Business Ethics in Pharmaceutical Corporations, Research Paper Example

There has been prescription drug abuse in the US for a while. Statistics portray that nearly one hundred and thirty million individuals, making up sixty-six percent of adults, use prescription drugs. The process has led to over three hundred and forty-five billion in prescription drug expenditure in the country in 2019 (Tichy et al., 2020). This makes the prescription industry highly profitable and attractive to investors. Over seventy percent of the country’s population takes prescription medication. The main drugs used entail painkillers and opioids. These medications have a high prevalence for addition.

Statistics further show that there is a higher dependency on such drugs among minority communities, like people of color, youths, and women (Peteet, 2019). This is due to the marketing tendencies of big pharmaceutical companies, which often target minority societies. Over time, pharmaceutical companies have enacted different measures to maximize their profits in prescription drugs. They take advantage of the willing and high demand in the market. The rise of prescription drug medication has resulted in adverse implications in social, health, and economic aspects. The consequences impact the general wellbeing of the US. Pharmaceutical companies should adopt better ethical standards and be proactive in aiding avert prescription drug abuse.

Historical Overview of the Increase in Demand and Supply of Prescription Drugs

The abuse of prescription medicine in the US dates back more than a century ago. The onset of the problem was characterized by the addiction to laudanum, which is a combination of alcohol and opium. It was used to treat psychological issues like anxiety, pain, and insomnia (Miroff, 2017). In the period, in the 1800s, the drug was mostly abused by women. Such is because they were mostly restricted from visiting bars. Men were more apt to abuse alcohol. Additionally, women tended to need laudanum more as they had issues with childbirth, cramps, pregnancy, and emotional problems. After laudanum, the most commonly abused drug was morphine, followed by the heroine. During the American civil war, these drugs became household medication. Soldiers were the ones who mostly used them to treat wounds after the battle. The increase in their usage augmented the rate at which commercial companies entered the market.

Prescription Drugs (PD) abuse skyrocketed in the twentieth century. In the mid-twentieth century, the trial of drugs had slow-paced momentum, and pharmaceutical corporations had the ability to approve medications for marketing after limited experiments (Miroff, 2017). The practice prompted the rise of various anxiety-reducing and sedative drugs, like Klonopin and Valium. The drugs had a significant effect in curbing several psychological disorders. Consequently, they led to such illnesses being viewed as ordinary. The high usage of Valium increased the attractiveness of the prescription drug industry, especially after its sales reached over one billion. Millions of individuals in the US quickly ran to Valium in the phases of any anxiety symptoms. The prosperity of Valium in the market is attributed to aggressive marketing. Additionally, its prevalence among middle-class females made it a household drug. The high drug addiction of Valium raised concerns, resulting in the enaction of stricter measures in its refill and distribution.

With the decline in the marketability effectiveness of Valium as a result of the stricter laws, another prescription drug, Xanax, entered the market. The medication was marketed to have the ability to treat panic attacks, which was the first of its kind. The entrance of the drug made panic attacks, which were previously rare, more popular. The popularity was mainly attributed to the intent to sell more Xanax. Ever since 1981, more than fifty million Xanax pills are sold annually. The success of the drug is attributed to Upjohn’s strategic marketing tactics, the manufacture of the drug, to middle-class individuals, who are often overwhelmed and stressed. Prozac was another significant prescription drug to hit the market in the 1990s. It was used to treat depression.

Two decades later, antidepressants gained more popularity in the American population than those used to treat anxiety. Similarly, this is because of the aggressive and strategic promotional methods deployed by pharmaceutical companies. They portrayed the medicines as having more favorable implications than the negative effects and further shed more light on the positive aspects of the trial processes than the failures. The unethical marketing practices were highlighted in the criminal charges pressed against Forest laboratories in 2010. They were accused of unlawful promotion of Celexa to teenagers. They emphasized that the drugs positively affected adolescents and ignored an experiment that portrayed that the medicine had no implication on the targeted population (Amsterdam, McHenry, & Jureidini, 2017). The case led to the company paying three hundred and thirteen million dollars fine.

