Wednesday, February 5, 2020

Billings Pharmaceuticals: Customer Vulnerability and Moral Equity (Case Analysis) Sales Management (Joseph F. Hair)


Introduction

Business ethics refers to the study of situational consequences that occurs during a business process. Billings Pharmaceuticals is a company which manufactures drugs and in the paper seems to work ethically with a good code of ethics. Beth Simmons a graduate of psychology is looking pretty excited to work with Billings due to its ethical values to the consumers. Beth comes into an ethical dilemma whether to support the unethical practice of its company or leave the job quietly since the drug Deploara has shown side effects of obesity and high blood sugar but the company denied any. The company was ready to pay $ 1.2 Billion to settle the legal lawsuits though it has denied any side effects earlier.


Discussion

1. Briefly describe the moral dilemma that Beth Simmons is facing.

Beth Simmons is a highly ethical person, her dream was always to work with an organization which works for the people. As her first job, she was impressed by Billings Pharmaceuticals code of ethics about integrity, excellence, and respect for people.

Beth was looked as an alternative name to the Billings Pharmaceuticals by the doctors and she was given all the information in a timely manner about new and existing products. The moral dilemma came to Beth when the doctors started complaining about the side effects like obesity and increase blood sugar level from the medicine Depolara. Though the company has denied any side effects taking it was becoming public and the doctors were aware of this issue. So knowingly that her company was doing wrong, she is still in dilemma whether to support her company or to go for the people health. Though after reading the newspaper about lawsuits against her company, she left for her regular work.



2. Does the code of ethics at Billings Pharmaceuticals seem to be influencing sales management decisions in a meaningful way? Why or why not?

Billings Pharmaceuticals do not seem to be worried about the ongoing issue about the side effects of its medicine Depolara. Rather going for any technical solutions, Beth was answered that there is no scientific evidence and this drug was approved by the Food and Drug Administration. Besides this, she was handed a brochure with a promotion that "Depolara" was safe to use and also she was asked to sell to the sectors like a prison where people are less aware of obesity and diabetic. 

Thus it is clear that Billings Pharmaceuticals code of ethics is not influencing sales management decisions in a meaningful way and it was even ready to pay $1.2 B to settle the lawsuit.



3. In her boundary-spanning role, what is Beth’s responsibility for customer vulnerability of the physicians and their patients?

As we know that boundary spanner is someone who is working outside the physical location of the firm. Beth has been working more closely with the doctors. Her duty is to sell the products of her company through the doctors and make the doctors aware of the positive and the negative impact of the medicine. So the main responsibility of Beth as the boundary-spanning role is to provide the factual data about the drugs her companies have been selling.



4. Describe the ethical climate in the sales organization at Billings.

Ethical climate of an organization is its code of ethics that is used while making and selling the products. The ethical climate is responsible for motivating the organization members to be part of its values and beliefs. We can see that the ethical climate at Billings is downgrading, it has not been following the code of ethics. As we can clearly see that Beth has been asked to promote the brochure that shows the medicine was safe to use and has no any side effects which is evident that Billing is not following the code of ethics.

5. Complete the Sales Manager's Ethical Checklist in Table 2.4. If Bob Pearce had followed this checklist, how would it have changed the direction he gave Beth?

Bob Pearce is driven by the management team, what management team says Bob repeats same. It does not seem that Bob has been working in an ethical way. If he had checked the Ethical Checklist, he would never have asked Beth to work in such unethical way and he would not have been working for the Billings.



6. Beth is debating her commitment to a career with Billings Pharmaceuticals. If she stays and nothing changes at Billings, how will this affect her career in pharmaceutical sales over the long run in the market she presently serves?

I think her career will go as an opportunity for other companies if she had stood up against the unethical practice of the Billings. The competitors would have presented her as an honest person and the product of their company is genuine. But sooner or later the same unethical question will come with every company she will work for as we know that nothing is 100 percent pure.

If she decided to stay with Billings Pharmaceuticals and noting changed in the future, it means her choice of career is wrong and her core beliefs and values about the ethical practice will die sooner or later. She will be untrustworthy among the physicians and they will not accept her visit and the drugs she will be offering.



Conclusion

Beth as a good ethical person with a motive to do good to people is in dilemma either to support the unethical practice of her company or to go against it. She has been a name of Billing Pharmaceuticals as a trustworthy person by the doctors. She was informed about the side effects of the drug Depolara by the doctors regarding obesity and an increase in blood sugar level which she has put into the attention of the higher authorities. Denial in the statement that there was any side effect caused and no scientific proofs and the management team handed a brochure regarding the statement that the drug was safe to use. In the verge of her work career that she could be no more trusted by the doctors, she simply carried her bag and started her regular job though remaining in the ethical dilemma.



References

Parker, Chelsea. (2015, Jan 29). Billings Pharmaceuticals: Customer Vulnerability and Moral Equality. Retrieved April 19, 2019, from

https://prezi.com/9i8r9tzti6sj/billings-pharmaceuticals-customer-vulnerability-and-moral-equality/

Solis, Jessica. (2010, Aug 17). Caso #1 Ventas. Retrieved April 19, 2019, from

https://prezi.com/akis6_dinjtp/caso-1-ventas/