Purdue Pharma and the Sackler Family: Business Ethics Report

This report provides an executive summary, introduction, and in-depth analysis of the Sackler family business, specifically focusing on Purdue Pharma and its role in the opioid crisis. It explores the ethical dimensions of the company's actions, including aggressive marketing of OxyContin despite knowing its addictive nature and the resulting health consequences. The report examines whether an organization can be considered successful if it achieves its goals through unethical means, analyzing the impact on revenue, shareholders, the board, and public confidence. Furthermore, it details the actions the organization should take to protect itself from unethical behavior and concludes with recommendations for the Sackler family to sustain ethical practices, such as product testing and transparency.

The Sackler Family
Business

EXECUTIVE SUMMARY
Success is the satisfying feeling which is generated by making substantial efforts in order
to gain desired position. So the organisation need to adopt ethical practices in order to remain
competitive and gain better position in near future. The meaning of success differ from one
person to another like for some it may be derived in monetary terms or for other it can be to
attain career goal. But the ultimate motive needs to follow the ethical behaviours for smooth
functioning. This report defines whether an organisation success is considered if gained from
unethical actions. Further, the necessary measures that can be taken to protect the business from
unethical behaviour.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................4
ANALYSIS......................................................................................................................................4
Aim of the report..........................................................................................................................4
Can an organization as successful if it is not ethical?..................................................................4
What the organization can do to protect itself from the unethical behaviour?............................6
CONCLUSION................................................................................................................................7
RECOMMENDATION...................................................................................................................7
REFRENCES...................................................................................................................................9

INTRODUCTION
Success encompasses the efforts of an individual that assist them to attain the set
objectives within specified duration. This generates the feeling of satisfaction by attaining the
purpose after completion of certain task. In terms of business the personnel can perceive the
success by achieving financial or career goals (Dyer, 2019). This lead the person to get the
advantage of promotion, salary hike, appreciation and recognition. Along with this ethics are the
set values or actions that guide the organization to gain the success or earn revenue but from the
authentic sources. This does not let the other person to suffer the negative consequences of
opting for unethical sources.
The Sackler family business case study is about the Sackler family that holds the Purdue
Pharma which is a part of Pharmaceutical company. In 1990 the company introduces the
OxyCotin which is the pain killer and used to overcome the chronic pain suffers. For this the
company organized seminars with medical professional at resorts. Along with that they used
aggressive marketing strategy to widen its reach. But now most of the countries as well as US
states have filed case against death of 49,000 people that took place due to overdose of opioids
which makes the person additive of this medicine. So even after knowing the disadvantage
associated with opioids the company kept on focusing to enhance its sales. This depicts the
unethical way to attain the objective. Thus, the aim of the report is to understand the
significance of ethical practices and opt them in order to safeguard the internal of external
stakeholders and succeed.
ANALYSIS
Aim of the report
The aim of the report is to distinguish between the ethical and unethical practice that
leads to the success. This leads to the clarity that success is not always associated in terms of
fame, or monetary benefit.
Can an organization as successful if it is not ethical?
Success from the perspective of revenue: Revenue is refereed as the profitability which
firms gets in monetary term. So to earn revenue it is the responsibility of firm to deliver the
supreme level of services and share all the vital details with the user of product. Herein, Purdue
pharma mislead the audience by constantly focusing on the advertisement technique and carry

out the brand positioning as “hope in a bottle” in order to enhance the sales of OxyCotin drug.
Eventually, it widen or increase the revenue of company as OxyCotin became the highly selling
drug which used to be mostly prescribed by the medical professional specifically in chronic
pains. Further, it was claimed that the company made false claim to viewer and mislead the
interest of both medical staff as well as consumer with just the motive to earn huge revenue. This
further leads to the adverse circumstances and caused various deaths of people. This lead to the
imposition of various law suits from the various states and cities. Reason being misconduct that
from the peak dropped down the profitability as well as image of company. Whole scenario
outlines the result of choosing unethical practices with the sake to enhance the customer base and
revenue for company (Falk and Dierking, 2016). Although the negative practices or befouling
others in order to enhance the revenue cannot help the firm to gain success and attain better
position in long terms.
Success from the perspective of shareholders: Stakeholders are the independent party
such as customer, creditor, investors and government that have different roles and responsibility
but are interest in the functioning of firm because their profitability or interest is associated with
the performance of firm. In context to the Purdue pharma there were various stakeholders who
was the part of company and were not aware of the misconduct performed by company due to
which even their position gets affected in this case. Like, medical staffs were one of the most
prominent stakeholders of company so when the company launched OxyCotine it conducted paid
conferences as well as various sessions with medical profession in the lavish resort. The reason
of this whole practice is to enhance the market share of company and make respective drug as
the highly recommended painkiller used to get instant relief. This tactic worked in favour of
company due to which Oxycotin was promoted irrespective of the other substitute. Similarly, the
other shareholders of company were the sales representative to whom the company hires because
they wanted to be in the top most company. For which instead on focusing on the product they
looked for the sales person that can help to enhance the footfall of OxyCotin and make it widely
sold pain killer. Further, the company did the branding as ‘hope in a bottle’ and used aggressive
marketing strategy in order to appeal the interest of customer and enhance the sales. Thus,
selecting unethical practices like misleading shareholders is not as considered as a viable method
to gain and sustain the success (Smith, and Caplin, 2012).

