Business Ethics and the Merck & Co., Inc. Case Study

Utilitarianism is a teological ethical framework that offers a way to analyze the transistor company’s dilemma. Utilitarianism is consequentialist in nature, meaning that the theory only takes in account the consequences of an action to determine if that action is morally right. More specifically, Kay (1997) explains “utilitarian ethics defines morality in terms of the maximization of net expectable utility for all parties affected by a decision or action” (p. X). For example, it would be acceptable to a utilitarian to kill one person if it meant saving two more people. This is in stark contrast with deontological ethics, which prohibits actions that use people as a means to an end.

Utilitarianism considers the pleasure and pain of every individual affected by an action. It also considers everyone to be equal and does not permit an individual to put their interests or relationships first. After this it attempts to provide an objective, quantitative method for making moral decisions. Utilitarianism is not able to assign quantitative measures to all pleasures and pains, and does not address the issue of some pleasures and pains that cannot or should not be measured-such as human life or human suffering.

Utilitarianism, in the contrary, is based on the principle of utility or usefulness. Utility is what encourages an agent to act in a particular way (Tuckett, 1998). Utility can be explained as maximizing the good like pleasure and happiness and minimizing the bad like pain and evil, all leading to the greater good for all parties involved. It weights the consequences of the actions equally between the ones involved, and the ethical solution would be to follow the greater good for most if not all the parties involved.

To apply utilitarianism to this ethical controversy one has to evaluate which option would benefit society

Let’s start by gaining an understanding of what utilitarianism means. The definition given to us earlier in our textbook, Exploring Ethics, in the article, Strengths and Weaknesses of Utilitarianism, it defines act utilities as an act that, “is right if and only if it results in as much good as any available alternative”. This goes back to the tedious task of trying to analyze countless number of alternatives and figure out which one brings about the most

Utilitarianism is a philosophical theory. It concerns how to evaluate a large range of things that involve choices communities or groups face. These choices include policies, laws, human’s rights, moral codes,

Utilitarianism is the moral doctrine that we should always act to produce the greatest possible balance of good over bad for everyone affected by our actions (Shaw & Barry, 62).

While some have identified Merck as a visionary company dedicated to a "core values and a sense of purpose beyond just making money" (Collins & Porras, 2002, p. 48), others point out corporate misdeeds perpetrated by Merck (e.g., its role in establishing a dubious medical journal that republished articles favorable to Merck products) as contradictory

Do you believe that Merck acted in a socially responsible and ethical manner with regard to Vioxx? Why or why not? (In your answer, please address the company’s drug development and

Over the past couple of decades, a sudden change has started to take over the way business is done. The time when no rules applied, and anyone could do what they pleased at the cost of others or the environment is rapidly ending. Instead, companies today have become aware that it is essential for them to employ ethics and morality in their actions, if not they will be heavily scrutinized and rejected by the public. This way of thinking also applies to the pharmaceutical industry, which over the past century has been rapidly expanding. Do to the fact that this industry can determine the health and lives of millions of people, it is imperative that this industry follow an ethical and moral path.

Utilitarianism is relevant to the Merck Co. case in that it would have been important for Merck to predict whether researching the drug further, or playing it safe with other research, would produce the greatest benefit for the largest number of people. One side would argue that while river blindness patients are poor, treatment would be of great benefit to those infected (and their families/communities), so research is warranted. On the other hand, one might argue that it would be of equal or greater benefit to research medications for more common diseases where patients can afford medication. They may also argue that if the company went out of business as a result of ivermectin research that more people would be harmed from the loss of Merck’s other research and medications.

Utilitarianism is a consequentialist theory, as explained by the philosopher Mill. Given several choices, a utilitarian would pick the morally correct choice by using the Greatest Happiness Principle (487). By looking at whether the consequences of an action will produce the greater happiness for the greater number of people than another action would, one can

In 2000, Merck began to cooperate with Schering-Plough on several research products and in 2009 acquired their longtime partner in an effort to diversify its products and reach a broader consumer base. With challenges that include rising prices of research and prescription drugs, Merck has managed to forge forward and overcome obstacles. Merck’s survival has been a subject of speculation many times throughout the years; from the 2004 recall of their top selling drug (Vioxx) due to undesirable side effects to the recently curtailed trials of their very promising new anti-clotting drug (Vorapaxar) due to negative trial results. Kenneth Frazier, Merck’ CEO, has also come under heavy criticism due to his unconventional decision not to cut research budgets in order to increase profits. This strategy differs greatly from the usual path and it has cost Merck investor confidence which resulted in lowered stock prices . Although Merck has been subjected to challenges throughout their history they have always managed to stay afloat and maintain their reputation as a leader in healthcare.

Costs of the decision included negative public perceptions of the firm and denial of treatment to economically disadvantaged and uninsured consumers. the decision was ethical because the benefits of new life saving drugs outweighed the costs of denial of treatment to the few. So GSK regarding to its primary stakeholders was social responsible.

Merck was established in 1891 to improve human and animal health through the development of innovative products. Merck currently has two reportable segments, the Pharmaceutical Segment and the Vaccines and Infectious Diseases Segment. Merck sells products through several channels including wholesalers, retailers, hospitals, clinics, government and managed health services providers. In the 1980’s the Merck was very successful in producing 10 major new drugs and had a very healthy pipeline. In later years, Merck has entered into joint ventures with many other pharmaceutical companies in order to expand its pipeline. In the last several years Merck has