Becton Dickinson Case Study Analysis
1 In your judgement, did Becton Dickinson have an obligation to provide the safety syringes in all its sizes in 1991? Explain your position, using the materials from this chapter and the principles of utilitarianism, rights, justice and caring.
In 1988 when the field test were completed by Becton Dickinson, the company than decided which size of syringe to market, this decision was mainly based on the data collected and the results retrieved from the field test. Though Becton Dickinson had four major syringe sizes, 1-cc, 3-cc, 5-cc and 10-cc, now the only decision was which syringe will be marketed with the protective sleeve. Since Becton Dickinson bought the exclusive rights from Sampson and Mitchell, the company now had the sole decision power to decide which product to market. Though the field tests were already done, and all the product range should and must be introduced in the market, still the company had no obligation to provide the safety syringes in all its sizes, as there were various other factors that one can consider from Becton Dickinson view.
Becton Dickinson main aim was to capture the market share at any cost while keeping in mind that there’s not much competition in the market, so the company can easily play a monopoly in the market. Though it is the their social responsibility to be equitable in relation to their employees and society at large, from the nurses and doctors point of view they preferred all different sizes of syringes, as by having only 3-cc size syringe the company had limited applicants. This act of Becton Dickinson cannot be considered as ethical, or fair for the society mainly because of the reason that business ethics is usually considered as the way companies and their managers consciously apply ethical principles to their conduct and various other activities, aiming to do good for the society Van de Ven, J. (2003) . According to the Business for Social Responsibility organisation webpage (see the link in vUWS, Module 2), business ethics can be defined as ‘how a company integrates core values – such as honesty, trust, respect and fairness – into its policies, practices and decision making, where in the case of Becton Dickinson all these core values were missing.
2 Should manufacturers be held liable for failing to market all the products for which they hole exclusive patents when someone’s injury would have been avoided if they had marketed those products? Explain
Socially and ethically a corporation should be held accountable for any or all of its actions that may affect people, their communities and their environment (Zulkifli. B, 2001). However in my personal opinion a company cannot be held liable failing to market all of its products for which the company owns its exclusive patents, as there might be various factors involved from the company’s perspective. Rather than investing a lot of amount in all of its products, its better to introduce one product in the market first and after making it a success than the company can release its other range of products. Though at the same time keeping in mind that by not releasing all its products in the market, there might be some risks of injuries associated with it, for this purpose a company should and must provide the safety precautions. From a company’s perspective its Social responsibility is its duty to create wealth (by using means that avoid harm) and to protect or enhance societal assets (Zulkifli. B, 2001). Over the last few years the concept of socially responsible behavior moved beyond “do-goodism” into the area of corporate strategy. It mainly depends on the intention of the organization, what’s the basic purpose of not introducing all ranges of a particular product in market? It implies that harm to people and society should be acknowledged and corrected by the corporations. It may require a company to forego some profits if its social impacts seriously hurt some of the stakeholders.
3 In your judgement, who was Morally responsible for Maryann Rockswood accidental needlestick: Maryann Rockwood? The Clinic that employed her? The government agencies that Merely issued guidelines? Becton Dickinson?
In general moral responsibility is about a broader social agreement on what is acceptable and how one should treat others, in the context of business, any business ethics can be considered the way companies and their managers consciously apply moral principles to their various conduct and activities, striving to do good things for the society (Alice. N, 1999). In the case of Maryann Rockswood, the company Becton Dickinson can be held morally responsible. Ideologies are not fixed from company’s point of view, but change in response to pressures in different moments and societies. The emergence of social responsibility as a legitimate demand from Society did not exist in earlier times (Zulkifli. B, 2001). It has emerged from increasing pressure on Business to be more accountable for its actions. Becton Dickinson should and must have introduced other sizes of syringes in the market, realizing the fact that by introducing only one size, the chances of injuries and accidents are much higher. At the same time the role of Government, as a stakeholder of Business, includes the responsibility for interactions between different parties in the economic, social and natural environment. Government should and must make sure that companies are following the rules and regulations and various other policies. Government’s role might include being a policy maker in ways that benefit or affect business; a regulator of business and business interactions in order to ensure fair conditions of competition; and also a regulator of business behaviour in relation to communities Korner. K, (2005). All those responsibilities are fulfilled through policies, which reflect ideological models.
Though at the same time, Maryann herself should be considered as morally responsible, as most of the information was already provided to her, she was made aware of the hazardous associated with the nature of the job and how and what kinds of precautions she has to take. Even after knowing all the relevant information, if one acts a bit carelessly than that person is as morally responsible at others are.
4 Evaluate the Ethics of Becton Dickinson’s use of the GPO system in the late 1990s. Are the GPOs monopolies? Are the ethical? Explain
Business ethics are how a company integrates its core values into its business such as honesty, trust, respect and fairness of business into its policies, practices and decision-making process Van de Ven, J. (2003). GPO – group purchasing organization was formed in late 80’s as a distributor of health care products, its main purpose was to act as an agent on behalf of various hospitals and get them products on a cheaper price which otherwise was a bit expensive, if purchasing directly from manufacturers. There were two large GPO’s Premier with 1700 member’s hospital and Novation with 650 member hospitals.
GPO’s main role was to work on behalf of hospitals and get them discounted products, where in reality GPO’s was receiving a percentage on purchasing a specific number of products from a specific manufacturer. Some critiques alleged that GPO’s choose manufacturers based on the percentage they would get in return. In 1996, Becton Dickinson signed exclusive deals with Premier and Novation that all its member hospitals would buy 95% of Becton Dickson products even knowing the fact that they were not of good quality. This is a true example of ignoring business ethics and rather more concerned about making profits Van de Ven, J. (2003). At the same time, one cannot only blame Becton Dickinson for signing that deal but also the main purpose of GPO was to act on behalf of hospitals and not to be concerned about getting more percentage from various manufacturers, for this very reason it is important to evaluate the ethic challenges in business activities that are necessary to the process of decision making. For large organizations like GPO or Becton Dickinson it is not easy to behave ethically and with social responsibility, because businesses impact – and are impacted by – multiple stakeholders’ interests and demands. GPO’s was having clear monopoly, where it successfully engaged hospitals to purchase products from GPO and than not letting them choose the better option available to them. From Becton Dickinson perspective, it was their responsibility to comply with the law; following legal rules as minimum standards for its business. Laws and regulations help create a level playing field for Businesses that compete against one another.
The way Businesses and their managers consciously apply ethical principles to the conduct and activities of the business shows determination to do the right thing for the society, which is in this case was not present. It is the government responsibility to make sure that such things don’t take place in the society; businesses should act and play their role in the best interest of the society Korner. K, (2005).
References:
- N, 1999, ‘Manufacturer representatives outline changing roles’, Trade Journals, Published by Reed Business Information, pgs – 16-17 No. 255
- K, 2005, ‘Policy Making and the role of Government: Changing governance patterns and CSR’, pp- 151-158
- Van de Ven, J. (2003), The Rise of Ethics in Corporate Management – License to Operate or Moral Vanity?, Swiss Consulting Group, London.
- B, 2001, ‘Building an ethical corporation’, Newspaper, viewed on 19th April, 2013 < http://0-search.proquest.com.alpha2.latrobe.edu.au/docview/266647216?accountid=12001>
