Ethics and Corporate Responsibility in the Workplace and the World
Law, Ethics, and Corporate Governance
Professor Andrea Brvenik
August 16, 2014
Stakeholders & PharmaCARE
Stakeholders take on many forms and guises depending on the context of the business. Experts write personal definitions and musings on what they feel a stakeholder is, while others disagree and have their own, sometimes conflicting personal findings. It has been my experience that the terms ‘stakeholder’ and ‘stock/shareholder’ are often used as synonyms, but there is are important distinctions that must be made. According to Investopedia, a website dedicated to investing education, a shareholder is: ...view middle of the document...
Successful companies are expected to balance the desires and interests of their stakeholders with their mission and vision. A harmonious (and profitable) relationship with stakeholders, such as employees and investors, fosters an environment that facilitates growth.
PharmaCARE is an interesting company with a varied mixture of stakeholders located globally. Its primary stakeholders at the top of the pyramid scheme, and those benefitting the most from an economic standpoint, would be the Chief Executive Officer (CEO) and Board of Executives. The aforementioned play a central role in the success of the company, while also reaping the greatest benefit. Contrary to this position of wealth and influence lie the African nation of Colberia and the “healers”.
All companies have a product that must be researched prior to it being marketed. After researching the product, investors are usually required to ease the financial strain of funding the company. Once the company has investors and a product, a relationship is formed with the supplier and/or manufacturer of said product. In the case of PharmaCARE, the product is quality pharmaceuticals. The suppliers of many of the products for PharmaCARE are the indigenous people of Colberia. Being that they are compensated $1.00 per day, they are also included in the classification of stakeholders.
Human Rights Issues
The indigenous people of Colberia are being treated in such an inhumane manner, that it borders on extortion and human indifference. PharmaCARE has trademarked itself by being “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”. We see a direct contradiction of PharmaCARE’s reputation in the treatment of the Colberian’s that have been tasked with extensive labor for minimal pay. There are several recommendations I have formulated to change the dynamic betwixt the two, while still generating profit for the stake and shareholders:
(1) Pay the Colberian’s a living wage
(2) Reintegrate funds into Colberia’s economy
(3) Hire American workers
(4) Bring in equipment to balance the workload
Legally, PharmaCARE is well within its right to treat the people of Colberia as they are currently doing. Ethically, however, there is a severe lack of human decency. The first step to veering off this path of ethical debasement is to pay the Colberian’s a living wage. It seems that PharmaCARE has abandoned the principle’s that lie at the foundation of their home country. Being an American company, they are aware of the struggles many American’s had to encounter just to have the right to a living wage. By compensating the Colberian’s, PharmaCARE will be upholding traditional and ethical American values, while simultaneously raising the economy of Colberia.
After adequately compensating the Colberia’s, the next positive course of action would be to reintegrate some of the profit gained by the knowledge...