By 2013, the abuse of opioid painkillers had become a serious issue in the US. Statistics show that about two million citizens aged twelve and above were perceived as dependent on opioids. The drugs have the effect of reducing pain and promoting the sensation of pleasure. The danger of opioid-related medicines is comparable to heroin. They have a high tendency for addiction. However, the big pharmaceutical corporations often understate the addiction capacity of opioids. In the past, prescription painkillers were limited to individuals with terminal diseases and cancer. Nonetheless, pharmaceutical companies, like Purdue, enacted and continue to exert measures that increase the popularity and usage of opioid painkillers.

Role of FDA in the Abuse of Prescription Drugs

The Food and Drug Administration (FDA) is responsible for dispensing approval for the sale and utilization of drugs in America. Before any medication is approved, it undergoes a thorough analysis procedure to ascertain its benefits outweigh its adverse implications. The evaluation is conducted by an impartial team consisting of personnel from diverse fields like physicians working for the agency, chemists, pharmacologists, and statisticians. The experiments entail both laboratory and animal trials. The pharmaceutical companies sponsor these tests. The FDA necessitates accurate prescription data and the employment and effect of the medication after they are released to the market. FDA is highly concerned about the addiction rates of prescription medication. However, its authority is limited in the aspect of controlling the marketing strategies used by pharmaceutical companies. Once approved for use, pharmaceutical companies can promote their drugs as much as they want.

Risk Factors for Abuse of Prescription Drugs

In most cases, people take prescription medication with the intent of feeling good. Nonetheless, misuse of drugs leads to addiction. There are various factors that increase the tendency of an individual to abuse PD. One of the causes of the issue is peer pressure and social circles (Cragg et al., 2019). The interactions with other individuals often have an impact on a person’s behavior. This also relates to the misuse of PD and is most common among youths. Teenagers and younger adults are prone to emulate what their peers do. For example, members of a sorority may influence the decision of each other to abuse PD. Furthermore, the relationship a youth has with his/her family and friends has an impact on their tendency to abuse drugs. Those with strong support from their parents often avoid negative behavior like abuse of drugs.

The other risk factor is the presence of chronic medical illnesses. Physical pain caused by medical conditions is a significant motivator in abusing drugs (Cragg et al., 2019). According to statistics, six out of ten people with the issue of PD misuse have the intent of relieving pain. When the prescribed dosage is not effective in managing pain, individuals tend to overmedicate themselves. In the process, they may turn to illegal means to acquire the drugs. Mental health issues also add to the risk factors of abuse of PD. Problems like depression, PTSD, extreme levels of stress, anxiety, among others, affect the ability of a person to function effectually. To be able to feel better, individuals tend to overuse prescription medication. With their addiction effect, once people are hooked, it gets hard to overcome the problem.

Intake of alcohol and other drugs, like street-affiliated drugs, further increases the risk of prescription drug addiction (Cragg et al., 2019). This is because the brains of such individuals are often impacted, leading to unconventional thinking and behavior. They are more prone to use mind-altering elements regardless of the harm they accrue. People who are addicted to alcohol are eighteen times more prone to abuse PD. Drug abuse victims look for any means they can find to escape reality.

Abuse of Prescription Drugs Among Minority Communities

Abuse of prescription drugs is higher among minority groups like youths, women, minor racial and ethnic groups, and the elderly. This is because such individuals are more prone to the risk factors of PD abuse. In relation to opioid medicines, a larger percentage of women are addicted than men. This is because females are more sensitive to pain than the other gender (Peteet, 2019). Additionally, they have a higher tendency to have chronic pain. Women who are of reproductive age are the ones with the higher rates of abusing PD. Females also tend to suffer more emotional illnesses than men. They have higher percentages of individuals with anxiety and depression. Consequently, their rate of self-medication is higher.

Another group that has a higher tendency to abuse PD is youths. Teens are prone to emotional and peer pressure risk factors. They have to deal with social issues related to body shaming, belonging to a certain ideal group, among many other challenges. In most cases, youths do not abuse PD with the intent of getting high but to deal with the underlying issues they possess. They may lack the support they require from their parents and friends and, as such, turn to drugs to make them feel better. Furthermore, peer pressure is more prevalent among teens. Twenty percent of adolescents who abuse drugs report that they have a friend or someone they know has the same habit and introduced them to it. The need to fit in with the popular masses is another motivation for abusing PD among teens. In most cases, minority groups, like people of color, are characterized by economic, social, and health issues. Also, minority groups are linked with problems like alcohol and drug overdose (Peteet, 2019). To be able to deal with their problems, such groups turn to PD and misuse them.

