Myron had just graduated from West Coast University with both chemistry-pharmacy and business degrees

and was excited to work for Producto International (PI). He loved having the opportunity to discover
medicinal products around the world. His wife, Quan, was also enthusiastic about her job as an import-
export agent for a subsidiary of PI. Producto International was the industry leader, with headquarters in
Paris. Worldwide, hundreds of small firms were competing with PI; however, only six had equivalent
magnitude. These six had cornered 75 percent of world sales. So many interrelationships had developed
that competition had become "managed." However, this did not constitute any illegal form of monopolistic
behavior as defined by the European Union.

Myron's first assignment was in India and concerned exporting betel nuts to South and perhaps North
America. It is estimated that more than 20 million people chew betel nuts in India alone. The betel nut is
one of the world's most popular plants, and its leaf is used as a paper for rolling tobacco. The betel nut is
also mashed or powdered with other ingredients and rolled up in a leaf and sold as candy. Myron
quickly found that regular use of the betel nut, in time, stains the mouth, gums, and teeth a deep red,
which in Asia is a positive quality. As Myron was learning more about the betel nut, he came across the
following report from the People's Republic of China: "Studies show that the chewing
Of the spiced betel nut can lead to oral cancer. According to research, 88 percent of China's oral cancer
patients are betel nut chewers. Also, people who chew betel nuts and smoke are 90 times more likely to
develop oral cancer than nonusers." Myron found that the betel nut primarily affects the central nervous
system. It increases respiration while decreasing the workload on the heart (a mild high). Myron also
found that demand for it was starting to emerge in the United States as well as in other developed
countries.

While Myron was working on the betel nut, David, Myron's boss, also wanted him to work on introducing
khat (pronounced "cot") into Asia. Khat is a natural stimulant from a plant grown in East Africa and
southern Arabia. Fresh khat leaves, which typically are chewed like tobacco, produce a mild cocaine- or
amphetamine-like euphoria. However, the effect is much less intense than that produced by either of
those substances, with no reports of a rush sensation or paranoia, for example. Chewing khat produces a
strong aroma and generates intense thirst. Casual users claim that khat lifts spirits, sharpens thinking, and,
when its effects wear off, generates mild lapses into depression similar to those observed among cocaine
users. The body appears to have a physical intolerance to khat due in part to limitations in how much can
be ingested by chewing. As a result, reports suggest that there are no physical symptoms accompanying
withdrawal. Advocates of khat use claim that it eases symptoms of diabetes, asthma, and disorders of the
stomach and the intestinal tract. Opponents claim that khat damages health, suppresses appetite, and
prevents sleep. In the United States, khat has been classified as a schedule IV substance by the Drug
Enforcement Agency (DEA): freshly picked khat leaves (that is, within 48 hours of harvest) are classified
as a schedule I narcotic, the most restrictive category used by the DEA.

After doing his research, Myron delivered his report to David and said, "I really think that, given the
right marketing to some of the big pharmaceutical companies, we should have two huge revenue
makers."
"That's great, Myron, but the pharmaceutical market is only secondary to our primary market— the two
billion consumers to whom we can introduce these products."

"What do you mean, David?" Myron asked. “I mean these products are grown legally around the world, and the
countries that we are targeting have no restrictions on these substances,” David explained. “Why not tailor the
delivery of the product by country? For example, we find out which flavors people want to Betel nut in, on North
and South America or the Middle East.

The packaging will have to change by country as well as branding. Pricing strategies will need to be
developed relative to our branding decisions, and of course quantity usages will have to be
calculated. For example, single, multiple, and super value sizes need to be explored. The same can be
done for khat. Because of your research and your business background, I'm putting you on the
marketing team for both. Of course, this means that you're going to have to be promoted and at least
for a while live in Hong Kong. I know Quan will be excited. In fact, I told her the news this morning
that she would be working on the same project in Hong Kong. Producto International tries to be
sensitive to the dual-career family problems that can occur. Plus you'll be closer to relatives. I told
Quan that with living allowances and all of the other things that go with international placement,
you two should almost triple your salaries! You don't have to thank me, Myron. You've worked hard on
these projects, and now you deserve to have some of the benefits.

" Myron went back to his office to think about his and Quan's future. He had heard of another
employee who had rejected a similar offer, and that person's career had languished at PI. Eventually,
that individual left the industry, never to be heard from again.

QUESTIONS • EXERCISES

1) Identify the social responsibility issues in this

Scenario.

2) Discuss the advantages and disadvantages of each decision that Myron could make.

3) Discuss the issue of marketing products that are legal but have addictive properties associated
with them.
1) Identify the social responsibility issues in this Scenario.

The social responsibility issues in this scenario are whether or not Producto International
(PI) should continue selling products that are addictive. Such as betel products because
“people who chew betel nuts and smoke are 90 times more likely to develop oral cancer
than nonusers”. Similar to the betel nut, PI wanted to sell a plant called Khat which is
typically chewed like tobacco, and produces a mild cocaine or amphetamine like euphoria.
The DEA in the United States, “Classified khat as a schedule IV substance” because it had
bad health effects. Thus, the apparent social issue is whether or not it is OK to sell a
product that is harmful to human health.

2) Discuss the advantages and disadvantages of each decision that Myron could make.

The advantages would be that Myron would financially benefit from moving and accepting the
promotion that David was offering him. Myron and his wife would triple their salary and would
be closer to family. Myron would also gain valuable experience in marketing the new product
into new markets that the company was expanding in. From a business perspective Myron would
gain a lot, however the products that he would be selling is not ethically right.
The disadvantage to deciding to go with the plan and continue marketing the products is the
products that are being sold affect the human body (those who use it) in negative ways. So, the
people will have to live with the notion that they are harming others by promoting the harmful
products. On top of that, if they decline the decision there is the possibility that they will lose
their jobs.

3) Discuss the issue of marketing products that are legal but have addictive properties
associated with them.

The issue with marketing products that are legal but have addictive properties is that these drugs can
eventually cause symptoms that were unforeseen. Not only will new symptoms constantly arise but it is
socially irresponsible to sell products that have damaging effects.