Ethics and Corporate Responsibility in the Workplace and the World
Professor Renee Berry
Legal 500- Law, Ethics, and Corporate Governance
March 1, 2015
"PharmaCARE is one of the world’s most successful pharmaceutical companies, enjoying a reputation as a caring, ethical and well-run company that produces high-quality products that save millions of lives and enhance the quality of life for millions of others. The company offers free and discounted drugs to low-income consumers, has a foundation that sponsors healthcare educational programs and scholarships, and its CEO serves on the PhRMA board. PharmaCARE recently launched a new initiative, We ...view middle of the document...
The major part of the corporation's responsibility includes being consistent with ethical principles and practices, which includes honesty, integrity, and respect for individuals. To comprehend ethics and corporate responsibility in a workplace and the world we will analyze a real life corporate scenario. To gain an understanding of the ethical and social obligations of a corporation, I will examine the actions taken by PharmaCARE in Colberia.
Characteristics of a Stakeholder
The first thing that will need to be examined is the corporations responsibility to their stakeholders. A stakeholder is "a person or business that has invested money in something, such as a company (Merriam Webster dictionary)." Stakeholders have voting power within a corporation that can manipulate the social and financial status of that said company. Stakeholder's responsibility is to the well-being of the entire company. Any corporation that exists with stakeholders, have several obligations to those that have invested into the business. Although the main objective of the corporation is to increase profits, their responsibilities goes beyond just that. There is an obligation to the customer and societal happiness, with respect to ethical and moral behavior. In order for a company to grown, in perspective, revenue has to increase. The stakeholders invest money into the corporation with the interest to earn a greater return on that investment. The stakeholders that are mentioned in this scenario includes the executives that are assisting with the business in Colberia. There are non-conventional stakeholders in this scenario, which are the "healers" who freely share information about the indigenous cures. They are investing in the corporation with their knowledge and expertise, instead of traditionally with money. The problem that then occurs is how to steadily increase income and maintain the social responsibility and ethical behavior in regards to those that are impacted.
Human Rights Issues and the Environmental Initiative
There is a thin line between doing what will be most profitable for a corporation and being unethical. "When businesses are engaged in multinational activities, a variety of important issues arise that do not have the same easy answers as are offered by doing business in only one area of legal jurisdiction or nation (International Business Ethics)." Ethics are the essential backbone of a corporation in pursuit of growing. Society places a high perspective on ethics and the actions taken by a business. If the consumers or clients of a business cannot trust the ethical behavior of the corporation then profitability will decrease. By maintaining consumers trust by acting reasonable and ethical then the corporation maintains loyalty.
In the scenario being analyzed, the treatment of the indigenous workers of PharmaCARE in an African nation of Colberia is ethically questionable. PharmaCARE hired workers at a pay of $1.00 a day. These workers as...