1400 word essay

1

Company Background: Summarize relevant information regarding the business and its history.

This is a biotechnology company that is based in Philadelphia. The company most advanced creation of its drugs is the MVax for malignant cells. The drug is a cancer injection that received an Exceptional Protocol Assessment pact with the FDA in 2006. Consequently, it started a Phase III process of clinical trial in November 2007.

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The brief history about the company’s background helps in getting to know what the company is all about and what its main production line.

2

Crisis Details: Summarize the ethical crisis. What stakeholders were involved? What actions did they take? What were the results of those actions?

The crisis involved the manager of the company undertaking side deals in the company’s clients. The clients were more than the company could handle and the manager decided to take in another company and didn’t inform the board. The end results were the manager losing his job. The company also lost some stakeholders who saw it unsafe to continue investing in a company that does not have the top management giving their priority to the interest of the business.

Reference

Elger, B. S., Biller-Andorno, N., & Capron, A. M. (2008). Ethical Issues in Governing Biobanks: Global Perspectives. Farnham: Ashgate Pub.

This resource gave me the necessary details about the ethical issue that was facing the company. It has given me the idea of who was involved in the crisis. It also brought the consequences on the stakeholder’s side for such a crisis.

3

Ethical Issues: Explain the ethical issues surrounding the crisis. Include any related legal issues.

There were two ethical issues involved in this crisis. One swathe issue of decision-making in the company. The manager took the decision of directing the clients to other company something which only the board and management of the company only can do. There was also the issue of side deals. Dealing with the company’s interest as the manager is a violation of the company’s ethics.

Reference

Klugman, C. M., & Dalinis, P. M. (2008). Ethical issues in rural health care

It introduced me to the many types of ethical issues in the business world.

4

Influencing Factors: Describe pertinent information related to the wider scope of the ethical issue. What elements in the company's culture, the external environment, or other factors influenced the ethical crisis? If it was portrayed in the media, how was it portrayed?

The company was testing a new drug in the market and could only manage to test on a few of its client. The other customer who was not picked were not happy with the company decision hence threatened to leave. The manager decided to influence them and get the same drug but from a different company with a commission. The manager was later discovered and then exposed by the media as a double agent who betrayed the interest of his business by going behind the boards back and do side deals. The pressure from the media gave the board no choice but to fire the manager.

Reference

Donaldson, T., Werhane, P. H., & Van, Z. J. D. (2008). Ethical issues in business: A philosophical approach. Upper Saddle River, N.J: Pearson/Prentice Hall.

It put forth the factors that led to the occurrence of the ethical issue and how the media handled the same matter when it came to the light about the company’s dealings.

References for the following topics must be from peer-reviewed academic/scholarly resources only.

5

Recommendation: Propose how the company could have handled the crisis differently and the impact on the stakeholders discussed in the Crisis Details topic.

The company board could have warned the manager of such dealings outside the company’s regulations instead of terminating his job. This is because the job termination painted a bad picture on the company’s reputation as it meant that the corporation was guilty of the allegations in the media. Changing the management to a new staff also would affect the business before it fully adjusts to the new management.

Reference

Www.instituteforpr.org › Research Library › Crisis Management

It helps me understand the different ways of dealing with ethical issues in a business when they occur.

6

Business Impact: Describe what other businesses can learn from the ethical crisis of the business you selected. If the situation was handled well, what could other businesses learn and why are these lessons valuable? If the situation was handled poorly, what could other businesses learn and why are these lessons valuable?

Other business should learn that side deals from the top most official in a company can very much damage the reputation of the firm. If the issue is handled well, the damaged reputation of the corporation can be restored, and people or stakeholders will have trust in the company. If the situation is mishandled, then this means the sound reputation of the firm is destroyed. The company will lose its clients, investors, and stakeholders and this may lead to the collapse of the entire corporation.

Reference

https://www.jblearning.com/samples/0763749761/EthicalLeaderhip.pdf

It taught me Lessons to other businesses and how the consequences of such ethical issues can ruin the sound reputation of the firm if mishandled.