Ethics Case Studies

Answer:
The case involves the adoption of unethical practices by the pharmaceutical companies and their representatives to influence the sale of their medicines by providing gifts and other benefits to the doctors, who prescribe the medicines to their patients. In the absence of strict enforcement, such practices are rampant in India.
(a) Ethical dilemmas faced by me as the Regional Sales Manager of a pharmaceutical company include:

• Clash between personal integrity and professional obligations: 1 personally want to conduct business in an ethical manner. At the same time, being the Regional Sales Manager, it is my responsibility to ensure better sales and growth for my company. However, if I give primacy to my personal values, my professional obligations are compromised and vice-versa.
• Short-term vs long-term interests: I can focus on the short-term interests of my company by competing with other companies and keeping my sales up. However, there is a real possibility that the sustainability of the company, its values, and the work culture get threatened if I forgo the long-term interests.
• People’s health vs company’s interests: It is morally wrong to influence doctors to prescribe medicines of a particular brand and company, as it would affect their decision- making in choosing the right kind of medicine for individual patients. However, if I do not provide such incentives to the doctors, there is a high chance that some other company will. This would affect the sale of the company.

(b) As the Regional Sales Manager, three options are available to me. The options and their respective merits and demerits include:

• Option 1: Instruct the Area Sales Managers to follow all means to meet their respective targets.
  • Merits:
    • It would be financially beneficial for the company, the managers and employees at all levels.
    • The company’s share in the market could increase, which would benefit the shareholders.
  • Demerits:
    • The end is achieved through wrongful means and by violating the current laws.
    • It will lead to degradation of moral values in the society at large and the unethical practice will continue unhindered.
    • It could lead to cognitive dissonance, as I am working against my conscience.
• Option 2: Refuse to accept the new sales targets with unethical practices.
  • Merits:
    • This will lead me to have a clear conscience.
    • It would be in accordance with the deontological principle that means in themselves are the end.
    • Values of self-regulation would be propagated in the industry.
  • Demerits:
    • This would most likely result in a loss for the company in comparison to its competitors.
    • Long-term profitability and sustainability of the company may be threatened.
    • It may lead to demotion or job loss for me.
• Option 3: Report the industry-wide malpractices to the regulatory authorities while trying to meet the sales targets in an ethical manner.
  • Merits:
    • This would ensure that unethical practices are brought on record and the complaints can be investigated by the authorities.
    • I would be doing my duty as a conscientious and responsible member of the industry by highlighting the wrongdoings and promoting ethical business practices. I would be contributing towards better corporate governance.
    • By exploring new avenues of growth in sales, I would be ensuring a better sales outcome for the company.
  • Demerits:
    • In the absence of mandatory adherence to the Uniform Code of Pharmaceuticals Marketing Practices, other competitors might continue to indulge in unethical practices and move ahead in the competition.
    • My own company’s sales targets might not be achieved and the company might go in distress, which could lead to layoffs.
    • The company may come to know about my role in approaching the regulatory authorities and may demote me or terminate my employment.

In the given situation, I would choose Option 3 due to the following reasons:

• Personal gains: I would have adhered to my conscience. Even if I get demoted or lose my job, my honesty and ethical work style would make me an attractive candidate for other companies who engage in ethical business practices.
• Social gains: The unethical practices by doctors would come to a halt and more choices would be available to the general public. Further, lower operating expenses could even reduce the prices of medicines.
• Sectoral gains: With improved regulations, companies would bring more sustainable and innovative ideas to increase their sales. Also, companies engaged in ethical business practices tend to succeed in the long-term.

(c) The following alternatives can be considered by the pharmaceutical companies to increase their sales and growth:
Exploring alternative markets: Indian pharmaceutical companies are known for their cost-benefit and high quality of medicines. The companies should actively explore other markets such as East Asia, Latin America, Africa, etc. for potential business opportunities. The government can extend support through market information and by facilitating better trading relations with countries in the regions. Associating themselves with certain causes: For instance, shifting CSR towards women empowerment, rural development or towards people with disabilities, sourcing raw materials from nations which procure them ethically, etc. Reducing the cost of medicines: The companies can reduce the price of medicines by adopting better technology or by giving up a share of their profit margins. Lesser price would enhance the competitiveness of the companies.
Pharmaceutical companies are trusted partners in the healthcare system in the country and have played a tremendous role in ensuring access to affordable and quality medicines not only in India but across the world. Such unethical practices by the marketing branch of the companies should be dealt with a strict hand.

strong>Answer: The case presents a scenario where on the one hand, the number of electric vehicles on the world’s roads is rising fast, while on the other hand, due to child labour, a large number of children in India remain vulnerable and face physical and psychological risks to a healthy development. The key stakeholders in this case study are the State represented by the District Magistrate, mine workers (including children), industries using cobalt, and the society at large. (a) Ethical issues involved in the given case:

• Issues of values and morality make an essential part of environmental ethics and here inclusion of children in the mining of cobalt and that too in dangerous conditions is a major ethical issue.
• There is a failure of the government to implement the rules related to child labour, and a failure on the part of the society to stop such unethical practices.
• Multi-national corporations using cobalt are generally aware of such practices, still, they use such raw products and boast about their contribution towards environmental initiatives.
• A major dilemma is to strike a balance between ensuring development and protection of human rights, specifically child rights.
• The given case presents a scenario in which two basic necessities of children are in conflict i.e., their socio-economic rights of getting an education and good health vs. survival and livelihood of their families.

