One of the scientists working in the R & D laboratory of a major pharmaceutical company discovers that one of the company’s best selling veterinary drugs, B has the potential to cure a currently incurable liver disease that is prevalent in tribal areas. However, developing a variant of the drug suitable for human beings entailed a lot of research and development having a huge expenditure to the extent of ₹ 50 crores. It was unlikely that the company would recover the costs as the disease was rampant only in poverty-stricken area having very little market otherwise. If you were the CEO, then— (a) identify the various actions that you could take; (b) evaluate the pros and cons of each of your actions.
Subtopic: Case Study · corporate ethics and access to life-saving medicine
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- Central conflict: fiduciary duty to shareholders vs the moral duty to save lives (profit vs human life).
- Stakeholders: tribal patients (right to health), shareholders, employees/scientist, society, government.
- Refusing outright is ethically indefensible; developing unilaterally risks breaching fiduciary duty.
- Best-balanced option: public-private partnership sharing cost with government/ICMR, WHO and philanthropies.
- Use tiered/differential pricing and voluntary licensing (or PSU manufacture) to keep the drug affordable.
- Leverage mandatory CSR under Section 135, Companies Act 2013, to fund a neglected-disease cure.
- Kantian lens: treat patients as ends, not merely as an unprofitable market.