Question 7GS4GS1
In a capitalist market, the goal of a business is to sell a product to satisfy demand. In this context, a company's objective is to maximize profits. However, there are industries where the social good should take precedence over profits and the pharmaceutical industry is an example of such an industry. Recently, an incident of arbitrary pricing by a pharmaceutical company has come to light. After years of research, the concerned company released a medicine for the treatment of a rare disease. It holds the patent for the medicine and has spent considerable R&D resources to produce the medicine. But the extraordinarily high price it has fixed for the medicine has not only dashed the hopes of patients suffering from the rare disease but has also shocked the conscience of the public at large. However, there are also some who are arguing that forcing the company to cap the price of the medicine will disincentivize pharmaceutical firms to conduct research and produce treatments for rare diseases in the future. In this context, answer the following:
Introduction
The answer begins by outlining the stakeholder perspectives in the case.
11 words
Main Body
(a) What are the various issues in the above situation?
(b) Do you think a price-cap solves the given problem by creating another one?
(c) What are the long-term measures that can be taken to deal with issues arising in such cases? (Answer in 250 words)
46 words1 paragraphs
- Uses stakeholder mapping framework
- Identifies multiple dimensions of the issue
- Addresses ethical dilemmas comprehensively
Topper
Sudipa Dutta
AIR 412092
Subject & Paper
GS4GS1
Topic
Ethics in business and commerce
Business ethics and corporate social responsibility
Writing Stats
57
Total words
1
Paragraphs
analytical and structured
Tone