Success from the perspective of board: Role of board plays an essential role within the
organisation in order to make all the essential decision of business. So their action can either
make or break the functioning of an organisation. Along with that they need to focus on the
ethical practices because the overall workforce works based on the guidance or direction of these
boards. Within, Purdue pharma business the neglect of board led the whole business down like it
is their responsibility to see the functioning of an organisation but in order to earn immense
revenue they just promoted the wrong practices. Such perspective of the board acts as a mistake
that affect the performance of overall business (Fallows and Steven, 2013). Along with that most
of the people suffered a lot due to these measures. As the company made the false claims
regarding OxyCotin and made precaution to focus on the aggressive marketing strategy. So here
the broads needs to make the valid decision and make only that brand promise which they can
fulfil. Therefore, instead of just focusing in the success it is the responsibility of company to
choose the favourable path and board who have the authority to participate and make effective
decision need to utilise the chances to bring suitable changes and maintain transparency between
the company and customer. Hence, the drugs needs to be suitably tested and then it should be
delivered in the market otherwise it will always lead to unfavourable result.
Success from the perspective of public confidence: Purdue Pharma which was once the
largest seller of OxyCotin drug to the public or local residence of United States. Due to the
strong positive and effective relation with the medical staff it was considered as the highly
effective painkillers that help to deal with the excessive pain suffered by public. This result into
wide dependency and leads to the cases like addiction or deaths which finally lead to imposed of
lawsuits and restrictions in business. After this case the company directly affected the confidence
of public on the company as well as medical staff as they didn’t expect the existence of such
severe incidence from the intake of drug. As the company gain the trust and attention of
customers, by making investments on promotional activities. Hence, the anger and chaos leads to
the protests conducted by huge public in order to take strict against OxyContin due to increase
ratio of opioids. It illustrate that success in financial or non financial terms can never be gained
from the unethical behaviour like Sackler families need to take precaution against the increased
ratio of opioids. Thus, this case generates the awareness amongst public after which the
consumption of the medicine and selling practices of OxyCotin was stopped.

What the organization can do to protect itself from the unethical behaviour?
The Sackler family earned huge profitability from the Purdue Pharma business due to
which they neglect the heath of the people. Although they gained the success but it was the most
unethical source to gain the profitability because the additive nature of medicine that was highly
promoted via marketing strategy. This is the long term shapely lower sown the sales and
imposition of law suits. So to protect from the unethical behaviours the Saclker family need to
face the public and accept their careless. Along with that they need to discard the manufacturing
as well as sales of OxyCotin that is high in opioids (Frost, 2012). Measures need to be taken to
remove all the existing drug from the Purdhe pharma as well as other pharmaceutical stores.
Additionally, gain the advertisement method can be used to broadcast the message related to
discontinues the particular medicine. The company only faced this situation because it was not
able to distinguish between the right and wrong method in order to gain success. Further, after
accepting the mistake the company can restructure its business by maintain the need and
preferences of the public at priority. These are the suitable method that can be useful for
company to use ethical behaviour otherwise they may need to shut down the overall business. As
already legal charges are imposed on company that can lead to taking back the license
(Steinbach, 2014). Hence, it is vital fro company to bring possible transition for the effective
functioning of business.
CONCLUSION
From the above report it has been determined that ethics are the core part of any business
which should be followed fro the productive functioning of business. As the personnel works to
gain the organisational success that help to gain the job satisfaction after putting immense
efforts. So to maintain the trusts of internal and external stakeholder affirmative practices need to
be adopted with the perspective to gain long term success. With the example of Sackler family it
has been determined that success is not only considered in form of wealth due to which the
wrong practices need to be mitigated and work for the long term profitably o0f an organisation.
RECOMMENDATION
Based on the case study there are certain recommendations for Sacker family in order to
sustain ethical behaviours for smooth function. Explanation of some suggestion are stated below:

All the pharmaceutical company should test its product before launching it in market. Purdue
pharma were aware of its drug and its additive nature due to high component of opioid. Still
instead of making modification in the existing product they just aggressive promoted it directly it
to customer or via involving medical profession in the paid conferences. Apart from this the
company knew such medicines should not be consumed more than two dozes within 24 hours
but still they didn't focus on such essential aspect that cause the death of huge consumer. All the
measures were taken to just increase the profitability of firm but it is the responsibility of
medical professional as well to gain the better knowledge of the drug before prescribing it to the
consumers. Further, the medical, staff should gain deep insights because this can avoid the
consumption of such drugs which are high in opioids.
The Sackler family should protect themselves from the unethical practices by eradicating the
usage of OxyCotin and controlling it further operations. Although this may not help them to
gain success but they can opt the ethical practices with the objective to rebuilt customer trusts.
The Sackler family business

REFRENCES
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