The Targeting of Minorities by Pharmaceutical Companies

Big pharmaceutical companies are often accused of being unethical in relation to pushing of increased sale of prescription drugs. Such organizations have also been under scrutiny for targeting minority communities. This is attained by preying on the risk factors that increase PD abuse among such individuals. Pharmaceutical companies strategize their promotional campaigns to increase the demand for their drugs among the vulnerable population. The aggressive marketing mechanism often downplays the risks of the PD, especially their addiction capacities (Miroff, 2017). They further include deceptive data in their marketing that alter the comprehension of the risks and benefits of the drugs among target groups.

According to statistics, pharmaceutical companies invest over thirty billion dollars annually to market PD. About sixty eighty percent of such funds are used in convincing physicians and not the consumers of the advantages of the medication. This increases the effectiveness of their promotional campaigns as it is the doctors who prescribe the medicine. Physicians play the role of gatekeepers to drug sales. The agency theory is instrumental in comprehending the extent of the issues caused by targeting doctors. According to the framework, the principal assigns the resolution-making power to an agent to perform an action on their behalf (Zogning, 2017). In the case of PD, the pharmaceutical companies are the principals who depend on the doctors to prescribe their drugs. Similarly, the patient is the principal relying on the physician to prescribe them effective medicine. The use of deceptive measures and overstating the benefits of the PD lead to the increased usage and addiction among individuals.

Diverse marketing techniques are deployed by big pharmaceutical companies to target minority communities in relation to PD. For instance, organizations in the industry employ sales representatives affiliated with vulnerable communities to increase the effectiveness of their promotional campaigns. The salespeople, with the guidance of the companies, offer gits samples to physicians (Wilcock, 2020). This practice has come under scrutiny as it is considered unethical. They further provide training that mostly focuses on promoting the benefits of the drugs being sold.

Analysis of Ethical Issues in the Practice of Targeting Minorities in the Sale of PD by Big Pharmaceutical Companies

Throughout the analysis of the paper, it is established that the practices of pharmaceutical companies in maximizing the sale of their drugs are unethical. Various ethical lenses can be used to understand the issues caused by big pharmaceutical companies and PD addiction among minority communities. In the aspect of Unitarianism, individuals and companies aim to do things that increase pleasure rather than those which cause negative implications. Pharmaceutical companies defy this law as they strive to increase their profits at the expense of the targeted consumers. The misuse of PD has a lot of adverse effects. Healthwise, the misuse of PD leads to cardiovascular issues like low blood pressure and increases the risk of inability to breathe and possible comma. Overdose may lead to fatalities. Additionally, the problem causes aggressiveness, memory issues, and seizures. In economic aspects, misuse of drugs reduces the productivity of individuals and also undermines their potential to work. Consequences like lack of income and increased dependability on others increase the economic cost of a nation. The adverse negative effects outweigh the positive impact of attaining profits in pharmaceutical companies.

In deontology, practices that adhere to laws are ethical and vice versa. Minority communities require social protection. There are documented and undocumented social principles that organizations should be accountable to. When targeting minorities and using deceptive measures in advertising, pharmaceutical companies become highly unethical. The other ethical lens is the framework of distributive justice, which entails the extent to which communities’ organizations ascertain that benefits and problems are distributed in society equitably. In the case scenario, the pharmaceutical companies target vulnerable populations, which constitute minorities. In the process, the burdens of PD abuse are more concentrated on such people, defying the tenets of distributive justice. In all aspects, the actions of big pharmaceutical companies in profit maximization and targeting minorities in the sale of PD are unethical.

Recommendations

It is essential for measures to be taken by pharmaceutical companies, pharmacists, and the government to enable the mitigation of the rates of PD misuse, especially among minorities.

