Isabel Arnett is CEO of Tamik, inc., a pharmaceutical company that manufactures a vaccine Called Kafluk, which supposedly provides some defense against bird flu. The company began marketing Kafluk throughout Asia. After numerous media reports that bird flu may soon become a worldwide epidemic, the demand for Kafluk increase, sales soared, and Tamik earned record profits. Tamilk’s CEO, Arnett, then began receiving disturbing reports from Southeast Asia that in some patients, Kafluk had caused psychiatric disturbances, including severe hallucinations, and heart and lung problems, Arnett was informed that six children in Japan had committed suicide by jumping out of windows after receiving the vaccine. To cover up the story and prevent negative publicity, Arnett instructed Tamik’s partners in Asia to offer cash to the Japanese families whose children had died in exchange for their silence. Arnett also refused to authorize additional research within the company to study the potential side effects of Kafluk.
1. This scenario illustrates one of the main reasons why ethical problems occur in business, what is that reason?
2. If Kafluk prevented 50 Asian people who were infected with bird flu from dying, would that change the ethical consideration in this scenario? Why or why not?
3. Would a person who adheres to the principle of rights consider it ethical for Arnett not to disclose potential safety concerns and to refuse to perform additional research on Kafluk? why or why not?
4. Did Tamik or Arnett violate the Foreign Corrupt Practices Act in this scenario? why or why not?