Business Ethics

Business Ethics

Pharmaceutical companies differ from other companies in terms of social responsibilities in different ways. Unlike other companies, they provide cheap medication services, and they are ready to provide the public with necessary needs. These companies aim at improving medical conditions through conducting medical research. They create awareness for disease breakdowns and even educate the public on immediate diseases prevention measures. Pharmaceutical companies collaborate with stakeholders such as communities, government, shareholders, and employee in order to provide high quality services to people.

The primary stakeholders for pharmaceutical companies include human resources, communities, governments, investors, shareholders and suppliers. The primary stakeholders interact with healthcare professions, and work partnerships to produce better facilities to citizens. They commit themselves, and become open towards each stakeholder in decision-making. In addition, they assure policy change of the pharmaceutical companies because of engagement (Mennen, 2010).

Pharmaceutical companies are justified in charging high prices for specific medication because medical research on some medications takes long periods, which is costly. Some medication researches take decades, and they are usually funded by non-corporate sources. Research contributes to several medication discoveries, and companies under pressure fail to justify long searches for breakthrough drugs to investors. Another reason is that, sometimes the cost of advertisement and even employers demand high payment for the services rendered. Costs vary due to high variability in new medicine discovery, and increased drug taxation. Some pharmaceutical companies need huge investments to produce new drugs and new innovative projects (Moreira and Will 2001).

However, there should be leniency form in pricing strategy of pharmaceutical companies in order to enable them overcome high costs. Many patients are forced sometimes to purchase medications due to the astronomical charges linked with purchasing drugs they require. Prescriptions’ costs of medicines tend to differ depending on the prescription medicine coverage used. This causes variability in the cost of drugs insured or not insured (Mennen, 2010).

References

Mennen, M. (2010). Innovation & Growth – A Case Study of Pfizer. Norderstedt, Germany:

GRIN Verlag.

Moreira, T. & Will, C. (2001). Medical Proofs, Social experiments: Clinical Trials in S. Farnham, UK: Ashgate Publishing Ltd.