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Please read Case 1. Turning the Business Around, a Desperate Call (A hypothetical case to be uploaded into the moodle) and answer the following...

Please read Case 1.1: Turning the Business Around, a Desperate Call (A

hypothetical case to be uploaded into the moodle) and answer the following

questions:

1. Describe in your own words, Souji's business attitude in reference to Albert

Carr's game of business rule theory

2. Self-interest is a barrier to application of ethics. Describe how the notion of

self-interest is evidenced in this case study? Who in this case exhibit selfinterests?

3. What is groupthink and conformity principle? Explain how this principle

applies to the case? Who do you think is least morally culpable in this case and

why?

Souji Chemical Incorporation is a renowned pharmaceutical firm located at Bushan South Korea. Souji specialises in manufacturing antidotes for various diseases including the effects against nerve gases (a type of agents commonly used in chemical warfare). In 2012, Souji had a breakthrough research and they found a chemical compound they called XPT 45 which has very promising effect against various types of common agents used in chemical warfare. Souji thought the discovery of this new finding is timely as there are immense speculations that North Korea might secretly release their potent chemical agents near the border of both countries. The strain between the two countries is heightened by external pressures and uncertain international politics. The height of the strain became more apparent after President Trump took the office in 2017. The exchange of words and warlike gestures between the President Trump and Kim tantamount to war taunts and political chanting. Souji thought that war is imminent and unlike the fear of United States of America, Souji's own intelligence showed that there is a great likelihood that North Korean will begin a medium scale attack using chemical agents to poison water resources that are commonly shared by both countries. Came 2018, and Souji was surprised at the turn of event. Not only the conflicts between both countries did not escalate, it subsided tremendously when North Korea voluntarily opted to participated in the Winter Olympic Games and agreed to march alongside the South contingent in the opening ceremony. Share prices of business firms escalated, reflecting the hope of peace between the two long countries engrailed in long conflict. People rejoiced at the growing harmony between the two nations and many others hoped to reunite with their long lost families in the North. Everyone seems happy except Souji. John Woo, the CEO of Souji has a major issue. The company spent approximately US80 million in research and developing the XPT 45 compound seeing a huge potential profit when the Korean government decides to buy its stocks. Now everything appears gloomy and there is no sign that the government will be offering to buy their stocks due to the subsiding conflict. John Woo at a high level meeting said "we must act swiftly and see if there are any ways that we might market our products elsewhere or market our products for the use of other purposes". He ordered his chief scientists at Souji, Kim Woon and his assistant Jay Park to study the alternative use of the compound particularly its potential as a weight lost medication. Kim Woon is enthusiastic and ran battery of tests on this possibility. The reports of the tests showed a 'somewhat' positive results against weight gain and showed some effects against obesity. However, one thing that worried Kim Woon is also the possibility to liver damage if the drug is taken on a long term basis (more than 3 months). But the propensity of this happening is merely 10%. Jay Park on the other hand was not so convinced. Jay ran extra tests on rats and found that there is also possibility of blindness if the drug was taken on an overdose. Jay's tests showed that the probability of blindness recorded in rats were as high as 20% even when the drugs were slightly overdosed. Jay confronted Kim Woon and argued 2 that the drug is not ready to be marketed and more tests should be conducted before it can be released to the market. Kim Woon angered Jay's response said "you just do as I say and we need to send this for formal approval fast. It has to be released before the next summer or else our losses will be immense. It's either you comply or you should leave the organization. Remember your contract which prohibits you to work in the same industry if you do resign. Remember also your kids at home!". Jay was devastated and felt pressured to comply and went ahead preparing relevant documentations for formal submission of approval. The documents were presented to John who was warned that the drugs had the side effect on liver but nothing was mentioned on possibility of causing blindness. John swiftly responded and said "huh, many people has cirrhosis and they cannot pinpoint the cause of it. Many Koreans drink and that too can cause liver failure. The odds are low, let's see how many can prove their case against us. Even if they do, the damages we pay to these victims are nominal compared to our financial losses if we don't push the product now!". With some speed, Souji managed to attain necessary approvals and began marketing the products at large. Six months after the product was marketed, Hoon Park a middle aged lady who just delivered a baby complained of liver enlargement after taking the medications for 3 months. The medical doctors confirmed that she suffered moderate Cirrhosis as a direct result of taking the drugs. She filed a tortious legal claim against Souji for USD150,000. The suit was brought against Souji's CEO and their Chief Scientist Kim Woon as joint parties in this case. During the proceeding, Jay Park served as a witness and testified against Souji and showed the reports of his tests in the legal proceedings. When John confronted Jay Park, he said "I rather lose my job and exit this industry than to withhold the truth". John and Kim Woon was sentenced to 6 years imprisonment and Jay was acquitted due to his testimony against Souji 

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