ETHICS

The Ethics & Leadership of the American Pharmaceutical Industry



Abstract

The pharmaceutical industry in U.S. has become so competitive that the companies have ignored their fundamental responsibility to the mankind. One common trend now a days is that pharmaceutical companies circulate the medicine in the market without thorough and extensive testing. This paper aims at discussing the importance of ethics in the Pharmaceutical industry. It has highlighted key activities of the American pharmaceutical industry in order to increase their profitability, growth and market share. The role of leadership and relevant case studies are also elaborated.

Table of Contents

Abstracti

The Ethics & Leadership of the American Pharmaceutical Industry1

Introduction1

Overview of the Pharmaceutical Industry2

Code of Ethics in Pharmaceutical Industry3

Principles3

Obligations4

Corrupt Practices of the U.S. Pharmaceutical Industry in Other Countries6

Cost Factor Provoking Unethical Practices7

The Role Of Leadership7

Case Studies8

Irregularities Found In Argentina Drug Trials8

Pfizer Fails To Test Drug For Children With Meningitis In Nigeria9

'No Free Lunch' Urge Doctors To Dodge To Pharmaceutical Companies11

Conclusion13

The Ethics & Leadership of the American Pharmaceutical Industry

Introduction

The planet has advanced rapidly in the recent years since the industrial revolution. It introduced the world to a new way of managing the economy and society, breaking with typical feudal values of the Middle Ages and the eighteenth and nineteenth centuries, where the industrial production through the development of inventions and machines made it possible for the companies to expand in such a way as never before seen by the mankind. The technology and industrial development led some companies to settle in large transnational corporations that took markets beyond their borders.

The technological revolution has changed the face of the world. It has influenced the companies conduct their operations. Some of the industries and companies have adapted to this changing scenario in a way as to contribute towards the society and humanity at large.

In this context, it is important to recognize the contribution of the pharmaceutical industry to mankind in producing drugs that saves and improve the life of millions of humans who consume drugs on a daily basis, preventing and curing common diseases that affect the lifestyle of individuals.

However, these organizations have been the subject of accusations in recent years in terms of marketing actions of pharmaceutical products, as well as allegations of ethical issues in its relations with the medical society, medical schools, biotechnology companies, governments of developing countries and regulators.

The most important issue underlying this industry is the increasing level of competition. Companies are striving to be the market leader in the industry. They are engaging in highly competitive practices to capture the market share (Ross, Lackner, 2007). One common activity in this regard is that they do not complete the process of testing of the medicine and push it into the market to gain the first mover's advantage. In some cases, the concerned governmental agencies are bribed to approve the medicine without even being tested or verified by the approved and certified medical practitioners. Another practice, which is against the human code of ethics, practiced by the pharmaceutical industry is the generous support ...