective situation there are several
recommendations for the Sackler family Business, from which some are mentioned below: -
 Conduct ethical sales practice: In pharmaceutical business it is necessary that company
must sale their medicines by providing its all information. In addition, it is necessary for
Purdue Pharma to conduct their sales and marketing in ethical manner in which they
inform about OxyContin to their medical professions.
 Respect patients: The respective company not worry or bother about any things as well
as they are not considering that due to their medicine peoples get addicted which lead to
death. In this situation it is responsibility of Purdue Pharma management to be
accountable for the patients or user death.
 Consider Non maleficence: According to this it is essential for pharma companies to not
harm their patients. Therefore, it must be responsibility of Purdue Pharma to take
accountability of people who get ill due to taking OxyContin as well as they must also
stop manufacturing and selling of respective medicine which sold as a pain killer.

By adopting all these recommendations point The Sackler family Business company i.e.
Purdue Pharma can improve their brand image which get harmed due to their unethical practices
i.e. related to selling of OxyContin which addiction may lead to death of an individual.

REFRENCES
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