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Business Ethics

Defining Business Ethics


Case 2.3 Teaching or Selling Group 2
Alveriansyah Haznam M.
Aditya Aldy N.
Evlyn Dwi Tambun
Rizky Indriyani S.
Vita Cahyaningtyas
Descriptive Normative

BUSINESS
ETHICS

Stakeholders
Stockholders/
Employees Customers Suppliers/
Shareholders
Vendor partners

Retailers/ Federal Creditors Community


Wholesalers Government
Corporate Governance
History of Business Ethics

1960s 1970s 1980s 1990s 2000s

● Antiwar ● The economy ● Corporation ● Global ● Cyber crime


statement suffers trough downsize expansion ● Intellectual
● Civil right recession ● Transparency ● Unsafe work property theft
issue ● Forced labor, issues arise practices ● Anticorruption
● Corporation substandard ● ERC develop ● Shell effort grow
address wages, unsafe Code of Ethics International ● Formation of
ethics practice ● Companies issuing annual international ethics
trough legal ● Ethic Resource creates reports on its centers to serve
Center (ERC) Ombudsman ethical the needs of global
founded performance business
Defining Business Ethics - History Business Ethics
Case: Teaching or Selling?
Background & Issue

2008 2010

Continuing Medical Pfizer, along with This is a response Pfizer repositioned


Education (CME) Zimmer Holdings, to public criticism their stature by
course is a form of stops their CME over its sponsorship giving $3 million
continuing course funding. on their physician- CME grant to
education that helps They will restrict the education course. Stanford University.
a physician to way it funds Company claims it
maintain their courses in the comes with “no
competencies on future by identifying conditions, and the
their own field an independent 3rd company will not be
expertise. party. involved in the
developing the
curriculum”.
Answers (1)

Where’s the conflict of interest The conflict interest that might occurs in
in this CME Relationship ? CME course is that the medical company
which funded all the courses can promote
their own products or get involved directly to
develop the CME program.

Some doctors most likely would be


Do you think doctors are likely to be
influenced by the promotional tactic.
influenced by such promotional
Besides there are chances
tactics?
companies can influence the
curriculum, there’s also morale
burden, knowing that certain
companies paid for their education.
Answers (2)

Of course the company have the right to


Shouldn’t the company have the promote their products when they hold any
right to promote their products? certain kind of events. However, the main
focus of CME is not supposed to promote
products but to support the physician to
maintain their competencies/licenses.

It is actually better and more educational Pfizer stated in 2008 that it would only
than if they hired marketing communication support medical education put on by
to arrange the course. However, we see hospitals and professional medical
another unethical behaviour from the associations. How can it then justify
companies where the program is mainly the Stanford grant?
focused on companies’ main products.
Answers (3)

● Pfizer shifted from funding CME


Has Pfizer simply replaced one conflict
arranged by marketing
of interest with another?
communication companies to the
Why or why not?
ones put on by hospitals/
professional medical associations
in order to make sure that the courses
remain free of commercial
influence.
● However, we can see from the critics
that have emerged over the new
curriculum in Stanford’s CME that
another conflict might have emerged
from this event.
Answers (4)
Propose an alternative Situation Ethical Dilemma
approach to ensure that Pfizer, or other similar However, this sponsorship
CME is provided without a companies, might justify this may influence prescriptions
conflict of interest. ethical conflict as a belief and medical procedures,
that the activity is within which also may affecting the
reasonable ethical and treatment that patients get
legal limits. from the doctors. So
Also, funding CME bring lots according to end-based
of help for doctors to principles, for greater
maintain their competencies. goods, such practice
shouldn’t be continued.

Alternative approaches to avoid ethical conflicts

1. Anonymous funding / multi companies funding


2. Companies may support programs that aren’t
related to their main products
3. Companies should separate CME funds as CSR,
not as promotional events/marketing tools
Thank You
Q&A
➔ Dudun
Adakah persaingan bisnis yang beretika, bagaimana persaingan bisnis yang etis?
Perusahaan di dunia ini yang paling etis?

➔ Eta
Apakah sebuah company harus menentukan posisi perusahaan terhadap isu-isu etis
social yang masih dilematis?

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