Role of Pharmaceutical Companies

Manufactures of PD have an obligation to promote the social wellbeing of the community. Additionally, they are mandated to observe high ethical standards. In this aspect, it is recommended that pharmaceutical companies be involved in Corporate Social Responsibility (CSR) in all their actions. In the contemporary business world, consumers have become more informed owing to the prevalence of the internet. Consequently, they often make informed purchasing decisions. Being unethical often results in the damaging of the brand value of a company, and the information about malpractices is transferred in the market at a faster rate. The process leads to a decline in the rate of consumer acquisition and retention. Adopting CSR mitigates such challenges. The concept has the advantage of ensuring that organizations are proactive in being accountable for their actions and promoting the wellbeing of all individuals in society (Barauskaite & Streimikiene, 2021). Hence, their brand value is increased, and they attain a competitive advantage. Furthermore, socially responsible companies create satisfactory work environments. The productivity of their workers is augmented, which benefits the organization. Pharmaceutical companies can practice CSR in relation to PD by ensuring transparency in their marketing strategies, training pharmacists and the public about the benefits and dangers of various PD, conducting thorough clinical trials, investing in improving the biology of PD, and reducing their negative implications.

Role and Pharmacists

Pharmacists play an essential role in the abuse of PD. They are the middlemen between pharmaceutical companies and consumers. Hence, they are instrumental in the process of mitigating misuse of PD. They should explain how to utilize PD properly, dispense advice related to any medicine interactions, and be transparent with consumers about all the effects of the drugs, both positive and unfavorable. They should further work with the relevant authorities in uncovering any practices of deception or fraud in altered prescriptions.

Role of the Government

The involvement of the government in business is often a topic of debate. Nonetheless, the state’s engagement in organizations is essential as it aids in protecting consumers against unscrupulous business practices. Policymakers should be vigilant in designing and implementing regulations that control the prescription of PD. Additionally, the government should enact stricter measures that discourage the use of deceptive and unethical marketing mechanisms. The state should invest in training citizens, especially the most affected, about the dangers of PD misuse. The training should be thorough to increase awareness and prompt people to be careful about using such medication. There should further be investments into the research and development of drugs and how they can be improved to increase their positive effects.

Conclusion

Profit maximization is the primary aim of big pharmaceutical companies, evidenced by their actions to increase sales even though they are unethical. Such organizations are the primary instigators of PD misuse in the US. From historical analysis, it is depicted that manufactures of PD have been enacting measures to increase their popularity and demand in the market. Some of the mechanisms used entail deceptive advertising, unethical sample gifting, and targeting minorities as they have higher risk factors for PD misuse. The prevalence of abuse of PD crisis in America leads to a lot of adverse implications on a personal and national level. It is essential that measures should be undertaken to mitigate the crisis of PD abuse. For instance, pharmaceutical companies should engage in CSR and ensure that they are proactive in empowering the wellbeing of the community. They should adopt ethical practices as it is their obligation and would further increase their brand value and, in turn, their sustainability and competitive advantage. The government and pharmacists should also participate in ending the problem of PD abuse in the US.

References

Amsterdam, J. D., McHenry, L. B., & Jureidini, J. N. (2017). Industry-corrupted psychiatric trials. Psychiatr Pol, 51(6), 993-1008.

Barauskaite, G., & Streimikiene, D. (2021). Corporate social responsibility and financial performance of companies: The puzzle of concepts, definitions, and assessment methods. Corporate Social Responsibility and Environmental Management, 28(1), 278-287.

Cragg, A., Hau, J. P., Woo, S. A., Kitchen, S. A., Liu, C., Doyle-Waters, M. M., & Hohl, C. M. (2019). Risk factors for misuse of prescribed opioids: a systematic review and meta-analysis. Annals of emergency medicine, 74(5), 634-646.

Miroff, N. (2017). From Teddy Roosevelt to Trump: How drug companies triggered an opioid crisis a century ago. The Washington Post.

Peteet, B. J. (2019). Psychosocial risks of prescription drug misuse among US racial/ethnic minorities: A systematic review. Journal of ethnicity in substance abuse, 18(3), 476-508.

Tichy, E. M., Schumock, G. T., Hoffman, J. M., Suda, K. J., Rim, M. H., Tadrous, M., … & Vermeulen, L. C. (2020). National trends in prescription drug expenditures and projections for 2020. American Journal of Health-System Pharmacy, 77(15), 1213-1230.

Wilcock, M. (2020). Pharmaceutical marketing—greater than the sum of its parts? Drug and Therapeutics Bulletin, 58(10), 147-149.

Zogning, F. (2017). Agency theory: A critical review. European journal of business and management, 9(2), 1-8.