(b) Reasons for the prevalence of child labor in India: Despite various legal and institutional measures like ratifying the ILO conventions, implementing the Child Labour (Prohibition and Regulation) Act, 1986, formulating the National Policy on Child Labour (1987), etc., child labor is prevalent and persistent in India owing to the following reasons:

• Poverty is the greatest single force driving children into the workplace. Income from a child’s work is felt to be crucial for his/her own survival or for that of the household’s survival. Social backwardness is also one of the main reasons for child labor in India.
• The absence of compulsory education (prior to the RTE Act) at the primary level, parental ignorance regarding the bad effects of child labor, non-availability and non-accessibility of schools, and impractical school curriculum are some of the factors, which lead to child labor.
• There is poor compliance with laws related to child labor due to the lackluster attitude of the administration in their implementation.
• The lure of cheap labor is a major factor, as children’s wages are much lower as compared to adults’ wages, which encourages child labor.

(c) Steps that can be taken to address the issue of child labor in the district are the following:

• Short-term solutions for tackling such a situation:
  • Being the DM of the district, effective implementation of laws rules, and regulations for protection against child labor should be the first step, wherein the District Labour Officer would be given directions to control any such illegal and unethical practice happening in the district.
  • Strict action against miners employing children should be taken immediately and the police of the district should be kept on vigil mode, as frequent raids where children are regularly employed would help in curbing the issue of child labor in the district.
  • As child labor is a contributing factor in the vicious circle of poverty, unemployment, and underemployment, there should be a concerted effort towards social protection programs and cash transfers to improve the economic situation of families and to reduce the “need” to send children to work. This may lower the familial pressure on children to opt for child labor.
• Long-term solutions for tackling such a situation:
  • There is an urgent need to revamp the educational infrastructure in order to ensure access to educational institutions for children and improvement in the quality of education.
  • The state should take adequate measures to raise awareness among families and communities about the adverse consequences of child labor. Literacy of the parents can play an important role in ensuring that the rights of children are upheld.
  • Considering the benefits associated with the development of electric vehicles, it is necessary to focus on research and development in order to use the best affordable technology for the extraction of cobalt.
  • In the long-term, the elimination of child labor demands commitment from the society e.g., family, state, civil society, and those who employ children in any enterprise.

A climate-friendly solution should not be at the expense of children’s basic rights. Stakeholders like industries should ensure that they are not adopting any measure that results in the abuse of the basic human rights of children. Collaborative action from all key development actors, including the state, civil society organizations, communities, media, and the private sector is required to prioritize and protect the rights of children.

Answer: The given case represents a situation where teenage students are put under immense social and family pressure to perform academically well. The coaching institutes are showing apathy and are motivated only by commercial gains. It also highlights the lackluster approach on the part of the government and district administration to regulate the industry. (a) Stakeholders involved in the case and the ethical issues involved:

• Students: They face undue pressure to perform irrespective of their interests or aptitude for the exam.
• Parents/ family: They are more concerned about the marks than the well-being and holistic education of their wards.
• Society: Upon failing, these students will be tagged as a failure for a lifetime. They do not care for the mental health of children.
• Coaching institutes: They indulge in undue competition by luring students and making false claims of successful candidates. They also create unnecessary pressure and categorize the students based on their performance, thus, further stigmatizing them.
• District administration: They could not curb the unethical practices of coaching institutes and the usage of performance-enhancing drugs.
• Government: Political leaders from the ruling party are running those coaching institutes while the leadership is focused on revenue generation.

(b) Given the situation, I as the DM can undertake the following course of action:

• An enquiry committee can be set up to look into the functioning of coaching institutes and their unethical practices and can be reprimanded for the same.
• Police inquiry needs to be initiated instantly to curb the market of performance-enhancing drugs.
• A hotline can be started with immediate effect for counseling students who feel depressed or are under undue pressure.
• A meeting can be conducted with all coaching institutes and they can be sensitized to the seriousness of the matter and instructions can be given to take psychological care of students. Also, it can be made mandatory for each coaching institute to set up a counseling center and hire a psychologist so that students can be counseled if required.
• Local workshops/meetings with students can be organized with the help of officers of district administrations or local NGOs and they can be assured of all the help and support in the future.
• The locals providing Paying Guest facilities or rental accommodation to students can also be sensitized in the matter and given instructions on how not to let students be in isolation or report any unusual activity.

(c) Reasons for increased suicides among students:

• Family as well as peer pressure to perform is one of the prime reasons. Students usually find it hard to cope with such pressure at such a tender age and get the feeling that failure in such exams is the end of life for them.
• Isolation is also one of the reasons, as students generally stay away from their parents and their families and they can not find solace in isolation, which further aggravates their feeling of failure and depression.
• Lack of sensitization among students regarding various career opportunities that exist. Also, the exam-oriented education system can also be a factor driving students towards suicide in case of failure in a particular exam.

Steps that can be taken in the long term to prevent suicides:

• Change in the education system as presently it is based on rote learning. Analytical thinking and mindset through a change in the education system will help students realize their potential and will reduce such a burden on their minds. Integration of co-
• curricular in academia and the establishment of a proper vocational education system will also help in the long run. Another step could be to change the model of the competitive exam-based entrance system in such universities and institutions, as one exam is not enough to judge the caliber of a student. It should be more inclusive and should take other parameters like several years of assessment of students in multidisciplinary learning.
• Students should be made more aware of different career opportunities in the long run in their schools and colleges and encouraged to participate in community work, which will help them realize that life is much bigger than an exam.

The Indian education system needs an overhaul where the shift from rote learning to comprehensive learning through the development of critical and analytical thinking should be made.