Analysis of Purdue Pharma: Unethical Behavior and Success

This report analyzes the impact of unethical behavior on business success, using Purdue Pharma as a case study. It examines how unethical actions affect revenue, shareholder value, the board's perspective, and public confidence. The report details how Purdue Pharma's misconduct in marketing and selling the highly addictive opioid OxContin led to significant legal and reputational damage. It explores the consequences of unethical practices, including decreased revenue, loss of shareholder trust, and erosion of public confidence. The report highlights the importance of ethical conduct for long-term business sustainability and the detrimental effects of prioritizing short-term gains over ethical considerations. The analysis covers the perspectives of revenue generation, shareholder value, board responsibilities, and public perception, illustrating the far-reaching consequences of corporate ethical failures.

ACADEMIC AND
PROFESSION SKILLS

Executive summary

Table of Contents
INTRODUCTION...........................................................................................................................1
Revenue term of success and affected by an unethical behaviour...............................................2
Success from perspective share holders and affected unethical behavior...................................2
Success from perspective board and affected by unethical behaviour........................................3
Success from perspective of public confidence and affected by unethical behaviour.................4

INTRODUCTION
Organization success is to achieve to raise and to sustain an result, where the organization
require to execute an strategies and that engage an employees. Where the success is measured
through an analyzing, where the company is regards to goals and mission. Business ethics is the
system of an moral rules and principal that conduct to applied for an business. As business being
an social organ that shall not been conducted n the source that detrimental to an interests of
society and enterprises sector itself. It is an corresponds to an fundamental needs of the human as
the people want to be part of the company where they respect and become proud, as they
perceive be ethical. Everybody likes be av associated to an organization where the society may
respect as honest & social responsible company. It also give the credibility in the view of public
eye.
As the company offering value for an company and honest than the people like to
purchase an products by an company because of good belief about firm. Also respect for an ethic
can force the management to take many social, economic & ethical aspects that consideration
while making the decision. Being Each organization having responsible itself to earn an profit.
Mostly ethical organization are bound an successful and are profitable in long run although in
short run they lose money. Ethic also play an role to protect the society in a right way than the
legal system of country. Hence where law fails the ethics always succeed.
This report reveal the case study about the stackle family who own the pharmaceutical
company and manufacturing the greatly addictive opiod OxContin. In 2019. 45 U.S. states &
1500 cities file case on Purdue pharma for misconduct in marketing & sales greatly profitable
drugs. This drugs impact on the human body because of which people dies. This report reveal the
success in term of revenue and perspective shareholders of an organization and affected through
an unethical behavior. Also highlights success in perspective of board & affected by ethical
behavior and success in perspective of an public confidence and affected by unethical behavior.
In this regard the present report has been prepared.

Revenue term of success and affected by an unethical behaviour
Unethical behavior is an action that main aim is to take an advantage of the another
without its consent and knowledge. It is an source of acting the society disapproves,
Unethical behavior affect the business that begin to tell with an time. People in the organization
conduct themselves with great standards and feel helpless & annoyed with dishonest befaviour of
co-workers. This frustration compounded further by fact an company that not take an action
given and not be legal implication or high financial damage. The honest worker of the
organization either look an alternative employment, if they not found the other suitable
opportunity that often end up with an health and huge stress that related to an problem- thereforth
the overall productivity that affect the company.
While unethical behavior practices that may succeed for while and soon they found out.
Persons and organization found guilty of an such practices that would be scrutinized & publicly
shamed. Perdue Pharma Organization often losing their license by an conduct business & their
reputation that damaged forever. If company immediately not get find out than the consular and
employee start to perceive an unethical behavior. Result they would try to stop doing the
business with an organization and leave the workforce respectively.
Customer most certainly want that the information let know about poor practices of
organization and leading other people stay away from an Perdue Pharma organization. It further
damage the chance of organization. Because of it unethical behavior the business of the company
unable to maintain long period relation with an consumer and become vulnerable for an long &
expensive litigation. It harm the reputation of the company. And it create wrong impression on
the customer and they try to switch on the other company which result it reduce or decrease the
revenue of the Purdue Pharma company.
Success from perspective share holders and affected unethical behavior.
Unethical behavior of the Perdue Pharma organization affect the perspective of the shareholders
of the company. As the organization been accused by misleading the public and medical
professionals about an drug effectiveness whilst an downplaying an addictive nature of an drug.
Because of such unethical behavior company make easily fool to the people by using various
strategy to gain an profit or to increase the revenue for the company. Shareholder value are
destruction on large scale, however the shareholder may not aware of the such problems. Its

represents an ongoing risks of an shareholders, such poor behavior & practices that can lead to
raise legal & regulatory costs and the reputation that damage the Perdue Pharma organization as
they invested in the organization. As the people is affected and died by the act of such unethical
behavior. It create an wrong impression on the people about the company regarding the behavior
of the company and how they are misguide by the company. Thus the people stop buying
medicine from the Perdue Pharma company and this leads in reduce the selling of the company
and the company reduce the profitability day by day. It create an impact on shareholder as they
invest money or share with the company.
Investors also feel bad as they trust on the company and invested share with it, and if the
company do such act. It break the trust of the investors as they have trust on the company. If the
company may go in lose than the share holder also has to suffer with an company. The reputation
of the company may get spoiled in the business market, among the company reputation the
shareholder reputation also get spoil as they invest in the company. Such malpractices of the
company may remain in the mind of the people for long term in future and it create difficult for
the company to survive in the future and investors or shareholder can invest their share in the
company in future.
Success from perspective board and affected by unethical behaviour
The prevalence of such unethical behavior places enterprises an continued risk of an illegal
conduct, that can lead an subsequent enforcement of an action. Regulatory boards are focusing
specifically on such an financial fraud. As the board and company deliver an such priority. The
more risk faced by the company as it continue to increase their relation with an global reach.
Board can respond an pro actively & able to demonstrate as they stepping up to an challenges.
Such unethical behavior create an wrong impression on the board of the organization. As such
behavioral of the company creates the wrong impression on the board of the company and it
reduce the goodwill of the Perdue Pharma company and the board member of the company will
get the negative feedback by the other enterprises from the business market. The repo of the
board member also spoiled by the act of the company. As the board have to many problems and
has to answer the government, society and other health department. And they feel guilty

Success from perspective of public confidence and affected by unethical behaviour
Due to unethical behavioural of the Perdue Pharma company it reduce to confident level of the
public. If the business fail to follow the federal guidelines that often pay an huge fines & other
penalties.As the people keep lot of belief on the employee and when the employee break down
the belief of the public by doing the unethical behaviour of the Perdue Pharma company