Business Ethics

Case Study-River Blindness

Assignment # 1
Submitted to: Mam Rabia Faisal
Date of Submission: 15th March 2021
Class: BBA-4G

Syed Afnan Ali 02-111192-334

Zain-ul-Abdin 02-111192-272
Muhammad Usama 02-111192-324
Muhammad Huzaifa Azhar 02-111192-101
Muhammad Fahad Imran 02-111192-076
Meharullah 02-111192-198
Q1) Given the fact that Merck is spending corporate resources to manufacture and
distribute Mectizan, is the Merck Mectizan Donation Program morally justifiable? Explain

Ans) Yes, it does make Merck Mectizan Donation Program morally justifiable. Being one of the
largest and reputable companies in the world, and with a large customer base, they didn’t think
about profit rather they used their corporate resources to finance the production of Mectizan.
They could have stopped the production of Mectizan when they got to know that neither
government nor WHO is going to fund the production of this medicine but they knew that saving
human lives were more important than gaining profit. Moreover, they also showed morality in
their core values where they were seen dedicated to satisfy customer’s needs and to maintain the
higher standards of ethics and integrity. Merck distributed Mectizan for free because they knew
that the people who were suffering from river blindness disease were mostly from third-world
countries, who couldn’t pay. And this is one of the biggest things a company can do for poor
people and humanity, both morally and ethically.

Q2) Would Friedman approve of the Merck Mectizan Donation Program? Explain.

Ans) No, Friedman would not have approved this Merck Mectizan Donation Program because
according to him, a company’s only responsibility is to maximize profits and earn as much
money as possible in legal and ethical ways. So, he would not have wanted Merck to distribute
Mectizan for free rather he would see this as an opportunity to make more money. This donation
program of Merck is itself an example of ‘Corporate Social Responsibility’ (CSR). And
Friedman would have wanted to get rid of corporate social responsibility but Merck knew the
importance of CSR and they showed that they really cared about humanity. And by doing so, this
would help them build a good image of their company and draw more customers in future.

Q3) Should the fact that Merck's values are clearly stated in corporate publications that
are widely available to investors make a difference to someone who accepts Friedman's
position? Explain

Ans) Merck’s values stated in corporate publications that are available to investors should make
a difference to someone who accepts Friedman’s position. Merck’s core values clearly state that
they are dedicated in improving human life and they also expect profits but only when they are
satisfying customer’s needs and benefitting humanity. This shows that they are conducting
business in a moral and ethical way. On the other hand, one who accepts Friedman’s position
might disagree with this because they would say that investors had only invested in business to
gain profits and it’s not the company’s obligation to distribute anything for free.
Q4) Should the Merck Mectizan Donation Program serve as a model for other
pharmaceutical companies who are in a unique position to facilitate the eradication of
other diseases in the developing nations? Explain.

Ans) Yes, Merck’s Donation Program should serve as a model for other pharmaceutical
companies who are in a position to eradicate the diseases in developing countries. Those
companies must see that how one of the biggest pharmaceutical companies went beyond their
self-interests (profits) to help developing countries fight against a major disease. Their primary
purpose must be to help eradicate diseases if they can and then, their secondary purpose must be
to gain profits. If there is a need to eradicate a disease, the companies must see that as an
opportunity to help people rather than seeing this as an opportunity to gain huge sums of money.
Besides this, manufacturing of expensive medicines would be of no use if people can’t afford
them. So like Merck, other pharmaceutical companies must also look to do something charitable.
And this would not only help them in gaining loyal customers in future but also help them in
building high standards and good image of the company.